Quality Management

If a man write better book, preach a better sermon, or make a better mouse-trap than his neighbor, though he build his house in the woods, the world will make a beaten path to his door
Ralph Waldo Emerson (1803 1882)

What is QUALITY?
Quality is more than making a good product Quality is fitness for use y g Quality is the degree to which a specific product conforms to design or spesification
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What is QUALITY?
Quality of a product depends on how well it fits pattern of customer preferences Quality is the degree excellence at an acceptable price and the control of variability at an acceptance cost
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What is QUALITY?
Fred Smith, CEO of Federal Express:

PERFORMANCE OF THE STANDARD EXPECTED BY THE CUSTOMER

The General Services Administration:

MEETING THE CUSTOMERS NEEDS THE FIRST TIME AND EVERY TIME

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Quality Management

What is QUALITY?
Boeing:

PROVIDING OUR CUSTOMER WITH PRODUCTS AND SERVICES THAT O C S S C S CONSISTENTLY MEET THEIR NEEDS AND EXPECTATIONS
The US Department of Defense (DOD):

What is QUALITY?
Quality is like pornography, we can not define it, but we know when we see it

DOING THE RIGHT THING THE FIRST TIME, ALWAYS STRIVING FOR IMPROVEMENT AND ALWAYS SATISFYING THE CUSTOMER
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What is QUALITY?
Even though quality cannot be defined, you know what it is

What is QUALITY?

(American Society of Quality Control)

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Quality is totality of characteristics of an entity that bear on y y its ability to satisfy stated and implied needs

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Quality Management

The Dimensions of Quality

1. 1 2. 3. 4. 5. 6. OPERATION RELIABILITY & DURABILITY CONFORMANCE SERVICEABILITY APPEARANCE PERCEIVED QUALITY
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QUALITY - Approach
1. A USER-BASED Approach (from marker survey) 2. PRODUCT-BASED 2 A PRODUCT BASED Approach (from its characteristic / identifiable product attributes) 3. A MANUFACTURING-BASED Approach (manufacturing process must be ( f t i tb organized to ensure that products are made precisely to these specifications)
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Why QUALITY is IMPORTANT?

1. 1 2. 3. 4. 4 COMPANY S COMPANYS REPUTATION COST & MARKET SHARE PRODUCT LIABILITY THE INTERNATIONAL IMPLICATIONS
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COST SAVING Increase Productivity Lower Rework & Scrap Costs Lower Warranty & Product Liability Costs Lower Manufacturing Costs

Improved Reliability/ Conformance C f

INCREASE PROFIT
Lower Service Costs

MARKET GAIN Improved Reliability/ Conformance Experiece - based Scale Economics Improve Reputation for Quality with ADVERTIZING Increase Market Share

INCREASE PROFIT

HIGHER PRICE

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Quality Management

General Motor (GM) di AS, pernah dituntut untuk membayar US $7.000.000.000 pada korban kecelakaan (tahun 1993), yang mengendarai mobil buatan GM, yang mengakibatkan luka bakar hebat (operasi sampai 60x) KARENA TANGKI BAHAN BAKAR KURANG MAJU
Liputan 6 siang SCTV, 10 Juli 1999 13

Example of PRODUCT LIABILITY

COST vs QUALITY
COST Cost f Providing C t of P idi Quality Value of Product to Customer

max. differences

0
BEST DESIGN

Quality Level

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Costs of Quality
Prevention Costs Appraisal Costs Internal Failure Costs Externall Failure C il Costs
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Cost of Quality
CONFORMANCE COST :

Prevention Cost P i C Appraisal Cost

NON CONFORMANCE COST :

Internal failure Cost External failure Cost

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Quality Management

Cost of Quality
Cost
Total Cost

Examples of Prevention Costs

Quality Engineering Quality Training Quality Planning Quality Quality Circles Design Review
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Prevention Cost

Appraisal Cost Internal Failure External Failure Level of Quality

Examples of Appraisal Costs

Inspection of raw materials Packaging Inspection Product Acceptance Process Acceptance Field Testing Supplier Verification
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Examples of Internal Failure Costs

Scrap Rework Downtime (defect related) Reinspection Retesting Design changes
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Quality Management

Examples of External Failure Costs

Lost sales Returns/allowances Warranties Repair Product Liability Complaint Adjustment
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QUALITY MANAGEMENT
is all activities of the overall management function that tf ti th t determine the quality policy, objectives, and responsibilities, and implement them by mean such as quality planning, quality q yp g q y control, quality assurance, and quality improvement within the
quality system
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QUALITY CONTROL
is operational techniques and activities that are used to fulfill requirements for quality. It involves techniques that monitor a process and eliminate causes of unsatisfactory performance at all stages of the quality loop
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QUALITY ASSURANCE
is the planned and systematic activities implemented within the quality system and demonstated as needed to provide adequate confidence that an entity will fulfill requirements for quality
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Quality Management

QUALITY PLANNING
is the activities that establish the objectives and requirements for quality and the application of quality system elements. Quality planning covers product planning, managerial and l i i l d operational planning, and the preparation of quality plans.
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QUALITY SYSTEM
is the organizational structure, procedures, processes, and resources needed to implement quality management lit t

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TOTAL QUALITY MANAGEMENT

is the management approach of an organization, centered on quality, based on participation of all of its members, and aiming at long-term success through customer satisfaction and benefits to all members of the organization and to society
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7 TOOLS of QUALITY CONTROL

the Pareto diagram the cause-and-effect diagram, the flowchart the check sheet the histogram the scatter diagram the graphs and controll charts
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Quality Management

7 TOOLS of QUALITY CONTROL MANAGEMENT

the affinity diagram the relationship diagram the tree diagram the matrix chart the matrix data analysis chart the arrow diagram the process decision program chart
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QUALITY
Quality is not j y just concern in manufactured products, but also in service products Ex. BANKING, HOSPITAL CARE, EDUCATION, AIR TRAVEL, AUTO REPAIR etc.

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QUALITY
Quality is not just on final products and services but also included
PROCESSES, ENVIRONTMENT & PEOPLE

QUALITY CONTROL
is important not just in the t j t i th PRODUCTION/TRANSFORMATION process, but also at BEFORE : DESIGN STAGE AFTER : SERVICE STAGE
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Quality Management

QUALITY MANAGEMENT
COST

Cost of Inspection

GOAL:

Customer Satisfaction
CUSTOMER is:

Inspection & control costs

The Next Process

OPTIMAL INSPECTION LEVEL
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Cost due to defective units Inspection Level

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When & Where to Inspect

When & Where to Inspect

AT YOUR SUPPLIERS PLANT, WHILE THE SUPPLIER IS PRODUCING AT YOUR PLANT UPON RECEIPT OF GOODS FROM SUPPLIER BEFORE COSTLY OR IRREVERSIBLE PROCESS DURING THE STEP BY STEP STEP-BY-STEP PRODUCTION PROCESS WHEN PRODUCTION IS COMPLETE BEFORE SHIPMENT
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DEPEND ON THE TYPE OF PROCESS & THE VALUE ADDED AT EACH STAGE

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Quality Management

Dimension of Service Quality

Tangibles Convenience Reliability Responsiveness Time Assurance Courtesy
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Dimension of Service Quality

Dimension
1. Tangibles 2. Convenience 3. Reliability 4. Responsiveness 5. Time 6. Assurance 7. Courtesy

Contoh:
Apakah fasilitas rapi, bersih? Apakah lokasinya mudah dijangkau? Apakah menyelesaikan masalah? Bagaimana pelayan berkeinginan dan mampu melayani klien? p gg Berapa lama klien menunggu? Apakah pelayan memiliki pengetahuan tentang bidang yang dikerjakannya? Bagaimana keramahan/kesopanan pelayan?
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