REACTION PAPER NO.

01

Name : BODO, JENNIFER E.

Class : TOTAL QUALITY MANAGEMENT

Professor : BITAS, JOWELL

___________________________________________________________________________________

• What have you learned from the topic(s) we discussed? discuss and elaborate.

Total Quality Management (TQM) is customer-oriented management philosophy and strategy. It is

centered on quality so as to result in customer delight. The word “Total’’ implies that all members of
the organization make consistent efforts to achieve the objective of customer delight through
systematic efforts for improvement of the organization.

This customer delight is measured in three (3) categories:

1. Customer Satisfaction - is a measurement of a customer's attitude toward a product, a service,

or a brand. It's usually measured by a customer satisfaction survey on a numerical scale.

2. Customer Retention – is a metric that revolves around the likelihood of existing clients to
continue to use your products or services, even though they may not be engaged with the brand
or completely satisfied.

3. Customer Loyalty – is a set of behaviors and attitudes that a customer exhibits that demonstrate
loyalty to a product, service, or brand, such as repeat purchases or choosing the brand over a
competitor.

In my opinion, the broad objective of this study is to illustrate how the implementation of TQM serves
as a precursor to sustainable customer loyalty in a competitive business environment. The specific
objectives are to firstly, examine how continuous product improvement can sustain customer loyalty
and secondly, to determine how top management commitment to TQM can enhance customers’
patronage.

• Are there incidents that the topic(s) been applied in your organization? Write a business case,
give examples.

Yes. Our agency launched a web-based customer feedback management (CFM) where we have
strengthened our feedback mechanism to better serve the general public and other external
stakeholders. As part of the initiatives under the Engaged Stakeholders Theme of the BSP Strategy
Map 2012-2017, the BSP Feedback Management (BSP FMS) was launched in September 2015. The
FMS offers user-friendly tools that range from conventional paper-based forms to electronic tablets

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and kiosks, and online forms. The use of innovative feedback channels aims to enhance transparency,
accountability and efficiency in BSP’s service delivery and underscores the importance of external
stakeholders’ perception in enhancing the quality of BSP services.

Certainly, managing customer feedback is a challenge many organizations face on a daily basis
especially when dealing with a large amount of feedback, coming from multiple resources and various
digital channels. With the help of BSP-FMS, it will streamline the feedback data, in a way that it helps
our organization gather, analyze and take action on a feedback. Hence, it will certainly thrive and give
the customer the online experience they deserve.

Considering the above, the BSP FMS can be considered as Customer Feedback Management – one of
TQM’s Quality Systems in delivering customer needs.

• How does the topic(s) be applied in your organization? Write a business case, discuss and
elaborate.

The modern embodiment of quality systems started with Edwards Deming in the early 1950’s or after
the World War II, when he took the work, he was doing on process control to Japan. However,
historical accounts suggest that the American industry ignored this development as it was still riding
high because of lack of competition could not get any traction with US based companies for his ideas
but that Japanese organizations were willing to embrace them. Edwards Deming, an American quality
expert helped the Japanese to apply concepts of TQM. They concentrated on customer satisfaction
and focused on understanding customer needs and expectations.

Today the ideas introduced by Deming, and his contemporaries, have developed into a whole range
of different methodologies.

Considering the methodologies that have evolved over a period of time, allow me to further elaborate
and associate the said customer satisfaction focused methodologies by giving an example in our
organization.

Prior to BSP FMS deployment, the following were the challenges:

1) lack of feedback mechanism and tools of most departments;

2) multiple objectives in gathering feedback; and
3) feedback tools limited to survey form with different attributes, rating scales and frequency of
feedback gathering was either on a per engagement basis or another period.

BSP-FMS endeavors to leverage on technology in developing a uniform and simplified feedback

process flow and thus streaming processes to improve customer satisfaction and create customer-
oriented culture, establish various innovative feedback tools that enable and encourage the public to
provide information on their perception of the quality of specific services on their engagements,
transactions, or dealings with BSP, link the feedback gathered to the continual process improvement

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plans of BSP departments/offices, and provide statistics and analytical reports on feedback responses
that will serve as basis for top management’s planning and decision-making.

SOLUTION AND IMPACT

With BSP FMS, external clients may provide feedback either through paper-based or electronic
methods. The available channels are as follows:

a. A system-generated one-pager structured form to be manually filled out; this form can be
automated through scanning and uploading in the system;
b. An emoticon tablet (happy, neutral, sad) with provision for unstructured comments;
c. A touchscreen kiosk that has front-end features: feedback can be through emoticon or
structured form; and provides-a directory of floor locations of BSP departments/offices; and
d. An online application at the Feedback Corner of the BSP Website.

It has a back-end facility for the following:

• Dashboard for all Servicing Departments/Offices (SDOs)-With flags and real time alerts on sad
emoticon/negative feedback (structured forms with rating of 1 and 2);
• Data-entry facility to update action/s taken by the SDOs on the sad emoticon
responses/negative feedback -with audit trail/logs; and
• Statistical and analytical report generation both for SDOs and FMU

The Feedback Management Unit (FMU), as the system administrator, consolidates all feedback results
from different F.MS channels and provides comprehensive and timely reports to BSP Management
and SDOs. With real-time alert notifications, sad emoticon responses/negative scores are immediately
acted upon by SDOs or action plans are devised to efficiently address the complaints from external
clients. Facilities-related concerns such as air-conditioning units, lack of chairs at the reception areas
or availability of restrooms are given timely actions by the BSP’s Facilities and Management
Engineering Department. Also, verbatim comments provided by external clients triggered SDOs to
reassess their existing procedures and policies to address issues and concerns.

MILESTONES

While the BSP FMS has yet to receive an award, the valuable inputs gathered from comments of
returning clients after improvements were done, serves as a reward itself. Positive responses have
been received due to timely and efficient actions taken by departments/offices stemming from
negative feedback received earlier. Clients would often give words of gratitude for their comments
being taken on a positive note and giving much priority to their concerns. The BSP FMS shall continue
to innovate and enhance as business processes evolve.

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Another key attribute of quality systems is the concept of continuous improvement. Quality is not a
destination but a never-ending journey. As customers’ needs evolve, competitors change and
technology options, evolve the definition of quality is continuously changing.

Here again continuous customer feedback is needed to track not just changing customers’ needs but
also changing company delivery against customer expectations.

• What is your assessment, observation, comments, suggestions, or opinion of the topics discussed?

In the customer feedback action journey, there are several phases of evolution. It starts with simple
data collection and ends with customer driven, company-wide, continuous process improvement.
Some of the phases are easy, such as setting up data collection.

While some of them are not-so-easy, one of the not-so-easy phases is implementing the continuous
improvement process. That is not to mention that the skills and approaches do not exist.

It’s just that continuous improvement and quality system skills are not well known outside the
manufacturing industries. In addition, in the customer feedback space there has, until recently, a
distinct lack of real time customer feedback information. Deep and wide data are vital to effective
continuous improvement outcomes.

I suggest taking a look at some of the strategies advocated by experts to be adopted by the CEO and
the top management to lead the organization on TQM principles. The head of an organization, of
which he/she is the author in guiding the organization, has adopted these strategies for the success of
the organization in its TQM journey. Thus, they are very practical. Some of the strategies is the
Measurement of Success.

Measuring for success primarily involves, looking for, measuring and analyzing the feedback from
customers, either internal or external. An organization marching towards Total Quality Management
(TQM) has to make efforts to measure how well the organization is performing in terms of fulfilling
the customers needs and expectations. The management should help employees to know how well
they are doing. Employees should be helped to measure and report performance. Each employee
should be helped to measure his own performance. Thus, measurement should be part of routine
work.

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Name : BODO, JENNIFER E.

Class : TOTAL QUALITY MANAGEMENT; MBA DBP 3B7

Professor : BITAS, JOWELL

Date : 14 November 2022

___________________________________________________________________________________

• What have you learned from the topic(s) we discussed? discuss and elaborate.

After reading the presentation and listening to the discussion. I gained knowledge about the
elements of Total Quality Management (TQM) and its models.

TQM is application of a number of activities with perfect synergy. The various important elements
of TQM are illustrated are as follows:

1. Ethics, Integrity and Trust;

2. Training;
3. Teamwork;
4. Leadership;
5. Downward and Upward Communication

Foundation
Foundation further includes Ethics, Integrity and Trust.

The entire process of Total Quality Management is built on a strong foundation of Ethics, Integrity
and Trust. Total Quality Management involves every single employee irrespective of his designation
and level in the hierarchy.

Ethics: Ethics is an individual’s understanding of what is good and bad at the workplace. A thin line
of difference does exist between good and bad, which is for you to decide. Ethics teach an individual
to follow code of conduct of organization and adhere to rules and regulations.

Integrity: Integrity refers to honesty, values and an individual’s sincerity at workplace. You need to
respect your organization’s policies. Avoid spreading unnecessary rumours about your fellow
workers. Total Quality Management does not work in an environment where employees criticize and
backstab each other.

Trust: Trust is one of the most important factors necessary for implementation of total quality
management. Employees need to trust each other to ensure participation of each and every
individual. Trust improves relationship among employees and eventually helps in better decision
making which further helps in implementing total quality management successfully.

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Bricks
Bricks are placed on a strong foundation to reach the roof of recognition. The foundation needs to
be strong enough to hold the bricks and support the roof.

Training: Employees need to be trained on Total Quality Management. Managers need to make their
fellow workers aware of the benefits of total quality management and how would it make a
difference in their product quality and eventually yield profits for their organization. Employees need
to be trained on interpersonal skills, the ability to work as a team member, technical know-how,
decision making skills, problem solving skills and so on. Training enables employees to implement
TQM effectively within their departments and also make them indispensable resources.

Teamwork: Team work is a crucial element of total quality management. Rather than working
individually, employees need to work in teams. When individuals work in unison, they are in a
position to brainstorm ideas and come up with various solutions which would improve existing
processes and systems. Team members ought to help each other to find a solution and put into place.

Leadership: Leadership provides a direction to the entire process of Total Quality Management. Total
Quality Management needs to have a supervisor who acts as a strong source of inspiration for other
members and can assist them in decision making. A leader himself needs to believe in the entire
process of TQM for others to believe in the same. Proper downloads, briefs about TQM must be
given from to time to employees to help them in its successful implementation.

Binding Mortar
Binding Mortar binds all the elements together.

Communication - Communication binds employees and extracts the best out of them. Information
needs to be passed on from the sender to the recipient in its desired form. Small misunderstandings
in the beginning lead to major problems later on. Employees need to interact with each other to
come up with problems existing in the system and find their solutions as well.

Three types of Communication takes place between employees:

Downward Communication: Flow of information takes place from the management to the
employees

Upward Communication: Flow of information takes place from the employees to the top level
management

Sideways Communication: Communication also takes place between various departments.

Roof

Recognition: Recognition is the final element of Total Quality Management. Recognition is the most
important factor which acts as a catalyst and drives employees to work hard as a team and deliver

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their lever best. Every individual is hungry for appreciation and recognition. Employees who come
up with improvement ideas and perform exceptionally well must be appreciated in front of all. They
should be suitably rewarded to expect a brilliant performance from them even the next time.

Total Quality Management is a combined effort of both top level management as well as employees
of an organization to formulate effective strategies and policies to deliver high quality products which
not only meet but also exceed customer satisfaction.

• Are there incidents that the topic(s) been applied in your organization? Write a business case,
give examples.

Yes. BSP launched this rulebook called the Philippine Rulebook on Payments and Settlements was
crafted and finalized through the joint efforts of the ISO 20022 Task Force consisting of members from
the Bangko Sentral ng Pilipinas (BSP), the banking sector and the 3rd Party Service Providers of the
existing Real Time Gross Settlement System (RTGS) of the BSP called Philippine Payment and
Settlement System (PhilPaSS) which will eventually be called PhilPaSSplus.

The document scope refers to a formal list of payment messages and its usage according to the
business scenarios with detailed message flows for the Payments Clearing and Settlement. It describes
the business transactions and message sets of the following:

• Message Payments Flow according to Business Scenarios.

• Business Roles in the Business Process

The objectives of this document are as follows:

• to provide detailed information about the payment messages which are part of the
business process.
• to describe the Business Processes and the related Business Activities including the associated
Business Roles of the participants.
• to document the underlying business transactions with business examples.

• How does the topic(s) be applied in your organization? Write a business case, discuss and
elaborate.

The BSP’s thrust to promote financial inclusion and digitalization of payments are mutually
reinforcing: they go hand-in-hand, each enabling the other. As the BSP continues to foster
the growth and development of digital payment innovations through enabling policies and
regulations, it also promotes further financial inclusion. Digital payment innovations lower
transaction costs and eliminate the oft-cited barriers to owning a transaction account.
The widespread use of the internet and emergence of technological innovations make
digital payments ubiquitous, more accessible and affordable, thereby propelling the
progressive shift towards a cash-lite economy. Moreover, with the sudden onset of the

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COVID-19 global pandemic, the shift towards digital payments has become an imperative
as physical distancing rules become the norm under the “New Economy” environment. By
using digital payments with due care and vigilance, Filipinos reduce the need for mobility
and prevent health risks from face-to-face and over-the-counter (OTC) financial
transactions. The greater usage of digital payments will also facilitate the growth of
Fintech businesses engaged in e-commerce businesses as the consumption of goods and
services is increasingly driven by online purchases.

Objective
An efficient, inclusive, safe and secure digital payments ecosystem that supports the
diverse needs and capabilities of individuals and firms, towards achievement of the
BSP’s mandates

With the valuable insights from these studies and customizing these to the unique
payment ecosystem of the country, we have identified the three (3) critical areas that the
Philippines should focus on to successfully bring the cash-heavy Philippine economy to a
cash-lite economy. The BSP Digital Payments Transformation Roadmap is thus anchored
on these three pillars: (i) digital payment streams, (ii) digital finance infrastructure, (iii)
digital governance standards.

First, the digital payment streams embody the BSP’s key initiatives of creating compelling, large
scale digital payments use cases. These priority streams act as catalysts for building an inclusive
digital finance ecosystem by demonstrating the benefits, safety, and reliability of the country’s
retail payment system. Enabling consumer use cases will boost consumer awareness, thereby
increasing the acceptance and use of digital payment platforms.

Second, the further development of digital finance infrastructure is critical as secure, reliable,
efficient, and interconnected systems are necessary to facilitate smooth payment transactions.
The adoption of new platforms and solutions that will bring down the cost of providing varied
digital products and services and allow for their wider distribution across the archipelago will
speed up the digital payments transformation process. Reductions in cost and improvements
in the speed of delivery are key to enhancing
customer preference for adopting digital modes of payment across the various use cases.

Third, innovation is not without risk. For this reason, the growth in payment streams and the
creation of new systems must be underpinned by sound digital governance standards that are
aligned with global best practices and standards. An appropriate regulatory framework should
be in place to ensure that the provision of digital products and services is covered by an
adequate governance process, meets minimum technical expectations, and safeguards the
integrity, security and privacy of customer data.

Based on the above, BSP PhilPass makes an efficient, excellent, secure, and reliable payment

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system reduces the cost of exchanging goods and services. It is also an essential tool for
effective implementation of monetary policy, and for smooth functioning of money and capital
markets.

• What is your assessment, observation, comments, suggestions, or opinion of the topics discussed?

The connotation of quality differs from person to person depending on individual considerations and
interest. Organizations also have distinct internal measures or features of goods or services that they
consider to be of adequate standard.

Nonetheless, quality can be defined a feature or aspect of something or observable fact that can be
seen and understood, and may be gauged, but which is immeasurable. Such attributes may include;
attractiveness, sense, or taste.

On the other hand, total quality is a technique of business that improves the tenets of consumer
satisfaction. This eventually increases the competitive edge of an organization through constant
enhancement of quality of all assets and commodities; such as products, services, human resources,
and procedures. The aspects of total quality include; constant improvement of the value of products,
practices, services, but lowering expenditure.

The issue of total quality is much more complex than quality. Generally, total quality encompasses the
outcomes, quality of human resources, and practices. Pioneers of total quality comprise an imperative
class of thinkers whose beliefs continue to uphold the concept of total quality in the world of business.

Total quality is believed to be described and gauged by the end clients who benefit from a product or
service; therefore, clients and business organizations are the main stakeholders to the creation and
maintenance of total quality.

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Name : BODO, JENNIFER E.

Class : TOTAL QUALITY MANAGEMENT; MBA DBP 3B7

Professor : BITAS, JOWELL

Date : 21 November 2022

___________________________________________________________________________________

• What have you learned from the topic(s) we discussed? discuss and elaborate.

Part I:

Quality Management tools help organization collect and analyze data for employees to easily
understand and interpret information. Quality Management models require extensive planning and
collecting relevant information about end-users. Customer feedbacks and expectations need to be
carefully monitored and evaluated to deliver superior quality products.

Quality Management tools help employees identify the common problems which are occurring
repeatedly and also their root causes. Quality Management tools play a crucial role in improving the
quality of products and services. With the help of Quality Management tools employees can easily
collect the data as well as organize the collected data which would further help in analyzing the same
and eventually come to concrete solutions for better quality products.

Quality Management tools make the data easy to understand and enable employees to identify
processes to rectify defects and find solutions to specific problems.

Following are the quality management tools:

1. Check List - Check lists are useful in collecting data and information easily. Check list also helps
employees to identify problems which prevent an organization to deliver quality products which
would meet and exceed customer expectations. Check lists are nothing but a long list of identified
problems which need to be addressed.

2. Pareto Chart - A Pareto chart is also known as the 80-20 rule of quality management. Here,
organizations assume that most of the problems they face with quality management in any process
are caused by the biggest factors. These problems are listed out as 80% of all problems, and their
causes are listed out to be 20% of the biggest factors.

A Pareto chart is a combination of a line graph and a bar graph. The values are shown by using the
bar graph in the Pareto chart, and the line graph shows the total impact. This way, organizations can
find the biggest causes of their problems with quality and implement measures to reduce them.

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3. The Cause-and-Effect Diagram - Also referred to as “Fishbone Chart” (because of its shape which
resembles the side view of a fish skeleton) and Ishikawa diagrams after its creator Kaoru Ishikawa,
Cause and Effect Diagram records causes of a particular and specific problem. The cause and effect
diagram plays a crucial role in identifying the root cause of a particular problem and also potential
factors which give rise to a common problem at the workplace.

4. Histogram - is a graphical representation showing intensity of a particular problem. Histogram

helps identify the cause of problems in the system by the shape as well as width of the distribution.

5. Scatter Diagram - A scatter diagram is used to find the relationship between A and B. For example,
if B is facing an issue with packaging, a scatter diagram can be used to find A, which is the main reason
that B takes place. This way, all possible causes to the defects to the quality of a product or process
can be identified easily, after which the quality management professionals can create and implement
focused solutions to solve the main cause.

6. Graphs - Graphs are the simplest and most commonly used quality management tools. Graphs
help to identify whether processes and systems are as per the expected level or not and if not also
record the level of deviation from the standard specifications.

Part II:

Six Sigma is a business management strategy which aims at improving the quality of processes by
minimizing and eventually removing the errors and variations.

The concept of Six Sigma was introduced by Motorola in 1986, but was popularized by Jack Welch
who incorporated the strategy in his business processes at General Electric.

The concept of Six Sigma came into existence when one of Motorola’s senior executives complained
of Motorola’s bad quality. Bill Smith eventually formulated the methodology in 1986.

Quality plays an important role in the success and failure of an organization. Neglecting an important
aspect like quality, will not let you survive in the long run. Six Sigma ensures superior quality of
products by removing the defects in the processes and systems.

Six sigma is a process which helps in improving the overall processes and systems by identifying and
eventually removing the hurdles which might stop the organization to reach the levels of perfection.

According to sigma, any sort of challenge which comes across in an organization’s processes is
considered to be a defect and needs to be eliminated.

Organizations practicing Six Sigma create special levels for employees within the organization. Such
levels are called as: “Green belts”, “Black belts” and so on. Individuals certified with any of these
belts are often experts in six sigma process.

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According to Six Sigma any process which does not lead to customer satisfaction is referred to as a
defect and has to be eliminated from the system to ensure superior quality of products and services.
Every organization strives hard to maintain excellent quality of its brand and the process of six sigma
ensures the same by removing various defects and errors which come in the way of customer
satisfaction.

The process of Six Sigma originated in manufacturing processes but now it finds its use in other
businesses as well. Proper budgets and resources need to be allocated for the implementation of Six
Sigma in organizations.

Following are the two Six Sigma methods:

• DMAIC- focuses on improving existing business practices

• DMADV- focuses on creating new strategies and policies

DMAIC has Five Phases:

Six Sigma – DMAIC

D - Define the Problem. In the first phase, various problems which need to be addressed to are
clearly defined. Feedbacks are taken from customers as to what they feel about a particular
product or service. Feedbacks are carefully monitored to understand problem areas and their
root causes.
M - Measure and find out the key points of the current process. Once the problem is identified,
employees collect relevant data which would give an insight into current processes.
A - Analyze the data. The information collected in the second stage is thoroughly verified. The root
cause of the defects are carefully studied and investigated as to find out how they are affecting
the entire process.
I - Improve the current processes based on the research and analysis done in the previous stage.
Efforts are made to create new projects which would ensure superior quality.
C - Control the processes so that they do not lead to defects.

DMADV Method:

D - Design strategies and processes which ensure hundred percent customer satisfaction.
M - Measure and identify parameters that are important for quality.
A - Analyze and develop high level alternatives to ensure superior quality.
D - Design details and processes.
V - Verify various processes and finally implement the same.

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• Are there incidents that the topic(s) been applied in your organization? Write a business case,
give examples.

Yes. BSP adopted the Supervisory Assessment Framework (SAFr) set out in the attached document.
The SAFr will be used in assessing BSP-supervised financial institutions. It will replace the various rating
systems currently employed by the BSP, including the CAMELS and ROCA rating systems.

• How does the topic(s) be applied in your organization? Write a business case, discuss and
elaborate.

Our Sub-sector, PROCUREMENT MANAGEMENT SUB-SECTOR, is divided into:

• Bids and Awards Committee Secretariat and Policy Group

➢ Provides secretariat, operational, and administrative support to the Bids and Awards
Committees (BACs) in the BSP Head Office (HO) and Security Plant Complex (SPC)
➢ Conducts procurement-related studies and researches, formulation of strategies related to
procurement, standardization of procurement procedures, and monitoring of status of
contract

• Procurement Management Department I and II

➢ In-charge of processing of PRs filed by end-user departments/offices based in the BSP HO and
SPC, as well as the processing and documentation of post-award processes/activities leading
to contract execution.

Being the only sub-sector consisting of procurement specialists, one of our important roles is to seek
quality services or products to meet the needs and goals of the organization, and acquire them at an
acceptable cost. We must thoroughly understand the policies, issues and risks that can accompany
the procurement process and the ensuing steps in the supply chain. If these tasks can be
accomplished successfully, the role of the procurement specialist can have a positive impact on the
organization’s overall cost efficiencies and bottom line, validating the importance of their role.

In general, the classic procurement process involves five steps, which must be thoroughly examined.
They are as follows: Define requirements, select supplier, produce agreement, administer day-to-
day, and assess performance. These steps are essential, regardless of the amount of automation or
e-sourcing that may be involved.

With that in mind, our organization can benefit from a procurement function that has these five main
features:

• A detailed spend map that cuts across an entire organization and is updated regularly so all purchases
can be analyzed continuously for need, value, pricing and quality.
• The ability to drive savings across the organization by continuously ensuring the right products come
from the right vendors at the right price to meet organizational goals.

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• The ability to engage with the entire organization to evaluate how reduced costs can be enjoyed
across the value chain.
• An organization-wide focus on ensuring value through contract management and supplier
relationship management.
• The ability to deliver acquisitions through an operating model that connects technical and
commercial capabilities to drive organizational goals and optimum client outcomes.

The purchasing and supply management profession is clearly transitioning from placing purchase
orders to establishing and managing comprehensive contracts with strategic suppliers. This has
created a need for purchasing and supply managers to develop and refine contract preparation
and contract management skills.

Lean Six Sigma impact on procurement:

Six Sigma based processes have the ability to measure the level of risk in a process and analyze the
process using statistical data in order to measure the level of deviation from normal (defects), thus
exercising a level of control over the process and forcing improvement. Lean Six
Sigma methodologies allow organizations to streamline their procurement processes, simplify supply
chain complexity and reduce overall purchasing costs. Procurement projects that would most likely
benefit from leveraging Lean Six Sigma tend to center around: cycle-time reduction, transaction
quality, technology adoption within the supply chain process, and compliance. Determining potential
projects to improve should focus on ensuring the process being targeted is specific enough to be
addressed within a realistic timeframe and has the potential to produce ample return on investment
of resources.

• What is your assessment, observation, comments, suggestions, or opinion of the topics discussed?

Quality management is based on constantly improving all processes, regular monitoring, and looking
out for any flaws or defects. Quality management professionals need to be certified to have the
knowledge and experience that they need to implement thoughtful and valuable changes to the
production and development processes so that they can deliver at the optimal level, regularly and
consistently.

Quality management began as an area of expertise when organizations understood the importance of
delivering products and services at optimal levels. A lot of organizations started using a different
variety of quality management tools. Earlier, the main focus of all companies was to produce on time.
As long as the deliveries went out at the given deadline, nothing else would matter. Over time, they
realized that customer satisfaction was not just based on timely deliveries. It was, in fact, focused on
delivering services at a superior quality.

This is what quality management takes care of. Quality management is a set of tools and processes
utilized by organizations of all sizes across many industries to help them deliver their products and
services of consistent and high quality on time.

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Name : BODO, JENNIFER E.

Class : TOTAL QUALITY MANAGEMENT; MBA DBP 3B7

Professor : BITAS, JOWELL

Date : 28 November 2022

___________________________________________________________________________________

• What have you learned from the topic(s) we discussed? discuss and elaborate.

Kaizen

Kaizen” refers to a Japanese word which means “improvement” or “change for the better”. Kaizen is
defined as a continuous effort by each and every employee (from the CEO to field staff) to ensure
improvement of all processes and systems of a particular organization.

While Kaizen, represents only some aspects of TQM, it is one of the key principles and strategies for
TQM implementation, such as customer satisfaction and employee involvement.

The processes in an organization need continuous improvement, Kaizen in Japanese. TQM is aimed
at continuous improvement of processes so that the quality of products and services improve
continuously.

Kaizen comprises the following two activities, carried out simultaneously:

• Maintenance
• Improvement

Role of Managers in TQM

The management is solely responsible for the success of TQM as it is responsible for selecting people,
forming teams, providing resources, and establishing the system in the organization. Thus, it is
important that top management understands TQM and leads the organization through the TQM
journey.

As seen in several TQM books, Deming insists that the senior employees must conduct themselves as
leaders rather than managers. Thus the senior employees should be trained on leadership qualities.

Like many other aspects, the adventurous and the bold change management depends on the personal
qualities of the CEO. The CEO, in addition to his own bold initiatives, should support innovative change
management initiated by his employees. He should motivate and encourage his colleagues to change
the unproductive ways of the organization

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Role of Customers in TQM

Customers are the most important asset for your business, which can decide upon the success and
failure of your organization. Therefore, you need to focus on your end users and their demands while
planning your production processes. It is also very important to take feedback from your customers on
a regular basis so that you can know your plus points to keep them intact, and your minus points to
improve upon them. This information will help you to formulate a successful business strategy for the
future.

It is vital that you continually research and understand the needs and demands of the customers. Total
Quality Management helps employees understand their target customers before making any changes
in the processes and systems to deliver better quality products/services for customer satisfaction. Many
organizations also introduce Total Quality Management into their processes to increase their customer
base and levels of customer satisfaction. After all, how can you not consider the people who bring
revenues to your organization and help you yield higher profits?

Comparison of Six Sigma and TQM

1. Six Sigma is the methodology that aims at performance improvement by reducing the number of
defects produced, resulting in profit increase and cost reduction. On the other hand, TQM is concerned
with the employment, maintenance, and development of the organizational processes, resulting in
incremental change in process quality.

The main difference lies in the focus, approach, and scope.

a. Focus- TQM focuses on the goals that are quantitative in nature and related to individual departments
with the ultimate focal point being customer satisfaction. But, Six Sigma utilizes the efforts of multiple
departments and has a data-driven and statistical approach that measure and analyzes data to
determine the number of defects leading to degrading of process quality.

b. Approach -TQM views quality as conformance to internal requirements, while Six Sigma improves
quality by reducing the number of defects.

c. Quality - TQM defines quality as the process meeting the standards established by the organization.
But, Six Sigma defines it as the process with minimum amounts of defects.

d. Skills required - Six Sigma requires the skills of well-trained professionals like Green or Black Belts,
while TQM doesn't require any such extensive training, and is carried out by managers who are not
solely dedicated to TQM. Six Sigma requires participation of only certified professionals, while TWM is
a part-time activity that be carried out easily by quality managers.

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• Are there incidents that the topic(s) been applied in your organization? Write a business case,
give examples.

Yes. BSP adopts Lean Six Sigma and DMAIC in its acquisition of goods and services.

• How does the topic(s) be applied in your organization? Write a business case, discuss and
elaborate.
Our field of expertise is focused on lean methodology and is focused on eliminating waste. In our
department, we also apply DMAIC.

Procurement, being at the core of operations, plays a vital role in achieving lean six sigma standards.
The purpose of Lean Six Sigma to procurement is to:

1. Minimize time and effort required by procurement processes;

2. minimize the risk of variations in process and costs; and
3. Maximize efficiency and performance

Lean Sigma in Procurement Processes include:

i. Requisitions;
ii. Requests for Quotations or Proposal;
iii. Purchase Orders;
iv. Certificate of End-User’s Acceptance; and
v. Order Receipts and/or Invoice Payments

Minimizing waste within procurement processes could occur in:

a) Transportation
b) Inventory
c) Waiting
d) Delays
e) Overproduction
f) Overprocessing

We use the DMAIC method to minimize defects within all processes.

Lean in procurement uses technology to Empower people by:

a. Approved suppliers list or a single source of up-to-date data & KPIs;

b. Items Catalague/Virtual Catalogue or a sing source of up-to-date data & KPIs; and
c. Pre-set templates with auto-fill features

Lean in procurement uses technology to Manage people:

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a. Budgets: control spending and avoid maverick spend;

b. Reports: Measure, analyze data and improve;
c. User Permissions: full control over the processes and access rights; and
d. Structured workflow to streamline process

• What is your assessment, observation, comments, suggestions, or opinion of the topics discussed?

Total Quality Management (TQM) is a management strategy that focuses on long-term success.
Through the satisfaction of customers. All members of an organization participate in a TQM endeavor
by working to improve processes, products, services, and the culture in which they operate.

Total Quality Management helps in the development of a better system for the management of the
company as well as the organization’s long-term goals. It also helps clients in meeting their demands
and needs, as well as saving time when producing their product. Simply by adhering to the Total
Quality Management principle. As a result, total quality management is being promoted all over the
world. Many incentives have been devised to encourage people to use complete quality management.
“The goal of the Total Quality Management Awards is to improve quality.

TQM is an umbrella concept, and it encompasses all these and represents the new management
philosophy, which will enable the growth of the organization based on total quality. Total quality
means, quality in every activity of the organization. To put it in simple terms, it helps to improve the
productivity on account of quality in everything an organization does. In the foreword of the standard
it is said, “the application of TQM primarily involves investment in time for people to move forward
into new and different organization cultures”. The crux of the problem in implementing TQM is the
inability of the senior personnel in investing time on people. The time invested is going to bring in
many benefits to the organization later.

It also hints that it takes time to change people from the traditional work culture to modern work
culture. It also says that the important investments for TQM to happen are time and employees.