Operation Strategic and

Process Management

Managing Quality

Dr.Tukhas Shilul Imaroh.MM

The Goods-Services Continuum

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 Goods-service continuum
Steel production
Automobile fabrication

House building
Low service content Road construction
High goods content
Dressmaking
Farming

Auto Repair
Appliance repair

Maid Service
Increasing Manual car wash
goods content
Increasing Teaching
service content Lawn mowing
High service content
Low goods content

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 Characteristics of Goods

• Tangible product
• Consistent product definition
• Production usually separate from consumption
• Can be inventoried
• Low customer interaction

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 Characteristic of Service

• Intangible product
• Produced & consumed at same time
• Often unique
• High customer interaction
• Inconsistent product definition
• Often knowledge-based
• Frequently dispersed

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 Goods vs. Services
Goods
• Product is transportable
• Site of facility important
for cost
• Often easy to automate
• Revenue generated
primarily from tangible
product
Service
• Provider, not product is
transportable
• Site of facility important
for customer contact
• Often difficult to automate
• Revenue generated
primarily from intangible
service
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 Goods vs. Services

Goods
• Can be resold
• Can be inventoried
• Some aspects of
quality measurable
• Selling is distinct from
production
Service
• Reselling unusual
• Difficult to inventory
• Quality difficult to
measure
• Selling is part of
service

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 Goods Contain Services / Services
Contain Goods

Automobile
Computer
Installed Carpeting
Fast-food Meal
Restaurant Meal
Auto Repair
Hospital Care
Advertising Agency
Investment Management
Consulting Service
Counseling

100 75 50 25 0 25 50 75 100
Percent of Product that is a Good Percent of Product that is a Service

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 Mutu (Quality) :

• ISO 9000: 2000 mendefinisikan

Quality sebagai : “degree to which a
set of inherent characteristics fulfils
requirements”.
• SNI mendefinisikan mutu adalah
derajat yang dicapai karakteristik
produk dalam memenuhi
persyaratan / kebutuhan/harapan
pelanggan.
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 Quality System Definition:
• ISO 8402, 1986:
The Organization Structure, Responsibilities,
Procedures, Processes and Resources for
Implementing Quality Management
• ANSI/ASQC A3-1978:
A Quality System is “The Collective Plans,
Activities, and Events That A Provided to Ensure
that A Product, Process or Services Will Satisfy
Given Needs.”

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 Dimensi: QUALITY
8 Dimensi Mutu Garvin (1987)[2];
1. Performance. The operating characteristics of the product
(e.g. acceleration of a car).
2. Feature. Secondary characteristics that supplement the
product’s operating characteristics (e.g. air conditioning in
a car).
3. Reliability. The anticipated failure rate of the product. (e.g.
length of time to the failure of a car’s starter).
4. Conformance. The lack defects in the product when
delivered (e.g. fitting of the trunk, hood, and doors of the
car when delivered).

[2] Garvin, D.A. Competing on the eight dimensions of Quality. Harvard Business Review. Nov-Des. pp101-109.

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 Dimensi: QUALITY
8 Dimensi Mutu Garvin (1987)[2];
5. Durability. The useful life of the product (e.g. number of
years before a car deteriorates to the point where it could
no longer be repaired).
6. Serviceability. The ability to obtain satisfactory repair
(e.g. availability of engine parts and ease of installation of
these parts).
7. Aesthetics. The customer’s feelings about the
appearance of the product (e.g. how the customer views
the styling of the car).
8. Perceived quality. The customer’s overall feeling about
the product (e.g. subjective judgment of the customer as
to which is the best car).
[2] Garvin, D.A. Competing on the eight dimensions of Quality. Harvard Business Review. Nov-Des. pp101-109.

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Dimension for Service Quality

• Tangibles
• Reliability
• Responsiveness
• Competence
• Courtesy
• Credibility
• Security
• Access
• Communication
• Understanding

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 Tangibles

Appearance physical facilities, equipment, personnel,

and communication material

 Are the bank’s facilities attractive?

 Is my stockbroker dressed appropriately?
 Is my credit card statement easy to
understand?
 Do the tools used by the repair person
look modern?

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 Reliability
Ability to perform the promised service dependably and
accurately

 When a loan officer says she will call me

back in 15 minutes, does she do so?
 Does the stockbroker follow my exact
instructions t buy or sell?
 Is my credit card statement free of errors?
 Is my washing machine repaired right the
first time?
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 Responsiveness

Willingness to help customers and provide prompt

service

 When there is a problem with my bank

statement, does the bank resolve the
problem quickly?
 Does the stockbroker follow my exact
instructions to buy or sell?

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 Responsiveness (cont…)

Willingness to help customers and provide prompt

service

 Are charges for returned merchandise

credited to my account promptly?
 Is the repair firm willing to give me a
specific time when the repair person will
show up?

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 Competence

Possession of the required skills and knowledge to

perform the service

 Is the bank teller able to process my

transactions without fumbling around?
 Does my brokerage firm have the
research capabilities to accurately track
market developments?

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 Competence (cont…)

Possession of the required skills and knowledge to

perform the service

 When I call my credit card company, is

the person at the other end able to
answer my questions?
 Does the repair person appear to know
what he is doing?

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 Courtesy

Politeness, respect, consideration, and friendliness of

contact personnel

 Does the bank teller have a pleasant

demeanor?
 Does my broker refrain from acting busy
or being rude when I ask question?

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 Courtesy (cont…)

Politeness, respect, consideration, and friendliness of

contact personnel

 Are the telephone operators in the credit

card company consistently polite when
answering my calls?
 Does the repair person take off his
muddy shoes before stepping on my
carpets?

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 Credibility

Trustworthiness, believability, honesty of the service

provider.

 Does the bank have a good reputation?

 Does my broker refrain from pressuring me
to buy?
 Are the interest rates/fees charged by my
credit card company consistent with the
services provided?
 Does the repair firm guarantee its services?
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 Security

Freedom from danger, risk, or doubt

 Is it safe for me to use the bank’s

automatic teller machine?
 Does my brokerage firm know where my
stock certificate is?
 Is my credit card safe from unauthorized
use?
 Can be confident that the repair jobs was
done properly?
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 Communication

Keeping customers informed in language they can

understand and listening to them

 Can the loan officer explain clearly the

various charges related to the mortgage
loan?
 Does my broker avoid using technical
jargon?

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 Communication (cont…)
Keeping customers informed in language they can
understand and listening to them

 When I call my credit card company, are

they willing to listen to me?
 Does the repair firm call when they are
unable to keep a scheduled repair
appointment?

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 Understanding the Customer

Making the effort to know customers and their needs.

 Does someone in my bank recognize me

as a regular customer?
 Does my broker try to determine what
my specific financial objectives?

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 Understanding the Customer (cont…)

Making the effort to know customers and their needs.

 Is the credit limit set by my credit card

company consistent with what I can
afford (i.e., neither too high near too
low)?
 Is the repair firm willing to be flexible
enough to accommodate my schedule?

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Dimensions of
Service Quality
Tangible Word of Personal Past External
Mouth Needs Experience Communications
Reliability
Responsiveness
Competence
Courtesy Expected
Credibility Service
Perceived
Security Service
Access Quality
Perceived
Communication Service
Understanding the
Customer Customer Assessment of
Service Quality
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Conceptual Model of Service Quality

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 Process Attributes
Trade off

Cost Effectiveness vs. Quality

Flexibility vs. Cost Effectiveness

Quality vs. Flow Time

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Operations Management

The management of systems or processes that

create goods and/or provide services

Organization

Finance Operations Marketing

Business Operations Overlap

Operations

Marketing Finance
 Organizational Functions
 Marketing
 Gets customers

 Operations
 creates product or service

 Finance/Accounting
 Obtains funds
 Tracks money

© 1995 Corel Corp.

 Input-Transformation-Output
Operation Primary Resources Primary Desired
Inputs/ Transformation Outputs
Customers Function(s)
Rumah Sakit Pasien Dokter medis, Prosedur perawatan Sehat Jasmani
perawat, obat, (Health Care)
peralatan kesehatan

Rumah Makan Pelanggan (lapar, haus, Bahan Baku Penyimpanan bhn baku Kepuasan
hiburan) makanan, juru makanan, teknik pelanggan
masak, pramusaji, memasak, pemeliharaan
lingkungan lingkungan rmh makan.

Pabrik kendaraan Baja, alumunium, Machine tools, Proses produksi, Mutu kendaraan
bermotor karet, komponen pekerja, lingkungan Sistem produksi. bermotor.
otomotif, pelanggan. kerja.

Universitas / Lulusan SMU / Pengajar, buku, Proses pengajaran dan Lulusan terdidik
Perguruan Tinggi Universitas peralatan pembelajaran
laboratorium, kelas

Pertokoan / Calon Pembeli Produk yg dijual, Penjajaan (display), Kepuasan

Department Store lingkungan promosi, pelayanan berbelanja
pertokoan.

Perusahaan Travelers Pesawat udara, Ticketing system, Keselamatan,

penerbangan crews, lingkungan. penjadwalan, sistem ketepatan waktu.
perawatan.
 Operations and Supply Management
Supply Chain Processes

Manufacturing
Processes
Sourcing Distribution
Processes Processes
Logistics Logistics
Processes Processes

Service
Processes
The Critical Decisions

 Quality management
 Bagaimana mendefinisikan mutu?
 Siapa yang bertanggung jawab
terhadap mutu?
 Service and product design
 Produk atau jasa apa yang akan
ditawarkan?
 Bagaimana merencanakan produk atau
jasa tersebut?
The Critical Decisions - Continued

 Process and capacity design

 Proses apa yang diperlukan untuk
menghasilak produk atau jasa yang
ditawarkan?
 Teknologi dan peralatan apa yang saja
yang diperlukan untuk proses produksi?
 Location
 Dimana lokasi produksi sebaiknya
ditempatkan?
 Kriteria apa yang dipakai untuk
menetapkan lokasi?
The Critical Decisions - Continued

 Layout design
 Bagaimana pengaturan tata letak?
 Seberapa besar tata letak diperlukan/
 Human resources and job design
 Berapa jumlah serta kwalifikasi pekerja
yang diperlukan?
 Bagaimana lingkungan kerja yang
diperlukan?
The Critical Decisions - Continued

 Supply chain management

 Produk pendukung apa yang harus dibeli
atau dibuat sendiri?
 Siapa yang terlibat menjadi pemasok,
distributor dan bagaimana sistem
pengelolaannya?
 Inventory, material requirements
planning,
 Seberapa banyak stok yang diperlukan?
 Jumlah serta waktu pemesanan?
The Critical Decisions - Continued

 Intermediate, short term, and

project scheduling
 Apakah diperlukan sub-contrator?
 Bagaimana pengelolaan penjadwalan
kerja serta pembebanan kerja?
 Maintenance
 Siapa penanggung jawab perawatan
mesin dan peralatan?
 Bagaimana jadwal perawatan dan
perbaikan?
The Critical Decisions - Continued

 Pemasaran
 Siapa konsumen kita dan apa
keinginannya?
 Ukuran (volume) pasar?

 Finance & Accounting

 Ketersediaan dukungan modal kerja?
 Struktur pembiayaan (Cost Structure)?
New Challenges in OM

From To
 Local or national  Global focus
focus  Just-in-time
 Batch shipments  Supply chain
 Low bid purchasing partnering
 Rapid product
 Lengthy product development,
development alliances
 Mass
 Standard products customization
 Job specialization  Empowered
employees,
teams
 Changing Challenges for the
Operations Manager

Past Causes Future

Local or Low-cost, reliable worldwide Global Focus
national communication and
focus transportation networks
Batch (large) Cost of capital puts pressure on Just-in-time
shipments reducing investment in shipments
inventory
Low-bid Quality emphasis requires that Supply-chain
purchasing suppliers be engaged in product partners
improvement
Lengthy Shorter life cycles, rapid Rapid product
product international communication, development,
development computer-aided design, and alliances,
international collaboration collaborative
designs
 Changing Challenges for the
Operations Manager

Past Causes Future

Standardized Affluence and worldwide markets; Mass
products increasingly flexible production customization
processes
Job Changing sociocultural milieu. Empowered
specialization Increasingly a knowledge and employees,
information society. teams, and lean
production
Low cost Environmental issues, ISO 14000, Environmentally
focus increasing disposal costs sensitive
production,
Green
manufacturing,
recycled
materials,
remanufacturing
Seven Tools of Quality
Control

 Cause-and-Effect Diagrams
 Flowcharts
 Checklists
 Control Charts
 Scatter Diagrams
 Pareto Analysis
 Histograms
Cause-and-Effect Diagrams
 Called Fishbone Diagram
 Focused on solving identified quality problem
Flowcharts

 Used to document the detailed steps in

a process
 Often the first step in Process Re-
Engineering
Checklist
 Simple data check-off sheet designed to
identify type of quality problems at each
work station; per shift, per machine, per
operator
Control Charts

 Important tool used in Statistical

Process Control – Chapter 6
 The UCL and LCL are calculated limits
used to show when process is in or out
of control
Scatter Diagrams
 A graph that shows how two variables are
related to one another
 Data can be used in a regression analysis
to establish equation for the relationship
Pareto Analysis
 Technique that displays the degree of importance for
each element
 Named after the 19th century Italian economist
 Often called the 80-20 Rule
 Principle is that quality problems are the result of only a
few problems e.g. 80% of the problems caused by 20%
of causes
Histograms
 A chart that shows the frequency distribution
of observed values of a variable like service
time
at a bank drive-up window

 Displays whether the distribution is

symmetrical (normal) or skewed
Seven Tools of Quality
Control

 Cause-and-Effect Diagrams
 Flowcharts
 Checklists
 Control Charts
 Scatter Diagrams
 Pareto Analysis
 Histograms
Cause-and-Effect Diagrams
 Called Fishbone Diagram
 Focused on solving identified quality problem
Flowcharts

 Used to document the detailed steps in

a process
 Often the first step in Process Re-
Engineering
Checklist
 Simple data check-off sheet designed to
identify type of quality problems at each
work station; per shift, per machine, per
operator
Control Charts

 Important tool used in Statistical

Process Control – Chapter 6
 The UCL and LCL are calculated limits
used to show when process is in or out
of control
Scatter Diagrams
 A graph that shows how two variables are
related to one another
 Data can be used in a regression analysis
to establish equation for the relationship
Pareto Analysis
 Technique that displays the degree of importance for
each element
 Named after the 19th century Italian economist
 Often called the 80-20 Rule
 Principle is that quality problems are the result of only a
few problems e.g. 80% of the problems caused by 20%
of causes
Histograms
 A chart that shows the frequency distribution
of observed values of a variable like service
time
at a bank drive-up window

 Displays whether the distribution is

symmetrical (normal) or skewed
TERIMA KASIH