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DAVIS AQUILANO CHASE

PowerPoint Presentation by Charlie Cook The McGraw-Hill Companies, Inc., 2003

Introduce those individuals, often referred to as quality gurus, who have played a significant role in the evolution of quality management, and describe their specific contributions. Identify the different dimensions of quality as they relate to both good and services. Define the various elements that comprise the cost of quality. Describe the more successful management quality initiatives such as total quality management (TQM) and Six Sigma. Present the various quality awards and recognition that promote and encourage firms to provide high quality goods and services.

Defining quality from the customers perspective. Constant increases in the level of quality of todays goods and services. Identifying quality dimensions that are most important to customers. Avoiding the costs of poor quality products and services. Customer loyalty that is increasingly based on quality.

Total quality management (manajemen kualitas total) may be defined managing the entire organization so that it excels on all dimension of products and services that are important to the costumer It has two fundamental operational goal, 1. Careful design of the product and service 2. Ensuring that the organizations system can consitently produce the design These two goals can only be achieved if the entire organization is oriented toward themhence theterm quality management. TQM became national system in the united states in the 1990, primarily as a response to Japanese quality superiority in the manufacturing automobiles and other durable goods such as room air conditioners. A widely cited study of Japanese and U.S air conditioning manufacturers showed that the best-quality American Products had higher product average defect than those of the poorest Japan manufacturers.

The roots of Total Quality Management (TQM) can be traced back to early 1920s when statistical theory was first applied to product quality control. This concept was further developed in Japan in the 40s led by

The focus widened from quality of products to quality of all issues within an organisation the start of TQM.
Americans, such as Deming, Juran and Feigenbaum.

The following shows the history of Total Quality Management, from inspection to quality award x Inspection x Quality Control and Statistical Theory x Quality in Japan x Total Quality Management x Quality Awards


Inspection Quality control and statistical theory

Inspection involves measuring, examining, and testing products, process and services against specified requirements to determine conformity. During the early years of manufacturing, inspection was used to decide whether a workers job or a product met the requirements; therefore, acceptable. It was not done in a systematic way, but worked well when the volume of production was reasonably low. However, as organisations became larger, the need for more effective operations became apparent.

Quality in Japan Total Quality Management Quality Award

Inspection Quality control and statistical theory Quality in Japan Total Quality Management Quality Award

In 1911, Frederick W. Taylor helped to satisfy this need. He published The Principles of Scientific Management which provided a framework for the effective use of people in industrial organisations. One of Taylors concepts was clearly defined tasks performed under standard conditions. Inspection was one of these tasks and
x was intended to ensure that no faulty product left the factory or workshop; x focuses on the product and the detection of problems in the product; x involves testing every item to ensure that it complies with product specifications; x is carried out at the end of the production process; and relies on specially trained inspectors.

This movement led to the emergence of a separate inspection department. An important new idea that emerged from this new department was defect prevention, which led to quality control. Inspection still has an important role in modern quality practices. However, it is no longer seen as the answer to all quality problems. Rather, it is one tool within a wider array.

Quality Control was introduced to detect and fix problems along the production line to prevent the production of faulty products. Statistical theory played an important role in this area. In the 1920s, Dr W. Shewhart developed the application of statistical methods to the management of quality. He made the first modern control chart and demonstrated that variation in the production process leads to variation in product. Therefore, eliminating variation in the process leads to a good standard of end products. Statistical Quality Control: focuses on product and the detection and control of quality problems; involves testing samples and statistically infers compliance of all products; is carried out at stages through the production process; and relies on trained production personnel and quality control professionals. Shewarts work was later developed by Deming, Dodge and Roming. However, manufacturing companies did not fully utilise these techniques until the late 1940s.

Inspection
`

Quality control and statistical theory Quality in Japan Total Quality Management Quality Award

STATISTIKA DALAM PENGENDALIAN KUALITAS ASPEK KUALITAS:  Kualitas Obyektif: kualitas produk merupakan realitas obyektif tentang produk, independen dari keberadaan manusia.  Kualitas Subyektif: kualitas produk relatif berdasarkan persepsi , perasaan dan sense konsumen Pioner and visionary of modern quality control (peta-peta kendali) Variasi tak-alamiah, disebabkan oleh sebab-sebab khusus di luar proses, seperti material, pekerja, peralatan, dll. (sporadic) Variasi alamiah, terkandung dalam proses & disebabkan oleh sebab-sebab umum (ada selama proses tidak diubah; tanggung jawab: manajemen). (cronic)

Batas Kendali Atas

Garis Tengah

Batas Kendali Bawah

20
Sporadic departure from historical level

Masalah Sporadis:

Perubahan tiba-2 dari status quo; Pendekatan perbaikan: pengendalian untuk mengembalikan ke status semula.

15
Historical Level

Defects

10

Chronic problem which can be economically eliminated

Improved Level

Masalah Kronik:

Perubahan yang berlangsung lama; Pendekatan perbaikan: perubahan status quo melalui perbaikan proses.

Time

Inspection Quality control and statistical theory Quality in Japan Total Quality Management Quality Award

In the 1940s, Japanese products were perceived as cheep, shoddy imitations. Japanese industrial leaders recognised this problem and aimed to produce innovative high quality products. They invited a few quality gurus, such as Deming, Juran, and Feigenbaum to learn how to achieve this aim. In the 1950s, quality control and management developed quickly and became a main theme of Japanese management. The idea of quality did not stop at the management level. Quality circles started in the early 60s. A quality circle is a volunteer group of workers who meet and discuss issues to improve any aspects of workplace, and make presentations to management with their ideas.

Inspection Quality control and statistical theory Quality in Japan Total Quality Management Quality Award

In the 1980s to the 1990s, a new phase of quality control and management began. This became known as Total Quality Management (TQM). Having observed Japans success of employing quality issues, western companies started to introduce their own quality initiatives. TQM, developed as a catchall phrase for the broad spectrum of quality-focused strategies, programmes and techniques during this period, became the centre of focus for the western quality movement. A typical definition of TQM includes phrases such as: customer focus, the involvement of all employees, continuous improvement and the integration of quality management into the total organisation.

Quality Gurus Individuals who have been identified as making a significant contribution to improving the quality of goods and services.
Walter A. Shewhart W. Edwards Deming Joseph M. Juran Armand Feigenbaum Philip Crosby Genichi Taguchi

ZERO DEFECT

Philip Crosby is an American who promoted the phrases zero defects and right first time. Zero defects doesnt mean mistakes never happen, rather that there is no allowable number of errors built into a product or process and that you get it right first time. Philip Crosby believes management should take prime responsibility for quality, and workers only follow their managers example. He defined the Four Absolutes of Quality Management. The Four Absolutes of Quality Management Quality is conformance to requirements Quality prevention is preferable to quality inspection Zero defects is the quality performance standard Quality is measured in monetary terms the price of nonconformance

ZERO DEFECT Crosby's 14 Steps to Quality Improvement 1. Management is committed to quality and this is clear to all 2. Create quality improvement teams with (senior) representatives from all departments. 3. Measure processes to determine current and potential quality issues. 4. Calculate the cost of (poor) quality 5. Raise quality awareness of all employees 6. Take action to correct quality issues 7. Monitor progress of quality improvement establish a zero defects committee. 8. Train supervisors in quality improvement 9. Hold zero defects days 10. Encourage employees to create their own quality improvement goals 11. Encourage employee communication with management about obstacles to quality 12. Recognise participants effort 13. Create quality councils 14. Do it all over again quality improvement does not end

Philip Crosby defined the Five characteristics of anEternally Successful Organisation 1. People routinely do things right first time 2. Change is anticipated and used to advantage 3. Growth is consistent and profitable New products and services appear when needed 4.Everyone is happy to work there

MANAJEMEN KUALITAS (MANAGEMENT OF PROFOUND KNOWLEDGE)


RANTAI REAKSI: PENINGKATAN KUALITAS REDUKSI BIAYA PENINGKATAN PRODUKTIVITAS

UTILISASI

REWORK

DELAY

PENINGKATAN DAYA SAING

PERTUMBUHAN USAHA

Advocated Statistical Process Control (SPC)


Methods which signal shifts in a process that will likely lead

to products and/or services not meeting customer requirements. Emphasized an overall organizational approach to managing quality. Demonstrated that quality products are less costly than poor quality products. Identified 14 points critical for improving quality.

The Deming Prize


Highest award for industrial excellence in Japan.

1. 2.

3.

4. 5. 6.

7.

"Create constancy of purpose towards improvement". Replace short-term reaction with long-term planning. "Adopt the new philosophy". The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so. "Cease dependence on inspection". If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any. "Move towards a single supplier for any one item." Multiple suppliers mean variation between feedstocks. "Improve constantly and forever". Constantly strive to reduce variation. "Institute training on the job". If people are inadequately trained, they will not all work the same way, and this will introduce variation. "Institute leadership". Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based.

8.

"Drive out fear". Deming sees management by fear as counter-

9.

10.

11. 12. 13. 14.

productive in the long term, because it prevents workers from acting in the organisation's best interests. "Break down barriers between departments". Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs. "Eliminate slogans". Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive. "Eliminate management by objectives". Deming saw production targets as encouraging the delivery of poor-quality goods. "Remove barriers to pride of workmanship". Many of the other problems outlined reduce worker satisfaction. "Institute education and self-improvement". "The transformation is everyone's job".

Emphasized the importance of producing quality products through an approach focused on quality planning, control, and improvement. Defined product quality as fitness for use as viewed by the customer in: (i) Quality of design, (ii) Quality of conformance, (iii) Availability, (iv) Safety, (v)Field use Categorized the cost of quality as: (i) Cost of prevention, (ii) Cost of detection/appraisal,(iii) Cost of failure

TRILOGI KUALITAS
TRILOGI MANAJEMEN KUALITAS: Penentuan segmen pasar; Pemenuhan kebutuhan konsumen; Pengembangan karakterisrtik produk sesuai dengan keinginan konsumen; Pengembangan proses yang dapat menghasilkan karakteristik produk; Transfer rencana operating forces.

QUALITY PLANNING

Pembangunan infrastruktur; Identifikasi proyek perbaikan; Pembentukan tim proyek; Menyediakan pelatihan SDM & motivasi untuk:  Diagnosis sebab  Stimulasi penanganan  Penetapan kendali untuk mencapai goal

QUALITY IMPROVEIMPROVEMENT

QUALITY CONTROL

Evaluasi performansi produk; Komparasi performansi aktual & sasaran; Tindakan terhadap perbedaan.

Design Quality

Design quality refers to the inherent value of the product in the marketplace and is thus a strategic decision for the firm. The dimension of design quality
Meaning Primary product or services characteristics Added touches, bell and whistles, secondary carachteristics Consitency of performance over time, probability of failing, useful life Ease of repair Sensory characteristics (sound, feel, look, and so on) Past performance and reputation

Conformance Quality Quality at source Dimensions of quality

Dimension Performance Features Reliability/ durability Serviceability Aesthetics Perceived quality

Design Quality

A firm design product or services with certain performance characteristics and features based on what intended market expect. Material and manufacturing process atributes can greatly impact the reliability and durability of a product company attempts to design a product or sevices that can be produced or delivered at reasonable cost. The serviceability of the product may have great impact on the cost of a product or service to the costumer after the initial purchase is made; may impact the warranty and repair cost to the firm Aesthetics may greatly impact the desirability of the product or service, in particular consumer products. Consitency in the relative performance of the product compared to the state of the art this may be very important to the long run success of the product or servicess.

Conformance Quality

Quality at source

Dimensions of quality

Design Quality

Conformance Quality Quality at source Dimensions of quality

Conformance quality refers to the degree to wich the product or service design spesifications are met. Product can have high design quality but low conformance quality, and viece versa??????

Design Quality

Frequently discussed in the context of conformance quality that person who does the work takes responsibility for making sure that his/her output meets specification Quality at source at product: responsibility of manufacturing management; Quality at source at services firm: responsibility of branch operations management.

Conformance Quality Quality at source

Dimensions of quality

Measures Dimension Performance Features Reliability/dura bility Product examples: Laser printer Page per minutes Print density Multiple paper trays Color capability Mean time between failures Estimated time to obsolescence Expected life of major components Availability of authorized repairs centers Number of copies per print cartridge Modular design Control button layout Case style Courtesy of dealer Brand name of recognition Rating in consumer Reports Service example Checking account at a bank Time to process customer requests Automatic bill paying Variability of time to process Keeping pace with industry trends

Design Quality

Conformance Quality Quality at Source Dimensions of quality

Serviceability

Online reports Ease to getting udated information

Aesthetics

Apperance of bank lobby Courtesy of teller Endorsed by community leaders

Perceived quality

This issue was recognized by Joseph Juran, who wrotes about it 1951 in his Quality Control Handbook There are number of definitions and interpretation of the term cost of quality
All the cost attributable to the production of quality that is not

100 percent perfect Cost that are the difference between what can be expected form excellent performance and the current costs that exist

How significant is the cost of quality??


It has been estimated at between 15 and 20 percent of every

sales dollar the cost of reworking, scrapping, repeated service, inspections, tests, warranty, and other quality-related items Philip Crosby states that the correct cost for a well-run quality management program should be under 2.5 percent.

The cost of quality are generally classified into four types:

Appraisal cost: costs of the inspection, testing, and other tasks to ensure that the product or process is acceptable

Prevention cost: the sum of all the costs to pevent defects, such as cost to identify the cause of the defect, to implement corrective action to eliminate the cause, to train personnel, to redisgn the product or system, and to purchase new equipment or make modifications. Internal failure cost: costs for defects incurred within the system: scrap, rework,repair External failure cost: costs for defects that pass through the system: warranty replacement, loss of customers or goodwill, handling complaints, and product repair.

Often increase in productivity occur by product of efforts to reduce cost of quality. Example:
The bank developed this productivity measure for

the loan processing area: the number of tickets processed divided by resources required (labor cost, computer time, ticket forms). Before the quality improvement program, the productivity index was 0,2660 [( 2.080/($11,23 X 640 hours+$0,50x 2.600 forms+$500 for systems)] After the quality improvement project was completed, labor time fell to 546 hours and the number of form rose to 2100, for a change index to 0,3088, an increase in productivity of 16 percent

Testing designs for their reliability in the lab and the field Gathering performance data on products in the field & resolving quality problems in the field Planning & budgeting the QC program in the plant Designing & overseeing quality control systems & inspection procedures Carrying out inspection activities requiring special technical knowledge to accomplish

Six sigma refers to philosophy and methods such GE and Motorola uses to eleminate defects in their products and processes A defect is a simply any component that does not fall within the customers specifiction limits; each step or activity in a company represents an opportunity for defects to occur and six sigma programs seek to reduce variation in the processes that lead to these defects. A processes that is in six sigma control will produce no more than two defects out of every billion units. One of benefits of sig-sigma thinking is that is allows managers to readily describe the performance of the process in term of variability and compare to different process using a common metric. This metrics is defects per million oppurtinities (DPOM)

DPMO !

number of defects x1.000.000 number of opportunitiesfor error per unitx number of units

Goals of Six Sigma


To reduce process variation to the point where only 3.4 defects per million are produced by a process that involves a high volume of manufactured units or service transactions on a continuous basis. Provide a framework and methodologies to analyze and evaluate business processes and reduce waste.

Successful Implementation
Training and selection of the workforce Impressive cost savings of program

9-37

Example of Defects Per Million Opportunities (DPMO) calculation. Suppose we observe 200 letters delivered incorrectly to the wrong addresses in a small city during a single day when a total of 200,000 letters were delivered. What is the DPMO in this situation?

So, for every one million letters delivered this citys postal managers can expect to have 1,000 letters incorrectly sent to the wrong address.

DPMO !

200

x 1,000,000 ! 1 , 000

? 1 A x 200,000
Cost of Quality: What might that DPMO mean in terms of over-time employment to correct the errors?

Six Sigma Process Capability

SIGMA 6 sigma 5 sigma 4 sigma 3 sigma 2 sigma 1 sigma

DPMO 3.4 230 6200 67,000

COPQ <10% of sales 10 to 15% of sales 15 to 20% of sales 20 to 30% of sales

CAPABILITY World Class

Industry average

310,000 30 to 40% of sales 700,000

Noncompetitive

DPMO Defects Per Million Opportunities COPQ Cost of Poor Quality

Performance Limit

Area of Yield

Probability of a Defect
Units of Measure

Poor Process Capability


Very High Probability of Defects Very High Probability of Defects Very Low Probability of Defects

Excellent Process Capability


Very Low Probability of Defects

LSL

USL

LSL

USL

Low Sigma

High Sigma

DMAIC CYCLE (define, measure, analyze,improve, and control) DMAIC CYCLE is more detailed version of the PDAC (plan, do, check, act) that underly continous improvement (continous improvement, also called Kaizen, seeks continual improvement of machinery, materials, labor utilization, and production methods through application of suggestions and iedas of company teams)

1. Define (D) 2. Measure (M) 3. Analyze (A) 4. Improve (I) 5. Control (C)

Customers and their priorities Process and its performance Causes of defects Remove causes of defects Maintain quality

9-42

We are the maker of this cereal. Consumer reports has just published an article that shows that we frequently have less than 16 ounces of cereal in a box. What should we do?

Step 1Define

What is the critical-to-quality characteristic? The CTQ (critical-to-quality) characteristic in this case is the weight of the cereal in the box

Step 2Measure

Lets assume that the government says that we must be within 5 percent of the weight advertised on the box. Upper Tolerance Limit = 16 + .05(16) = 16.8 ounces Lower Tolerance Limit = 16 .05(16) = 15.2 ounces We go out and buy 1,000 boxes of cereal and find that they weight an average of 15.875 ounces with a standard deviation of .529 ounces. What percentage of boxes are outside the tolerance limits?

9-44

Lower Tolerance = 15.2

Process Mean = 15.875 Std. Dev. = .529

Upper Tolerance = 16.8

What percentage of boxes are defective (i.e. less than 15.2 oz)? Z = (x Mean)/Std. Dev. = (15.2 15.875)/.529 = -1.276 NORMSDIST(Z) = NORMSDIST(-1.276) = .100978 Approximately, 10 percent of the boxes have less than 15.2 Ounces of cereal in them!

Jika dari 1.000.000 produk berapa yang cacat???? Kira-kira berapa sigma????

Step 3Analyze

How can we improve the capability of our cereal box filling process? Decrease Variation, Increase Specifications

Step 4Improve

How good is good enough? Motorolas Six Sigma

Step 5Control

Statistical Process Control (SPC) Use data from the actual process Statistically monitor the process over time

The analytical tools of six sigma have been used for many years in traditional quality improvement programs. What makes their application to six sigma unique is the integration of these tools to corporatewide management system. What tools???

Flowcharts, run charts, pareto charts, checksheets, cause

and effect diagrams

Flowcharts: there are many types of flow charts SIPOC (supplier, input, process, output, customer) analysis. SIPOC in essence is a formalized inputoutput model, used in the define stage of a project.

Run charts the depict trend in data over time, and thereby help to understand the magnitude problem at define stage.
Can be used to identify when equipment or processes are not behaving according to specifications

0.58 0.56 0.54 0.52 0.5 0.48 0.46 0.44 1

Diameter

10 11

12

MEASURE

Time (Hours)

Pareto charts these charts help to break down a problem into relative contributions of its component. These are based on the common empirical finding that a large percentage of a problems are to due to a small percentage of causes.In example, 80% percent of customer complaints are due to late deliveries, which are 20 percent of the caused listed.
100%

2000 1800 1600 1400 1200 1000 800 600 400 200 0 Late deliveries Working order Cold food Taste Other

75%

50%

25%

Monday
Checksheets these are basic form that help standardize data collection. They are used to create histogram such as shown on the Pareto Chart.
Billing Errors Wrong Account Wrong Amount A/R Errors

Wrong Account Wrong Amount

Can be used to keep track of defects or used to make sure people collect data in a correct manner

Cause-and-effect diagrams also called fishbone diagrams, they show hypothesized relationship between potential causes and problem under study.
Possible causes: The results or effect

Machine

Man Man Effect EFFECT Material

Environment

Method

Can be used to systematically track backwards to find a possible cause of a quality problem (or effect)

Opportunity flow diagram these used to separate value added from non-value added steps in a process

Value added activities (Vertical steps) vs. Non-value added activities (horizontal steps)

Control charts these are time sequenced charts showing plotted values of a statistic including a centerline average and one or more control limits.

Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality

Others tools:
Failure mode and effect analysis (FMEA) this structured

approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage of a process. It begins with identifying each element, assembly, or part of the process and listing the potential failure modes, potential cause, effects of each failure. A Risk priority number (RPN) is calculated for each failure mode. It is an index used to measure the rank importance of the items listed in the FMEA charts.

FMEA suggests a recommended action to eliminate the failure conditions by assigning a responsible person or department to resolve...
Occurance Potenti al Potential Item or Process Failure Effects of Mode Failure Step Potenti al Cause (s) Severity Occurance Detection RPN Detection RPN Severity

Current Controls

Responsibili "After"--> Recommen- ty and Action ded Action Target Date Taken

Total Risk Priority Number:

"After" Risk Priority Number:

High RPN items should be targetted for improvement first

Severity ratings
Critical Major Minor Safety hazard. Causes or can cause injury or death Requires immediate attention. System is non-operational Requires attention in the near future or as soon as possible. System performance is degraded but operation can continue

Insignifica No immediate effect on system performance nt

Severity ratings
1 2 3 4 5 6 7 8 None Very minor Minor Very low Low Moderate High Very High Effect will be undetected by customer or regarded as insignificant A few customers may notice effect and may be annoyed Average customers will notice effect Effect recognised by most customers Products is operable, however performance of comfort or convinience items is reduced Products is operable, however comfort or convinience items are inoperable Product is operable at reduced level of performance. High degree of customer dissastisfaction Lost of primary function renders product inoperable. Intolerable effects apparent to customer.May violate non-safety related governmental regulations. Repairs lengthyand costly. Unsafe operation with warning before failure or non-conformance with government regulations. Risk of injury or fatality. Unsafe operation without warning before failure or non-conformance with governnment regulations. Risk of injury or fatality.

9 10

Hazardouswith warning Hazardouswithout warning

1 2 3 4 5 6 7 8 9 10

Unlikely Low (few failures) Moderate (occasional failures)

in 1.5 million ( 0,0001%) 1 in 150.000 ( 0,001%) 1 in 15.000 ( 0,01%) 1 in 2.000 (0,05%) 1 in 400 (0,25%) 1 in 80 (1,25%) 1 in 20 (5%) 1 in 8 (12,5%) 1 In 3 (33 %) 1 in 2 (50 %)

High (repeated failure) Very high (relatively consistent failure)

Note: if a failure falls between two values, use the lower rate of occurrence. For example, if failure is 1 in 5, use rating of 8

1 2 3 4 5 6 7 8 9 10

Excellent: control mechanisms are foolproof Very high; some question about effectiveness of control High; unlikely cause or failure will go undetected Moderately high Moderate; control effective under certain conditions Low Very low Poor; control is insufficient and causes or failures extremly unlikely to be prevented or detected Very poor Ineffective; causes or failures almost certainly not prevented or detected

Design for experiments (DOE)


DOE, sometimes referred to as multivariate

testing,is a statistical methodology used to determining the cause and effect relationship between process variable (X) and the output variable (Y). DOE permits experimentation with many variables simultaneously through carefully selecting a subset of them.

The following is a brief summary of the personnel practices that are commonly employed in six-sigma implementation Executive leaders, who are truly commited to six sigma and who promote it throughout the organization, and champions, who take ownership of the process that are to be improved Corporate training in Six-sigma concepts and tools. GE spend over a billion dollars training its professional workforce in the concepts. Now, virtually every proffesional in the organization is qualified in six sigma techniques. Black belt: who coach or actually lead six sigma improvement team Master black belt: who receive-in depth training on statistical tools and process improvement (they perform many of same funcstion as black belt but for a larger number of teams) Green belt: who are employes who have received enough six-sigma training to participate in a team , or in some companies, to work individually on a small scale project directly related to their own job. Setting of stretch objectives for improvement Continous reinforcement and rewards.

A
Sponsor/ champion Master Black Belt Sponsor/ champion

Oversee/ Guide Project (s)

Coach/ Support Project Leader Master Black Belt Black Belt Green belt or team leader

Black belt or green belt

Lead Project to Success

Improvement team

Improvement team

Analyze &implement improvement

Two aspects of the shingo system in particular have received great attention.
How to accomplish drastic cuts in equipment setup times by

single-minute exchange of die (SMED) The use of source inspection and the poka-yoke system to achieve zero defect Shingos argument:

SQC methods do not prevent defects. Although they provide information to tell us probabilistically when a defect will occur, they are after the fact. Central to Singos approach is the difference between errors and defects. Defects arise when people make errors. Even though errors are inevitable, defects can be prevented by providing workers with feedback on errors Feedback check: succesive check, self check, source inspection.

Successive check

is performed by the person in the process or by an objective evaluator such as group leader. Information on defects is immediate feedback for the worker who produced the product, who then makes the repair.

Self check

Is done by the individual worker.These require successive check.


Is also performed by the individual worker, except instead of checking for defect , the worker checks the errors that will cause defect. These prevent the defect from ever occuring and, hence, requiring rework.
Fail-safe procedures or devices (called poka-yoke). Poka yoke: (1) Prevent the worker from making an error that leads to a defect before starting the process or (2) gives rapid feedback of abnormalities in the process to worker in time to correct them.

Source inspection

Strongly connected Intentional Misunderstandin Forgetful Misidentification Inadvertent Amateurs Slowness Human errors Causes of defects Ommited processing Processing errrors Errors setting up workpieces Missing parts Wrong parts Processing wrong workpiece Misoperation Adjustment error Improper equipment setup Improper tools and jigs Willfull

Connected Nonsuppervision Supprise

Poka-Yoke Example (Placing labels on parts coming down a conveyor)

Iso is the series of international quality standars that have been developed by the International Organization for Standardization. More than 1000 countries now recognize the 9000 series. The idea the standarss is defects can be prevented through the planning and application of best practices at every stage of business-from design through manufacturing and then installation and servicing. These standards focus on identifying criteria by which any organization, regardless of weather it is manufacturing or service oriented, can ensure that product leaving its facility meets the requirement of its customers. These standards ask a company to first document and implement its systems for quality management, and then to verify, by means of an audit conducted by an independent accredited third party, the complience of those systems to the requirement of the standards.

Fundamentally these standards can be grouped into two categories: 1. RequirementThese mandatory standards dictate what company shall do. Companies become registered to or compliant with one of the requirement standards. There are four requirement standards ISO 9001 Model for quality assurance: design, development, production, installation and servicing ISO 9002 Model for quality assurance: production, installation and servicing ISO 9003 Model for quality assurance: final inspection and test IS0 10012 Requirement for measuring equipment 2. Guidelines---These assist a company to interpret the requirement standards, suggesting what a company should do. There are four guidelines: ISO 8402 Quality management and quality assurance vocabulary ISO 9000 Guidelines for selection and use ISO 9004 Quality management and quality system elements ISO 10011 Guidelines for auditing quality systems ISO 10013 Guidelines for quality manual

The principal standar: ISO 9001,9002, and 9003. These are requirements standars, and all of the other standards within the series are related to these three. ISO 9001 is the most comprehensive; devided into 20 specific elements, it provided a foundation for basic quality management and continous improvement. ISO 9002 and ISO 9003 are derivatives of the 9001 requirement standard. Much work and expense may be needed to accredited at the highest level, which is 9001.

Why is it important to become ISO 9000 certified?.......... There are three forms of certification:
The best certication of a firm is through third party.Once passed third party audit, a firm is certified and may registered and recorded as having achieved ISO 9000 status, and becomes part of registry of certified companies

First party: a firm audits itself againts ISO 9000 standards

Second party: a costumer audit its supplier

Third party : a qualified national or international standards or certifying agency serves as auditor

A standard approach to measure the gap between what customers expected and their perceptions of service provided in a service ecounter. The size of the gap indicates where improvements should be made.
Word of mouth Personal needs Past experience

Dimensions of Service Quality Reliability Responsibility Assurance Empathy Tangibles

Expected service

Perceive service

Perceived Service Quality 1. Expectation exceeded ES<PS (Quality surprise) 2. Expectation meet ES=PS(Satisfactionary quality) 3. Expectation not met ES>PS (Unacceptable quality)

CUSTOMER Word-of-mouth Communications Personal Needs Past experience

Expected Service Gap 5 Perceived Service

PROVIDER
Gap 3 Gap 1 Gap 2

Service Delivery Service Quality Specs

Gap 4

External Communications To Customers

Reasons for the Gaps GAP 1 Not knowing what customers expect GAP 2 The wrong service quality standards GAP 3 The service performance gap GAP 4 When promises do not match actual delivery GAP 5 The difference between customer perception and expectation

Management Perceptions of Customer Expectations

The Parasuraman, Zeithaml and Berry model.. Originally identified 10 dimensions of quality and developed a list of 97 items on a seven point scale After testing and subsequent refinement (i.e. factor analysis) the list was collapsed into a 22item questionnaire covering 5 dimensions..) called SERVQUAL

Reliability : the ability to perform service as promised, both dependably, and accurately Responsiveness: willingness to help customers promptly Assurance : knowledge and courtesy of employee, as well as their ability to convey trust Empathy: caring and individualized attention Tangibles: the appearance of physical facilities, equipment, and personnel, as well as other factors affecting the sense such as noise and temperature

Weigted servqual : the servqual procedure also permits assignment of importance weightings on each of five dimensions.Bank customers, for example, usually weight reliability heavely and tangibles lightly. E-service quality:A new version of servqual, e-service quality, has been developed to evaluate service on internet. E-SQ is defined as the extent to which a web site facilitates efficien shopoing, purchasing, and delivery. Its dimensions: reliability, responsiveness, access, flexibility, ease of navigation, efficiency, assurance trust, security privacy, price knowledge, site asthetics, customization/ personalization.

RELIABILITY 32%

TANGIBLES 11%

RESPONSIVENESS 22% EMPATHY 16%

ASSURANCE 19%
77

Relative Importance of Service Quality Dimensions [Study 2]

Mean Number of Points Allocated out of 100 Points 37


33 32

23 13 18

11 23 15
All Companies

21 15

14

Computer Manufacturer

19

18 28

Retail Chain

29 12 23 17
Auto Insurer
Reliability Responsiveness Assurance

12 23 18
Life Insurer
Empathy Tangibles

19

20

Conceptual Model for Understanding and Improving e-Service Quality


Customer

Customer Web site Requirements

Customer Web site Experiences

Perceived e-SQ

Perceived Value

Purchase/ Repurchase

Company

Information Gap

Marketing of the Web site Communication Gap

Design and Operation of the Web site Design Gap

Managements Beliefs about Customer Requirements

Promotion of High Quality Goods and Services


Malcolm Baldrige National Quality Award

(MBNQA) (United States) Deming Prize (Japan) European Quality Award (European Union)

Background
Established in 1987 to recognize total quality management in American industry.

Purpose
Stimulate U.S. companies to improve quality and productivity. Establish guidelines and criteria to evaluate quality. Recognize those firms that improve their quality. Provide guidance in how to achieve quality.
The McGraw-Hill Companies, Inc., 2003 681 Fundamentals of Operations Management 4e

Kategori kepemimpinan merupakan pendorong utama untuk semua kategori. Kategori kepemimpinan bersama-sama dengan kategori manajemen strategik serta kategori fokus pada konsumen dan pasar akan membentuk tiga serangkai dorongan bagi perusahaan (driver triad). Kategori manajemen sumber daya manusia dan kategori manajemen proses akan membentuk usaha inti (work core) dari perusahaan, dan dari kedua kategori ini akan dihasilkan output yang dinyatakan sebagai kategori hasil-hasil bisnis. Dalam model ini, kategori informasi dan analisis merupakan sistem saraf untuk seluruh sistem TQM, yang memberikan informasi dan umpan balik bagi semua kategori.

Baldrige guidelines can be used to:


Help define and design a total quality

system. Evaluate ongoing internal relationships among department, divisions, and functional units within an organization. Assess and assist outside suppliers of goods and services to a company. Assess customer satisfaction.

Japan Union of Scientist & Engineer (JUSE) memberikan Deming Prize Award (sejak1951) untuk individual dan organisasi yang memiliki kontribusi pada pengembangan kualitas. Japan Productivity Center for Socio-Economic Development (JPC-SED) mengambil inisiatif untuk Japan Quality Award sejak 1995.

European Foundation for Quality Management (EFQM)


Stimulate and assist European organizations

in quality improvement activities. Support managers in the adoption of TQM.

EFQM Excellence Model


A non-prescriptive frame work based on nine

criteria that recognizes that there are many approaches to achieving sustainable excellence.

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