Quality Management in

Procter and Gamble Phils. Inc&

Money ForEx Dealer &

Remittance Inc.

Flow of Presentation

QUALITY MANAGEMENT – A Competitive AdvantageQUALITY MANAGEMENT – A Competitive Advantage

TQM Programs As Applied inP& G/ Money Forex

Continuous Improvement Six Sigma Employee Empowerment• Bechmarking• Just-In-Time (JIT)

CompanyBackground Procter & Gamble Phils., Inc.

• Money Forex Dealer & Remittance Inc.

What is TQM? The P&G Perspective

TQM Tools

Check Sheet Scatter Diagram Ishikawa or Cause & Effect Diagram ☺ Class Activity

•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.

Procter and Gamble Phils. 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

Money ForEx Dealer and Remittance 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)

Procter and Gamble Phils. Inc.

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

19 QA Key Elements

(Encompasses Entire Organization)

Procter and Gamble Phils. Inc.

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

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 KE4 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 conditions.4 3 4.1.2 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 determined). 4 3 4.1.4 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 production site.4 3 4.1.6 The current, 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.

Procter and Gamble Phils. Inc.

• 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

2. PDCA Cycle− Integral part in all plant Daily Management

Systems (DMS) and Work Processes.

1. Name of Theme Modification of Bucket Opener

CABUYAO PLANTKaizen Form

Originator: Lester Khan

Date: Mar 2008

Continuous Improvement

• 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

SIX SIGMA FOCUSED IMPROVEMENT (FI)

Define Understand the Situation

Measure Expose and Eliminate Abnormalities

Analyze Analyze Causes

Improve Plan Improvement

Control Implement Improvement

Check Results

Consolidate Gains

P&G uses a similar methodology involving a 7-Step Focused Improvement program with intent to eliminate cause of losses

Six Sigma

FOCUSED IMPROVEMENT PROJ ECT CHECKLISTTeam Theme : Output Measure :

Start Date: Review Date :

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0 Preparation - To get the team ready. 4 Plan Improvement - Develop Countermeasure for all Root causesChartering Flow Chart 1. Team is chartered with an appointed leader. Countermeasures 25. Develop Countermeasures for improvement.

Phase 0 Checklist 2. Team Accepts Charter Prioritization Matrix 26. Prioritize countermeasures against PQCDSM & other areas.

Prioritization 3. Theme is registered Life Cycle Cost 27. Evaluate the Cost and Feasibility

Benchmark 4. Project Schedule complete Test Plans 28. Establish an abort criteria using potential problem analysis.

Loss Analysis 5. Acitivity board to track progress PPA 29. Conduct on-line testing & evaluate the improvement.

Savings Goal 6. Team Skill Assessment Adequate. FMECA 30. Plan meets business need and timing.

Registration 7. Business Customer is aligned. 31. Training needs identified.

Schedule 32. Appropriate resources used.

Notebook 33. Customer & Team agree on next steps

Activity Board 34. Create the improvement plan.

1 Understand the Situation - Where is the major problem 5 Implement Improvement - with a vertical startup.

5M Analysis 8. Collect additional data from all sources including on the Implementation Plan 35. Verify the readiness of the improvement implementation

3 Gen & 2 Gen floor observations to verify the true losses. Checklists schedule & plan - includes all team members?.

Process Flow 9. The situation is stratified to an actionable level. Safety Training 36. Check material, tools, contingences, etc. for improvement.

Pareto 10. Develop a specific problem statement and actual target. Training Plan 37. Conduct Safety Training.

Customer Questions 11. Customer needs are accurately identified. OPL's 38. Conduct risk prediction.

Situation Appraisal 12. Immediate corrective actions are addressed 39. Implement Improvement Work as designed.

13. Team membership is verified 40. Conduct Training on the Improvement.

2 Expose and Eliminate Abnormalities - Restore Basic Conditions 6 Check Results - evaluate actual versus planned for the schedule and results.

Process Flow 14. All Defects have been corrected. Schedule Tracking 41. Analyze gap of improvement schedule planned vs. actual.

Machine Cycle Chart 15. Sources of Contamination have been problem solved to Graphs on Results 42. Evaluate the outcome of the Improvement.

5M Process Control root cause. Benchmark 43. Measure the positive results and effects.

Safety Chart 16. The Equipment has a Cleaning, Inspection, and Lube 44. Measure side effects & by-products.

AM 5 Lists Standard that is being maintained. 45. Are additional resources required?

Why/Why 17. A Process Flow Diagram is developed with Ideal Conditions. 46. Track results - Improvement target met?

CIL Std 47. Decide to continue or go back to Step 3.

3 Analyze Causes 7 Consolidate Gains - develop standards to maintain & reapplication Reco

Why-Why Analysis 18. Analyze all the data using various tools. Process Flow Chart 48. Review & update the Process Flow Chart .

Work Pt Analysis 19. Analyze the ideal and current situation. Standards 49. Review & update the existing documentation.

QC Methods 20. Identify the root cause. OPL's 50. Train on the changes, documentation, and learnings.

Fault Tree 21. Verify Root Cause. CBA's 51. Horizontal deployment reco for similar processes & equipment.

P-M Analysis 22. Cause is Measurable Transition Plan 52. Conduct final review with appropriate group

Problem Analysis 23. Cause is actionable by this team Reapplication matrix 53. Identify next steps/plans for remaining problems.

MQ Analysis 24. Team has skills necessary for task. 54. Successes identified and celebrated

Six Sigma

• 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

Employee Empowerment

Benchmarking

  PESO /  $ PESO / YENBLOOMBERG 46.51 0.5214BORACAY BRANCH 45.60 0.4890QUEEN'S MONEY CHANGER(competitor) 45.80 0.4900 MANILA BRANCH 46.25 0.5200

Just-in-Time

• 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.

Tools for TQM