TOTAL QUALITY

MANAGEMENT
PT. PUTRA SURYA COATING
TABLE OF CONTENT
I. Company Background...................................... 3
Company History
Our Bussiness
II. Problem............................................................ 9
General Problem
Specific Problem In Company

III. Benchmarking ................................................. 15

IV. TQM Application ............................................ 19

Problem Analysis

V. Conclusion ...................................................... 25
COMPANY
BACKGROUND
Company History
PT. Putra Surya Coating is one of the leading paint and coating manufacturing companies in
Indonesia. Established in 1996, we are committed to producing innovative and high quality
products. Starting from a company focused on industrial paints for exporters of wood furniture,
shipping and maritime industries, national property projects, and other industries, PT. Putra Surya
Coating has developed into a corporation equipped with modern equipment with more than 200
employees.

Growing from our main business, industrial paint, PT. Putra Surya Coating. also started to
producing and marketing the decorative paint. We see the Indonesian population is booming and
decided to jump in this mass-product industry. PT. Putra Surya Coating also has connection with
Betonel (Canada) outlets to strengthen our commitment in the retail market. We are also affiliated
with Renaulac (France) and Liebert (Belgium) as partners in paint research and technology
development. Furthermore, in order to develop the reach and market network, we are closely
connected with PT. Satriakarya Adiyudha (SKAY) as our distributor in Indonesia. In 2001, we
obtained ISO 9001: 2000 certified by SAI Global as our guarantee of Total Quality Management.

Currently, PT. Putra Surya Coating is ready to serve the growing paint and coating market
and face the challenges of the future, while continuing to provide high quality innovative products
for each of our customers.

1996 1998 1999 2001 2003 2004

The PT. Business started to obtained Began Explore to

Putra continues producing ISO 9001: reaching the Marine
Surya to expand decorative 2000 Epoxy Paint
Coating is to various paint certified by Floor industry
established regions in SAI Coating
Indonesia Global and its
painting
services

3
Vission and Mission
Vission
Putra Surya Coating with all the products will become a barometer for paint industries in terms of quality, innovation, and
responsibility to the environment
Mission
To Produce quality products that giving maximum level of customer value at optimum level of customer cost through implementing Total
Quality Management with international standard

Quality Policy
A. Produce products in accordance with national and international standard which refers to
customer satisfaction which includes:
1) Delivery of products in a timely manner
2) High quality products
3) Products at competitive prices
B. Always put safety first
C. Always prioritize environmental sustainability
D. Performing continuous improvement

4
Our Business
Decorative Coating
Putra Surya Decorative Paints manufactures, sells and distributes interior and exterior
paints to consumers and professionals. Putra Surya Coating performance in the Decorative Paints
segment in 2016 is consistent with a steady growth trend that has endured for more than a decade.

Sales per Region

9%

16%

35%

19%

21%

jawa & bali sumatra Kalimantan

Sulawesi others

5
 Sales In Billion Rupiah
2016
2015
2014
2013
2012

0 200 400 600 800 1000

Putra Surya Coating success in the Decorative Paints segment is built on user-driven product
development, long-term relationships with dealers and project stakeholders and a strong market
presence in high growth regions. Putra Surya Coating is a recognised player in premium interior
and exterior paints in the markets where the company is active. The company recorded outstanding
results in 2016 for established brands such as Fenomastic and Majestic (interior), and Jotashield
and Demidekk (exterior).

Marine Coating
Putra Surya Coating Marine Coatings is the world's leading provider of marine coatings to
shipowners and managers active in the newbuilding and dry-dock / maintenance markets.

6
 Sales per Region
19%

23%

19%

21%
18%

jawa & bali sumatra Kalimantan

Sulawesi others

Sales In Billion Rupiah

2016

2015

2014

2013

2012

0 1 2 3 4 5 6 7 8

As the shipping industry continues to experience challenging times, Putra Surya Coating
remains focused on delivering solutions to owners operating in the new market reality. While Putra
Surya Coating recorded a modest decline in sales in 2016 compared to last year, the company
continued to gain market share in the Marine Coatings segment. This growth was mainly driven
by strong performance in China and South Korea, where the company performed well, completing
newbuilding projects ordered in 2014 and 2015. However, with freight rates near historic lows,
newbuilding activity has slowed dramatically, which will impact Putra Surya Coating business in
this segment going forward. Putra Surya Coating is now working to achieve growth in the
DryDock and SeaStock concepts.

Protective Coating
Putra Surya Coating Protective Coatings sells products to companies active in industries related to
offshore, energy, infrastructure, hydrocarbon processing and storage tanks.

7
 Sales per Region
19%
17%

18%

20%

19%

jawa & bali sumatra Kalimantan

Sulawesi others

Sales In Billion Rupiah

2016

2015

2014

2013

2012

0 1 2 3 4 5 6

Putra Surya Coating steady growth serving infrastructure, energy and hydrocarbon
processing industry projects helped to offset weak demand for protective coatings in the offshore
industry. Low crude oil prices combined with overcapacity in the offshore market have slowed
investments in new construction projects, impacting fabrication yards and suppliers including
Putra Surya Coating. While the industry is not expected to stabilise before the end of 2017, Putra
Surya Coating has moved quickly to develop products and solutions to help owners save money
by extending maintenance intervals for existing offshore facilities. For example, Putra Surya
Coating has launched a number of specialised two-pack, thick-film products for brush and roller
that are easy to mix and apply, and have excellent flow properties to ensure long-lasting corrosion
protection.

8
PROBLEM

9
General problems
Along with the rapid development of industry in this era that led to the establishment of
many new companies. With these number of companies, the competition will be more stringent,
every company is required to be able to produce a high quality product in purpose to meet the
needs and expectations of customer. In general it can be said that the quality of the product will
be realized if the orientation of all activities of the company is oriented on customer satisfaction.
The quality of product contains as an objective, which are the purpose of the producer and
the purpose of the consumer. For the producers, the quality is good if the goals of the company
can be fulfilled, the products are demanded or popular in the consumer and well sold in the market
so it can give the optimal profit for the company. For customer, the quality is good if the needs
and desires of a product can be fulfilled and satisfied.

The company should have an ability to produce the product that can satisfied customers
need. The function of quality control is to keep the consistency of a product which is conducted
continiously. Product which are being marketed and sold should conform customers needs,
therefore the customers feel satisfied with the product. Only by costumer satisfaction the company
will get profit. Conversely if the costumer dont feel satisfy with the product that has been bought,
they will decide not to buy the product from the company anymore and the company will lost the
customer, in the end they will collapsed. Hence the quality control become the prior subject of
production strategy.

Quality control is one of the many activities that undertaken by the company and is an
important activity in building and managing operations because it can help companies improve
product quality, maintain good product quality and reduce defective product. The implementation
of quality control is closely related to the standard quality that has been determined by the company.
The application of quality control requires the cooperation of all parties in the company by
involving top management, supervisor manager and company employees. Quality Control is trying
to suppress broken product, keeping the end product is conform to company quality standards
and avoid defective products into the hands of customer. PT. Putra Surya Coatings is a company
engaged in manufacturing field located at Jl. Raya Jogja-Solo km 14 Village Prambanan, District of
Prambanan, Sleman. The company is producing paint, wood paint, wall paint, anti-rust paint, paint
for flooring industry, plastic coating, can coating, and the latest is paint for shipping industry. The
highest level of production is wood paint, so wood paint is the most preferred because of high
market demand, therefore to maintain customer loyalty to the products, the company should be
able to improve the quality of paint in accordance with company quality standards. Policy that
taken by PT. Indaco Coatings Industry in producing goods is always giving pay attention to the
quality of the goods that produced, because its all one of the most important factors in maintaining
the viability of PT. Putra Surya Coatings Industry.

In carrying out activities, quality control is one of techniques that need to be done before the
production process runs, during the production process, and until the production process is ends
with final product. The company do quality control in order to produce the good quality product
or sevice in accordance with the desired and planned standard, and improve the quality of products
that have not been in accordance with predefined standards and maintain quality as much as
possible.

10
In order to control the quality of product during production process, we need quality control
techniques. Types of techniques in quality control are:
1. Inspection (Examination)
According to Render and Heizer (2009: 323), the inspection that for ensuring a system
produces the expected quality level, the process control is needs to be done. Inspection includes
measurement, feelings, touch, weigh, or inspect the product. The goal is to find a bad process
as soon as possible.
According to Ariani (2004: 56) products and services should be checked according to standards
that has been determined,so the damaged units of product can be separated. Main aim of
inspection is to stop manufacturing process that produce damaged components. Inspection can
be done at the time when company get raw material, during manufacturing process and when
company gets final products.
2. Acceptance Sampling
According to Render and Heizer (2009: 367) Acceptance sampling is a type of testing
that includes random sampling of "lots" or a set of finished products and the measurement of
the sample against a predefined standard. Taking sample is more economical if compared with
100% inspection.
3. Control Chart
Quality control will be done if variables or attributes which determines the high quality of
the product have been calculated. In this analysis we use P-Chart, P-Chart is the average
control modeling based on the sample. The steps used as following :
a. Calculating the size of the sample by the formula:
n = 2
n = the size of the sample
N= total production number
b. Calculate the average sample by the formula :

=

= verage error
Xi = total damage product
n = total sample
c. Calculate standard deviation by the formula :

(1 )
=




= deviation standard
= verage error
n = total sample
d. Calculate control limits by the formula :
1. Upper Control Formula
(1
)
UCL = + 3
= verage error
n = total sample
UCL = Upper Control Limit

11
 2. Lower Control Formula
(1
)
LCL = 3
= verage error
n = total sample
LCL = Lower Control Limit
4. Pareto Diagram
Pareto diagram is a bar graph that illustrates problems by priority and importance (in
percent). The amount of total problem is 100%, the placement of the chart is sorted from the
biggest problem percentage that placed on the left to the smallest percentage that placed on the
right.
As for The formula to find out the product damage is :

Damage percentage = 100%

5. Cause & Effect Diagram

This diagram is used to identify and isolate the causes of a quality problem that arranged
by in a sequence and the ongoing process. This diagram is helpful to see the flow process which
the problem occurs.

12
Specific Problem In Company
Based on data obtained then discussion of quality control is done by using the pareto analysis
charts.

Table 2
The Amount of Damage in Paint

No. Damage Number Damage

Type of Percentage
Damage
1. Color 114 31,06%
Difference
2. Less Smooth 102 27,79%
3. Decorticate 67 18,26%
4. Precipitation 43 11,72%
5. Another 41 11,17%
Damage
367 100%

Damage percentage = 100%

114
Color Difference = 367 100% = 31,06%
102
Less Smooth = 367 100% = 27,79%
67
Decorticate = 367 100% = 18,26%
43
Precipitation = 367 100% = 11,72%
41
Another Damage = 367 100% = 11,17%

Based on the pareto diagram it can be seen that the highest number type of damage is caused by
different colors. Some causes that result in paint becomes damaged are :
13
a. Color Difference
Paint colors that do not match the color standards tha already set by the company.
b. Less Smooth
Form of paint particles that are still rough.
c. Decorticate
Damage caused by dry surface of paint.
d. Precipitation
Damage is caused by raw materials that can not be mixed in equally
e. Another Damage
Consist of some small percentage damage such as dirt, unusual smell, contaminant,etc

14
BENCHMARKING

15
Benchmarking
Is a process of studing and measuring a company & organization activities as an inspiration in
improving the performance of companies & organizations. In addition, benchmarking can
encourage companies and organizations to set up a common platform to build operational plans
for best practices of companies and advocate for improvement of all components of corporate &
organizational environments.

According to Ross (1994, pp. 239-240), benefits are derived from benchmarking are :
a. Allows companies to set realistic performance target plays as a role to convince everyone
in the organization of the target's credibility.
b. Helping the company to know the existence of certain gaps in performance and to choose
which process have to be fixed.
c. Improve Human Resource Capability
Provide the basis for training.
Employees are aware of a gap between what they do and what they are done by another
employee in other company.
Employee involvement in solving problems so that employees skills and experience are
increased

In doing benchmarking, we do a comparison with other paint companies that have good
production quality. The things that we compare are:
1. Employees
The number employee of PT. Putra Surya Coating
Section Number of
employee
Production 39
Laboraturium 38
Office 26
PPIC 23
GA 12
Security 11
Mentinen 5
Total 154

The number employee of PT. X

Section Number of
employee

16
 Production 39
Laboraturium 38
Office 26
PPIC 23
GA 12
Security 11
Mentinen 5
Total 154

2. Income

Income in Billion Rupiah

2500

2000

1500

1000

500

0
2016 2015 2014 2013 2012

PT. Putra Surya Coating PT.X

3. Return of Aset

Return of Asset in Billion Rupiah

20
15
10
5
0
Kategori 1 Kategori 2

PT. Putra Surya Coating PT.X

4. Market Share

17
 Average market share for 2011-2016

Other

Sulawesi

Kalimantan PT. X
PT. Putra Surya Coating
Sumatra

Jawa & Bali

0% 10% 20% 30% 40%

5. The Amount of Product Loss

Number of Product Loss

1600
1400
1200
1000
800
600
400
200
0
2016 2015 2014 2013 2012

PT. Putra Surya Coating PT. X

18
TOTAL QUALITY
MANAGEMENT

19
Problem Analysist
To analyze the existing quality problems, we use p chart analysis. With this method we can
know and determine whether the damage to paint products that occur in the production process
within the limits of control or not. In this analysis included pareto diagrams and cause-effect
diagrams (fishbone) to determine the type of damage and its causes.

P-Chart
The p-chart control chart is used to conduct tests to the quality of production processes
that know the number of products which is broken and to know if there is any amount of
production damage which is still within the limits of control or not. For calculation by analysis p-
chart is done by observation in February 2017. The method is used to know the level of product
damage that occurred.

No. Date Amount of Number Number Damage

Production of of Percentage
Product Damaged
that Product
observed
1 February 1st 2017 7209 463 20 0,0432
2 February 2nd 5655 463 14 0,0302
2017
3 February 3rd 5845 463 17 0,0367
2017
4 February 6th 7745 463 20 0,0432
2017
5 February 7th 7839 463 18 0,0389
2017
6 February 8th 7174 463 31 0,067
2017
7 February 9th 6095 463 18 0,0389
2017
8 February 10th 7123 463 16 0,0346
2017
9 February 13th 8823 463 32 0,0691
2017
10 February 14th 7410 463 22 0,0475
2017
11 February 15th 4070 463 20 0,0432
2017
12 February 16th 3532 463 14 0,0302
2017
13 February 17th 2500 463 10 0,0216
2017
14 February 20th 3084 463 16 0,0346
2017
15 February 21th 3117 463 20 0,0342
2017

20
 16 February 22th 2898 463 12 0,0259
2017
17 February 23th 4699 463 17 0,0367
2017
18 February 24th 3511 463 16 0,0346
2017
19 February 27th 4284 463 19 0,041
2017
20 February 28th 4617 463 15 0,0324
2017
107230 9260 367

From the data above then do the calculation by using pchart, the calculation steps are :
a. Calculate the size of the sample by the formula :
n = 2
= 2107320
= 214460
= 463
b. Determine the proportion of damage by the formula :

=

367
= 9260
= 0,0396
c. Determine the standard deviation by the formula :

(1 )
=


0,0896(10,0896)
= 463
=0,00906
d. Calculate control limits by the formula :
1. Upper Control Limit
(1
)
UCL = + 3

0,0896(10,0896)
=0,0896 + 3 463
=0,06678
2. Lower Control Limit
(1
)
LCL = 3

0,0896(10,0896)
= 0,0896 3 463
= 0,01241

Data of Damage Paint

21
Based on calculation with p-chart analysis with level formula damage to the paint product has an
average of 0.0396 and damage damage standard deviation of 0.00906, and has a upper control limit
(UCL) of 0.06678 and lower control limit (LCL) of 0.01241. So it is seen from paint damage data,
we can see that the amount of damage which are out of control are on February 8 and 13, 2012.
On February 1, 2, 3, 6, 7, 9, 10, 14, 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28 2012 the damaged is
within the control limits (in control). Damage that occurs in the paint caused by many things such
as color different, less smooth, skin, deposition and others. With damage the highest is the color
difference. The product out of control that is on the February 8th and 13th, 2012, it can be revised
as follows:
a. Determine the new average of damage by the formula :

=

3673132
= 9260926
= 0,03647
b. Determine the new deviation standard by the formula:

)
(1


=


0,03647(10,03647)
= 463
= 0,08711
c. Setting a new control limit with the formula :
(1
)

1. UCL =
+ 3

0,03647(10,03647)
= 0,03647 + 3 463
= 0,0620
(1
)

2. LCL =
3

0,03647(10,03647)
= 0,03647 - 3 463
= 0,01033

22
 Based on the above calculation then obtained a new calculation, ie average damage of
0.03647 and standard deviation of 0.08711 the upper control limit (UCL) is 0.06260 and the
lower control limit is 0.01033.

Data of Damage Paint After Revised

Cause & Effect Chart (Fish Bone Chart)

This diagram is also called a fishbone diagram and useful to show the main factors that affect on
quality and give consequences on the problems we learn. Besides that, we also can see more
detailed factors that influence and give result on that main factor that we can see it from the arrows
which are fish bones in the fish bone diagram. How to create a cause-and-effect diagram starting
with using 4 categories, there are : human, method, machine, and material.
a. Human Factor
1) Less expert in color matching
Less skilled employees in color matching can resulting in fail of paint test and
result QC products. The addition of other raw materials should be done.
2) Less skilled operators in operating production machines
Less skilled employees operate paint production machines can give the damage
result of paint production such as less smooth and sedimentation.
3) At break time the operator is forget to close the paint barrel
Employees who forget to close paint vats may result the top surface of the paint
becomes skinned and exposed to dust or dirt.
b. Method Factor
1) The instructions are less clear
This can affect production results, because the large number work and construction
required clear instructions for minimize error rate or disability
2) Working method is less precise
This error may occur due to many types of paint so this make an omission of using
the same method but in different types.
c. Machine Factor
1) The machine is broken or stuck
23
 Sudden congestion may result in the production process. The process becomes slow
and increases the risk of damaged product
2) Unroutine to give the service to the machine
Non-routine machine service may give the production process less optimal and the
lack of care can resulting in the engine become broken.
d. Material Factor
1) Paint raw materials stacked in the warehouse for too long
Paint raw materials stacked in the warehouse for too long can resulting in improper
use, or the expiration of time can cause paint is damaged.
2) The raw material from the supplier is broken
Raw materials from broken or bad suppliers give damage effect to production
3) The quality of the raw materials does not match the procedure
The raw materials should match with the applied RnD. Hence we should give pay
attention to the raw material control because raw materials is an initial process that
will affect the next process.

24
CONCLUSION

25
Problem Analysist

Conclusion
Based on the discussion that has been done about the quality control on paint products in PT.
Putra Surya Coatings Industry can be taken conclusion as follows :
a. The data shows the level of damage with the amount of production 107230 kg, still has a
paint damage of 367 kg with proportion Damage of 0.0396. By using the p-chart method
on the month February 2017 it is known that the average damage is 0,0396. Upper control
limit (UCL) of 0.06678 and the lower control limit (LCL) of 0.01241. And had been found
two damages paint products that are outside the limits of control (UCL) on 8 and 13
February 2017. The highest disability on February 13, 2017, amounted to 32 kg.
b. Using the p-chart revision in February 2017, resulting the calculation obtained an average
damage of 0.03647. The limits of control over (UCL) of 0.06260 and the lower control
limit (LCL) of 0.01033. We also analyze Pareto diagrams to find out damages often appears
or occurs frequently. We concluded that the highest damage is a different color because it
can be seen from the damage data, the damage gets the highest number by 31.06%.
Followed by less smooth by 27.79%, skinned as big 18.26%, sedimentation by 11.72%,
and other damage amounted to 11.17%.
c. To analyze the causes of the damage the author makes cause-effect diagram. In the diagram
the author identifies Into four groups:
1) Human Factor
Less expert in color matching
Less skilled operators in operating production machines
At break time the operator is forget to close the paint barrel
2) Method Factor
The instructions are less clear
Working method is less precise
3) Machine Factor
The machine is broken or stuck
Unroutine to give the service to the machine
4) Material Factor
Paint raw materials stacked in the warehouse for too long
The raw material from the supplier is broken
The quality of the raw materials does not match the procedure

Suggestion
Based on the discussion of data analysis and research conclusion in above, then researcher
give suggestion which hopefully can provide input to the company to determine more steps about

26
quality control. With still product damage is beyond the limit of control then the authors provide
suggestions as follows:
1) Human resources are the top priority in a company for the survival of the company. It
needs to tighten in employee selection in terms of potential, training, and work ethic.
2) Companies should attach work instructions with explanations verbally, so it is expected
with the instruction that workers can perform production process in accordance as
expected result.
3) Companies should pay more attention to the maintenance of machinery production by
performing routine and periodic check order the production process of paint runs
smoothly and is not constrained by the machine which is suddenly damaged during the
production process.
4) The quality control of raw material and storage of raw materials in warehouse should be
properly addressed in order to meet quality standards which has been established by the
company, because the raw material process The beginning of process which will affect the
next process.

27
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Purnomo, Hari. 2004. Pengantar Teknik Industri. Edisi 2. Jakarta : Graha Ilmu.

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Empat.

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