Manajemen Mutu

Magister Teknik Perkapalan ITS

Semester Genap 2016/2017

James David Manuputty, Ir. MSc. PhD.

DR Ir. Heri Supomo MSc.

JADWAL PERKULIAHAN, Minggu ke:

1 sampai dengan 7 8: Evaluasi Tengah Semester (ETS)
9 sampai dengan 15 16: Evaluasi Akhir Semester (EAS)
 I-01

Tentang Pengajar
 I-02

Durasi S2, persiapan bahasa Inggris di JKT 1 tahun (IELTS), Kuliah di ITS 1 tahun,
Kuliah di NUT England 1 tahun. Estimasi Biaya kasar total 500 jt IDR

Durasi S3, persiapan bahasa Inggris di JKT 1 tahun (IELTS), Kuliah di ITS 1,5 tahun,
Kuliah di NUT England 1,5 tahun. Estimasi Biaya kasar total 600 jt IDR

Beasiswa STAID yang dikelola oleh BPPT Jakarta.

Biaya pendidikan terutama di LN sangat mahal.

Beberapa proyek simulasi yang diikuti antara lain Pengembangan Armada Tanker
Pertamina (Lab. Sea Trans. ITS), Optimasi Penjadwalan Sandar Kapal Pelindo 3
(Lab. Sea Trans ITS), Optimasi Penjadwalan Produksi DKN PAL (PPC DKN PAL).
 I-03

Tentang Mahasiswa
Nama
Tahun Kelulusan
Jurusan/disiplin ilmu/Fakultas
Nilai TOEFL/IELTS
Ketertarikan Bidang/Fokus
Bidang Pekerjaan/Perusahaan Tempat Bekerja
Latar Belakang mengikuti program S2 FTK ITS
Harapan setelah selesai mengikuti program S2 FTK ITS
 I-04

Ketua Kelas
Nama
Jurusan
WA group
Admin
 I-05

Sistem Penilaian (roughly)

Kehadiran (bobot 20%)

Keaktifan dan kontribusi (bobot 30%)
Penilaian terhadap Tugas, MidTest (ETS) dan Final Test (EAS), (bobot 50%)
 I-06

Kesepakatan - kesepakatan

Semua Konsultasi dan Pengumpulan TUGAS, (e-document) sebaiknya

melalui email kepada jamesdm59@yahoo.com

Konsultasi jika dikehendaki dapat dilakukan pada hari jadwal kuliah dan
diadakan sebelum atau setelah kuliah sesuai dengan kesepakatan

Bentuk Tugas: Diskusi dikelas, Home Work (softcopy), Tugas Kelompok

(softcopy), Open Book

Masing masing mahasiswa disarankan memiliki setidaknya sebuah

Flashdisk minimum 4GB untuk kepentingan matakuliah ini.
 I-07

Gambaran Tugas
Pembentukan Kelompok (kelas terbagi menjadi 2 kelompok yaitu: Kelompok Jalur DOSEN
dan Kelompok Jalur NONDOSEN). Diminta setiap kelompok memilih atau mengajukan
SATU SISTEM/PERUSAHAAN yang menjadi konsentrasi kelompok (untuk dipresentasikan
dalam format powerpoint pada jadwal kuliah ke4)

Minggu ke 6: Mahasiswa diharapkan dapat mampu menyelesaikan kasus atau soalsoal

terkait dengan materi yang sudah dipelajari di pertemuan I s/d IV. Secara tertulis atau
TUGAS.

Minggu ke 8 : ETS

Minggu ke 11 : Mahasiswa mampu menjelaskan peranan terbesar simulasi dalam

mengatasi masalah dunia

Minggu ke 16 : EAS
 I-1
PENDAHULUAN
 Galangan Kapal
I-2
sebagai suatu Made-to-Order Industry

Target yang menjadi orientasi Galangan Kapal adalah

tercapainya QCD yang direncanakan.

QCD adalah QUALITY, COST and DELIVERY TIME

Dengan pengelolaan perusahaan yang baik diharapkan

perusahaan dapat mencapai PROFIT sehiingga perusahaan
dapat bertahan dan berkembang ditengah kompetisi yang ada

Proses yang terjadi didalam BISNIS MODEL sebuah

perusahaan terdapat pada slide berikut.
Sebuah SISTEM dapat digambarkan sebagai sekumpulan entity yang saling berinteraksi satu dengan yang lain,
didalam suatu batasan (boundary) tertentu , untuk menghasilkan pola utama behaviour (BENNET 95). Boundary
diperlukan untuk memisahkan sistem yang sedang dikaji dari sistem yang berada diluar garis batas. Ini bermanfaat
untuk mengkaji behaviour dari sistem within reasonable limits.

123
 I-3
Ilustrasi model bisnis
 I-4

Model aktifitas
Kebijakan, Batasan, Target
Kebijakan, Batasan, Target

Input Aktivitas atau Proses Output PELANGGAN Output

(PENGGUNA output
Input ANDA)

Sumber Daya
Sumber Daya
 I-5

Detail model aktifitas

Sesuai dgn Tingkatan Organisasi Target Waktu Penyerahan
Sesuai dengan Fungsi Organisasi Target Produktivitas,
Budget Biaya, Target Kualitas
Target Performansi

Kualitas Perencanaan

Kualitas Informasi, Jumlah Produk

Waktu Penyerahan,
Aktivitas atau Proses Kualitas Produk
Kualitas Material,
Waktu Penyerahan Waktu penyerahan

Kualitas Komponen/Part, Waste/Buangan

Waktu Penyerahan

SUMBER DAYA:
Jumlah Pelaksana,
Mesin, Peralatan, Perkakas, Training,
Lingkungan
 1-6
SITUASI INTERNAL MANAJEMEN GALANGAN KAPAL

Situasi Kompetisi bisnis dan untuk dapat tetap eksis

Peningkatan Daya Saing dengan mengadakan Analisa Kinerja dan Continuous

Improvement serta trade-off antara INPUT dan OUTPUT (definisi
produktifitas adalah output yang dihasilan dengan menggunakan input
tertentu) sehingga terjadi peningkatan effisensi. Untuk itu diperlukan
pengoptimalan pemakaian investasi.

Dalam proses industri diperlukan peningkatan produktifitas sekaligus

penurunan biaya produksi.

Umumnya corporate planning dalam menentukan target perusahan yang

harus dicapai menyebabkan terjadinya situasi yang kurang harmoni dengan
tactical planning yang mempunyai pandangan lebih taktis (narrow)

GAP diatas membutuhkan suatu pemodelan tertentu agar dapat dilakukan

simulasi (what-if-analysis) sebagai masukan bagi proses planning dan
keputusan manajemen perusahaan. 1
 Contoh pencapaian suatu galangan kapal kelas dunia,
I-7
MITSUI MES Jepang

Organisasi *
Laporan Keuangan *

123
 Kuliah ke-1 I-8

1. Konsep, Prinsip dan Filosofi TQM

2. Faktorfaktor penyebab kegagalan TQM

Referensi:
Semua buku, paper atau artikel termasuk di internet tentang TQM.
Seperti tetapi tidak terbatas pada:

1. Beyond TQM The Emerging Paradigm by Greg Bounds,Lyle Yorks,Mel Adams, Gipsie Ranney 1994
2. TQM for Sales and Marketing Management by James W. Cortoda 1993
3. Manejemen Mutu Total 2002 by David L. Goetsch
4. Total Quality Managemen 2001 by Fandy Tjiptono dan Anastasia Diana
5. Kaizen 1992 by Masaki Imai
6. Beberapa artikel dari Majalah/koran, dsb
Total Quality Management
This chapter explains the concepts,
principles, and philosophy of total quality
management.
Total Quality Management
The way of managing organization to achieve
excellence
Total everything
Quality degree of excellence
Management art, act or way of organizing,
controlling, planning, directing to achieve
certain goals
Definition of TQM (BS4778:1991)
A management philosophy embracing all
activities through which the needs and
expectations of the CUSTOMER and
COMMUNITY, and the objectives of the
organization are satisfied in the most efficient
and cost effective manner by maximising the
potential of ALL employees in a continuing
drive for improvement.
Total Quality Management
Quality element Previous state TQM
Definition Product-oriented Customer-oriented
Priorities Second to service and First among equals of
cost service and cost
Decisions Short-term Long-term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem solving Managers Teams
Procurement Price Life-cycle costs
Managers role Plan, assign, control, Delegate, coach,
and enforce facilitate, and mentor
Total Quality Management
Requires cultural change prevention not
detection, pro-active versus fire-fighting, life-
cycle costs not price, etc
Many companies will not start this
transformation unless faced with
disaster/problems or forced by customers
Effect of Quality Improvement

Improve Quality (Product/Service)

Increase Productivity (less rejects, faster job)

Lower Costs and Higher Profit

Business Growth, Competitive, Jobs, Investment

Increase in productivity with improved quality

Before Improvement After improvement

Item 10% 5% nonconforming
nonconforming
Relative total costs of 20 units 1.00 1.00

Conforming units 18 19
Relative cost of non-conforming 0.10 0.05
units
Productivity increase 1/18(100)=5.6%
Capacity increase 1/18(100)=5.6%
Profit increase 1/18(100)=5.6%
 TQM

Principles & Tools &

Practices Techniques

Leadership Quantitative Non-quantitative

Customer
satisfaction SPC ISO 9000

Acceptance
Employee Sampling ISO 14000
improvement

Reliability Benchmarking
Continuous
improvement
Experimental Total
design productive
maintenance
Supplier
partnership Management
FMEA
tools

Performance
measures QFD Concurrent
engineering

Scope of the TQM activity

TQM Six Basic Concepts
1. Leadership
2. Customer Satisfaction
3. Employee Involvement
4. Continuous Process Improvement
5. Supplier Partnership
6. Performance Measures
(All these present an excellent way to run
a business)
Criteria 1
Leadership

Top management must realize importance of

quality
Quality is responsibility of everybody, but
ultimate responsibility is CEO
Involvement and commitment to CQI
Quality excellence becomes part of business
strategy
Lead in the implementation process
Characteristics of Successful Leaders
1. Give attention to external and internal customers
2. Empower, not control subordinates. Provide resources,
training, and work environment to help them do their jobs
3. Emphasize improvement rather than maintenance
4. Emphasize prevention
5. Encourage collaboration rather than competition
6. Train and coach, not direct and supervise
7. Learn from problems opportunity for improvement
8. Continually try to improve communications
9. Continually demonstrate commitment to quality
10. Choose suppliers on the basis of quality, not price
11. Establish organisational systems that supports quality efforts
Implementation Process
Must begin from top management, most important
CEO commitment
Cannot be delegated (indifference, lack of involvement
cited as principle reason for failure)
Top/senior management must be educated on TQM
philosophy and concepts, also visit successful
companies, read books, articles, attend seminars
Timing of implementation is the org ready, re-
organization, change in senior personnel, current crisis
then need to postpone to favourable time
Need a roadmap/framework for implementation
Formation of Quality Council policies, strategies,
programmes
Implementation Process
Quality council job
1. Develop core values, vision statement, mission statement, and
quality policy statement
2. Develop strategic long-term plan with goals and annual quality
improvement program with objectives
3. Create total education and training plan
4. Determine and continually monitor cost of poor quality
5. Determine performance measures for the organization, approve
them for functional areas, and monitor them.
6. Continually determine projects that improve processes, particularly
those affect external and internal customer satisfaction
7. Establish multifunctional project and departmental or work group
teams and monitor progress
8. Establish or revise the recognition and reward system to account
new way of doing business. Must begin from top management, most
important CEO commitment
Implementation Process
Core values
- foster TQM behaviour and define the culture
- need to develop own values
Examples from Malcolm Baldrige National Quality Award
1. Customer-driven excellence
2. Visionary leadership
3. Organizational and personal learning
4. Valuing employees and partners
5. Agility
6. Management for innovation
7. Management by fact
8. Systems perspective
9. Social responsibility
10. Focus results and creating value
Criteria 2
Customer Satisfaction
Customer is always right in Japan customer is King
Customer expectations constantly changing 10 years
ago acceptable, now not any more!
Delighting customers (Kano Model)
Satisfaction is a function of total experience with
organization
Must give customers a quality product or service,
reasonable price, on-time delivery, and outstanding
service
Need to continually examine the quality systems and
practices to be responsive to ever changing needs,
requirements and expectations Retain and Win new
customers
Issues for customer satisfaction

Checklist for both internal and external customers

1. Who are my customers?

2. What do they need?

3. What are their measures and expectations?

4. Does my product/service exceed their

expectations?
5. How do I satisfy their needs?

6. What corrective action is necessary?

Customer Feedback

To focus on customer, an effective

feedback program is necessary, objectives
of program are to:
1. Discover customer dissatisfaction
2. Discover priorities of quality, price, delivery
3. Compare performance with competitors
4. Identify customers needs
5. Determine opportunities for improvement
Customer Feedback Tools/Method
Warranty cards/Questionnaire
Telephone/Mail Surveys
Focus Groups
Customer Complaints
Customer Satisfaction Index

Good experience are told to 6 people while bad

experience are repeated to 15 people
Criteria 3
Employee Involvement
People most important resource/asset
Quality comes from people
Deming 15% operator errors, 85%
management system
Project teams Quality Control Circles (QCC),
QIT
Education and training life long, continuous
both knowledge and skills
Suggestion schemes; Kaizen, 5S teams
Motivational programmes, incentive schemes
Conducive work culture, right attitude,
commitment
Criteria 4
Continuous Process Improvement
View all work as process production and
business
Process purchasing, design, invoicing, etc.
Inputs PROCESS outputs
Process improvement increased customer
satisfaction
Improvement 5 ways; Reduce resources,
Reduce errors, Meet expectations of
downstream customers, Make process safer,
make process more satisfying to the person
doing
Continuous Improvement
Inputs processing outputs
feedback

Process Outputs
Work methods Products
Input
Procedures
Materials Delivered service
Tools
Info, Data In-process jobs
Production Cutting,
People Welding, etc. forms signed,
drawing completed
Money Bank
deposit/withdrawal Others
process,
Kad Pintar Application Also by-products,
Process at NRD wastes

Conditions
Problem Solving Method
Identify the opportunity (for improvement)
Analyze the current process
Develop the optimal solution(s)
Implement changes
Study the results
Standardize the solution
Plan for the future
Identify the opportunity (for
improvement)

Phase 1 Identify problems

Use Pareto Analysis external & internal
failures, returns
Phase 2 Form a team (same function of
multifunctional)
Phase 3 Define scope of problem (Paint
process data collected for a week
showed high 30% runs defect)
Pareto Diagram Example
BH Model Ink Cartridges Defects from (January till August 05')

Quantity (units) Cumulative %

25000 100

90

20000 80

70

15000 60

50

10000 40

30

5000 20

10

0 0
Seal tape Ink stain Air > 0.5mm Seal tape Arrow tape Seal tape Ng Foreign Cartridge Leakage Ink in air Ink not insert Ink over flow Overw elding Dirty Slanting Others
w rinkle missing Ng material drop room in case
Types of Defects
Process Flow Chart Ink filling process
1 Ink case

Ink supply
Degasification tank Vacuum pressure inside ink case
BK/C/Y/M 1
(-550mmHg or lower)
2

2 Ink filling process

3
Seal tape
3 Welding on adapter/ air holes

4 Press for proper sealing

5 Excess seal tape cutting

Completed

Inspection for leaking

1 Ink weight checking
(sampling)

7 Effective date printing

8 Vacuum packing

Ink leakage check

2
(after 48 hours)

Ink cartridge
assembly
Analyze the current process

Understand the current process, how it is

performed
Develop process flow diagram
Define target performance
Collect data, information
Determine causes not solution (use cause
and effect diagram)
Root cause if possible
 PROCESS MAPPING
Project Title: Reduce Seal Tape Wrinkle Defect To Increase Sigma
Model: BH Model Ink Cartridges
Process: Ink Filling
No Input Processes Output
1 Ink case ( INCOMING ) PROCESS #1
~ Pressure inside ink case Vacuum pressure inside ink case to ~ Vacuum pressure under control
~ Jig & clamping conditions (-550mmHg or lower) ( Pressure gauge)
~ Loading & handling method ~ No misallignment
~ Machine condition
~ Pallet accuracy
2 Ink case ( AFTER #1) PROCESS #2
~ Parts after #1 process Ink filling process ~ No overflow of ink
~ Jig & clamping condition ~ Adequate volume of ink
~ Machine condition ( Selfeeder ) ~ Electronic Scale (M3-31-010) ok
~ Ink filling head condition
~ Ink filling volume
3 Ink case ( AFTER #2) PROCESS #3
~ Part after #2 process Seal tape welding on adapter/ air holes ~ Every line: 21510C
~ Jig & clamping conditions ~ No misallignment
~ Loading & handling method
~ Machine condition ( Selfeeder )
~ Temperatue of seal tape heater
4 Ink case ( AFTER #3 ) PROCESS #4
~ Part after #2 process Press for proper sealing ~ Proper sealing
~ Jig & clamping conditions ~ No misallignment
~ Spring counterbalance
~ Machine condition
~ Seal plate allignment
5 Ink case ( AFTER #4) PROCESS #5
~ Parts after #3 process Excess seal tape cutting ~ No dented / scratches/ overcut
~ Jig & clamping condition ~ No left over burr
~ Loading & handling method
~ Machine condition ( Selfeeder )
~ Cutter condition
Affinity diagram Example

Issues in solving seal tape wrinkle problem

Lack of Mach in e Peop le

knowledge
Lack of follow-up
No experienced Untrained for by management
technical experts this machine

No time to focus on it
Doesnt understand Old machine
the problem
Bad maintenance No ongoing group to
Dun have the math focus on this
skills for this problem
Temporary
countermeasures Short term planning
Will probably fail
mentality
just like most of
the improvement
Plan to solve
done earlier
problem before
problem clearly
defined
Develop the optimal solution(s)
To establish solutions
Recommended optimal solution to improve process
Create new process, combine different process,
modify existing process
Creativity (rubber pad adhesive, door trim)
Brainstorming, Delphi, Nominal Group Technique
Evaluate and testing of ideas/possible solutions
Implement changes
To prepare implementation plan, obtain approval,
conduct process improvements, study results
Why is it done? How, When, Who, When it will be
done?
 BEFORE AFTER

O ld N ew

1) Old pallette made of nylon material 1) Aluminium material pallette

2) Part slot gap is 13mm 2) Part slot gap is 12.5mm
3) Misalignment of ink cartridge during ink filling process 3) Reduce movement of ink cartridge during ink filling process.
4) Cost of palette: RM 200/palette 4) Cost of palette: RM 200/palette
Effects of Improvement

Monthly Defect Ratio for BH CLR Model Seal Tape Wrinkle Issue
Old palettes (nylon)
1.40% New improved palettes
1.20% (aluminium palettes)
Defect Ratio (%)

1.00% 0.74% Improvement

0.80%
0.60%
0.40%
0.20%
0.00%
Nov Dec
Month
Study the results/Standardize the
solution/Plan for the future

Measure and evaluate results of changes

Standardize solution certify process, operator,
done?
Next project/problem areas
Positron Control Wave Soldering Process
What Specs Who How Where When
A 880 0.864 g Lab Specific Lab Daily
Flux 0.008 technician gravity
Criteria 5
Supplier Partnership
40% product cost comes from purchased
materials, therefore Supplier Quality
Management important
Substantial portion quality problems from
suppliers
Need partnership to achieve quality
improvement long-term purchase contract
Supplier Management activities
 Criteria 5
Supplier Partnership

Define product/program requirements;

1. Evaluate potential and select the best suppliers
2. Conduct joint quality planning and execution
3. Require statistical evidence of quality
4. Certify suppliers, e.g. ISO 900, Ford Q1
5. Develop and apply Supplier Quality Ratings
Defects/Percent non-conforming
Price and Quality costs
Delivery and Service
Criteria 6
Performance Measures
Managing by fact rather than gut feelings
Effective management requires measuring
Use a baseline, to identify potential projects, to
asses results from improvement
E.g. Production measures defects per million,
inventory turns, on-time delivery
Service billing errors, sales, activity times
Customer Satisfaction
Methods for measuring
Cost of poor quality
Internal failure
External failure
Prevention costs
Appraisal costs
Performance Measures
Award Models (MBNQA, EFQM, PMQA)
Benchmarking grade to competitors,
or best practice
Statistical measures control charts,
Cpk
Certifications
ISO 9000:2000 Quality Mgt System
ISO 14000 Environmental Mgt System,
Underwriters Lab (UL), GMP
QS 9000, ISO/TS 16949
Demings 14 Points for Management
1. Create constancy of purpose towards
improvement of product and service with aim
to be competitive, stay in business and
provide jobs.
2. Adopt a new philosophy new economic
age, learn responsibilities and take on
leadership for future change.
3. Cease dependence on inspection to achieve
quality. Eliminate the need for inspection on a
mass basis by building quality into product in
the first palace.
Demings 14 Points for Management
4. End the practice of awarding business on the
basis of price, instead, minimize total costs.
5. Improve constantly and forever the system of
production and service, to improve quality and
productivity, thus decreasing costs.
6. Institute training on the job
7. Institute leadership, supervision to help do a
better job.
8. Drive out fear, everyone can work effectively for
company.
Demings 14 Points for Management
9. Breakdown barriers between departments.
Work as teams to foresee production problems.
10. Eliminate slogans, exhortations, and targets for
workforce.
11. Eliminate numerical quotas on the workforce.
12. Remove barriers that rob people pride of
workmanship.
13. Institute a vigorous program of education and
self-improvement.
14. Put everybody to work to accomplish the
transformation.
Old Quality vs. New Quality
Difference between old quality (Rolls Royce,
personal banker, ...) and new quality is that old
was the work of craftsmen and the new is the work
of a system (Toyota, Big Mac, Boeing Aircraft,
Disney World, ...). The old is expensive, made for
the few, using skilled hands, is beautiful and
functionally based. The new reduces cost, made
for the many by intelligent minds and should drive
the economy and make business more
competitive.
Why care about quality
increase productivity

expand market share

raise customer loyalty

enhance competitiveness of the firm

at a minimum, serve as a price of entry

Achieving high quality Is
Difficult

Only 36% of the firms felt that Total Quality programs boosted
their ability to compete.
Arthur D. Little Survey of 500 Firms

Over 50% of firms rated their efforts D or F relative to increasing

customer satisfaction, increasing market share, or reducing their
cost.
Rath and Strong

Main Problem: Achieving high quality is as easy to understand

as losing weight and quitting smoking and is as difficult to do.

Steve Schwartz, IBM MDQ VP

Why Quality is so difficult to do?

Quality can only be defined in terms of an

agent (a judge of quality).
One has to translate future needs of the
user into measurable characteristics
Service Industries are
particularly Difficult
Reasons:
High volume of transaction
Immediate consumption
Difficult to measure and control
More labor intensive
High degree of customization required
Image is a quality characteristic
Behavior is a quality characteristic
Quality Gurus

Deming: The father of the quality

movement. Scientific approach to quality
Juran: Quality by design
Crosby: Quality is free
Demings Seven
Deadly Diseases
Lack of Constancy of purpose
Emphasis on short term profits
Evaluation of performance, merit rating or annual
review of performance
Mobility of management
Running the company on visible figures alone
Excessive medical costs
Excessive costs of warranty fueled by lawyers that
work on contingency fees
What is TQM??

The essence of Total Quality Management is

a common sense dedication to
understanding what the customer wants and
then using people and science to set up
systems to deliver products and services
that delight the customer.
Greg Hughes
President
AT&T Transmission Systems
Basic Concepts of TQM
Customer Focus

Continuous Process Improvement - Kaizen

Employee Empowerment Everyone is responsible for

quality

Quality is free - focus on defect prevention rather than

defect detection for it is always cheaper to do it right the
first time

Benchmarking Legally stealing other peoples ideas

Customer-Supplier Partnerships

Management by fact..by numbers..by data

(financial, customer, process, learning)
Quality in U.S. vs. the Japanese

U.S. conforming to the requirements at

the least cost
Japanese joint responsibility to make
the end customer happy

69
Strength of USA vs. Japan

Concept

Good Innovative Ideas Good Implementation

Strength of USA Mfg Strength of Japanese Mfg

KAIZEN

Time
Good Ideas, Good Implementation are the goals of
everyone in the automotive industry
70
Seven Basic Quality Tools To
improve Process Quality
Scatter Diagrams: Plot data on a chart no attempt is
made to classify the data or massage it
Pareto Charts: Organize data on a histogram based
on frequency from most prevalent to least. Help
identify major causes or occurrences (80:20 rule)
Check Sheets: Easy way to count frequency of
occurrence by front line workers
Histograms: Categorize data is cells and plot (see if
any patterns emerge)
Run Charts: Plot data as a function of time
Cause and effects Charts: fishbone diagrams are
used to identify the root causes of a problem
Control Charts: are statistical tools used to determine
if the variation in results is caused by common or
special events
Failures in O-rings
Graph Fit of O-ring failures
Full O-ring data including no
failures
T RUN CHART
R
A
N
S
A
C
T
I
O
N

T
I
M
E Time of Day
Data Collected
From Check Sheet
Time Range (in Frequency
secs) 1
44-50 4
51-57 17
58-64 12
65-71 14
72-78 19
79-85 18
86-92 11
93-99 3
100-106 1
107-113
A Histogram
89 18
96 11
20 103 3
47
110 1
18
54

16
61
14
68
12
75
10
82
8
89
6

96
4

2 103

0 110
47 54 61 68 75 82 89 96 103 110
Be careful of Cell Size
47 1 50
35 54 4 64
30 61 17 78
25 68 12
20 5092
75 14 106
15 64
10 82 19
78
5 89 18
0 96 11 92
50
103 64 78 923 106 106
110 1
Pareto Chart (80-20 Rule)
47 1
90 54 4 120%
80 61 17
100%
70 68 12
60 75 14 80%
50
82 19 60%
40 Series2
89 18
30 40% Series1
20 96 11
103 3 20%
10
0 110 1 0%
1 2 3 4 5 6 7
85

Further info on Pareto Charts

Pareto Diagrams
Purpose:
helps organize data to show major factors
displays data in the order of importance
organize based on fact rather than perception
To construct:
use data from a check sheet or similar instrument
analyze data to determine frequency
identify the vital few
calculate percentages
add percentages to find vital few (80%)
draw cumulative curve
Typical Application:
display relative importance of different factors
choose starting point for problem solving
monitor success
identify basic cause of a problem
use a selling tool to gain support
 Teller Processes
Sequence
of activities
Fatigue
Too
Training many
steps
Control
Attitude functions

Processing
Delays
Too much
downtime

Not user
Slow friendly
response
time

Fishbone Diagram aka

Computers
Cause & Effect Diagram
 Cause and Effect Diagram
Fishbone Diagram
Purpose:
visual display of information to identify root causes rather than
symptoms.
To construct:
determine the issue and write problem statement in a box to the right
of diagram
find the main causes and write them on branches flowing to the main
branch (method, equipment, people, material, environment, customer
expectations, money, management, govt. regulations)
identify all possible causes and write them on the diagram as sub-
causes in each category
Typical Application:
determine the real cause of the problem
check the potential effects of a solution

Fishbone Diagrams Explained

5 Whys problem solving technique
Mizenboushi and GD3 Concepts
Robust Design
- keep Good Designs
Good - minimize change
Design
Prevent Problems Find Problems
GD3

Good Good
Discussion Dissection
DRBFM DRBTR
Address any potential issues up stream at Design 83

Phase
Quality Focus At the Design Stage

Quality from the start

Directs attention to Change
Change = potential to have problems
Directs attention to Interfaces
Most defects occur at the interface

Focus on
Change Points & Interface Points
84
 No change No Problem

Examples:
Design change
Packaging environment
change
Usage environment
change
New manufacturing
process
New supplier

Change Points have the highest potential

to introduce defects 85
DRBFM Example

Tire Pressure Monitoring System

Changing the sensor from Aluminum Valve to Rubber Valve.

Purely for cost reduction purposes... System Performance is the same.

Simple change What could go wrong?

86
Interfaces
Interfaces (Interfaces where issues can brew
and surface later)
Customer to Supplier
Department to Department
System Interfaces

The Crash sensor failure on Honda

Minivans
Interface Points have the highest potential
to introduce defects 87
 Design Review By Failure Modes
(DRBFM)
Basic Concepts
Before and After Description of the Change
Point
Describe the Potential failure modes
Describe the Design Countermeasures
Target Testing of the change points and
Countermeasures Only

Design techniques to uncover defects at

the design stage Up stream
Design Verify/Validate Design

Changes

Test Result (Change in product

due to test: Cracks,Leaks, etc.)

Focus on Implementation
89
Where do failures occur

Design Phase (Suppliers are Up Stream)

Production
In the field

Where is it cheapest to detect failures?

Example:
Replacing a four crash sensors by a single one ..
When Failures Occur!
Why did the failure happen?
Symptoms vs. Root Causes
Root Causes (Investigate the whole chain):
Suppliers/Component failure
Design
Manufacturing
Change management
Why were not able to detect it?
Rootcause Analysis:
Why Occurred?
Why Not Detected? 91
 Failure Detection 5Ws-2Hs
Who
Where
When
What
Why
How was the problem found?
How can we isolate it? Turn On / Turn Off

Rootcause Analysis Methodology

Failure Isolation KT Analysis: Is - Is
Not
Why is this design and not the other similar design
Why this plant and not another plant
Why this operator and not the other operator
Why in winter and not in the summer
Why this computer and not the other computer
Why in this model and not in other models

Rootcause Analysis Methodology

Finding the root causes of a problem is not Fault
Finding/Criticism.
To find problems is not fault finding/criticism.

To find problems is a creative act, same as innovation.

We should never stop at only finding problems, but also

develop a systemic corrective action plan... FIX THE
PROCESS that created the problem & identify detection
algorithms

We never forget that every job should relate directly to

improving a product. Other jobs are nothing but waste,
e.g., only to check, to inspect, etc.

Everyone should readily accept help from review 94

participants.
 Summary - Concepts
Quality all the time by everyone from an end user
prospective

Address issues up stream. Address product and

process defects at the design stage

Fixing problems usually involves fixing the systemic

process issues that caused the problem
Reoccurrence Prevention

Focus on Implementation

Focus on Change Points and Interfaces

Chapter 5 - Total Quality
Management

Operations Management
by
R. Dan Reid & Nada R. Sanders
2nd Edition Wiley 2005

PowerPoint Presentation by R.B. Clough - UNH

2005 Wiley 96
Competing on Quality?
High performance design:
Superior features, high durability, & excellent customer
service

Product & service consistency:

Meets design specifications
Close tolerances
Error free delivery

2005 Wiley 97
Defining Quality 5 Ways
Conformance to specifications
Does product/service meet targets and tolerances defined by
designers?
Fitness for use
Evaluates performance for intended use
Value for price paid
Evaluation of usefulness vs. price paid
Support services
Quality of support after sale
Psychological
e.g. Ambiance, prestige, friendly staff

2005 Wiley 98
Manufacturing Quality vs.
Service Quality
Manufacturing quality focuses on
tangible product features
Conformance, performance, reliability, features,
durability, serviceability
Service organizations produce intangible
products that must be experienced
Quality often defined by perceptional factors like
responsiveness, courtesy, friendliness,
promptness, waiting time, consistency
2005 Wiley 99
Cost of Quality

Early detection/prevention is less costly

May be less by a factor of 10

2005 Wiley 100

What is TQM?
Meeting quality expectations as defined
by the customer

Integrated organizational effort

designed to improve quality of
processes at every business level

2005 Wiley 101

Evolution of TQM New Focus

2005 Wiley 102

TQM Philosophy Whats Different?
Focus on Customer
Identify and meet customer needs
Stay tuned to changing needs, e.g. fashion styles
Continuous Improvement
Continuous learning and problem solving, e.g.
Kaizen, 6 sigma
Quality at the Source
Prevention & problem solving vs. inspection
Employee Empowerment
Empower all employees; external and internal
customers
2005 Wiley 103
TQM Philosophy Whats Different?
(continued)
Understanding Quality Tools
Ongoing training on analysis, assessment, and
correction, & implementation tools
Team Approach
Teams formed around processes 8 to 10 people
Meet weekly to analyze and solve problems
Benchmarking
Studying practices at best in class companies
Managing Supplier Quality
Certifying suppliers vs. receiving inspection
2005 Wiley 104
Ways of Improving Quality
Plan-Do-Study-Act Cycle (PDSA)
Also called the Deming Wheel after
originator
Circular, never ending problem solving
process
Seven Tools of Quality Control
Tools typically taught to problem solving
teams

2005 Wiley 105

PDSA Details
Plan
Evaluate current process
Collect procedures, data, identify problems
Develop an improvement plan, performance
objectives
Do
Implement the plan trial basis
Study
Collect data and evaluate against objectives
Act
Communicate the results from trial
If successful, implement new process
2005 Wiley 106
PDSA (continued)

Cycle is repeated
After act phase, start planning and repeat process

2005 Wiley 107

Seven Problem Solving Tools
Cause-and-Effect Diagrams
Flowcharts
Checklists
Control Charts
Scatter Diagrams
Pareto Analysis
Histograms
2005 Wiley 108
Cause-and-Effect Diagrams
Called Fishbone Diagram
Focused on identifying the causes of quality problem

2005 Wiley 109

Example: Delayed Flight
Departures
Equipment Personnel

Gate agents cannot process passengers quickly enough

Too few agents
Aircraft late to gate Agents undertrained
Late arrival Agents undermotivated
Gate occupied Agents arrive at gate late
Other Mechanical failures Late cabin cleaners
late pushback tug Late or unavailable cabin crews
Weather
Air traffic late or unavailable cockpit crews
Delayed
Flight
poor announcement of departures Departures
weight an balance sheet late

Delayed checkin procedure

Late baggage to aircraft Confused seat selection
Late fuel Passengers bypass checkin counter
Late food service Checking oversize baggage
Issuance of boarding pass

Acceptance of late passengers

cutoff too close to departure time
Desire to protect late passengers
Material Desire to help companys income
Poor gate locations

Procedure
2005 Wiley 110
Flowcharts
Used to document the detailed steps in a
process
Often the first step in Process Re-Engineering

2005 Wiley 111

Example: Process at
Departure Gate
Passenger
Arrives

Ticket No Wait for

For Flight Appropriate
Flight

Yes

Check Yes Excess

Luggage Carry-on

No

Issue
Boarding Pass

Passenger
Boards Airplane
2005 Wiley 112
 Checklist
Simple data check-off sheet designed to
identify type of quality problems at each work
station; per shift, per machine, per operator

2005 Wiley 113

Control Charts
Important tool used in Statistical Process
Control Chapter 6
The UCL and LCL are calculated limits used to
show when process is in or out of control

2005 Wiley 114

Scatter Diagrams
A graph that shows how two variables are
related to one another
Data can be used in a regression analysis to
establish equation for the relationship

2005 Wiley 115

Pareto Analysis
Technique that displays the degree of importance for each
element
Named after the 19th century Italian economist
Often called the 80-20 Rule
Principle is that quality problems are the result of only a few
problems e.g. 80% of the problems caused by 20% of causes

2005 Wiley 116

Histograms
A chart that shows the frequency distribution of
observed values of a variable like service time
at a bank drive-up window

Displays whether the distribution is symmetrical

(normal) or skewed

2005 Wiley 117

 Quality Awards and Standards
Malcolm Baldrige National Quality
Award
The Deming Prize
ISO 9000 Certification
ISO 14000 Standards

2005 Wiley 118

MBNQA- What Is It?
Award named after the former Secretary of
Commerce Regan Administration
Intended to reward and stimulate quality
initiatives
Given to no more that two companies in each
of three categories; manufacturing, service,
and small business
Past winners; FedEx, 3M, IBM, Ritz-Carlton
Typical winners have scored around 700
points
2005 Wiley 119
The Deming Prize
Given by the Union of Japanese Scientists and
Engineers since 1951
Named after W. Edwards Deming who worked
to improve Japanese quality after WWII
Not open to foreign companies until 1984
Florida P & L was first US company winner

2005 Wiley 120

ISO Standards
ISO 9000 Standards:
Certification developed by International
Organization for Standardization
Set of internationally recognized quality standards
Companies are periodically audited & certified
ISO 9000:2000 QMS Fundamentals and
Standards
ISO 9001:2000 QMS Requirements
ISO 9004:2000 QMS - Guidelines for Performance
More than 40,000 companies have been certified
ISO 14000:
Focuses on a companys environmental
2005 Wiley responsibility 121
Why TQM Efforts Fail
Lack of a genuine quality culture

Lack of top management support and

commitment

Over- and under-reliance on SPC

methods

2005 Wiley 122

 TERIMA KASIH
the end of today