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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).