MATA KULIAH MANAJEMEN

OPERASI
(Operational Management)

Modul 2: Manajemen Mutu

Normansyah Syahruddin
norman.syahruddin@gmail.com
“It costs a lot to produce a bad product.”
-Norman Augustine-
Fokus Pembahasan Pertemuan Ke-2

1.Manajemen Mutu

2.Life Cycle Assessment

MANAJEMEN
MUTU
Cost of quality

1. Prevention costs

2. Appraisal costs

3. Internal failure costs

4. External failure costs

5. Opportunity costs
What is quality management all about?

Try to manage all aspects of the

organization in order to excel in all
dimensions that are important to
“customers”

Two aspects of quality:

features: more features that meet customer needs
= higher quality
freedom from trouble: fewer defects = higher
quality
 Quality is
“uniformity and
dependability”
Focus on SPC and
statistical tools
“14 Points” for
management
PDCA method

1900-1993

1986
 Quality is “fitness
for use”
Pareto Principle
Cost of Quality
General
management
approach as well as
statistics

1904 - 2008

1951
History: how did we get here…

• Deming and Juran outlined the principles of Quality

Management.
• Tai-ichi Ohno applies them in Toyota Motors Corp.
• Japan has its National Quality Award (1951).
• U.S. and European firms begin to implement Quality
Management programs (1980’s).
• U.S. establishes the Malcolm Baldridge National Quality
Award (1987).
• Today, quality is an imperative for any business.
What does Total Quality Management
encompass?
TQM is a management philosophy:
• continuous improvement
• leadership development
• partnership development

Technical
Tools
Cultural (Process Analysis,
Alignment Customer
SPC, QFD)
Developing quality specifications

Design Design quality

Input Process Output

Dimensions of quality
Conformance quality
  6
 A philosophy and set of methods
companies use to eliminate defects in their
products and processes
 Seeks to reduce variation in the processes
that lead to product defects
 The name “six sigma” refers to the variation
that exists within plus or minus six
standard deviations of the process outputs
Six Sigma Quality
 Next Project Define
Customers, Value, Problem Validate
Statement Project $
Celebrat Scope, Timeline, Team
e Primary/Secondary & OpEx
Project $ Metrics Measure
Control Current Value Stream Map Assess specification / Demand
Document process (WIs, Std Voice Of Customer (QFD) Measurement Capability (Gage
Work) R&R)
Mistake proof, TT sheet, CI List Correct the measurement
Analyze change in metrics system
Value Stream Review Process map, Spaghetti, Time
obs.
Prepare final report
Measure OVs & Validate
IVs / Queues
Project $
Validate
Project $

Improve Analyze (and fix the

Optimize KPOVs & test the KPIVs obvious)
Redesign process, set Root Cause (Pareto, C&E,
pacemaker Validate brainstorm)
5S, Cell design, MRS Project $ Find all KPOVs & KPIVs
Visual controls FMEA, DOE, critical Xs, VA/NVA
Value Stream Plan Graphical Analysis, ANOVA
Future Value Stream Map
Six Sigma Organization
Quality

Traditional

Time
Continuous improvement philosophy

1. Kaizen: Japanese term for continuous improvement. A

step-by-step improvement of business processes.
2. PDCA: Plan-do-check-act as defined by Deming.

Plan Do

Act Check

3. Benchmarking : what do top performers do?

Tools used for continuous improvement

1. Process flowchart
Tools used for continuous improvement

2. Run Chart

Performance

Time
Tools used for continuous improvement

3. Control Charts

Performance Metric

Time
Tools used for continuous improvement

4. Cause and effect diagram (fishbone)

Machine Man

Environmen
t

Method Material
Tools used for continuous improvement

5. Check sheet

Item A B C D E F G
------- √√ √ √ √
------- √√√ √√√ √ √√
------- √√ √ √√ √
Tools used for continuous improvement

6. Histogram

Frequency
Tools used for continuous improvement

7. Pareto Analysis

100%
60
50 75%

Percentage
Frequenc

40
50%
30
y

20 25%
10
0%
A B C D E F
Summary of Tools

1. Process flow chart

2. Run diagram
3. Control charts
4. Fishbone
5. Check sheet
6. Histogram
7. Pareto analysis
Case: shortening telephone waiting
time…

• A bank is employing a call answering service

• The main goal in terms of quality is “zero waiting time”

- customers get a bad impression
- company vision to be friendly and easy access

• The question is how to analyze the situation and improve quality

The current process

Custom Receiving
Operator
er A Party

Custom
er B How can we reduce waiting
time?
Fishbone diagram analysis

Absent receiving Working system of

party operators

Absent Too many phone

calls
Out of office Lunchtime

Not at desk Absent

Makes
custom
Not giving er wait
receiving party’s Does not
coordinates Lengthy talk understan
Does not know d
Complaining organization customer
well
Leaving a Takes too much
message time to explain

Customer Operator
Reasons why customers have to wait
(12-day analysis with check sheet)

Daily Total
average number
A One operator (partner out of office) 14.3 172

B Receiving party not present 6.1 73

C No one present in the section receiving call 5.1 61

D Section and name of the party not given 1.6 19

E Inquiry about branch office locations 1.3 16

F Other reasons 0.8 10

29.2 351
Pareto Analysis: reasons why customers
have to wait
Frequency Percentage

300 87.1%

250 71.2%
200
49%
150
100

0%
A B C D E F
Ideas for improvement

1. Taking lunches on three different shifts

2. Ask all employees to leave messages when leaving desks
3. Compiling a directory where next to personnel’s name
appears her/his title
Results of implementing the
recommendations
Before… …After
Frequency Percentage Frequency Percentage

100%

30 87.1 30
0 % 0
71.2
% Improvemen
20
0 49
20
0 t
%

10 10 100%
0 0

0% 0%

A B C D E F B C A D E F
In general, how can we monitor quality…?

By observing
variation in
output measures!

1. Assignable variation: we can assess the cause

2. Common variation: variation that may not be possible to correct
(random variation, random noise)
Statistical Process Control (SPC)

Every output measure has a target value and a level of “acceptable”

variation (upper and lower tolerance limits)

SPC uses samples from output measures to estimate the

mean and the variation (standard deviation)

Example
We want beer bottles to be filled with 12 FL OZ ± 0.05 FL OZ

Question:
How do we define the output measures?
In order to measure variation we need…

The average (mean) of the observations:

N
1
X 
N
xi 1
i

The standard deviation of the observations:

 i
( x  X ) 2

  i 1
N
Number of pepperoni’s per pizza: 25, 25, 26, 25, 23, 24, 25, 27

Average:
Standard Deviation:

Number of pepperoni’s per pizza: 25, 22, 28, 30, 27, 20, 25, 23

Average:
Standard Deviation:

Which pizza would you rather

have?
When is a product good enough?
High

a.k.a
Incremental
Upper/Lower Design Limits
Cost of
Variability
(UDL, LDL)
Upper/Lower Spec Limits
(USL, LSL)
Upper/Lower Tolerance Limits
Zero (UTL, LTL)

Lower Target Upper

Tolerance Spec Tolerance

Traditional View

The “Goalpost” Mentality

 High

Incremental
Cost of
Variability
Taguchi’s View
“Quality Loss Function”
Zero (QLF)
Lower Target Upper
Spec Spec Spec

LESS VARIABILITY implies BETTER PERFORMANCE !

Capability Index (Cpk)
It shows how well the performance
measure fits the design specification
based on a given tolerance level

A process is k capable if

X  k  UTL and X  k  LTL

UTL  X X  LTL
1 and 1
k k
Capability Index (Cpk)
Another way of writing this is to calculate the capability index:

 X  LTL UTL  X 
C pk  min  , 
 k k 

Cpk < 1 means process is not capable at

the k level

Cpk >= 1 means process is capable at the

k level
Accuracy and Consistency

We say that a process is accurate if its mean is close to

the target T.
X
We say that a process is consistent if its standard deviation
is low.
Control Charts

Upper Control Limit

Central Line

Lower Control Limit

Control charts tell you when a process measure is exhibiting

abnormal behavior.
Two Types of Control Charts

• X/R Chart
This is a plot of averages and ranges over
time (used for performance measures
that are variables)

• p Chart
This is a plot of proportions over time
(used for performance measures that are
yes/no attributes)
Conducting a Kaizen
Content:
• What is a Kaizen?
• Why Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
What is Kaizen?
Kaizen
• is a tool to rapidly improve work as part of the PDCA cycle
• is a tool for implementing Rule 4 of the Rules-In-Use
• goals must align with the business objectives

2. Design 3. Do
(Plan)

1. Customer
Needs
5. Improve 4. Feedback
(Act) (Check)

Meeting Customer Needs:

• Internal/External
• Shareholders
• Employees
• Community
Why Kaizen?
Content:
• What is a Kaizen?
• Why Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
There are 5 basic steps:

• Identify the business case.

• Set goals.

• Select the team.

• Collect baseline data.

• Plan to support the Kaizen activity.

The business case is the launching pad for a kaizen and is defined as a
discrepancy between our customer's expectations and our current processes.

The business case creates the focus for the kaizen and is documented on an
A3. Examples of a business case for a kaizen include:

• Reduce lead times

• Increase delivery performance
• Eliminate scrap
• Reduce inventories Eliminate the Gap!
• Increase capacity
• Eliminate bottlenecks
• Reduce changeover time
• Reduce machine failures
• Quality improvements

Customer
• Measurable
•Examples: Time, Money, Defects

• Align with the company’s strategic goals and identified by the

Plant A3 and Value Stream Map
•Safety, Quality, Delivery, Cost

• Stretch but realistic (target at least 50% improvement)

• Should result in a new process or new standard

• Documented on the an A3

• 1 improvement idea per team member, PER

OBSERVATION (6-7 ideas per person total)
• Team size should be based on the area(s) being kaizened.

• A trained Facilitator and a Team Leader for each Team

• Typically 4-6 people per machine or process

• Every team member should be chosen for a specific reason

•Management
•“Different Set of Eyes”
•Customers and Suppliers (internal or external)
•Experts (people who actually do the work)
•Maintenance
•Change Agents and “CAVE Men”
Baseline data is collected to document the current condition and assist in
setting the goals. This information may include the following:

Space Constraints Lead Time

Inventory Scrap Rate
Productivity Takt Time
Cycle Time Safety/Ergonomics - Loss
5-S Visual Measurement
Customer Satisfaction (NPS) Current Standard Work

The background information is used to produce a Value-Stream Map or

Process Map by the Facilitator or Team Leaders for the problem being
addressed by the Kaizen.
While the goal of a Kaizen is to work around the process, interruptions are
inevitable as improvements are implemented. Success requires action prior
to the Kaizen. Items to consider:

• Set maintenance support to cover Kaizen needs

• Perform moves that can be identified prior to Kaizen
• Set labor to cover customer needs during the Kaizen or work
ahead
• Adjust work scheduled and flowed through selected area
during Kaizen
• Create a “claw-back” or “recovery” plan to be instituted after
Kaizen if necessary
Content:
• What is a Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
Schedule for the Kaizen
Monday Tuesday Wednesday Thursday Friday

7:30 AM Preparation / Group Meeting Preparation / Group Meeting

8:00 AM Introduction and Training Report out Preparation

Kaizen Activity Kaizen Activity

9:00 AM
Kaizen Activity Report Out - Plant and Senior
Leadership / Sametime
10:00 AM Meeting

Kaizen Trial Kaizen Trial

11:00 AM Kaizen Trial
Report Out follow-up

12:00 PM
Travel Lunch Lunch Lunch

(Pre-Event meeting with

1:00 PM
Facilitators/Team Leaders)

Kaizen Activity Kaizen Activity

2:00 PM Verification and Final
Implementation

3:00 PM Travel

Kaizen Trial Kaizen Trial

4:00 PM Report out Preparation

5:00 PM
Daily Summary Daily Summary Daily Summary

6:00 PM
Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality
Document Reality

Document the Current Process. We need to understand how processes are

performed today (may be done prior to Kaizen as well).

Document
Documentation Includes: Reality

• Spaghetti Chart
• Observation Sheet *
• Standard Work Combination Table *
• Balance Table
• Layout
• 5S & Safety Audit
• Process definition (volume, mix, difficulty levels)
* One for each operator

Take the time to validate the baseline information and understand what is
happening in the area.
Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste
Identify Waste

Those eight elements that do not increase the value of a product or

service, but only increase cost.

Identify
Attack items that impact Waste
• Process Flow
• Material Flow
• Information Flow
Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste

Plan
Countermeasures
Plan Countermeasures

• Focus on the things that can be done within the kaizen

• Bias for action vs. planning and analysis

• Think within the boundaries of the Lean Plan

process (IDEAL) Countermeasures
• Single-piece flow
• Minimum inventory
• At TAKT time
• Pull production vs. Push production

• Low cost solutions, creativity before money

• Right-sized resources

• Maximum waste elimination

Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste

Plan
Countermeasures
Reality
Check
Reality Check

Reality
Check
Problem/Countermeasure Tracking

• The Facilitator and Team Leaders review the countermeasures

and the to-do list to ensure:

• Proper Direction
• Countermeasures are the proper Lean solutions

• If necessary, course corrections are made

• The plant Lean Facilitator approves the plan

Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste

Plan
Countermeasures
Reality Make Changes
Check
Make Changes

• Bias for action, Just Do It!!

• Use the Kaizen Implementation Report to document the change

• Do not dictate how things will be done. Ask team members, build coalition

• Hold progress meetings each day: morning, afternoon, or end of day

• Keep Kaizen homework updated with the use of the Kaizen Newspaper

• Remember: Pre-kaizen planning for possible “moves” may be needed to

prepare support services
Make Changes
Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste

Plan
Countermeasures
Reality Make Changes
Check Verify Change
Verify Change

Verify Change

• Observe again

• Results Achieved?

• If not, go back and make additional changes

• Repeat the cycle – observe, implement changes, evaluate

Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality

Identify
Waste

Measure
Results

Plan
Countermeasures
Reality Make Changes
Check Verify Change
Measure Results

Measure
Results

• Did waste get eliminated?

• Can improvements be sustained?

• Are improvements aligned with business objectives?

• Is there a possibility of negative unintended consequences?

• Were kaizen and individual improvement objectives achieved?

Stages of the Kaizen
The Standard Work elements of a Kaizen are:

Start Document
Reality
Make this
the Standard
Identify
Waste

Measure
Results

Plan
Countermeasures
Reality Make Changes
Check Verify Change
Make this the Standard

• Establish visual controls (boards, taping, signs, etc.) to ensure

progress is maintained.

• Make visual controls understandable to the casual observer.

• Visibly post open actions (Kaizen Newspaper) and leave posted

until completed.

• Lean Facilitator to help establish control and counsel on the

kaizen closure.
Make this
• Results must be repeatable and sustainable. the
standard
Celebration

Celebrate the success (but not too long) because now you

Do It
Again
Stages of the Kaizen
The Standard Work elements of a Kaizen are:
Do It
Start Document
Again Celebrate
Reality
Make this
the Standard
Identify
Waste

Results:
A new way of work Measure
Results

Plan
Countermeasures
Reality Make Changes
Check Verify Change
Content:
• What is a Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
Report Out Content

• Title page
• Team Participants with Photo
• A3, Value Stream Map, or Progress Control Board information to
ensure alignment with business objectives.
• Goals of Kaizen
• Information or Examples showing Lean tool usage that may include:
• Before / After Photos
• Kaizen Implementation Reports
• Spaghetti Diagrams
• Control Charts
• Homework (Kaizen Newspaper)
• Lessons Learned
• Summary

Sample slides from previous report outs are in the appendix

Content:
• What is a Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
Follow-up

After the kaizen, the focus must be placed on ensuring that the improvements
continue.

This is done by:

• Reflection with the participants to determine where the kaizen needs

improvement.

• Aggressive follow-up on open Kaizen Newspaper action items by

Black Belt and plant management
• Establish post-kaizen ownership team, include on the Kaizen
Newspaper, and leave in place until open items are closed.

• Development of an “Information Control Center,” providing a visual

and immediate observation of continuous improvement

• Random reviews by plant management. GEMBA

• Floor walkthroughs
• Plant assessments
Kaizen Newspaper Form
KAIZEN NEWSPAPER PLANT LOCATION:

TEAM: ____________________________ REPORT-OUT DATE:

BLACK BELT RESPONSIBLE:

% Complete
(Double Click
Lead
No. Problem/Issue/Opportunity Activity Impact Cost
Time
Total Owner Due Date Revised Date on Dial to
Change as
Required)

See Rating Scale for Details

1 0

2 0

3 0

4 0

10

11

12

13

14

15

16

17

18

19

20

21

22

23
Kaizen Newspaper Rating Scale
Impact to the Businesss
Savings What is the $ What is the resultant DPMO? What is the reduction in time? What is the EHS result? Ranking
Very Large Reduction of multiple DART cases or substantial harm to
Savings > $50k peryear resultant DPMO less than 7 >50% reduction in time humans 10
Reduction of irreversible impact to environment or
$40k to $50k per year resultant DPMO of 7 to 67 45% to 50% reduction in time significant business interruption 9

$30k to $40k per year resultant DPMO of 67 to 500 40% to 45% reduction in time Reduction of DART case or multiple recordable cases 8
$20k to $30k per year resultant DPMO of 500 to 2.5k 35% to 40% reduction in time Reduction of recordable case or improved sustainability 7
Moderate $10k to $20k per year resultant DPMO of 2.5k to 12.5k 30% to 35% reduction in time Reduction of multiple first aid cases 6
$8k to $10k per year resultant DPMO of 12.5k to 50k 25% to 30% reduction in time Reduction of minor business interruptions 5
$5k to $8k per year resultant DPMO of 50k to 125k 20% to 25% reduction in time Engineers risk to employees out of process 4
Promotes consistent safe behavior or employee
$3k to $5k per year resultant DPMO of 125k to 330k 15% to 20% reduction in time involvement 3
$1k to $3k per year resultant DPMO of 330k to 500k 10% to 15% reduction in time Reduction of first aid case or multiple near misses 2
Small Savings < $1k per year resultant DPMO greater than 500k < 10% reduction in time Reduction of near miss 1

Cost to implement the idea/solution

Cost What is cost to Implement Idea? Ranking
Low Cost < $100 10
$100 to $200 9
$200 to $500 8
Moderate $500 to $1k 7
$1k to $2k 6
$2k to $3k 5
$3k to $5k 4
$5k to $7k 3
$7k to $10k 2
High Cost >$10k 1

Time to implement the idea/solution

Lead Time How long to Implement Idea? Ranking
Very Short 1 Hour to 3.9 Hours 10
4 Hours to 7.9 Hours 9
8 Hours to 23.9 Hours 8
1 Day to 3.5 Days 7
Moderate >3.5 Days to 5 Days 6
>1 Week to 2 Weeks 5
>2 Weeks to 3 Weeks 4
>3 Weeks to 4 Weeks 3
>4 Weeks to 5 Weeks 2
Very Long > 5 Weeks 1
 Kaizen Newspaper Guidelines

RATING SCALE:
•Multiply Impact x Cost x Lead Time to obtain Total

•Sort numbers by highest to lowest. This will prioritize the top items to work on and also show the ‘cliff’ vs
‘rubble’

NOTES:
•Newspaper should be posted in visible location for all to see (ie: on the floor, or in the office – at GEMBA)

•The Kaizen Newspaper will be a requirement for the Report-Out and will need to be included in the
PowerPoint presentation

•Items on the list should be completed within 60 days.

•Items with leadtime longer than 60 days should be listed on a separate Plant Master Newspaper (use same
form) and reviewed monthly by Plant Management and Lean Leadership to see if they have a high enough
priority number to validate working on or if newer projects should take precedence. Projects on Plant Master
Newspaper could be used for future projects or continuous improvement activities.
Content:
• What is a Kaizen?
• Stages of Kaizen
• Planning and Preparation
• Event
• Report out
• Follow-up
• Appendix
• Sample presentations
• More detailed information
Title
Participants (Names and Photo)
A3 and VSM (Alignment with Business)
Goals of Kaizen
LSS Tool Example
LSS Tool Example
LSS Tool Example
LSS Tool Example
LSS Tool Example
LSS Tool Example
Homework and Achievements
Lessons Learned
Summary
Summary

Kaizens Impact
Total Kaizens ______ ______
Implemented ______ ______
Open ______ ______
% _____%

Key Kaizens Impact

1. ______

2. ______

3 ______

Open Issues Impact

1. ______
2. ______
3 ______
Kaizen Kit
• 6 highlighters of various colors
• 1 white eraser
• 3 black markers
• 3 red markers
• 3 red pens
• 3 stopwatches
• 1 box binder clips or paper clips
• 5S Red Tag kit
• 6 clipboards
• Zip-ties
• 3 sets earplugs
• 60 magnets or magnetic pipe plugs (3 sets
of 20)
• 12 mechanical pencils
• 3 grease pencils
• 3 calculators
• 3 tubes .05mm lead refills
• 1 small stapler
• 1 box staples
• 1 staple puller
• 1 Scotch Tape disposable dispenser
• 1 pair scissors
• 3 sets dry erase markers (5 colors
minimum, chisel tip)
• 1 roll masking tape
• 1 multi-tool (or screwdriver with multiple Each Sub-Team should h
Other items to have on-hand:
tips) • VCR and TV • One Flipchart
• 1 18” ruler • Speakerphone • One Camera
• 18 Post-It Pads (6 each of 3 different • One Video Camera
• Laptop for Sametime Presentation
colors) 2 7/8 x 2 7/8
• Rubber bands
Kaizen Facilitator

The Facilitator has prior experience as a team member and Team Leader. That
experience may be gained through either internal or external Kaizen
participation. When assuming the role of Facilitator, he or she must complete at
least two kaizens.

The Facilitator is responsible for:

• Ensuring that the kaizen goals have been agreed-to by plant Senior Management
and support Regal Beloit’s goals
• Confirming that the area is confined to a specific area or product
• Establishing measurable goals
• Coordinating with the leadership of other departments when the product passes
through their area
• Creating high level process maps to help define the objectives, scope and time
limits
• Developing opening meeting with local management
• Scheduling the team, break out areas, and presentation rooms
• Informing the plant and shop floor as far in advance as possible
• Working with the plant Senior Management to ensure Cost, Quality, Productivity,
Safety and Morale issues in the area are addressed
The Facilitator should:

• Prepare and give training

• Inform the Team Leaders of what is needed and support them

in answering questions on the team’s progress

• Coordinate all logistics requirements

• Provide specific training as needed through Team

observation

• Monitor team performance to daily goals

• Coach and motivate teams as needed

• Assist in developing the report-out

Team Leaders

It is beneficial (but not necessary) that the Team Leader has

prior experience as team member. That experience may be
gained through either internal or external Kaizen participation.
The Team Leader should be a formal or informal leader in the
Kaizen area of focus.

Each team is led by a Team Leader. The leader should:

• Have proven leadership/communication/people skills

• Be experienced in the kaizen process if possible
• Be able to relate to direct labor as well as senior management
• Not be intimidated by senior management (senior management
may be team members)
• Be a stickler for detail, show initiative, and be tenacious in
completing tasks, correctly and on time
• Also empower, coach and facilitate the team in determining
what and how things will be done; not dictating the what and
how
The Team Leader should:

• Pick up Kaizen Kit

• Review baseline with team and give daily assignments

• Participate in all steps of the Kaizen process

• Coordinate equipment moves w/maintenance and Facilitator

• Prepare daily presentation and assignments for final presentations

• Return Kaizen Kit

• Prepare and participate in the follow-up plan.

Team Members

Team composition is critical to success. Everyone must be chosen for a

purpose and should reflect the following:

• “A Different Set of Eyes”

• Internal & External Customers/Suppliers
• Manufacturing Management
• Product/Process/Design Engineers
• Maintenance
• Materials/Purchasing
• Finance/Accounting
• Safety Coordinator
• Influential or Informal Leaders (salaried, hourly, union etc.)
• Effective Problem Solvers/Change Agents
• CAVE People
 LIFE CYCLE
ASSESSMENT
  Producing one ton of
recycled steel saves the
energy equivalent of 3.6
barrels of oil and 1.5 tons
of iron ore, compared to
the production of new
steel?
• Producing paper using a
chlorine-free process uses
between 20 and 25 percent
less water than conventional
chlorine-based paper
production processes?
Worldwatch Institute, Worldwatch Paper 166: Purchasing Power: Harnessing Institutional
Procurement for People and the Planet, July 2003, www.worldwatch.org
 Products can be evaluated through each stage of
their life-cycle:
 Extraction or acquisition of raw materials
 Manufacturing and processing
 Distribution and transportation
 Use and reuse
 Recycling
 Disposal
 For each stage, identify inputs of materials and
energy received; outputs of useful product and
waste emissions
 Find optimal points for improvement –
eco-efficiency
 Ensures companies identify the multiple environmental and
resource issues across the entire life-cycle of the product

 Knowledge of these issues informs business activities:

 planning, procurement, design, marketing & sales

 Rather than just looking at the amount of waste that ends up

in a landfill or an incinerator, a life-cycle approach identifies
energy use, material inputs and waste generated from the
time raw materials are obtained to the final disposal of the
product *

* Product Life-Cycle Analysis: Environmental activities for the classroom,

Waste Management and Research Center, Champaign, IL, 1999
Estimated amount of synthetic fertilizers and pesticides it takes to
produce the cotton for a conventional pair of jeans.
Source: “The Organic Cotton Site: Ten good reasons”
 Pesticides

Finishing chemicals

Worldwatch Institute, Worldwatch Paper 166: Purchasing Power: Harnessing Institutional

Procurement for People and the Planet, July 2003, www.worldwatch.org
 Looking at the entire life-cycle helps ensure reducing waste at one
point does not simply create more waste at another point in the life-
cycle
 Issues may be shifted – intentionally or inadvertently – among:
◦ Processes or manufacturing sites
◦ Geographic locale
◦ Different budgets and planning cycles (first cost)
◦ Environmental media – air, water, soil (MTBE)
◦ Sustainability dimension: economic, social, environmental burdens
 Depends on “boundaries”
 Be conscious of what is shifted and to where!
 For example, MTBE…
US Geological Survey, http://www.nwrc.usgs.gov/world/content/water1.html
 $ $ Disposal &
Post-
Disposal

Use

Acquisition Acquisition

Refrigerator A Refrigerator B Refrigerator A Refrigerator B

Purchase Price Price + Life-Cycle Costs

Refrigerator A appears cheaper Refrigerator B costs less overall
 With a life-cycle approach, companies
employ the tools they need to:
 Reduce impacts across the life-cycle
 Capitalize on opportunities for their business

 Tools range from simple mapping of life-

cycle stages to comprehensive quantitative
assessments
 LCA is a tool to systematically measure the
environmental impacts associated with each stage
of a product’s life-cycle
Assessment of relative impacts across life-cycle – 3 issues are included

80%

60%

40%

20%

0%
Materials Production Use End-of-life
Energy NOx Waste
 Two attributes make LCA distinct and useful as an
analytical tool:
◦ whole system consideration of the total product
life-cycle
◦ presentation of tradeoffs among multiple environmental
issues

 LCA is quantitative
1. Determine scope and system boundaries
◦ functional unit
◦ life-cycle stages
◦ define “unit processes”
2. Data collection
3. Analysis of inputs and outputs
4. Assessment of numerous environmental issues
5. Interpretation
◦ LCA principles and framework are standardized by the
Organization for International Standardization’s 14040 series
of standards (ISO14040)
 Systems perspective
 Integrates environment into core business issues
 Efficiency
 Innovation
 Better return on investment – identify point of “biggest bang
for the buck” *
 Engage stakeholders – investors, customers, employees
 Environment is not a cost center for the company, but a
business opportunity

* www.ciwmb.ca.gov/EPP/LifeCycle/default.htm
 Systems perspective
 Integrates environment into core business issues
 Efficiency
 Innovation
 Better return on investment
 Engage stakeholders
 Environment is not a cost center for the company, but a
business opportunity
 Look beyond the company’s gate
 Expose trade-offs and and opportunities
 Expand analysis of products, projects, policies and programs – what is the
function, what are the boundaries, what are the impacts, where are the
opportunities?
 Tentukan sebuah studi kasus tentang
manajemen mutu untuk produk (apa saja)
dan analisa menggunakan Fishbone Diagram
dan pendekatan Kaizen – Deming PDCA (2
pendekatan)
 Kaji tentang LCA produk tersebut (secara
kualitatif)
 Presentasi tanggal 20 Desember 2014