Quality Management in

Procter and Gamble Phils. Inc

&
Money ForEx Dealer & Remittance Inc.
Flow of Presentation

QUALITY MANAGEMENT – A Competitive Advantage

Company What is TQM? TQM Programs TQM Tools

Background As Applied in
 The P&G P& G/ Money Forex
 Procter & Gamble Perspective  Check Sheet
Phils., Inc.  Continuous  Scatter Diagram
Improvement  Ishikawa or
• Money Forex  Six Sigma Cause & Effect
Dealer &  Employee Diagram
Remittance Inc. Empowerment
• Bechmarking ☺ Class Activity
• Just-In-Time (JIT)
Procter and Gamble Phils. Inc.
•P&G started in Cincinnati as a
Candle and Soap Making Company
in the 1830’s
•Now a Multi-national Company
present in over 180 countries.
•9th Largest Company in the World
with over $80Billion in Sales
Procter and Gamble Phils. Inc.
• It also operates and
maintain more than a
hundred
manufacturing plants
across the globe.

• In Asia, P&G
Philippines is the first
and oldest subsidiary
of P&G outside of
the USA.

• Consolidated
Manufacturing Site is
in Cabuyao, Laguna.
Money ForEx Dealer and Remittance Inc.
• SERVICES OFFERED
− Trading Currencies
− Remittance Operations

• STRENGTHS
− Competitive Exchange Rates
− Fully Automated System
− Well-trained & Experienced Workforce

• MARKET
− Walk-in Clients
− Corporate Groups

• AFFILIATIONS
− South East Asian Airlines
− Zest Air Inc.
− Cebu Pacific Air
− Smart Money
− SM Guarantee Card
Money ForEx Dealer and Remittance Inc.
• BRANCHES
- Boracay-Malay ,Aklan
- Caticlan –Malay ,Aklan
- Beacon Commercial Place – Las Pinas
- Maktan International Airport -Cebu
- Starmall Alabang –Muntinlupa
- Tutuban Mall –Manila
- Uniwide Paranaque -Paranaque
- Viramall -Paranaque
Procter and Gamble Phils. Inc.
QA KEY ELEMENTS (QAKE)
= BEST PRACTICES
= LEARNINGS FROM PAST MISTAKES
= STANDARDS
= RISK ASSESSMENT CRITERIA
Procter and Gamble Phils. Inc.
19 QA Key Elements
(Encompasses Entire Organization)
Key Element # Description
1 Leadership
2 Training
3 Design, Construction, Installation
4 Specifications and Standards
5 Written Procedures
6 Validation (Change Control)
7 Housekeeping, Pest Control & Maintenance
8 Starting Materials
9 Making Operations
Procter and Gamble Phils. Inc.
19 QA Key Elements
(Encompasses Entire Organization)
Key Element # Description
10 Packaging Operations
11 Storage & Handling or Finished Product
12 Laboratory Controls
13 Process Control
14 In-Process & Finished Product Release & Contrl
15 Records
16 Self Improvement Program
17 Complaints
18 Quality Systems Results
19 Accountability for Contractors
 Procter and Gamble Phils. Inc.
Each QAKE provides Guidance/Requirements
KE

Procter & Gamble Quality Assurance Key Elements

1 Leadership.
Leadership demonstrates a commitment to the establishment and maintenance of a quality culture within each site
and the organization as a whole. They set clear operating standards for site operations and ensure that these
standards are communicated to individuals and reinforced through personal example, defined responsibility and
clear accountability. Leadership ensures that the organization is designed and developed to deliver the consumer
and customer expectations in terms of product and package development, execution and delivery.
2 Training.
Training and qualification is an investment in both the individual and the business. The development of the
knowledge and skills of the workforce is a critical part of continuous improvement and helps reduce error and
waste.
3 Buildings, Facilities, Equipment Design and Installation.
Buildings, facilities, equipment, and computer systems are designed, constructed and installed to perform their
required function if they are to develop or deliver quality product, free from contamination or adulteration and in
compliance with all regulations. The design and installation facilitates efficient business operations, and
minimizes the risks of errors in the operation/initiative/project. QA reviews the designs.
4 Technical Standards
Technical Standards are approved and in place to define relevant requirements for the life cycle of products and
the supply chain including development, production, shipping/warehousing, testing, and data systems. This key
element covers both written and physical standards.
5 Written Procedures.
Written procedures are in place for Quality Assurance systems and for processes that impact production, product
development, artwork development and quality capability. In order to achieve consistency of product quality, work
processes are reproducible. The key to achieving this reproducibility is well written and faithfully followed
procedures. Systems are in place to ensure that only up-to-date procedures are in use.
 Procter and Gamble Phils. Inc.
Specific state is defined per KE
4 1 4 Technical Standards
Technical Standards are approved and in place to define relevant requirements for the life cycle of products and
the supply chain including development, production, shipping/warehousing, testing, and data systems. This key
element covers both written and physical standards.
4 2 4.1 Written and approved Technical Standards are in place for the product at critical stages of the product life
cycle from definition of the product model through distribution to the consumer.

4 3 4.1.1 The formula, package and other specifications are based on documented research and testing that is
consumer/customer/process relevant and meets regulatory requirements. The basis for technical standards will be
documented (e.g. QEC, PCS, Manufacturing Standard, Basis document, Readiness Reports, Transformation flowsheets,
Compatibility/Stability report). Where possible, Product and package design standards will be verified in actual use
4 3 4.1.2 conditions.
Standards are linked/cross-referenced, as necessary, to achieve document traceability, eliminate confusion and ensure
compliance with all defined requirements and local regulations.
4 3 4.1.3 Content and structure of Technical Standards defines consistent quality that meets consumer/customer needs, process
requirements and regulatory compliance (e.g. permanent standards are complete and accurate with no gaps or TBDs-to be
4 3 4.1.4 determined).
Technical Standards are written, approved by QA when required, and effectively deployed for raw and packaging materials,
formulas, test methods, packaging procedures, making instructions and other specification or procedure necessary to make
and ship product. There is a system to verify the accuracy of the information transferred from technical standards into site
operating systems (e.g. control systems, reporting systems, SAP, RTCIS, etc).
4 3 4.1.5 Standards control the stages of the product life cycle consistent with development of product knowledge. Production
(including testing and experimental production) will not commence without approved Standards being available at the
4 3 4.1.6 production
The current,site.
approved version of Technical Standards is in use. There is a system in place to control creation, review,
approval and distribution of Technical Standards. This system controls changes, is validated and assures the most current,
approved standard is delivered for use.
4 3 4.1.7 Expiration or "best before" dates and labeled storage condition statements are based on a stability-testing program. For
drugs, stability data must be generated prior to market introduction.
Continuous Improvement

• Based on the principle that every aspect of an

operation can be improved where the end goal is
perfection (never achieved but always sought)

• developed into circular model : PDCA (Plan, Do,

Check, Act)

• termed as “Kaizen” by Japanese

 Continuous Improvement
1. Kaizens:
− All P&G Cabuyao employees are required to
submit 6 Kaizens/year
− Included in Reward and Recognition

CABUYAO PLANT
Kaizen Form

Originator: Lester Khan

Date: Mar 2008
1. Name of Theme Modification of Bucket Opener
2. PDCA Cycle
− Integral part in all plant Daily Management
Systems (DMS) and Work Processes.
Six Sigma
• In statistical sense, describes a process, product, or service with
an extremely high capability (99.9997% accuracy)
• A program designed to reduce defects to help lower costs, save
time, and improve customer satisfaction.
• Management –directed, team-based, and expert-led approach
P&G uses a similar
S IX S IGMA FOCUS ED IMP ROVEMENT (FI)
methodology involving a
De fine Unde rs ta nd the S itua tion
7-Step Focused
Me a s ure Expos e a nd Elimina te Abnorma litie s
Improvement program
Ana lyze Ana lyze Ca us e s
with intent to eliminate
Improve P la n Improve me nt
cause of losses
Control Imple me nt Improve me nt
Che ck Re s ults
Cons olida te Ga ins
Six Sigma
FOCUS ED IMPROVEMENT PROJECT CHECKLIS T
Te am The me : Output Me as ure :
S tart Date : Re vie w Date :

In P ro gre s s

In P ro gre s s
C o m ple te

C o m ple te
No E ffort

No E ffort
S te p

S te p
To o ls Obje c tive /Che c kpo ints To o ls Obje c tive /Che c kpo ints
0 Pre paratio n - To g e t the te am ready. 4 Plan Impro ve me nt - De ve lo p Co unte rme as ure fo r all Ro o t c aus e s
Cha rte ring Flow Chart 1. Te am is cha rte re d with a n a ppointe d le a de r. Counte rme a s ure s 25. De ve lop Counte rme a s ure s for improve me nt.
P ha s e 0 Che cklis t 2. Te am Acce pts Cha rte r P rioritiza tion Ma trix 26. P rioritize counte rme a s ure s a ga ins t P QCDS M & othe r a re a s .
P rioritiza tion 3. Theme is re gis te re d Life Cycle Cos t 27. Eva lua te the Cos t and Fe a s ibility
Be nchma rk 4. P roje ct S che dule comple te Te s t P la ns 28. Es ta blis h a n a bort crite ria us ing pote ntia l proble m a na lys is .
Los s Ana lys is 5. Acitivity boa rd to tra ck progre s s PPA 29. Conduct on-line te s ting & e va lua te the improve me nt.
S a vings Goa l 6. Te am S kill As s e s s me nt Ade qua te . FMECA 30. P la n me e ts bus ine s s ne e d a nd timing.
Re gis tra tion 7. Bus ine s s Cus tome r is a ligne d. 31. Tra ining ne e ds ide ntifie d.
S che dule 32. Appropria te re s ource s us e d.
Note book 33. Cus tome r & Te a m a gre e on ne xt s te ps
Activity Board 34. Cre a te the improve me nt pla n.
1 Unde rs tand the S ituatio n - Whe re is the majo r pro ble m 5 Imple me nt Impro ve me nt - with a ve rtic al s tartup.
5M Ana lys is 8. Colle ct a dditiona l da ta from a ll s ource s including on the Imple me nta tion P la n 35. Ve rify the re a dine s s of the improve me nt imple menta tion
3 Ge n & 2 Ge n floor obs e rva tions to ve rify the true los s e s . Che cklis ts s che dule & pla n - include s a ll te a m me mbers ? .
P roce s s Flow 9. The s itua tion is s tra tifie d to a n a ctiona ble le ve l. S a fe ty Tra ining 36. Che ck ma te ria l, tools , continge nce s , e tc. for improve me nt.
P a re to 10. De ve lop a s pe cific proble m s ta te me nt a nd a ctua l ta rge t. Tra ining P la n 37. Conduct S a fe ty Tra ining.
Cus tome r Que s tions 11. Cus tome r ne e ds a re a ccura te ly ide ntifie d. OP L's 38. Conduct ris k pre diction.
S itua tion Appra is a l 12. Imme dia te corre ctive a ctions a re a ddre s s e d 39. Imple me nt Improve me nt Work a s de s igne d.
13. Te am me mbe rs hip is ve rifie d 40. Conduct Tra ining on the Improve me nt.
2 Expo s e and Eliminate Abno rmalitie s - Re s to re Bas ic Co nditio ns 6 Che c k Re s ults - e valuate ac tual ve rs us planne d fo r the s c he dule and re s ults .
P roce s s Flow 14. All De fe cts ha ve be e n corre cte d. S che dule Tra cking 41. Ana lyze ga p of improve me nt s che dule pla nne d vs . a ctua l.
Ma chine Cycle Cha rt 15. S ource s of Conta mina tion ha ve be e n proble m s olve d to Gra phs on Re s ults 42. Eva lua te the outcome of the Improve me nt.
5M P roce s s Control root ca us e . Be nchma rk 43. Me a s ure the pos itive re s ults a nd e ffe cts .
S a fe ty Cha rt 16. The Equipment ha s a Cle a ning, Ins pe ction, a nd Lube 44. Me a s ure s ide e ffe cts & by-products .
AM 5 Lis ts S ta nda rd tha t is be ing ma inta ine d. 45. Are a dditiona l re s ource s re quire d?
Why/Why 17. A P roce s s Flow Dia gra m is de ve lope d with Ide a l Conditions . 46. Tra ck re s ults - Improve me nt ta rge t me t?
CIL S td 47. De cide to continue or go ba ck to S te p 3.
3 Analyze Caus e s 7 Co ns o lidate Gains - de ve lo p s tandards to maintain & re applic atio n Re c o
Why-Why Ana lys is 18. Ana lyze a ll the da ta us ing va rious tools . P roce s s Flow Cha rt 48. Re vie w & upda te the P roce s s Flow Cha rt .
Work P t Ana lys is 19. Ana lyze the ide a l a nd curre nt s itua tion. S ta nda rds 49. Re vie w & upda te the e xis ting docume nta tion.
QC Me thods 20. Ide ntify the root ca us e . OP L's 50. Tra in on the cha nge s , docume nta tion, a nd le a rnings .
Fa ult Tre e 21. Ve rify Root Ca us e . CBA's 51. Horizonta l de ployme nt re co for s imila r proce s s e s & e quipme nt.
P -M Ana lys is 22. Ca us e is Me a s ura ble Tra ns ition P la n 52. Conduct fina l re vie w with a ppropria te group
P roble m Ana lys is 23. Ca us e is a ctiona ble by this te a m Re a pplica tion ma trix 53. Ide ntify ne xt s te ps /pla ns for re ma ining proble ms .
MQ Ana lys is 24. Te am ha s s kills ne ce s s a ry for ta s k. 54. S ucce s s e s ide ntifie d a nd ce le bra te d
Employee Empowerment
• Involving employees in every step of
production process.

• Termed as “Total Employee

Involvement” in P&G.

• A critical piece of the corporate culture

necessary to achieve goals.

• Techniques include building

communication networks that include
employees, moving responsibility from
both manages and staff to production
employees, and building high-morale
organizations
 Benchmarking

  PESO / $ PESO / YEN

BLOOMBERG 46.51 0.5214
BORACAY BRANCH 45.60 0.4890
QUEEN'S MONEY
CHANGER
(competitor) 45.80 0.4900
     
MANILA BRANCH 46.25 0.5200
Just-in-Time
Tools for TQM

• Check Sheet
• Scatter diagram
• Cause & Effect Diagrams
(Ishikawa Diagram or Fishbone Chart)
Tools for TQM

• Check Sheet
• Scatter diagram
• Cause & Effect Diagrams
(Ishikawa Diagram or Fishbone Chart)
Tools for TQM
Mechanics for Preparing “Fish Bone” Diagram

❶ Follow class natural grouping

❷ Each group will decide on the company where it will apply “Ishikawa Diagram”
❸ Each group will either
a. State a Problem (or an effect) in its chosen company, and identify the
causes of such problem pertaining respectively to MAN, METHOD, MATERIALS, &
MACHINERY, or

b. State a Project/breakthrough idea in its chosen company, and identify the

resources pertaining respectively to MAN, METHOD, MATERIALS, & MACHINERY
which are needed to actualize such project
❹ Maximum of three (3) causes/resources per component or bone
❺ All groups are given 7 minutes to finish the diagram
➏ Each group representative will report in 3-5 minutes.