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PROBLEM STATEMENT:
1) Company continually produced defect products during productions and
operations processes.
Defect products were non- value added products (wastes).
Defects because of imperfect dimensions and measurements.
Loss money because of waste resources and raw materials.
2) There companies purchased and implemented control chart system in
production lines, but not encouraged workers to apply the system during
works progresses.
• Cannot possessed control chart system benefits.
• Had high risks of produced defect products.
RESEARCH QUESTION:
RQ1: Why does company implement the control chart system in their
production line?
RQ2: What are the benefits that company can gain if they implement the
control chart system?
RQ3: What are the impacts if company does not implement the control chart
system in their company’s production line?
ABSTRACT
INTRODUCTION
CONCLUSIONS AND RECOMMENDATION
CONTROL CHART SYSTEM’S CONTRIBUTION TOWARDS COMPANY’S PERFORMANCE IN MALAYSIA
SITI AQILAH BINTI MUSTAFA, UNIVERSITY MALAYSIA PAHANG (UMP)
BACHELOR OF INDUSTRIAL TECHNOLOGY MANAGEMENT (HONS.) FACULTY OF INDUSTRIAL MANAGEMENT
Many companies in Malaysia and other foreign countries implemented control
charts system in daily business and operations.
Chosen company that became as background of the research case study was
Petroliam Nasional Berhad (PETRONAS).
Petronas was implemented the control chart system in the productions and
operations processes for years.
Various benefits of the control chart system that Petronas could retained as the
control chart system became useful tool for better performances.
1) To evaluate control chart system in company in operation and production
scope.
2) To identify why company implement control chart system in production line.
3) To evaluate negative impacts that company will bear if not implement control
chart system in daily operations.
OBJECTIVES
RESULTS
DISCUSSION:
CONCLUSION:
RECOMMENNDATION:
RESEARCH DESIGN:
Qualitative case study.
Background case study: Petroliam Nasional Berhad (PETRONAS).
METHODOLOGY SAMPLING:
1) Convenience Sampling
Pick out respondents in most convenience and fastest way.
Selected respondents that happened to be in the meeting room during the
interview session and open- ended survey be run on that time.
2) Purposive Sampling
Pick out respondents based on criteria that already indicated for the research.
Respondents were not randomly selected , but prudently selected personnel that
fulfill criteria such as:
1. Age of respondents were in range of 30 years old till 50 years old.
2. Department of the respondents: Production department.
3. Years of experience: More than 2 years.
4. Had expertise in operate control chart mechanisms.
DATA COLLECTION TOOLS:
Triangulation Method:
1) Interview Session
Hold formal face to face meeting with respondents.
Type of interview session conducted was semi structure.
10 questions asked during interview session.
2) Open- Ended Survey
Open- ended forms distributed among the selected respondents.
7 questions asked in the forms.
RESEARCH ANALYZES
Coding analysis
- Themes and sub themes emerged from data sources obtained from 10
respondents.
- The researcher did hand coding analysis to emerged all data from
respondents’ transcripts.
TRUSTWORTHINESS
1. CREDIBILITY:
Data sources that the respondents indicated were particularly similar even
questioned for different questions for different respondents.
2. TRANSFERABILITY:
Researcher was standardize the chapters and steps as run the presented
research in correct order.
3. CONFORMABILITY:
Researcher was transcribed all the information obtained from
respondents in interview session and open- ended survey in Chapter 4.
4. AUTHENTICITY:
Researcher not tend to fall to what the respondents thought.
METHODS
THEMES EXPLANATION RESPONDENTS’ TRANSCRRIPT
Lower Productions Costs • Costs sustained by company when manufactured
products.
• In fact, company strive to cut cost of productions cost
because of costs for production processes was much
higher compared to other processes such as
procurement processes, design processes and many
more.
• Production costs included various expenses such as :
The control chart system is important tool that can ensure that company can achieve their willingness to increase their
organization’s profits as high as it can. (AIMAN)
The reasons why company is possible to maximize the profits are because of the company minimize any unnecessary
costs. The company’s profits are for organizations’ benefits as well. For instance, company can give multiple times of
annual bonuses to workers and improve workplaces facilities which for workers’ comfort too. (SARAH)
Since the company purchased the control chart system and set up in the company’s operations, the company’s
production costs reducing from time to time. (AHMAD)
Maintain Products’ Quality • Most known products of Petronas are chemical
products, NGV, diesel, petrol, LPG, lubricant, fertilizer
and many more.
• Company must maintain the products quality as well as
better for surpassing the customers’ expectation.
• To gain loyalty from customers, the products produced
must with right specifications, features, dimension and
so on.
As manufacturing company, Petronas really strive about their quality of products. That is because our company
wants to become as trusted brand and products towards our customers. (YUSOF)
Petronas focus on quality of products as associate with the company’s core values which are loyalty, integrity,
professionalism and cohesiveness. Of course, good quality of products are satisfy customers’ demands and
satisfaction as well as the customers will repeat orders as they trust our products. (FAKHRUL)
Monitored Process Changes • Whole processes progressed possible to monitor by
observe graph run in screen monitor of control chart
system.
• Enabled personnel detected problems earlier and took
corrective actions in order the processes could run.
• Ensured the production process run as scheduled and
manufactured products as desired by customers.
Monitor the processes progress are really important. That is because the operators and other workers can study how
the processes change from time to time. The processes can be transmute into right ways as produce required products
or completely turn wrong from the clients’ orders. (YUSOF)
By monitoring the processes involve, the personnel can ensure all company’ processes and production processes run
without any problems. Monitoring the progression of the processes really important as the personnel can identify
either the processes is run as required by the company or not. (HANISAH)
Increased Productions’
Productivity
• Level of efficiency and effectiveness of productions
processes that took place in company..
• As company’s level of productivity of productions
processes increased, the benefits that company could
gain:
Our company enables to increase the productions’ productivity to be compared from before the control chart system
implement in the production lines yet. Truly, when a company can increases level of productivity in productions
processes, and the company will able to produce more products with the same amount of work, personnel and
machines as well as to important advantages that the company can gain. Those advantages are high profitability,
lower operational costs and many more. (FAKHRUL)
1. Personnel
2. Raw materials
3. Machineries
THEME SUB THEMES EXPLANATION RESPONDENTS’ TRANSCRIPT
Lower
Productions
Costs
Defect Products Products produced had incorrect feature, dimension and
measurement.
At one time before implementing the quality control system, company encountered with issues of high risk of non-
value products produced which were leads to loss in term of resources, money and many more. (HANISAH)
Company has chances to reduce the risk of defect products produced during the production and operations process.
By implementing the control chart system in company’s production lines, the risk of defect products produced by
production process constantly decrease. (CHENG)
Rate Of Wastes Wastes considerate as materials or products that not
wanted, unusable remains (scraps) or by-products of
something.
Rate of wastes was defined as capacities of wastes that
company tended to produced either high or low.
Company will produce wastes if the defect products are manufactured within any operations process that takes place
in the company. (FAKHRUL)
Since our company decides to set up the control chart system in the assembly lines in production workplaces, the
wastes produces are lesser than before the time the quality control tool is set up. That is good gain for the company.
(HANISAH)
Maintained
Products’
Quality
Products’
Standards
Standards of products required by clients fit for
purposes of processes or expected finished products.
Control chart mechanism allows operators to manually change the setting according to the required specification of
products before production processes run.(SYAMIL)
Operators can regularly set up new setting in the control chart mechanism within a day of production processes.
(SARAH)
Company can run more than two different production processes in a day because of control chart system can easily
change the setting for the products’ specifications. (NORRA)
Patterns Plotted
Points (Data)
Common types of patterns: oscillating, runs, jump or
shift, drift or recurring cycle.
Based on process progressed.
As the quality control tool implemented in the company production lines and other operations, the quality of our
company’s products both from main company and even by our subsidiary companies will exceed our customers’
expectations. (SYAMIL)
Each line that comprehend in the graph of the system has different purposes that enable the operators study the
production’s performance that changes from time to time. (DANIAL)
Monitored
Process
Changes
Preventive
Actions
Actions taken to reduce or eliminate probability of
undesirable events in processes from occurred.
By only monitoring the patterns that designated by the plotted points in the graph that display on the monitor
mechanisms, the personnel can identify the types of problems right away which are possibly will arise within whole
processes. That was the reason why the company sends the production workers to training about the control chart
system. (FAKHRUL)
As the company implementing the control chart system in the production processes, it enables the personnel to
constantly monitor the production performances. They can identify either the processes were having problems or not.
(HANISAH)
Time To Market
(TTM)
Length of time required for company from
comprehended a product until that product offered for
sale to buyers.
By implementing the quality control tool which is control chart system in the company operations and productions
processes is enable the products are produces faster those previous circumstances without the control chart system
implemented yet. (SARAH)
As the company can reduce the time of products to the market, the company can ensure that the customers will
requires buying our products better than other products that manufactured by our rivals companies that late produces
from us. (FAKHRUL)
Increased
Productions’
Productivity
Process
Capability
Assessment purposed for determine the ability of
processes in order to meet the products’ requirement
required by the customers.
By implementing the control chart mechanisms in productions and operations processes, the productivity of
processes that take place in the company daily run are increase. Also the processes’ capabilities are easily to identify
by personnel. (CHENG)
The study finding for the research were emerged 4 themes and 7 sub themes. Below table was listed out the themes according to most important to less important order.
1. Higher sales.
2. Business growth.
3. High profitability.
4. Meet customers’ demands.
Researcher enabled to search out differences between data sources obtained from respondents and the information acquired from previous researches and journals.
Researcher found out information about handy functions of control chart system which were by implementing the control chart system in the production lines:
1. Allowed operators and personnel to know the capability of processes.
2. Enabled company to reduce time to market of products.
CONCLUSION:
All the ten (10) of respondents participated in this research agreed that the control chart system was beneficial to the company performances.
Respondents indicated that company should continually implemented the control chart system in the production lines and operation processes.
This research was achieved all the 3 research objectives.
RECOMMENDATIONS:
SET UP LEAN PRODUCTION SYSTEM (LPS):
- A system that originally developed by Toyota company.
- System also recognized as Toyota production system and just- in- time production.
- A systematic technique with main objective of elimination wastes within the production processes.
FOLLOW UP PDSA CYCLE:
- Various kinds of industries could follow up PDSA Cycle in their management, operations and productions processes.
- Phases involved in cycle were identified the opportunity, analyze the process, develop the optimal solutions, implement, study the result,
standardize the solution and plan for the future accordingly.
FINDINGS: RQ1: Themes answered to the RQ1 were: lower productions costs (high profits), maintained products’ quality (satisfy customers’ requirement), monitored process changes
(preventive actions) and increased productions’ productivity (produced more products)
RQ2: Themes answered to the RQ2 were: lower productions costs (high profits), maintained products’ quality (satisfy customers’ requirement), monitored process changes
(corrective actions) and increased productions’ productivity (produced more products)
RQ3: Themes answered to the RQ2 were: lower productions costs (lower incomes), maintained products’ quality (low quality ), monitored process changes (low sales) and
increased productions’ productivity (low productivity).