[PM092205] MANAJEMEN STRATEGI Chapter Review : Impleme tati! !" #$alit% Ma a&eme t S%'tem IS( 900) i the *!

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University of Latvia, Riga, LV-1050, Latvia

0th I ter ati! al Strate&i, Ma a&eme t C! "ere ,e

A12AR J34IANS5A6 [NRP7 9))2205800]

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PR(GRAM MAGISTER MANAJEMEN TE1N(4(GI 2I9ANG 1EA64IAN MANAJEMEN TE1N(4(GI IN;(RMASI 20)<

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POINT OF VIEW 1. This paper is divided into three parts. management as important part of economies competitiveness thru Global Competitiveness report, benefits and strategic importance of quality management systems from perspectives of company. And IS !""1 quality management system implementation in the #orld %or competitiveness ran&ing of the countries, Global Competitiveness 'eport introduces the Global Competitiveness Inde( )GCI*. The GCI captures this open+ended dimension by providing a #eighted average of many different components, each of #hich reflects one aspect of the comple( reality that #e call competitiveness. Authors group all these components into 1$ pillars of economic competitiveness , a. -asic requirements Instituitions Infrastructure .acroeconomic stability /ealth and primary education b. 0fficiency enhancers /igher education and training Goods mar&et efficiency 1abor mar&et efficiency %inancial mar&et sophistication Technological readiness .ar&et si2e c. Innovation and sophistication factors -usiness sophistication innovation In numberless sources #e can find many reasons to implement quality management system and author thin& that main reasons are these, a. 4ell defined and documented procedures improve the consistency of output. b. 5uality is constantly measured. c. 6rocedures ensure corrective action is ta&en #henever defects occur. d. 7efect rates decrease. e. 7efects are caught earlier and are corrected at a lo#er cost f. 7ocumented procedures are easier for ne# employees to follo#. g. rgani2ations retain or increase mar&et share, increasing sales or revenues. h. 1o#er production costs because of fe#er nonconforming products, less re#or&, lo#ered re8ection rates, streamlined processes and fe#er mista&es. i. Some mar&ets require IS !""1 certificate, some mar&ets favour companies #ith IS !""1 certificate. The costs associated #ith quality are divided into t#o categories, costs due to poor quality and costs associated #ith improving quality. 6revention costs and appraisal costs are costs associated #ith improving quality, #hile failure costs result from poor quality Costs are defined as the summation of costs over the life of a product. Customers prefer products or services #ith a high quality and reasonable price. To ensure that customers #ill receive a product or service that is #orth the money they #ill spend firms should spend on prevention and appraisal costs. 6revention costs are associated #ith preventing defects and imperfections from occurring. The focus of a prevention cost is to assure quality and minimi2e or avoid the li&elihood of an event #ith an adverse impact on the company goods, services or daily operations. This also includes the cost of establishing a quality system. A quality system should include the follo#ing three elements, training, process engineering, and quality planning Appraisal costs are direct costs of measuring quality. In this case, quality is defined as
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the conformance to customer e(pectations. This includes, lab testing, inspection, test equipment and materials, costs associated #ith assessment for IS !""" or other quality a#ard assessments. A common e(ample of appraisal costs is the e(penses from inspections. An organi2ation should establish an inspection of their products and incoming goods from a supplier before they reach the customer. This is also &no#n as acceptance sampling, a technique used to verify that products meet quality standards. %ailure costs are separated into t#o different categories, internal and e(ternal. Internal failure costs are e(penses incurred from online failure. 0(ternal failure costs are associated #ith product failure after the completion of the production process -y analy2ing quality costs, company can identify places #here to optimi2e costs, but in real business it is almost impossible, although #ith a time it is possible to reduce prevention and appraisal costs but it is almost impossible to get along #ithout them. The more an organi2ation invests in preventive measures the more they are able to reduce failure costs. %urthermore, an investment in quality improvement benefits the company image, performance and gro#th. the prevention and appraisal costs resulting from improved quality, allo# an organi2ation to minimi2e or be free of the failure costs resulting from poor quality. In summation, understanding cost of quality helps companies to develop quality conformance as a useful strategic business tool that improves their products, services and image. This leverage is vital in achieving the goals and mission of a successful organi2ation. The total cost of quality reduces as the quality improvement process proceeds, prevention costs increase, #hile inspection and failure costs decrease . That means there #ill be more money to invest in company or pay more dividends to investors. ther opportunity is to lo#er prices and gain more mar&et share. number of certificates and countries involved are increasing and has increased rapidly since 1!!3, countries, form ;" in year 1!!3 till 1<= in year $"1"> certificates, from 9;:<1 in year 1!33 till 11"!!": in year $"1". The biggest decrease in amount of certificates #as in 0urope. In year $""3 total amount of certificates decreased by ;3=9= certificates and larges portion #as in 0urope :"9$3. The only region #hich sho#ed increase during year $""3 #as %ar 0ast ? 199== and %ar 0ast is the only region #here amount of certificates has never decreased. That sho#s the high level of commitment to quality management. In year $"1" there #as ;$$;: certificates and third place in the #orld. In the year $""< there #ere 11:$< certificates in 'ussian federation and they #ere not in the top 1" and in year $""1 there #ere 8ust 3: certificates@ That indicates that entrepreneurs in 'ussian %ederation perceive IS !""1 as a strategic tool for improving the processes and accessing foreign mar&ets. the share of 0urope has decreased over the years, from =1A in year 1!!3 to 9<,=A in year $"1". Such 0uropeBs decrease in share is e(plained by increasing share of %ar 0ast , only 3A in year 1!!3 to 3=,;A in year $"1". This sho#s that %ar 0ast counties and companies are engaging in quality movement in order to raise competitiveness of companies and countries.

THEOREM AND REFERENCE 1. Competitiveness has increasingly gained currency across the globe. The international
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trade theories e(plain that different countries have different comparative advantages. Thus, if a country is rich in natural resources or capital, it has a comparative advantage over the others )6orter, 1!!"*. in the current &no#ledge economy, &no#ledge as a resource has no natural home base and can be transferred easily any#here in comparison to natural resources. This has made the CCI century more and more competitive )6illania, $""!*. Competitiveness and country competitiveness ran&ings have increasingly become important and various studies are carried out on the sub8ect. 4hile competitiveness of enterprises has been studied by many scholars around the #orld, competitiveness of nations is a relatively ne# discipline )Garelli, $"";*. .ain coordinators and investigators of Global Competitiveness 'eport are .ichael 6orter and Dlaus Sch#ab. They define competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country. The level of productivity, in turn, sets the sustainable level of prosperity that can be earned by an economy. In other #ords, more competitive economies tend to be able to produce higher levels of income for their citi2ens. The productivity level also determines the rates of return obtained by investments in an economy. -ecause the rates of return are the fundamental drivers of the gro#th rates of the economy, a more competitive economy is one that is li&ely to gro# faster over the medium to long run. The concept of competitiveness thus involves static and dynamic components, although the productivity of a country clearly determines its ability to sustain a high level of income, it is also one of the central determinants of the returns to investment #hich is one of the &ey factors e(plaining an economyBs gro#th potenssial )Sch#ab, $"11*. -usiness sophistication is conducive to higher efficiency in the production of goods and services. This leads, in turn, to increased productivity, thus enhancing a nationBs competitiveness. -usiness sophistication concerns the quality of a countryBs overall business net#or&s as #ell as the quality of individual firms, operations and strategies. The quality of a countryBs business net#or&s and supporting industries, #hich #e capture by using variables on the quantity and quality of local suppliers and the e(tent of their interaction, is important for a variety of reasons. 4hen companies and suppliers from a particular sector are interconnected in geographically pro(imate groups )EClusterF*, efficiency is heightened, greater opportunities for innovation are created, and barriers to entry for ne# firms are reduced individual firms, operations and strategies )branding, mar&eting, the presence of a value chain, and the production of unique and sophisticated products* all lead to sophisticated and modern business processes )Sch#ab, $"11*. some recent publications than topical issues are, motives, benefits and strategic results from of IS !""1 and impact on perception of customers )Casadesus, Darapetrovic, $"":, Garamdini, $""<, Caro, Garcia, $""!, 'us8an, AliH, $"1"*, strategic orientation and financial performance of firms implementing IS !""" )7imara, S&uras, Tse&ouras, Goutsos, $""9*, comparison of IS !""" in manufacturing and service organisations )Singh, %eng, Smith, $"";*, IS !""1 certification forecasting models )Sampaio, Saraiva, 'odrigues, $"11*, quality thin&ing and system thin&ing in quality management )Conti, $"";, $"1"* and components of successful total quality management )Tari, $"":*. The focus of a prevention cost is to assure quality and minimi2e or avoid the li&elihood of an event #ith an adverse impact on the company goods, services or daily operations. This also includes the cost of establishing a quality system. A quality system should include the follo#ing three elements, training, process engineering, and quality planning. 5uality planning is establishing a production process in conformance #ith design specification procedures, and designing of the proper test procedures and equipment. Consider establishing training programs for employees to &eep them efficient on emerging technologies, such as updated computer languages and programs )Iuran, Godfrey, $"""*.
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6hilip Crosby introduced 19 step quality improvement process, step Jr.< #as EGero 7efectsF. -ased on this process Arthur .. Schneiderman adopted this idea for IuranBs model of optimumquality costs and called it E ptimum quality level equals 2ero defectsF. 6hilip Crosby and Arthur .. Schneiderman thought that it is possible to reach the level #here total quality costs reach the lo#est point at the 2ero defects. 1". '. I. Shonberger and 0...Dnod in their boo& developed SchneidermanBs quality cost model and introduced their o#n. They thought that #ith a time it is possible to reduce total quality costs to the minimum. It is possible #hen quality assurance and management is integral part of company and prevention and appraisal costs start to reduce. 11. 6hillip Crosby states that quality is free. the costs related to achieving quality are traded off bet#een the prevention and appraisal costs and the failure costs. Therefore, the prevention and appraisal costs resulting from improved quality, allo# an organi2ation to minimi2e or be free of the failure costs resulting from poor quality. In summation, understanding cost of quality helps companies to develop quality conformance as a useful strategic business tool that improves their products, services and image. This leverage is vital in achieving the goals and mission of a successful organi2ation. 1$. The total cost of quality reduces as the quality improvement process proceeds, prevention costs increase, #hile inspection and failure costs decrease )Iuran, Godfrey, $"""*.

REVIEW Stru&tur 6aper ini cu&up memenuhi stru&tur standar paper seharusnya. 7imulai dengan adanya abstra& yang men8elas&an gambaran sing&at mengenai isi paper dan pada a&hir paper di beri&an sebiuah &esimpulan. -ahasan yang di guna&an cu&up bai& sehingga ide dari penulis mudah ditang&ap oleh pembaca.
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-eberapa poin dari paper yang dapat di revie# antara lain , 1. Abstract a. 6oint of 4/K , mencipta&an daya saing dalam perusahaan b. 6oint of /o# , menerap&an IS !""1 sebagai standar mana8emen mutu yang popular didunia c. 6oint of '0SL1T : proses implementasi sistem mana8emen mutu di dunia $. Introduction a. Tida& terdapat pen8elasan atau poin pengenalan a#al terhadap ide pengarang. 7aya saing dan system .ana8emen .utu IS !""1 ditampil&an terpisah dan disa8i&an pen8elasan pendu&ung mengenai hal tersebut. b. Tida& terdapat pen8elasan atau referensi dari penelitian sebelumnya )6revious research*. Jamun penulis menampil&an beberapa 8udul topi& penelitian yang masih mengang&at mengenai beberapa publi&asi baru daripada isu+isu topical untu& system mana8emen mutu IS !""1 seperti , motif, manfaat dan hasil strategis dari IS !""1 dan berdampa& pada persepsi pelanggan )Casadesus, Darapetrovic $"":, Garamdini $""<, Caro, Garcia, $""!, 'us8an, Alic $"1" *, orientasi strategis dan &iner8a &euangan perusahaan menerap&an IS !""" )7imara, S&uras, Tse&ouras, Goutsos, $""9*, perbandingan IS !""" di manufa&tur dan 8asa organisasi )Singh, %eng, Smith, $"";*, IS !""1 model peramalan sertifi&asi )Sampaio , Saraiva, 'odrigues, $"11*, berpi&ir &ualitas dan pemi&iran sistem mana8emen mutu )Conti $"";, $"1"* dan &omponen total mana8emen mutu yang su&ses )Tari, $"":* c. Tida& terdapat research question untu& &elan8utan penelitian dari paper ini. 6enulis menya8i&an idenya sebagai bahan pertimbangan bagi pela&u bisnis maupun suatu Jegara terhadap daya saing yang dapat ditangani dengan penerapan system mana8emen mutu IS !""1.

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Theorem and 'eference /ampir seluruh teorema dan referensi ditampil&an dengan 8elas dan mendu&ung terhadap isi dari paper, namun ada beberapa pernyataan maupun teorema yang tida& ditampil&an asal usulnya seperti teorema mengenai diagram ishi&a#a dan model 8uran terhadap biaya &ualitas optimal tida& ditampil&an sumber maupun referensi yang 8elas. 0(perimentMe(ecution 6enelitan bu&an merupa&an suatu bentu& e(periment maupun e(ecution, hanya berbentu& gambaran mengenai implementasi dari system managemen IS !""1 dengan menampil&an hal+hal pendu&ung seperti &euntungan dan contoh hasil penerapnnya di beberapa Jegara. 'esult M discussion 7ari paper tida& ditemu&an suatu &esimpulan dari ide mengenai daya saing dimana &ualitas termasu& &omponen utama didalamnya serta IS !""1 merupa&an sistem mana8emen mutu yang paling popular. Jamun, penulis tida& mengembang&an mengenai dis&usi lebih lan8ut mengenai IS !""1 ini. 6enelitian hanya ber&isar menun8u&&an ataupun membu&ti&an penerapan IS !""1 yang berguna dalam pening&atan daya saing. Conclusion

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a. Dualitas sebagai &omponen dalam laporan Global Competitiveness yang menentu&an pertumbuhan negara terhadap e&onomi inovasi. b. Sistem mana8emen mutu yang paling populer di dunia adalah standar IS !""1

c. -eberapa Jegara terlibat dalam mana8emen mutu dari perspe&tif IS !""1 menga&ui mana8emen mutu sebagai alat strategis untu& mening&at&an proses, menga&ses pasar luar negeri dan mening&at&an daya saing. <. %urther#or&s )Saran* Tida& terdapat saran dari penulis pada paper ini

Gambaran 'evie#er , 7alam pening&atan daya saing, IS !""1 merupa&an suatu system mana8emen mutu yang sangat bai& dan mendu&ung penciptaan mutu maupun &ualitas dari perusahaan. Tentu sa8a &ualitas yang dima&sud&an adalah system mana8emennya dimana IS !""1 ditetap&an sebagai suatu satndar dunia yang membantu suatu perusahaan untu& menetap&an suatu u&uran didunia sehingga mutu yang men8adi pemi&iran maupun masalah dari perusahaan dapat di definisi&an dan dicapai mengguna&an system ini.

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