The Entrepreneur University of Brawijaya

TOTAL QUALITY MANAGEMENT

(TQM)

Prof. Dr. Ir. Sri Kumalaningsih, M.App.Sc

UNIVERSITAS BRAWIJAYA
MALANG
2013
 Definition of TQM

Total Quality Management (TQM) :

Managing the entire organization so that is excels in
all dimensions of products and services that are
important to the customer.

The key notions in this definition are :

1. That quality extends throughtout the organization in it
does.
2. That quality is ultimately defined by the costumer.
1.1 The Elements of Total Quality Management

TQM

Philosophical Element Tools of The

Costumer Driven Quality Generic Tools: QC Department
Standarts  SPC Tools :  SQC methods :
Supplier-customer links 1. Process flow charts 1. Sampling plans
Prevention orientation 2. Check sheets 2. Process capability
Quality at the source 3. Pareto analysis and histogram 3. Taguchi methods
Continuous improvement 4. Cause & effect (or fishbone diagram)
5. Run charts
6. Scatter diagrams
7. Control charts
 Quality Function Deployment

Figure 1. A Framework Summarizing The Important Elements of TQM

 1.2 Philosophical Element (1)

1. Costumer-Driven Quality Standarts

“Your product isn’t reliable unless the customer says it’s reliable” and “your service isn’t
fast unless the customer says it’s fast”.

The quality of the product = its design and the quality of its conformance to that
design.

Design quality refers to the inherent value of the product in marketplace and is thus a
strategic decision for the firm.

Conformance quality refers to the degree to which the product or service design
spesification are met.

One approach to getting the voice of the customer into design spsifications of a
product = Quality Function Deployment (QFD).

This process begins with studying and listening to customers to determine the
characteristics of a superior product.

Customer attribute information forms the basis for matrix = House of quality (QFD).
 Dimension of Design Quality
(Dimensi Perencanaan Mutu)

Table 1. The Dimensions of Design Quality

Dimension Meaning

1. Performance : Primary product or service characteristic.

2. Features : Addes touches, bells and whistles, secondary
characteristic.
3. Reliability : Consistency of performance over time.
4. Durability : Useful life.
5. Serviceability : Resolution of problems and complaints.
6. Response : Characteristic of the human-to-human interface
(timeliness, courtesy, professionalism, etc).
7. Esthetics Sensory characteristics (sound, feel, look, etc).
8. Reputation Past performance and other intangibles.
 1.2 Philosophical Element (2)

2. Supplier-Customer Links
The fact that everybody in an organization has a customer.

Such customers :
a) Internal; e.g., the next worker or next department in the production
process).
b) external (distributors, retailers, or end users).

3. Prevention Orientation
“DIRTFT (Do It Right The First Time) and “You can’t inspect-in quality”.

1. Zero Defects :
2. Cost of Quality (COQ)/ (Biaya Mutu) :
a) 15-20% from every sales
b) Reworking, Scrapping, Inspection, Test
c) The Basic Assumption
Three basic assumptions justify an analysis of the costs of
quality (COQ) :
1. That failures are cost
2. That prevention is cheaper.
3. That performance can be measured.

The costs of quality (CQD) are generally classified into three

types:
1. Appraisal cost
2. Prevention cost
3. Failure cost

Prevention Cost = Reduce Total Cost

 Table 2. Quality Cost Report (CQD)/ (Laporan Biaya Mutu)
Current month cost Percent of Total
Prevention costs
Quality training $ 2,000 1.3%
Reliablity Engineering 10,000 6.5
Pilot studies 5,000 3.3
Systems development 8,000 5.2
Total prevention 25,000 16.3
Appraisal costc
Materials inspection 6,000 3.9
Supplies inspection 3,000 2.0
Reliability testing 5,000 3.3
Laboratory 25,000 16.3
Total appraisal 39,000 25.5
Internal failure costs
Scrap 15,000 9.8
Repair 18,000 11.8
Rework 12,000 7.8
Downtime 6,000 3.9
Total internal failure 51,000 33.3
External failure costs
Warranty costs 14,000 9.2
Out of warranty repairs and replacement 6,000 3.9
Customer complains 3,000 2.0
Product liability 10,000 6.5
Transportation losses 5,000 3.3
Total external failure 38,000 24.9
Total quality costs $ 153,000 100.0
 1.2 Philosophical Element (3)

4. Quality at The Source

“Each workers is a quality inspector for his or her own work”.

This philosophy, as currently practised, extends beyond the

worker to include the work group, all departments, and to the
suppliers of parts and services to the organization.
Starts with top managements commitment to empower workers
to make quality decisions.

5. Continuous improvement
a) General meaning = on going effort to simply make improvements
in every part of the organization relative to all of its deliverables
to its customers.
b) Spesific meaning = focuses on continual improvement in the
quality of the processes by which is accomplished.
Figure 2. Complete House of Quality Matrix for Car Door
 1.3 Generic Tools

• The Generic Tools TQM = Statistical Process Control

(SPC) = The main tools of continuous process
improvement.

• Other tools (P-D-C-A) :

1. Plan
2. Do Cycle of continuous improvement.
3. Check
4. Act
A Brief Descriptions of Solving, not heavy–duty Statistics

Figure 3. SPC Tools Commonly Used for Problem Solving and Continuous Improvement
 1.4 Tools of The QC Department

Include :
1. Testing designs for their reliability in the lab and the field;
2. Gathering performance data on products in the field and resolving
quality problems in the field;
3. Planning and budgeting the QC program in the plant; and
4. Finally designing and overseeing quality control systems and
inspection procedures.

• Statistical Quality Control (SQC) :

“Subject SQC = acceptance sampling and process control” .

a) Acceptance sampling = testing a random sample of existing

goods and deciding whether to accept an entire lot based on the
quality of random sample.
b) Process control = testing a random sample of output from a
proces to determine whether the process is producting items
within a preselected range.
 1.5 Acceptance Sampling

1. Design of a Single Sampling Plan for Attributes

2. Operating Characteristic Curves
3. Shaping The QC Curve
4. The Effects of Lot Size

Figure 4. Operating Characteristic Curve of AQL = 0.02, α = 0.05, LTPD = 0.08, β = 0.10
Example:

• Food Industries manufactures Z band machine used to

detect speed flow of fruit juice.
• The printed circuit board in the scanners are purchased
from the out vendors, The vendors produces the board to
an acceptable quality level (AQL) of 2% percent and
willing to run a 5% risk (α) of this level.
• The Food Industries considers lot of 8% or more
defectives (LTPD) unacceptable and want to ensure that
it will accept such poor quality lots no more than 10% of
the time (ß). A large shipment had just been delivered.
What values of n and c should be selected to determine
the quality of this lot?
Solution :
The parameters of the problem are: AQL = 0.02, α = 0.05,
LTPD = 0.08, and ß = 0.10. We can use Table 3. to find c and then n.
c LTPD / AQL n . AQL
0 44.890 0.052
1 10.946 0.355
2 6.509 0.818
3 4.890 1.366
4 4.057 1.970
5 3.549 2.613
6 3.206 3.286
7 2.957 3.981
8 2.768 4.695
9 2.618 5.426

First devide LTPD by AQL (0.08 / 0.02 = 4). Then find the ratio in
column 2, that is equal to or just greater than that amount (i.e., 4). This
value is 4.057, which is associated with c = 4.
Finally, find the value in column 3 that is in the same row as c = 4,
and devide that quantity by AQL to obtain n (1.970 / 0.02 = 98.5).
The appropriate sampling plan is: c = 4, n = 99).
 1.6 Process Control Procedures

1. Process Control Using Attribute Measurements

2. Process Control with Variable Measurements Using X and R Charts

Figure 5. Control Chart Evidence for Investigation

3. Process Capability
 1.7 Taguchi Methods

Taguchi Methods by Genichi Taguchi (Japan), suggested :

1. Instead of constantly fiddling with production equipment to ensure
consistent quality.
2. Design the product to be robust enough to achieve high quality despite
fluctuations on the production line.

Basically:
Statistical techniques for conducting experiments to determine the best
combinations of product and process variables to make the product.
Best = Lowest cost with highest uniformity.

The idea has been employed by Ford Motor Company, ITT, and IBM. Resulted
“Saved millions of dollars in manufacturing”.

Taguchi also known for the development of the concept of a quality loss
function (QLF) to tie cost quality directly to variation in a process.
 1.8 Conclusion

1. Quality management = a strategic issue and hence should

not be approached as an off-the-shelf program devised by
others.

2. Quality must be integrated internally and externally.

3. Managers are paid to use new concepts, but more

importantly, to lead customization and integration of these
concepts into their organizations.
Thank You