Ujian Akhir Semester Manajemen Kualitas dan Standar Mutu Total Quality Management Dosen: Prof. Ir. Syamsir Abduh, MM. Ph.D Nama Anggota Kelompok: Antony S 222160505 Candy 222160506 Jonathan 222160509 Program Doktor Strategik Universitas Trisakti

1. TOTAL QUALITY MANAGEMENT
as a Holistic Management Philosophy
Manajemen Kualitas & Standar Mutu
Dosen: Prof. Ir. Syamsir Abduh, MM., PhD
Oleh Kelompok:
Antony S 222160505
Candy 222160506
Jonathan 222160509
Program Doktor Manajemen Strategik
2017
Score:
98

2. GENERAL OUTLINES
- Explain the meaning of TQM
- Identify the costs of Quality
- Describe the evolution of TQM
- Identify Quality leaders and their contributions
- Identify key features of the TQM philosophy
- Describe tools for identifying and solving quality
problems
- Describe quality awards and quality certifications

3. QUALITY AND STRATEGY
► Managing quality supports
differentiation, low cost, and
response strategies
► Quality helps firms increase sales
and reduce costs
► Building a quality organization is a
demanding task

4. TWO WAYS QUALITY
IMPROVES PROFITABILITY
Improved
Quality
Increased
Profits
• Increased productivity
• Lower rework and scrap costs
• Lower warranty costs
Reduced Costs via
• Improved response
• Flexible pricing
• Improved reputation
Sales Gains via

5. THE FLOW OF ACTIVITIES
Organizational Practices
Leadership, Mission statement, Effective operating
procedures, Staff support, Training
Yields: What is important and what is to be
accomplished
Quality Principles
Customer focus, Continuous improvement, Benchmarking,
Just-in-time, Tools of TQM
Yields: How to do what is important and to be
accomplished
Employee Fulfillment
Empowerment, Organizational commitment
Yields: Employee attitudes that can accomplish
what is important
Customer Satisfaction
Winning orders, Repeat customers
Yields: An effective organization with
a competitive advantage

6. DEFINING QUALITY
- Definition of quality is depends on the people
defining it
- There is no single, universal definition of quality
- 5 common definitions include:
(See next slide)

7. DEFINING QUALITY – 5 WAYS
1. Conformance to specifications
 Does product/service meet targets and tolerances
defined by designers?
2. Fitness for use
 Evaluates performance for intended use
3. Value for price paid
 Evaluation of usefulness vs. price paid
4. Support services
 Quality of support after sale
5. Psychological
 Ambiance, prestige, friendly staff

8. DIFFERENT VIEWS
► User-based: better performance,
more features
► Manufacturing-based: conformance
to standards, making it right the first
time
► Product-based: specific and
measurable attributes of the product

9. MANUFACTURING QUALITY VS.
SERVICE QUALITY
Manufacturing quality focuses on tangible product features
• Conformance, performance, reliability, features
Service organizations produce intangible products that must
be experienced
• Quality often defined by perceptional factors like
courtesy, friendliness, promptness, waiting time,
consistency

10. COST OF QUALITY
- Quality affects all aspects of the organization
- Quality has dramatic cost implications of:
• Quality control costs
• Prevention costs - reducing the potential for defects
• Appraisal costs - evaluating products, parts, and
services
• Quality failure costs
• Internal failure costs - producing defective parts or
service before delivery
• External failure costs - defects discovered after delivery

11. External Failure
Internal Failure
Prevention
COSTS OF QUALITY
Appraisal
Total
Cost
Quality Improvement
Total Cost

12. COST OF QUALITY – 4
CATEGORIES
Early detection/prevention is less costly
• (Maybe by a factor of 10)

13. EVOLUTION OF TQM – NEW
FOCUS

14. QUALITY GURUS

15. TOTAL QUALITY
MANAGEMENT
► Encompasses entire organization from
supplier to customer
► Stresses a commitment by management
to have a continuing companywide drive
toward excellence in all aspects of
products and services that are important
to the customer

16. TOTAL QUALITY
MANAGEMENT CONCEPTS
► A management approach to long–term
success through customer satisfaction
► The customer ultimately determines the level
of quality.
► No matter what an organization does to foster
quality improvement—training employees,
integrating quality into the design process,
upgrading computers or software, or buying
new measuring tools—the customer
determines whether the efforts were
worthwhile.

17. TOTAL QUALITY
MANAGEMENT
► Total quality management as a TOOLS
or PHILOSOPHY?
► We describe as PHILOSOPHY
► Most research have shown that
philosophy of TQM as construct and
variables.

18. TQM PHILOSOPHY
 TQM Focuses on identifying quality problem root
causes
 Encompasses the entire organization
 Involves the technical as well as people
 Relies on seven basic concepts of
 Customer focus
 Continuous improvement
 Employee empowerment
 Use of quality tools
 Product design
 Process management
 Managing supplier quality

19. TQM PHILOSOPHY - CONCEPTS
Focus on Customer
• Identify and meet customer needs
• Stay tuned to changing needs, e.g. fashion styles
Continuous Improvement
• Continuous learning and problem solving, e.g. Kaizen,
6 sigma
• Plan-D-Study-Act (PDSA)
Benchmarking

20. TQM PHILOSOPHY– CONCEPTS
CON’T
Employee Empowerment
• Empower all employees; external and internal
customers
• Team Approach
• Teams formed around processes – 8 to 10 people
• Meet weekly to analyze and solve problems
Use of Quality Tools
• Ongoing training on analysis, assessment, and correction, &
implementation tools
• Studying practices at “best in class” companies

21. WAYS OF IMPROVING QUALITY
Plan-Do-Study-Act Cycle (PDSA)
• Also called the Deming Wheel after originator
• Circular, never ending problem solving process
Seven Tools of Quality Control
• Tools typically taught to problem solving teams
Quality Function Deployment
• Used to translate customer preferences to design

22. SEVEN CONCEPTS OF TQM
1. Continuous improvement
2. Six Sigma
3. Employee empowerment
4. Benchmarking
5. Just-in-time (JIT)
6. Taguchi concepts
7. Knowledge of TQM tools

23. PDSA DETAILS
Plan
• Evaluate current process
• Collect procedures, data, identify problems
• Develop an improvement plan, performance objectives
Do
• Implement the plan – trial basis
Study
• Collect data and evaluate against objectives
Act
• Communicate the results from trial
• If successful, implement new process

24. PDSA CON’T
Cycle is repeated
• After act phase, start planning and repeat process

25. TQM TOOLS
► Tools for Generating Ideas
► Check Sheet
► Scatter Diagram
► Cause-and-Effect Diagram
► Tools to Organize the Data
► Pareto Chart
► Flowchart (Process Diagram)
► Tools for Identifying Problems
► Histogram
► Statistical Process Control Chart

26. Hour
Defect 1 2 3 4 5 6 7 8
A
B
C
SEVEN TOOLS OF TQM
(a) Check Sheet: An organized
method of recording data
Figure 6.6
/
//
/
//
/ //
/
/ /
/ / / /
//
//
/ //
// /
/ // /

27. SEVEN TOOLS OF TQM
(b) Scatter Diagram: A graph of the
value of one variable vs. another
variable
Absenteeism
Productivity
Figure 6.6

28. SEVEN TOOLS OF TQM
(c) Cause-and-Effect Diagram: A tool
that identifies process elements
(causes) that might effect an outcome
Figure 6.6
Cause
Materials Methods
Manpower Machinery
Effect

29. SEVEN TOOLS OF TQM
(d) Pareto Chart: A graph to identify and
plot problems or defects in descending
order of frequency
Figure 6.6
Frequency
Percent
A B C D E

30. SEVEN TOOLS OF TQM
(e) Flowchart (Process Diagram): A chart
that describes the steps in a process
Figure 6.6

31. SEVEN TOOLS OF TQM
(f) Histogram: A distribution showing the
frequency of occurrences of a variable
Figure 6.6
Distribution
Repair time (minutes)
Frequency

32. SEVEN TOOLS OF TQM
(g) Statistical Process Control Chart: A chart
with time on the horizontal axis to plot
values of a statistic
Figure 6.6
Upper control limit
Target value
Lower control limit
Time

33. CAUSE-AND-EFFECT
DIAGRAMS
Material
(ball)
Method
(shooting process)
Machine
(hoop &
backboard)
Manpower
(shooter)
Missed
free-throws
Figure 6.7
Rim alignment
Rim size
Backboard
stability
Rim height
Follow-through
Hand position
Aiming point
Bend knees
Balance
Size of ball
Lopsidedness
Grain/Feel
(grip)
Air pressure
Training
Conditioning Motivation
Concentration
Consistency

34. PARETO CHARTS
Number of
occurrences
Room svc Check-in Pool hours Minibar Misc.
72% 16% 5% 4% 3%
12
4 3 2
54
– 100
– 93
– 88
– 72
70 –
60 –
50 –
40 –
30 –
20 –
10 –
0 –
Frequency(number)
Causes and percent of the total
Cumulativepercent
Data for October

35. FLOW CHARTS
MRI Flowchart
1. Physician schedules MRI
2. Patient taken to MRI
3. Patient signs in
4. Patient is prepped
5. Technician carries out MRI
6. Technician inspects film
7. If unsatisfactory, repeat
8. Patient taken back to room
9. MRI read by radiologist
10. MRI report transferred to
physician
11. Patient and physician
discuss
11
10
20%
9
8
80%
1 2 3 4 5 6 7

36. STATISTICAL PROCESS
CONTROL (SPC)
► Uses statistics and control charts to tell
when to take corrective action
► Drives process improvement
► Four key steps
► Measure the process
► When a change is indicated, find the
assignable cause
► Eliminate or incorporate the cause
► Restart the revised process

37. CONTROL CHARTS
Upper control limit
Coach’s target value
Lower control limit
Game number
| | | | | | | | |
1 2 3 4 5 6 7 8 9
40%
20%
0%
Plot the percent of free throws missed
Figure 6.8

38. PRODUCT DESIGN - QUALITY
FUNCTION DEPLOYMENT
- Critical to ensure product design meets customer
expectations
- Useful tool for translating customer specifications into
technical requirements is Quality Function Deployment
(QFD)
- QFD encompasses
• Customer requirements
• Competitive evaluation
• Product characteristics
• Relationship matrix
• Trade-off matrix
• Setting Targets

39. QUALITY FUNCTION DEPLOYMENT
(QFD) DETAILS
Process used to ensure that the product meets customer specifications
Voice of the
engineer
Voice
of the
customer
Customer-based
benchmarks

40. QFD - HOUSE OF QUALITY
Adding trade-offs, targets & developing product specifications
Trade-offs
Targets
Technical
Benchmarks

41. RELIABILITY – CRITICAL
TO QUALITY
- Reliability is the probability that the product, service or
part will function as expected
- No product is 100% certain to function properly
- Reliability is a probability function dependent on sub-
parts or components

42. RELIABILITY – CRITICAL
TO QUALITY
Reliability of a system is the product of component
reliabilities
RS = (R1) (R2) (R3) . . . (Rn)
RS = reliability of the product or system
R1 = reliability of the components
Increase reliability by placing components in parallel

43. RELIABILITY – CRITICAL
TO QUALITY
Increase reliability by placing components in parallel
Parallel components allow system to operate if one or the
other fails
RS = R1 + (R2* Probability of needing 2nd component)

44. PROCESS MANAGEMENT &
MANAGING SUPPLIER QUALITY
- Quality products come from quality sources
- Quality must be built into the process
- Quality at the source is belief that it is better to uncover
source of quality problems and correct it
- TQM extends to quality of product from company’s
suppliers

45. QUALITY AWARDS AND
STANDARDS
- Malcolm Baldrige National Quality Award
(MBNQA)
- The Deming Prize
- ISO 9000 Certification
- ISO 14000 Standards

46. MBNQA- WHAT IS IT?
- Award named after the former Secretary of
Commerce – Reagan Administration
- Intended to reward and stimulate quality
initiatives
- Given to no more that two companies in
each of three categories; manufacturing,
service, and small business
- Past winners; Motorola Corp., Xerox,
FedEx, 3M, IBM, Ritz-Carlton

47. THE DEMING PRIZE
- Given by the Union of Japanese Scientists
and Engineers since 1951
- Named after W. Edwards Deming who
worked to improve Japanese quality after
WWII
- Not open to foreign companies until 1984
- Florida P & L was first US company winner

48. ISO STANDARDS
ISO 9000 Standards:
• Certification developed by International Organization
for Standardization
• Set of internationally recognized quality standards
• Companies are periodically audited & certified
• ISO 9000:2000 QMS – Fundamentals and
Standards
• ISO 9001:2000 QMS – Requirements
• ISO 9004:2000 QMS - Guidelines for Performance
• More than 40,000 companies have been certified
ISO 14000:
• Focuses on a company’s environmental
responsibility

49. WHY TQM EFFORTS FAIL
- Lack of a genuine quality culture
- Lack of top management support and
commitment
- Over- and under-reliance on SPC methods

50. TQM WITHIN OM
- TQM is broad sweeping organizational change
- TQM impacts
Marketing – providing key inputs of customer information
• Finance – evaluating and monitoring financial impact
• Accounting – provides exact costing
• Engineering – translate customer requirements into specific
engineering terms
• Purchasing – acquiring materials to support product
development
• Human Resources – hire employees with skills necessary
• Information systems – increased need for accessible
information

51. HIGHLIGHTS
- TQM is different from the old concept of quality as it
focus is on serving customers, identifying the causes
of quality problems, and building quality into the
production process
- Four categories of quality cost of prevention,
appraisal, internal and external costs
- Seven TQM notable individuals include Walter A.
Shewhart, W. Edwards Demings, Joseph M. Juran,
Armand V. Feigenbaum, Philip B. Crosby, Kaoru
Ishikawa, and Genichi Taguchi

52. HIGHLIGHTS – CON’T
- Seven features of TQM combine to create TQM
philosophy; customer focus, continuous improvement,
employee empowerment, use of quality tools, product
design, process management, and managing supplier
quality
- QFD is a tool used to translate customer needs into
specific engineering requirements
- Reliability is the probability that the product will
functions as expected
- The Malcom Baldridge Award is given to companies to
recognize excellence in quality management.

53. TOTAL QUALITY
MANAGEMENT
ARTICLES

54. ARTICLES
1) Key Success Factors for Quality Management
Implementation: Evidence From The Public
Sector (2015)
2) The Impact of Technology Transfer
Performance on Total Quality Management
and Quality Performance (2016)
3) Identifying the critical determinants of TQM
and their impact on company performance:
Evidence from the hotel industry of Greece
(2017)

55. OUTLINES
1) Topic
2) Introduction
3) Literature Review
4) Methodology
5) Discussions and Conclusions

56. TOPIC: ARTICLES 1
- Article: Key Success Factors for Quality
Management Implementation: Evidence From The
Public Sector
- Author: Luís Pimentel & Maria Major
- Journal: Total Quality Management & Business
Excellence (2015)
- This purpose of paper is to identify the crucial
factors for the successful implementation of a
quality management/total quality management
(TQM) process, particularly in the public sector.

57. TOPIC: ARTICLES 2
- Article: The Impact of Technology Transfer
Performance on Total Quality Management and
Quality Performance
- Author: Gulin Idil Sonmezturk Bolatan, Sitki
Gozlu, Lutfihak Alpkan and Selim Zaim
- Journal: Social and Behavioral Sciences (2016)
- The purpose of this research is to define the
critical factors of technology transfer performance
(TTP) and to measure its impact on quality
performance (QP) and total quality management
(TQM).

58. TOPIC: ARTICLES 3
- Article: Identifying the critical determinants of TQM
and their impact on company performance:
Evidence from the hotel industry of Greece
- Author: Nancy Bouranta, Evangelos L. Psomas,
and Angelos Pantouvakis
- Journal: The TQM Journal (2017)
- The purpose of this paper is to enrich the existing
literature by determining the underlying structure
(latent factors) of total quality management (TQM)
practices and their impact on company performance
outcomes in the Greek hotel industry.

59. INTRODUCTION
- Quality is one of the various competitive strategic
instruments in businesses.
- TQM has been linked to business excellence and
positive outcomes (including financial or non-
financial performance) in organisations.
- In the global competitive markets, total quality
management and technology have become two of
the important factors for business achievement and
organizational growth.

60. LITERATURE REVIEW
In summary, public organisations’ performance
regarding quality management implementation
processes can be measured using the following
indicators:
(i) EFQM awards,
(ii) level of customer/citizen satisfaction
(iii) level of employee satisfaction and
(iv) cost reductions (Pimentel & Major, 2015).

61. LITERATURE REVIEW
Research Model (Bolatan et al, 2016)
Technology Transfer
Performance (TTP)
Total Quality
Management
(TQM)
Quality
Performance (QP)

62. LITERATURE REVIEW
Research Model (Bouranta, Psomas & Pantouvakis, 2017)
Total Quality
Management
- Employee Quality
Management
- Quality Practices of Top
Management
- Strategic Quality
Planning
- Employee Knowledge
and Education
- Customer Focus
Company Performance
- Financial Performance
- Customer-focused
Performance
- Service Quality
Performance

63. METHODOLOGY
Article 1
- Research Design: Explanatory Longitudinal Case Study (64
interviews)
- Sample: Managers in 3 Government Agencies
- Periods: Between January 2010 and May 2014
- First phase (January to May 2010): 24 interviews
- Second phase (October 2010 to November 2012): 23
interviews
- Third phase (December 2013 to May 2014): 17 interviews
- Measurement: (i) EFQM Awards, (ii) customer satisfaction, (iii)
employee satisfaction, (iv) personnel cost reductions, (v) CAF
response to regulatory demands

64. METHODOLOGY
Article 2
- Research Design: Survey (Questionnaire – 5 Likert Scale)
- Sample: Manufacturing Managers or Quality Managers of The
Manufacturing Firms in Turkey.
- Data Analysis: Regression

65. METHODOLOGY
(MEASUREMENT)
Total Quality Management
- Leadership (TQM1)
- Strategic planning process
(TQM2)
- Strategic quality management
(TQM3)
- Process quality management
(TQM4)
- Conception quality
management (TQM5)
- Education and training
(TQM6)
- Supplier quality
management (TQM7)
- Customer satisfaction
(TQM8)
- Employee responsibility and
involvement (TQM9)
- Important innovation
(TQM10)
- Quality results (business
results) (TQM11)
- Knowledge and analysis
(TQM12).

66. METHODOLOGY
(MEASUREMENT)
Quality Performance
- Product performance (QP1)
- Product / service quality
(QP2)
- Productivity (QP3)
- On time delivery (QP4)
- Product reliability (QP5)
- Product durability (QP6)
- Suitability of product design
specifications (QP7)
- Product standardization (QP8)
- The percentage of
defective material from the
supplier (QP9)
- Total warranty cost (QP10)
- Ratio of quality control
inspectors to direct
production operators
(QP11)
- The percentage of total
waste product (QP12)
- Suppliers’ delivery time
(QP13)
- The cost of reproduce and
waste product (QP14)

67. METHODOLOGY
Article 3
- Research Design: Survey (Questionnaire – 5 Likert
Scale)
- Sample: 153 Top-and Middle-Level Hotel-Quality
Managers
- Data Analysis: Exploratory Factor Analysis and Multiple
Linear Regression

68. DISCUSSIONS

69. DISCUSSIONS
- Technology transfer performance has a positive and
strong impact on total quality management, but it has no
significant impact on quality performance.
- A positive and strong relationship was determined
between total quality management and quality
performance.
- The relationship between technology transfer
performance and quality performance has become
significant with the mediating role of total quality
management.

70. DISCUSSIONS
- Employee quality management, quality practices of
top management, employee knowledge and
education and customer focus play an important role in
improving the financial performance of hotels.
- For the improvement of customer focused performance
the important variables are employee quality
management, strategic quality planning, employee
knowledge and education and customer focus.
- The five factors which constitute the pillars of the TQM
model the sample companies adopt, contribute to the
achievement of significant service quality benefits.

71. CONCLUSIONS
TQM is a holistic management philosophy,
which is based on principles and practices
which lead to enhance business
performance.

72. MANFAAT TQM
Manfaat bagi pelanggan
1. Mengurangi masalah terhadap produk atau layanan
2. Meningkatkan perhatian kepada pelanggan
3. Kepuasan pelanggan meningkat

73. MANFAAT TQM
Bagi Organisasi
1. Meningkatkan kemampuan
2. Pemberdayaan
3. Semakin dihargai
Bagi institusi
1. Mengurangi produk cacat
2. Produktivitas semakin meningkat
3. Meningkatkan motivasi para staff
4. Menurunkan biaya
5. Permasalahan dapat diselesaikan dengan cepat

74. KELEBIHAN TQM
• Memenuhi kepuasan pelanggan
• pengurangan biaya
• meningkatkan produktivitas
• meningkatkan pertumbuhan pangsa pasar
• efisiensi waktu
• meningkatkan keterampilan manajerial dan operasional secara
efektif dan efisien
• untuk pemberdayaan karyawan.

75. KEKURANGAN TQM
Kualitas sering merupakan aktivitas sampingan, terpisah dari isu
kunci dari strategi usaha dan kinerja. Kualitas tidak memiliki
batasan dan arti yang sama bagi setiap orang, sehingga dapat
terjadi perbedaan bagaimana kualitas yang dimaksud antar
orang. TQM merupakan aktivitas yang bersifat hanya di dalam
departemen-departemen di banyak perusahaan. Masing-masing
departemen mempunyai kebijakannya secara sendiri-sendiri,
sehingga tidak mencakup keseluruhan organisasi.

76. REFERENCES
Bolatan, G.I.S., Gozlu, S., Alpkan, L., & Zaim, S. (2016). The Impact of
Technology Transfer Performance on Total Quality Management and
Quality Performance. Social and Behavioral Sciences 235, 746-755.
Bouranta, N., Psomas, E.L., & Pantouvakis, A. (2017). Identifying The
Critical Determinants of TQM and Their Impact on Company
Performance. The TQM Journal, Vol.29, No.1, 147-166.
Heizer, J., & Render, B. (2017). Operations Management: Sustainability
and Supply Chain Management 12th Edition. United States: Pearson
Pimenter, L., & Major, M. (2015). Key Success Factors For Quality
Management Implementation: Evidence From The Public Sector. Total
Quality Management and Business Excellence, 1-16.
Reid, R.D., & Sanders, N.R. (2016). Operations Management: An
Integrated Approach. 6th Edition. United States: John Wiley & Son Inc