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Total Quality Management [8] March 27, 2009

Posted by desrinda in TQM.

Also known as 7 management tools, focus more on qualitative data rather than quantitative.
1. Affinity Diagram/KJ Method
2. Interrelationship Diagram
3. Tree Diagram/Systems Flow Chart
4. Matrix Diagram
5. Matrix Data Analysis
6. Process Decision Program Chart (PDPC)
7. Arrow Diagram or PERT/CPM

More details can be found at Wikipedia.


Total Quality Management [7] March 20, 2009

Posted by desrinda in TQM.
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1. Flowcharts
2. Checksheets
3. Cause & Effect Diagrams (Fishbone Diagrams)
4. Histograms (Frequency Distributions)
5. Pareto Diagrams (80/20 Rule)
6. Scatter Diagram (controllable factor vs uncontrollable factor)
7. Run Charts (for cyclic processes)

Total Quality Management [6] March 14, 2009

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The natural variation of a process should be small enough to produce products that meet the standards required, but a process in statistical control does not necessarily meet the design specifications. Therefore, we measure PROCESS CAPABILITY, a measure of the relationship between the natural variation of the process and the design specifications.

Process Capability Ratio (Cp) and Process Capability Index (Cpk)



Terms in sampling inspection:
– Acceptable quality level (AQL), related to risk of reject good lot (manufacturer’s risk)
– Lot tolerance percent defective (LTPD), related to risk of accept bad lot (customer’s risk)

Total Quality Management [5] March 6, 2009

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Control Charts for Variables Data
=> for variables that have continuous dimensions (weight, speed, length, strength, etc.)

Mean (x)-charts are used to control the central tendency of the process.
Range (R)-charts are used to control the dispersion of the process.
These two charts must be used together.






Total Quality Management [4] February 28, 2009

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= measure process variation by sampling

Natural and assignable variations distinguish below tasks for manager:
1. To ensure that process is capable of operating under control with only natural variation.
2. To identify & eliminate assignable variations so that processes will remain under control.




Total Quality Management [3] February 22, 2009

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COST OF QUALITY (average = 5-25% of total sales turnover) consists of: COST OF CONTROL (prevention cost, appraisal cost) and COST OF FAILURE OF CONTROL (internal failure cost, external failure cost).

Prevention costs (P) are incurred to eliminate defective units before they are produced.

Appraisal costs (A) are incurred to eliminate defective units before they are shipped.

Internal failure (F) costs are incurred when a defect is discovered before being sent to the customer.

External failure (F) costs are incurred when a customer receives a defective product. 

A + F = 95% (average) of quality cost

As Initial study, cost data must be collected from:
1. Established accounts
2. Analysis of ingredients of established account
3. Basic accounting documents
4. Estimate: Temporary records, work sampling, allocation, atandard cost data, opinions of knowledgeable personnel


Graphs and charts:
1. Trend analysis
2. Pareto analysis (by element group, by department, by product, and other groupings)

Compare to:
– Per direct labor hours
– Per direct labor cost
– Per dollar of standard manufacturing cost
– Per dollar of sale
– Per equivalent unit of product

Total Quality Management [2] February 15, 2009

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ISO, QMS and Quality Awards

ISO Quality Standards:
– Define the main feature and requirements of a QA system.
– They are flexible and adaptable to the needs of different  organizations.
– They from a basis a develop and establish a Quality Management System for an organization.


Quality Award
– it is a competition
– it is not a level of conformance, like ISO 9000
The key elements are:
– collecting evidence against the Excellence model
– scoring the evidence against the Excellence model
The award places equal emphasis on:
– the excellence of what is done
– the results which are achieved

Assigment: Malcolm Baldrige National Quality Award (MBNQA) winners and criteria.

Total Quality Management [1] February 8, 2009

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Kembali diajar Pak Yuri (di semester lalu, beliau mengajar Organisasi Industri), dalam kuliah pertama kami mempelajari bagaimana permintaan pelanggan telah berubah dalam periode-periode terakhir ini.

Customer needs have changed. While previously asked for low price, then good quality, now customers require good products with low price.

– Quality of product
– Quality of process
– Quality of operations
– Quality of management
– Quality of service

Conventional manufacturing companies usually consider sampling inspection processes to assure quality of product (QC, quality control). Modern ones apply full inspection as JIT (just-in-time) processes. Therefore, quality control at critical stages of production processes must be recognized.

QC further evolved, and the concept of QA (quality assurance) was introduced. QA focuses on building quality into processes, here QM (quality management) is known as coordinated activities to assure quality.

Rao: CTC concepts, which are the common principle of leading companies (Toyota in manufacturing, McD in service industry, etc.).
C = customer focus
T = total participation
C = continuous improvement

Standardized services (quick and clean) is very important.

Zeithaml and Parasuraman has defined below 10 dimensions of service quality (SERQUAL):
– Tangibles
– Reliability
– Responsiveness
– Competence
– Courtesy
– Credibility
– Security
– Access
– Communication
– Understanding the customer

In shorter definitions:
R = responsiveness (upon customer’s call)
E = empathy (more than sympathy, offer solution)
T = tangible (good equipment, etc.)
R = reliable (trusted, have confidence)
A = assurance (guaranteed customer satisfaction)

Bill Creek: Five pillars of TQM (total quality management).
1. Commitment
2. Leadership
3. Organization
4. Process
5. Product
High quality product is yielded through good processes in solid organization with clear leadership gained from strong commitment.