The Total Quality Management (TQM)

Customer-Focused Principles Concept and Tools

Where are You on this scale ?

1
2 3 4 5 6 7

Whats TQM Ive heard about TQM Ive read about TQM Ive attended some TQM training Ive used some TQM tools I have lots of experience with TQM I taught Dr. Deming everything he knows about TQM

Production :
Mass 1913

Industrial Paradigm
Lean 1960 Flexible Reconfigurable 1980 2000

Objective :
Knowledge Science Computerization

Production Management

Interchangeable Parts

Approach:

Competition Strategy

Cost

Quality

Delivery

Flexibility/ Responsiveness

Innovation

1800

1960

1970

1980

1990

2000

evolusi

TQM Quality Assurance inspection foremen operator

1900

1918

1937

1960

1980

QUALITY

Quality Control

Quality Assurance

Total Quality Control

Total Quality Management

 Quality of design Quality of conformance

1. Performance 2. Feature 3. Reliability 4. Conformance 5. Durability 6. Serviceability 7. Aesthetic 8. Perceived quality

Quality Control

Quality Assurance

PDCA

Quality Circle

 Top Management Commitment

Customer Focus Performance measurement

Participative Management
Continuous Improvement

BASIC QUESTIONS IN THE TQM IMPLEMENTATION

Who are my customer ? What are the products/services I provide to my customers ? What are their expectations of my product/service ? Does my product/service consistently meet or exceed their expectations ?

What tells me my product/service is improving ?

How do my work activities add value to the process ? What actions are needed to improve my process ?

Quality Costs
Scrap Rework
External Failure Costs

Continual Improvement

Internal Failure Costs

Decline
Little or no defective work

Decline
No dissatisfied customers

Warranty cost Product liability

Appraisal Costs

Decline
Very little inspection

Inspection costs
Prevention Costs Process improvement Product simplification Training costs

Increase
An ounce of prevention is worth a pound of cure

Quality Cost: Traditional View

Cost per good unit of product Total quality costs

Internal and external failure costs

Prevention and appraisal costs

Minimum total cost

Quality level (q)

Optimum quality level

100%

EIGHT TQM TOOLS

1. CHECK SHEET 2. HISTOGRAM 3. PARETO DIAGRAM

4. CAUSE and EFFECT DIAGRAM

5. SCATTER DIAGRAM 6. CLUSTERING 7. CONTROL CHART 8. QUALITY FUNCTION DEPLOYMENT (QFD)

CHECK SHEET
Product Usage : :

Date :

Plant Dept. Lot No.

: : :

Specification : Inspection number : Lot Size Supplier : :

Inspector :

Measurement unit : Weight (g) Tally Frequency

Total

Histogram
Interval
8.25 9.75 9.75 11.25 11.25 12.75 12.75 14.25 14.25 15.75 15.75 17.25 17.25 18.75 18.75 20.25

Mid Value
9 10.5 12 13.5 15 16,5 18 19.5
X

Tallies
II IIII IIII 2 10 17 11 5 2 2 1 50

f
17 10

11
5 2 2

2
8.25
X

1 20.25

= 12.78 , SD = 2.31

Pareto Diagram
Date :
Defective Item Head defective (Hd) Material defectives (Md) Bolt defectives (Bd) Corner defectives (Cd) Length defectives (Ld) Number of Defectives 99 13 52 9 36 209

Number of Inspection, N = 2160

Per cent Defective 4.6 % 0.6 % 2.4 % 0.4 % 1.7 % 9.7 % Per cent of Compodition 47.4 % 6.2 % 24.9 % 4.3 % 17.2 % 99.9 %

200

100 (%)
75

100

50 25 0

Hd Bd Ld Md Cd

Scatter Diagram

X X X X X

X
Reaction Temperature

Fishbone Chart Airline Customer Service

Quality Control Approaches

Statistical process control (SPC)
Monitors the production process to prevent poor quality

Acceptance sampling
Inspects a random sample of the product
to determine if a lot is acceptable

Statistical Process Control

Take periodic samples from a process
Plot the sample points on a control chart

Determine if the process is within limits

Correct the process before defects occur

Types Of Data
Attribute data
Product characteristic evaluated with a discrete choice

Good/bad, yes/no

Variable data
Product characteristic that can be measured

Length, size, weight, height, time, velocity

SPC Applied To Services

Nature of defect is different in services
Service defect is a failure to meet customer requirements Monitor times, customer satisfaction

Service Quality Examples

Hospitals
timeliness, responsiveness, accuracy

Grocery Stores
Check-out time, stocking, cleanliness

Airlines
luggage handling, waiting times, courtesy

Fast food restaurants

waiting times, food quality, cleanliness

Process Control Chart

Upper control limit

Process average

Lower control limit

1 2 3 4 5 6 7 8 9 10

Sample number

Patterns to Look for in Control Charts

Flow Diagram: Statistical Process Control Steps

Start Produce Good Provide Service Take Sample

No Assign. Causes? Yes

Inspect Sample Create Control Chart

Stop Process Find Out Why

Constructing a Control Chart

Decide what to measure or count Collect the sample data Plot the samples on a control chart Calculate and plot the control limits on the control chart

Determine if the data is in-control

If non-random variation is present, discard the data

(fix the problem) and recalculate the control limits

A Process Is In Control If
No sample points are outside control limits
Most points are near the process average

About an equal # points are above & below the centerline Points appear randomly distributed

The Normal Distribution

95 %
99.74 % -3s
-2s

-1s

m = 0 1s 2s 3s

Area under the curve = 1.0

Control Chart Z Values

Smaller Z values make more sensitive charts Z = 3.00 is standard (99.74% pass); = 2.00 is Medium (95.00% pass); = 1.00 is Tight (66.67% pass) Compromise between sensitivity and errors

Control Charts and the Normal Distribution

UCL

+3s
Mean

-3s
LCL

UCL: Upper Control Limit LCL: Lower Control Limit

Control Charts For Attributes

p Charts
Calculate percent defectives in a sample; an item is either good or bad

p - Charts
Based on the binomial distribution
p = number defective / sample size, n
p=

total no. of defectives total no. of sample observations UCLp = p + 3 p(1-p)/n

LCLp = p - 3 p(1-p)/n

p-Chart Calculations
Proportion Sample Defect Defective 1 6 .06 2 0 .00 3 4 .04 20

UCL = p + 3 p(1-p) /n = 0.10 + 3 0.10 (1-0.10) /100 = 0.190 LCL = p - 3 p(1-p) /n = 0.10 + 3 0.10 (1-0.10) /100 = 0.010

. .

18 200

. .

.18 1.00

. .

100 jeans in each sample

total defectives p = total sample observations

200 = 0.10 20 (100)

Control Charts For Variables

Mean chart (X-Bar Chart)
Measures central tendency of a sample

Each chart measures the process differently. Both the process average and process variability must be in control for the process to be in control.

Mean (X) - Charts

Based on the normal distribution
Calculate the mean (X = average)
Calculate the standard deviation (SD) Assign the control level (Suppose standard)

UCL = X + 3 (SD) LCL = X - 3 (SD)

Mean (X) - Charts

Based on the normal distribution
Volume of antibiotic: 10, 8, 9, 7, 8 ml

The average = 42/5 = 8.4 ml Calculate the standard deviation (SD) = Assign the control level (Suppose tight) UCL = X + 3 (SD) = 8.4 + LCL = X - 3 (SD) = 8.4 -

Process Control Chart

Upper control Limit (

Process Average (8.4)

Lower control Limit (
1 2 3 4 5

Sample number

Needs

Requirements

Needs Requirements
Build to Requirements

User
Specification Developer

Trade off

Process Characteristics

N E E D S

CUSTOMER EVALUATION

ANALYSIS

RELATIONS MATRIX

PERFORMANCE EVALUATION ABSOLUTE VALUE RELATIVE VALUE

Quality Function Deployment of Garment Factory (PT X)

+ +

+ + + + + + + + + + + + + + + +

: Strong (10) : Medium (5) : Weak (1)

Consumer Attribute Color Model Customer Requirement Comport Trend Price

Production Process
I II III IV V VI VII

PT X;A;B;C
4; 4; 4; 4 2; 5; 4; 5 3; 5; 4; 4 4; 4; 3; 3 4; 4; 4; 3

Target & Rasio

4; 1 5; 2,5 5; 1,66 4,1 4,1

5 4 3 2 2 3 4 4 4 97 15,2 4 5 5 5 95 14,9 4 5 5 4 4 4 3 2 3 4 4 4 140 21,9 4

PT .X PT. A
PT.B PT.C Absolute Value Relative Value

5
4

4
120 18,8

105 80 16,5 12,6

Keterangan : I Att. Weight II Sizing III Cutting IV Sewing V Finishing VI Packaging VII Inspection

Reference
Akao, Y. 2004. Quality Function Deployment: Integrating Customer Requirements Into Product. Productivity Press. Marimin. 2004. Application and Technique of Multiple Criteria Decision Making. Grasindo.