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IMPLEMENTATION OF QUALITY TOOLS IN SMALL MEDIUM INDUSTRYMIRZAN AIDIF BIN MOHD SHAKHIRA report in partial fulfillment of the requirements for the award of the degree ofBachelor of Mechanical EngineeringFaculty of Mechanical EngineeringUniversiti Malaysia PahangNOVEMBER 2008

iiSUPERVISOR DECLARATION“We hereby declare that we have read this thesis and in our opinion this thesis issufficient in terms of scope and quality for the award of the degree of Bachelor ofMechanical Engineering”Signature: ……………………………………..Name of Supervisor : MR MOHD FADZIL ABDUL RAHIMPosition: ……………………………………..Date : NOVEMBER 13 th , 2008SignatureName of panelPositionDate: ……………………………………..: ……………………………………..: ……………………………………..: ……………………………………..

iiiSTUDENT DECLARATIONI hereby declare that this thesis entitled “Implementation of Quality Tools In SmallMedium Industry” is the result of my own research except as cited in the references.The thesis has not been accepted for any degree and is not concurrently submitted incandidature of any other degree.Signature : ..........................................................Name: MIRZAN AIDIF BIN MOHD SHAKHIRID Number : MA 05022Date : NOVEMBER 13 th , 2008

Dedicated to my beloved Mother, Father, Sister and Brothersiv

vACKNOWLEDGEMENTSFirst I would like to express my grateful to ALLAH S.W.T. as for theblessing given that I can finish my project. In preparing this paper, I have engagedwith many people in helping me completing this project. First, I wish to express mysincere appreciation to my main thesis supervisor Mr Mohd Fadzil Abdul Rahim, forencouragement, guidance, advices and motivation. Without his continued supportand interest, this thesis would not have been the same as presented here. Last but notleast I acknowledge without endless love and relentless support from my family, Iwould not have been here. Father, mother, sister and brothers, you all have given methe inspirations and encouragement until these days. Thank you all.

viABSTRACTQuality tools are one of the methods used to control and improve productivity bymany ways such as reducing the repetitive mistake. Quality plays such an importantrole in the manufacturing industry in order to raise the profit of the company and alsothe company’s name. SMI has many problems in their company specifically in theprocessing line. This is because they just focusing in producing the products and nottaking the lack occur in the processing very well. This study is about to apply thequality tools in the processing line in order to identify where the highest waste isoccur at and to give suggestion for improvement at the major waste involves in theprocessing line. The selected SMI is producing spice which is one of importantingredients in Malaysian food. There are four stages for producing spice, weighing,roasting, grinding and packaging. Due to the interview there are two causescontribute to waste, which are roasting and grinding process. From the data taken andthe analysis done, it shows the highest waste occur in the grinding process whichcause by four factors, expose to the moving fan, spices stick at the grind blade,rotating gear and tupperware without lid. This shows that quality tools managed tofind the highest waste occur in the processing line. The company can reduce thewaste by put on the lid on the table used for cooling the spice, service the grindingblade once after running three time to avoid the wet spices will attract more spices tostick together, build a compartment at the rotating gear as obstacle and put on the lidon the tupperware to ensure the spice will not getting away from the tupperware.

viiABSTRAKPerkakas kualiti merupakan salah satu kaedah digunakan untuk mengawal danmenigkatkan produktiviti dengan banyak cara antaranya mengurangkan kesilapanyang berulang. Kualiti memainkan peranan penting bagi syarikat pembuatan untukmeningkatkan keuntungan dan menaikkan nama syarikat. SSK mempunyai banyakmasalah di dalam syarikat mereka terutamanya di bahagian pemprosessan. Ini adalahkerana mereka hanya fokus dalam penghasilan produk dan tidak mengambilkekurangan di bahagian pemprosessan dengan baik. Pengkajian ini adalah tentangmenggunakan perkakas kualiti di bahagian pemprosessan untuk mencari dimanakahberlakunya pembaziran yang tertinggi dan untuk memberi cadangan bagimeningkatkan kawasan pembaziran major yang terlibat. SSK yang terpilihmenghasilkan rempah yang mana merupakan salah satu ramuan yang penting dalammasakan orang Malaysia. Ada empat perigkat bagi menghasilkan rempah, timbangberat, panggang, mengisar dan mempaket. Berdasarkan temubual ada dua penyebabyang menyumbangkan pembaziran, yang mana adalah panggang dan mengisar.Daripada data yang diambil dan analisis yang dijalankan, ia menunjukkanpembaziran yang tertinggi berlaku di proses mengisar yang mana disebabkan olehempat faktor, terdedah kepada kipas yang bergerak, rempah melekat pada matapengisar, gear yang berpusing dan bekas tanpa penutup. Ini menunjukkan perkakaskualiti berjaya mencari pembaziran tertinggi yang berlaku di bahagian pemprosessan.Syarikat tersebut boleh mengurangkan pembaziran dengan meletakkan penutup padameja yang digunakan untuk menyejukkan rempah, servis mata pengisar sekaliselepas menggunakan tiga kali untuk mengelakkan rempah yang lembab menariklebih banyak rempah yang melekat, membina pengkotak pada gear yang bergeraksebagai penghalang dan meletakkan penutup pada bekas bagi mengelakkan rempahterkeluar.

viiiTABLE OF CONTENTSPageTITLE PAGE iSUPERVISOR DECLARATION iiSTUDENT DECLARATIONiiiDEDICATIONivACKNOWLEGDEMENTS vABSTRACTviABSTRAKviiTABLE OF CONTENTS viiiLIST OF TABLESxiLIST OF FIGURES xiiiCHAPTER 1 INTRODUCTION1.1 Project background 11.2 Why SMI 21.3 Scope of Project 21.4 Problem Statement 31.5 Objective 3CHAPTER 2LITERATURE REVIEW2.1 Definition of Quality 42.2. Seven Basic Quality Tools 52.2.1 Check sheet 52.2.2 Pareto chart 62.2.2.1 Weight Pareto chart 72.2.3 Cause and effect diagram 92.2.4Conclusion of Seven Basic Quality Tools 102.3 Implementation of Quality Tools in previous case 102.3.1 Seven Basic Quality Tools (Pareto chart) 10

ixCHAPTER 3METHODOLOGY3.1 Introduction 123.2 Literature Review on the topic 123.3 Define the objective, scopes and problem statement 123.4 Find the small medium industry 133.5 Interview 133.5.1 Important finding from the interview 163.6 Find the major defects and start taking data 163.7 Analysis 193.8 Conclusion 193.9 Chapter summary 20CHAPTER 4RESULTS AND DISCUSSION4.1 Introduction 214.2 Results 214.2.1 Results of 10 random spices 214.2.2 Results of 3 Kurma spice 254.2.2.1 Data 1 254.2.2.2 Data 2 264.2.2.3 Data 3 284.3 Important finding from 3 data taken 294.4 Discussion 304.4.1 Expose to wind (fan) 304.4.2 Spices stick at the grinding blade 314.4.3 Tupperware without lid 334.4.4 Rotating gear 344.5 Suggestion for improvement 354.5.1 Case 1; Expose to wind (fan) 354.5.2 Case2; Spices stick at the grinding blade 374.5.3 Case 3; Tupperware without the lid 374.5.4 Case 4; Rotating gear 38

xCHAPTER 5CONCLUSION AND RECOMMENDATIONS5.1 Conclusion 415.2 Recommendation 41REFERENCES 42APPENDICESAppendix A Interview 43Appendix B Check sheet of 10 random spices and Kurma spice 44-46Appendix C Data of 10 random spices and Kurma spice 47-50Appendix D Gantt chart of PSM 1 and PSM 2 51-53

xiLIST OF TABLESTable No. Title Page3.1 Check Sheet for taking of 10 random spices 173.2 Check sheet for taking 3 data of the selected spice 174.1 Data for Beriani spice, Kari Daging, Opor spice, 22Kurma spice and Nasi Dagang4.2 Data for Satay spice, Soto spice, Gulai Kawah, Kari Ikan 22and Rendang4.3 Data of waste during the process in kilogram (kg) for 22Beriani spice, Kari Daging, Opor spice, Kurma spiceand Nasi Dagang4.4 Data of waste during the process in kilogram (kg) for 23Satay spice, Soto spice, Gulai Kawah, Kari Ikanand Rendang4.5 Data of waste during the process in percentage (%) for 23Beriani spice, Kari Daging, Opor spice, Kurma spiceand Nasi Dagang.4.6 Data of waste during the process in percentage (%) for 23Satay spice, Soto spice, Gulai Kawah, Kari Ikanand Rendang4.7 Data 1 for Kurma spice 254.8 Waste during the process (data 1) 25

xii4.9 Data 2 for Kurma spice 264.10 Waste during the process (data 2) 274.11 Data 3 for Kurma spice 284.12 Waste during the process (data 3) 28

xiiiLIST OF FIGURESFigure No. Title Page2.1 Because it clearly organize data, check sheet is 6the easiest way to track information2.2 Typically the left y-axis is frequency of occurrence, 7and the right y-axis is the cumulative percentage of thetotal number of occurrence.2.3 The most frequently occurring defects are wrinkles 8and stains. Based just on this information, it can decideto develop and improvement project and around reducingwrinkles and strains.on weld hardness2.4 The most costly defects are scratches and dirt specs. Based 8on this more informative data, it can decide that it is betterto develop an improvement project to reduce scratches anddirt specs.2.5 Fish bone diagrams display the various possible causes of 9the final effect. Further analysis can prioritize them.2.6 Pareto chart of grinding operations problems. 113.1 PJ FOOD Industries 133.2 Flowchart of processing spices 143.3 Weighing process 143.4 Roasting process 153.5 Grinding process 15

xiv3.6 Packaging process 163.7 Flowchart of methodology 204.1 Graph shows the waste value in roasting and grinding 24process4.2 Pareto Chart of Defects (Data 1) 264.3 Pareto Chart of Defects (Data 2) 274.4 Pareto Chart of Defects (Data 3) 294.5 Fish bone diagram of causes waste in grinding process 304.6 Spices expose to the moving fan 304.7 Spices stick at the grinding blade (front view) 314.8 Spices stick at the grinding blade (top view) 314.9 Spices stick at the grinding compartment 324.10 Spices stick at the grinding machine 334.11 The spices move out from the tupperware 334.12 The rotating gear 344.13 Spices stick at the grinding machine 354.14 Top view of the table 36

xv4.15 Cross section of the lid 364.16 Top view of the tupperware lid 374.17 Top view of the gear compartment 384.18 Side view of the gear compartment 394.19 Front view of the gear compartment 39

CHAPTER 1INTRODUCTION1.1 BackgroundQuality tools are the methods use to analyze and improving products. One ofthe objectives of quality tools is less variation in the product. The phrase lessvariation is a relative one. Less than a product that has more variation. To create aquality product, we minimize the variation in the specification of the product. Thusquality also could mean reliability. This implies that quality product tend to be morereliable. Quality has several major business advantages. Some of them are qualitybuilds customer loyalty, profits margins can be sustained, plus a better impressionhelps expand the customer base. In the long run, quality will reduce the operatingcosts and increase profits. Quality also means larger business profit as the companycan eliminate or reduce waste. There is a great deal of profit to make by qualityimprovements in products and services, business processes and people. The purposeof quality management is to set up a quality and management discipline that preventsdefects from happening in company’s performance cycle. To accomplish this, acompany has to act now in situations that may cause problems later. Quality must bemeasured in order to manage it. The company must measure the results of how everypart of their company is doing at providing internal and external customers with whatthey want. Whatever measure they choose should work for each department so thatthey can understand and asses the impact of individual decisions on the company asthe whole and on their customers. The place that has related with this topic is exactlyin industries field. This is because every product the companies’ producing is alwaysconnecting with the customers, who buy and use it. In order for becoming superbranded goods, the companies need to have the characteristics of customer’sdemands and requirements in order to satisfy the customer. [Shah, 2004]

21.2 Why SMISMI stands for Small Medium Industry. Even though some of SMI is alreadyold in the industry but this company have such problem and difficulties which arestill unsolved such as the improper environment of working area, continuous waste inthe processing area and etc. These situations occur because there is no professionalposition in the company. such as an engineer to monitor and solve problems in theprocessing line. All of the employees are consist of non educational people. Thiscompany also have limitation budget. The company just wants the effective methodwith the low cost to overcome the problem.1.3 Scope of the projectThis project is about to implement the quality tools in the selected SMI. Theselected SMI is PJ FOOD which located at Kuantan, Pahang. The company isproducing spices, which is one of the most important ingredients in Malaysian food.The study is focusing in the processing line. There are four stages in the processingline which are including weight measuring, roasting, grinding and packaging.According to the observation, the final weight produces after all the processes are notexactly or approximately to the expectation value, which is less than expected.Quality tools will be implement in the processing line of this SMI in order to findwhere the highest waste is occur at what process area, among those processes. Thisproposal will give such a comprehensive ideas on how to reduce the waste by findingand analyzing the causes occurs in the processing line.

31.4 Problem statementi. In order to reduce waste in processing line major defect must be identify andmeasure at first. The most significant root of waste need to be eliminated.ii. Processing line of food production is needed to be study and analyze.1.5 Objectivei. To identify and suggest improvement for the major defects involve in theprocessing line.ii. To applied the quality tools in processing line.

4CHAPTER 2LITERATUREVIEW2.1 Definition of qualityQuality is defined as a degree or grade of the excellence of the product. In themanufacturing industry it is commonly stated that “Quality drives productivity.”Improved productivity is a source of greater revenues, employment opportunities andtechnological advances. Objective of quality is to compliance of a process or itsoutcome with a predetermined set of criteria, which are presumed essential to theultimate value it provides. Quality means less variation in the product. The phraseless variation is a relative one. Less than a product that has more variation. To createa quality product, we minimize the variation in the specification of the product. Thusquality also could mean reliability. This implies that quality product tend to be morereliable. Quality has several major business advantages. Some of them are qualitybuilds customer loyalty, profits margins can be sustained, plus a better impressionhelps expand the customer base. In the long run, quality will reduce the operatingcosts and increase profits. Quality also means larger business profit as themanufacturer can eliminate or reduce waste. Quality is also demanding, difficult,never ending effort to improve worse. There is a great deal of profit to make byquality improvements in products and services, business processes and people. Thepurpose of quality management is to set up a quality and management discipline thatprevents defects from happening in manufacturer’s performance cycle. Toaccomplish this, a manufacturer has to act now in on situations that may causeproblems later. Quality must be measured in order to manage it. The manufacturermust measure the results of how every part of their company is doing at providinginternal and external customers with what they want. [Juran and Godfrey, 1999]

52.2 Seven basic quality toolsOnce the basic problem-solving or quality improvement process isunderstood, the addition of quality tools can make the process proceed more quicklyand systematically. Seven simple tools can be used by any professional to ease thequality improvement process: flowcharts, check sheets, Pareto diagrams, cause andeffect diagrams, histograms, scatter diagrams, and control charts. (Some booksdescribe a graph instead of a flowchart as one of the seven tools).The concept behind the seven basic tools came from Kaoru Ishikawa, arenowned quality expert from Japan. According to Ishikawa, 95% of quality-relatedproblems can be resolved with these basic tools. The key to successful problemresolution is the ability to identify the problem, use the appropriate tools based on thenature of the problem, and communicate the solution quickly to others.Inexperienced personnel might do best by starting with the Pareto chart and the causeand effect diagram before tackling the use of the other tools. Those two tools areused most widely by quality improvement teams. [Gitlow, Oppenheim, Levine,2005]2.2.1 Check sheetCheck sheets help organize data by category. They show how many timeseach particular value occurs, and their information is increasingly helpful as moredata are collected. More than 50 observations should be available to be charted forthis tool to be really useful. Check sheets minimize clerical work since the operatormerely adds a mark to the tally on the prepared sheet rather than writing out a figure(Figure 2.1). By showing the frequency of a particular defect (e.g., in a molded part)and how often it occurs in a specific location, check sheets help operators spotproblems. The check sheet example shows a list of molded part defects on aproduction line covering a week's time. One can easily see where to set prioritiesbased on results shown on this check sheet. Assuming the production flow is thesame on each day, the part with the largest number of defects carries the highestpriority for correction.

6Figure 2.1.Because it clearly organizes data, a check sheet is the easiest way to trackinformation.2.2.2 Pareto chartPareto Chart is a special type of bar chart where the plotted values arearranged from largest to smallest. A Pareto chart is used to highlight the mostfrequently occurring defects, the most common causes of defects, or the mostfrequent causes of customer complaints.The Pareto chart is named for Vilfredo Pareto and his principle of the "80/20rule." That is, 20% of the people contain 80% of the wealth; or 20% of the productline may generate 80% of the waste; or 20% of the customers may generate 80% ofthe complaints, etc.For example, the hotel management wants to investigate causes of customerdissatisfaction at your hotel chain so investigate and record customer reasons fortheir complaints.

7250Pareto chart of ComplaintsCounts200150100100806040Percent50200Conplaints room appliances cleanliness comfort OtherCounts 100 50 50 15 7Percent 45.0 22.5 22.5 6.8 3.2Cum % 45.0 67.6 90.1 96.8 100.00Figure 2.2.Typically the left y-axis is frequency of occurrence, and the right y-axis isthe cumulative percentage of the total number of occurrences.The x-axis displays the categories of defects, complaints, waste, etc.2.2.2.1 Weighted Pareto ChartA weighted Pareto chart not only considers the frequency of occurrence, butthe importance as well. A weighted Pareto chart can account for the severity of thedefects, or the cost, or anything else you would like to track. For example, supposeyou have 5 coating defects that you are tracking: wrinkles, stains, scratches, dirtspecs, and bubbles.Collect data on the frequency of defect occurrence and the cost to rework. Aweighted Pareto chart may change your priority for improvement projects byconsidering data based on both cost and frequency data. For example, even thoughwrinkles may be more frequent they are less expensive to fix than dirt specs, whichare a rarer occurrence. Considering both cost and frequency will give you a betterunderstanding of your cost of poor quality (COPQ).

84 0 0P a r e t o c h a r t o f D e f e c t s1 0 03 0 08 0Frequency2 0 06 04 0Percent1 0 02 00D e fe c ts w r in k le s s ta in s s c r a tc h e s d ir t s p e c b u b le sF r e q u e n c y 1 0 0 9 0 8 0 5 0 3 0P e r c e n t 2 8 . 6 2 5 .7 2 2 .9 1 4 .3 8 .6C u m % 2 8 . 6 5 4 .3 7 7 .1 9 1 .4 1 0 0 .00Figure 2.3.The most frequently occurring defects are wrinkles and stains. Based juston this information, it can decide to develop an improvement project around reducingwrinkles and stains [Gitlow, Oppenheim, Levine, 2005]Pareto chart of Defects120001000010080Cost8000600040006040Percent2000200Defects scratches dirt spec stains bubbles 1600Cost 4000 2400 2000 1800 1600Percent 33.9 20.3 16.9 15.3 13.6Cum % 33.9 54.2 71.2 86.4 100.00Figure 2.4.The most costly defects are scratches and dirt specs. Based on this moreinformative data, it can decide that it is better to develop an improvement project toreduce scratches and dirt specs [Gitlow, Oppenheim, Levine, 2005]

92.2.3 Cause and effect diagramThe cause and effect diagram is sometimes called an Ishikawa diagram afterits inventor. It is also known as a fish bone diagram because of its shape. A cause andeffect diagram describes a relationship between variables. The undesirable outcomeis shown as effect, and related causes are shown as leading to, or potentially leadingto, the said effect. This popular tool has one severe limitation, however, in that userscan overlook important, complex interactions between causes. Thus, if a problem iscaused by a combination of factors, it is difficult to use this tool to depict and solveit.A fish bone diagram displays all contributing factors and their relationships tothe outcome to identify areas where data should be collected and analyzed. Themajor areas of potential causes are shown as the main bones, e.g., materials,methods, people, measurement, machines, and design (Figure 2.5). Later, thesubareas are depicted. Thorough analysis of each cause can eliminate causes one byone, and the most probable root cause can be selected for corrective action.Quantitative information can also be used to prioritize means for improvement,whether it is to machine, design, or operator.Figure 2.5.Fish bone diagrams display the various possible causes of the final effect.Further analysis can prioritize them

102.2.4 Conclusion of 7 Basic Quality ToolsMany people in the medical device manufacturing industry are undoubtedlyfamiliar with many of these tools and know their application, advantages, andlimitations. However, manufacturers must ensure that these tools are in place andbeing used to their full advantage as part of their quality system procedures.Flowcharts and check sheets are most valuable in identifying problems, whereascause and effect diagrams, histograms, scatter diagrams, and control charts are usedfor problem analysis. Pareto diagrams are effective for both areas. By properly usingthese tools, the problem-solving process can be more efficient and more effective.Those manufacturers who have mastered the seven basic tools described heremay wish to further refine their quality improvement processes. A future article willdiscuss seven new tools: relations diagrams, affinity diagrams (K-J method),systematic diagrams, matrix diagrams, matrix data diagrams, process decisionprograms, and arrow diagrams. These seven tools are used less frequently and aremore complicated.2.3 Implementation of the Quality tools in previous case2.3.1 Seven Basic of Quality Tools (Pareto chart)Statistical Thinking to Improve Quality of MachiningThe application of Pareto chart in a case study from Gijo (2005). A companywas experiencing a high rejection rate in one of its machining shops. They did notknow the root causes of these rejections nor how to reduce their occurrence. Theystarted by examining existing records and constructed a Pareto chart. The followingfigure presents the chart.

11Figure 2.6.Pareto chart of grinding operation problems [Gijo, 2005]The chart shows that 60% of the rejections were due to grinding problems. Basedon the Pareto Chart they started a study improve grinding operations. This studyresulted in designed experiments to determine improved grinding operatingprocedures. The resulting analyses lead to operating procedures that significantlyreducing rejections and rework due to grinding operations [Gijo, 2005]