[3] Role of Information

in Quality
Industrial Information Systems
Design
For IE
Indra Almahdy

Reference
Acknowledgement for following references

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Learning Objectives

Know that quality is determined by customers

Know dimension of quality of products and services
Know quality management, development, and other basic concepts
Understand Total Quality Management (TQM), and its components.
Understand disandvantage for companies due to poor of quality
Understand the way of quality influence companies profitability and
growth
Comprehend how Information Systems influence companies
product and services quality
Comprehend how high level management establish rules to achieve
TQM
Comprehend how CIO achieve information products and services
quality

Dimension of Quality
of Products and Services
Quality is on customers view, and has dimension related
to products and services.
Quality Dimension
Garvin (1987) identified eight different dimensions:

Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perception to quality (image and reputation)

Manufacturer will choose combination that makes products to

have competitive advantage in a specific market segment.

Dimension of Quality
of Products and Services (Cont.)
Dimension of Quality of Services
Berry, Parasuraman, and Zeithmal (1988)
identified dimension of quality of services:
Reliability
Appearance
Responsiveness
Confidence
Empathy

Basic Quality Management

Quality idea came from manufacturing
area, built by contribution of quality
experts:
W. Edwards Deming (1940s),
Joseph Juran (1951)
Armand Feigenbaum (1956).

Demings 14 Points
1. Constantly strive to improve products and
services.
2. Adopt a total quality philosophy.
3. Correct defects as they happen rather than rely
on mass inspection of end products.
4. Dont award business on price alone.
5. Constantly improve the system of production
and service.
6. Institute training.
7. Institute leadership.

Demings 14 Points (Cont.)

8. Drive out fear.
9. Break down barriers among staff areas.
10. Eliminate superficial slogans and goals.
11. Eliminate standard quotas.
12. Remove barriers to pride in workmanship.
13. Institute vigorous education and retraining.
14. Take demonstrated management action to
achieve transformation.

Juran Trilogy
The Quality Trilogy
Universal approach to quality
Various hierarchy levels
Various functions
Various product lines

Top management involved

Entire organization involved

Juran Trilogy
A systematic approach
Break through existing levels of quality and
reach unprecedented ones
Conscientious and dedicated system of
thinking and activities
Not merely haphazard project-by-project
improvement
Anecdote -- the manager who is up to his waist in
alligators

Juran Trilogy
- Quality Defined

Fitness for use

1. Quality consists of those product features that
meet customer needs
2. Quality consists of freedom from deficiencies.

Meeting customer needs and eliminating of

waste
Customer -- internal and external
Eliminating of waste employing cost-efficient
processes

Juran Trilogy
- Planning, Control, and Improvement of Quality

The Trilogy consists of three sequential

and logical groups of activities:
Quality Planning, Quality Control, and Quality
Improvement.

All three processes are universal

Applied to a particular process
Performed by top management or by middle
management

Table --- Components of

Popular TQM Approaches
The Juran Trilogy
Quality Planning
Set goals

Quality Control
Evaluate
performance

Identify customers
and their needs
Compare to goals
and adapt
Develop products
and processes

Quality
Improvement
Establish
infrastructure
Identify projects
and teams
Provide resources
and training
Establish controls

What is Juran Trilogy

The Quality Trilogy

- Quality Planning: Summary

The Quality Trilogy diagram.

Quality Planning
Creating a process that will be able to
meet established goals and do so under
operating conditions." (Juran)
Discovering customer needs and
opportunities for reduction of waste and
developing products and processes that
would meet those needs and attain to
those opportunities.
Subject matter
An office process for producing documents
An engineering process for designing
products
A factory process for producing goods
A service process for responding to
customers requests

Lessons Learned
Source: Adopted from Juran, J. M. (May 1989). Universal Approach to Managing
for Quality, Executive Excellence, 6,5, ABI/Inform Global

What is Juran Trilogy

The Quality Trilogy

- Quality Control: Summary

The managerial processes used to,

Evaluate actual performance,
compare actual performance to
goals, and take action on the
differences. (Gibbons)
Some deficiencies planned
Chronic waste
Original quality control zone

The job of the operating forces

performance should not get worse
than planned
Sporadic spikes sudden deviations
from planned performance
Respective measures are taken

Lessons Learned
Source: Adopted from Juran, J. M. (May 1989). Universal Approach to Managing
for Quality, Executive Excellence, 6,5, ABI/Inform Global

What is Juran Trilogy

The Quality Trilogy

- Quality Improvement: Summary

The organized creation of beneficial

change; the attainment of
unprecedented levels of
performance. (Gibbons)
Purpose -- to reduce and eliminate
chronic waste.
Achieved through:
Planned actions by upper
management

Chronic waste level goes down

New quality-control zone is
established
Closing the loop through Lessons
Learned

Lessons Learned
Source: Adopted from Juran, J. M. (May 1989). Universal Approach to Managing
for Quality, Executive Excellence, 6,5, ABI/Inform Global

TQC Feigenbaum
Quality is the responsibility of not only
manufacturing area. All functional areas have
roles and multifunctional project teams are
formed to develop new products, productions,
distributions, and finalizations in an approach
called as total quality control.
However, the facts that US industries lost in
quality competition (1980). Many failed ICs of
HP made USA manufacturing companies
realized that their quality control were fare left
behind.

Total Quality Management

TQM is built based on the a belief that
customers are are to define quality,
managements are to achieve, and the
companies are to be responsible on the quality.
TQM Element
TQM Philosophy
Relationship between customers and suppliers.
Poor quality is avoidable
Quality at the source workers are to function as inspectors
of their own quality

Graphical Tools ( Gambar)

Statistical Tools

Quality and Competitive Advantage

Failures to achieve quality are to result in
companies losses in forms of opportunity
loss, legal sues, productivity loss, and
forms of costs of failures, evaluations, and
avoidances.
Successes in quality are to increase
profitability and growth.

Information Systems Supports on

Quality of Products and Services
Transaction Processing Systems - All transactions in
companies to be recorded in TPS. When transactions
happened, data are input to database, providing
information sources related to quality.
Management Information Systems - MIS is responsible
in providing information to manager throughout the
company in a form of periodical report, special report, and
output of mathematical models.
Decision Support Systems - adjust computer output for
specific issues relatied to quality.
Office Automation - OA provides communication facility
for personnels in the company
Knowledge-based Systems- Companies are to use AI to
catch knowledge and expertise of employees to be
utilized as consultants.

Information Systems Supports on

Quality of Products and Services
Marketing Information Systems (MKIS) - MKIS enables
companie to set quality at the right level.
Marketing Research Subsystem is to collect information related to
expectation and needs of customers through varius techniques:
direct interview, phone surveys, observations, etc.
Marketing Intelligence Subsystem is to collect information about
companies competitors.

Manufacturing Information System - MFIS gives the

ability to the company to manufacture at the right level of
quality.
Manufacturing Intelligence Subsystem is to obtain information
about supplier.
Industrial Engineering Subsystem is being used by IE (Industrial
Engineers) to study processes in the company and establish
standards to achieved by production workers.