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Quality Improvement Plan for

Brandz & Trends Marketing Inc.

In partial fulfillment of the course requirements in


TOTALQM (Total Quality Management)
TOTALQM K34

Submitted to:
Mr. Jerome Alvarez

Submitted By:
Abarquez, John Gabriel D.
Atienza, Justinne
Ferrer, Ayanna Nicole C.
Luna, Jose Enrico Luis S.
Tia, Ralph Andrei A.

Submitted On:
March 30, 2017
I. Introduction

Brandz and Trends Marketing Inc. is a newly established company engaged in the
distribution of leading Consumer Electronic brands in the Philippines such as Electrolux, White
Westinghouse, Sanyo, Haier and Samsung among many others. Their products mainly focus on
appliances such as the refrigerator, aircon etc. Brandz and Trends Marketing Inc. has a total of
around 150 employees, who they consider as aggressive, young, and well-motivated corporate
professionals, capable of working with minimum supervision and possesses a determination to
acquire success.
The company has, since then, been struggling for a couple of years due to matters that
affect business system operations. Being major impediments to the company’s profit earning
potential, this problem must immediately be addressed and eliminated; ​the lack of
communication between the customer and the company to ensure proper delivery
information about the products ordered or delay.
II. Product or Service Design in focus of Product Data

Brandz and Trends Marketing Inc. focuses on distribution of appliances of leading


Consumer Electronic brands in the Philippines. Their main products include the refrigerator,
aircon, washing machine, gas ranges and LED lights. Enclosed above is a flowchart regarding
the step-by-step distribution process. The company targets known appliance stores as its
customer since appliance stores buys bulk inventory which leads to bigger income per unit.
III. Quality Assessment of the Product or Service

Based on the complaints being received by the company, the most frequent complaint

that they receive is the delay that the customers are experience waiting for the product to be

delivered. Another complain that they usually get is the lack of synchronization of orders. Now

to achieve the goal of the company, the company is aiming to solve the problem regarding the

delays their having in the delivery of the products as well as the synchronization of orders. This

shows how inefficient the internal communication in the company. Each order from is not

properly delivered to the suppliers to have specific details about the company and on how the

orders can be attained. Ideally, the delivery of appliances should be exactly 4 days but because of

various reasons it sometimes can be delayed for as long as 2 weeks. This problem is due to the

different companies who would usually have several orders within a week which disrupts the

delivery schedule of the supplier to its other customers. Not all customers follow their schedule

and this causes conflict between them.

As to identify the primary concern of the customers. One of the main tools we are going

to use is the Pareto chart, because through our data gathering, here we are able to present the

actual and accurate data to determine which of the various concerns we should be focusing on. In

support to this, we formulated an affinity diagram which aims to ask for feedback towards our

service to the people, wherein there were a bunch of concerns stated. However, there were some

concerns that were more important than others that is why our next step would be formulating a

Fault tree analysis in order for the company to determine and understand the undesired state of

the system itself. To add to this, the fault tree analysis would possibly fix or at least alleviate

going concerns in order for the company to not suffer from “system failure” which is inevitable
with such malpractices and unresponsiveness of the company. Another method in support of

determining primary concerns of the company is performing an RCA or a root cause analysis, in

which when factor is considered a root cause if removal thereof from the problem-fault-sequence

prevents the final undesirable event from recurring. This tool wouldn’t just help us identify the

root cause but it would also aid our concerns by planning for immediate action regarding a

particular concern.

To further assist the company in investigating the root cause of setbacks, a tool called the

“force field analysis” may be used. This tool evaluates the net impact of all forces that influence

change. These forces can be divided into two groups: driving forces and restraining forces.

Driving forces are all forces that push for and promote change while restraining forces are forces

that make change more difficult. Through this we as the company will be positively able to

determine such forces that help us and such forces that drag our business down. This tool would

be very helpful after we find our root causes and primary setbacks because through the force

field analysis we are able to find out more and more factors that the company should be aware of

and how intensively the weight of these forces affect to whole system. Another method that

would be a large scale of help for the company is the, “Critical Path Method”. is a step-by-step

project management technique for process planning that defines critical and noncritical tasks

with the goal of preventing time-frame problems and process bottlenecks. This method require a

number of steps to be followed in order to have an accurate and immediate plan of action. First

we are able to define the required tasks and put them down in an ordered list. Second, we would

create a flowchart or other diagram showing each task in relation to the others. The next one is to

identify the critical and noncritical relationships (paths) among tasks. And lastly, we now
determine the expected completion or execution time for each task. For our company to make the

most out of this method we also plan to locate or devise alternatives for the most critical paths.

The methods and tools mentioned earlier could be enough to have a solution for our

concern, however we can’t just rely independently from these tools and we are determined to

experiment on a lot more in order to have an accurate and definite plan of action. Fortunately,

there are still a number of tools and methods we can actually utilize in order to alleviate our

current situation and we believe that we should perform and understand our immediate action

through the data we are using for the betterment of the company. These tools include various

diagrams such as the interrelationship diagram, matrix diagram, activity network diagram which

would help us in determining other factors that drags down the current situation.

In conclusion, we are decided to use these various methods and tools to alleviate this

going concern and also to make better the services of the company to serve our customers more

timely and effectively.

IV. House of Quality Presentation

From the affinity diagram we determine the demanded qualities that customers would
want for the company to improve on. In the affinity diagram, we gathered 6 stores per group for
us to ask for their feedback. It has been noted that they cannot give feedback once a store in their
group gave that idea already. This is necessary for the diversity of ideas that we can gather. After
gathering feedback from 30 stores we classified the different ideas into their designated
categories using affinity diagram. After classifying it to different qualities we classify it to the
tree diagram to set the organization of our data. We then use our gathered data for our demanded
quality in House of quality.
Affinity Diagram
To get the affinity diagram, the group has conducted a survey with the customers of the
company as its respondents. The company has allotted a week in order for the survey to be
finished. After a week, the group has gathered answers from the employees of the customer’s
company who had previous transactions with the company. The group has gathered a total of 37
responses and the group sifted all the complaints with a total of 30 complaints. While some
responses has some positive and negative responses, meaning it has mixed responses, the group
still considered all the negative comments as complaints.
Table shown above is the complaints/negative responses gathered from 5 companies
which frequently buys products from the company.
RANDOM SAMPLES: 30 stores
Unclassified
Group 1 Group 2 Group 3 Group 4 Group 5

1. Usually long 7. Not being 13.Frontliners 19 .Late delivery 25.delivery time


hours of waiting able to meet the aren’t so
so in need of expected responsive
faster service. delivery date

2. Company 8.Long waiting 14.Long waiting 20. Contact 26.Lower the


doesn’t update us hours hours easily handling
customers fee/delivery fee

3.Train staff to 9. Don’t have 15. Not accurate 21.delivery takes 27.contact
assist more any website to on the date of long accessible easily
customers. easily check a delivery and practical
available
appliances

4. Have a website 10. Take a lot of 16. On time 22.Don’t have 28.communicati
to contact them time just to ask a delivery website on of employees
list of appliances

5. On time 11.communicati 17. Contact 23.expensive 29.On time


delivery on of employees easily delivery

6.slow employees 12.In need to 18. ​Expensive 24.On time 30.Wasting time
so train them lower price delivery fee delivery looking for
more appliances that
are not even
available in the
company

Facilitates Suppliers’ Appliances

Affordability Responsivenes Automation Repair and Reliability


s Maintenance

2.Lower the 5.On time 4. Have a website 30. Improve


price of handling delivery to contact them repair
fee maintenance

12.In need to 16. On time 17. Contact easily 9. Repair it


lower price delivery properly

15.Lower price 24.On time 20. Contact easily 10.repair leaking


of aircon delivery Aircon

23.expensive 29.On time 27.contact


delivery accessible easily
and practical

16.expensive 3.Train staff to Wasting time 1. Usually long


assist more looking for of waiting so in
customers. appliances that are need of faster
not even available service.
in the company

7.Long time to 8.Long waiting


wait so make it hours
short
11.communica 14.Long waiting
tion of hours
employees

28.communica 6.slow
tion of employees so
employees train them more

21.delivery
takes long

19.no feedback
form

13.Frontliners
aren’t so
responsive

=5/30 =11/30 =5/30 =3/30 =4/30


16.67% 36.67% 16.67% 10% 13.33%

Tree Diagram

Pareto chart
The house of quality gave us the information on what is the most important for the
customer. We determined the quality that we should focus on improving in order to improve the
service of the company. Since we applied the 80-20 rule we determined that the top two highest
weight are the most important. First is delivery time to store and second is number of complaints.
It seems that for both quality characteristics we need to look at responsiveness, reliability,
automation and repair and maintenance. For these characteristics, we also have to take note that
it has a relationship with each other. Cost per production has also relationship to number of
complains.

Category Total

Delay in 36.67%
delivery(Responsiveness)

Expensive (Affordability) 16.67%

Cannot easily 16.67%


order(Automization)

Poor maintenance (Repair and 10%


Maintenance)

Slow staff(Reliability) 13.33%

HOQ DATA
A. Customer Requirements
These Demanded quality came from our major classifications using affinity diagram from our
survey to appliance stores. This means that these are the qualities that the customers would want
to improve on. By getting these qualities we can compare it to what our department desire to
target. At the end we can evaluate what qualities should we focus on to imrpove.
B. Competitive Profile Matrix

In the competitive analysis, we determine our main competitors which are Lg, Panasonic, sharp,
sony and whirpool. In here we rated each company base from the desired qualities that our
customers would want to improve on. From the chart we can see that in repair and maintenance
our company is one of the highest rated supplier compare to the rest. For affordability, our rate
does not go far from the rate of the rest although Lg and Whirphool is one point higher in rate.
We have to analyze why they got a five and why we got only four. For responsiveness, we got
only a two. In this we are one of the lowest, although others are low also in this characteristic we
have to think of a strategy to stand out from the rest of the company. For reliability, it seems to
that we have an average rate that does not go far from the other comapany. For automatization,
there are company who got a rate of one as well but there are also company who got a three. This
means that having a website for the customers to be informed about our goods, prices and others
is an accessible and systematic way on how to reach them. In that way we can stand out from the
rest.

C. Technical Response

In the direction of improvement part we set symbols here to determine whether we want to lower
down the quality characteristics or increase it or target it.
D. Relationship Matrix

This represents the relationship of the qualities that the department choose and the qualities that
the customers would want to have.

E. Technical Correlations
F. Technical Matrix

The relative weight determines the top two most important qualities that we have to focus
on. First is Delay in delivery and next is number of complains. Both of these have a relationship
with responsiveness, reliability and automatization. For number of complaints it has a
relationship with repair and maintenance while delay in delivery does not have.

VI. Quality Improvement Recommendations


Based on the HOQ presentation we found out that the highest weight present is in
responsiveness and automation, with the company not having any
The group proposed to have an assigned personnel to sort out a database / cloud system

which contains all the information for logistics, cost, profit, delivery to ensure that no data will

be left behind. This will ensure consistency on the flow of orders and delivery by the company

from the date of order by the customer to the agreed delivery date proposed by the company..

Whenever there are orders done, it is required that it must meet up to the standards of the Profit
Analysis Slip for it to push through. With this it will help the company be organized with the in

and out of their inventory and to ensure that there will be a smooth flow on the delivery.

Another proposed solution that the group found very beneficial for the company is the

automation of the company’s operations such as customer interaction. By establishing the

company’s online presence by creating a website it would help the company assist the customers

efficiently and faster. Communication problem with the customers because with the company’s

website all of the FAQ and the list of the available appliances and the delivery date of an

incoming appliances would be put up in the company’s website. Also, the company should train

employees in dealing with the website, the employees should have proper training in monitoring

customer interactions (via messages and emails), operating and maintaining the whole process

for the website to accommodate more customers.

VII. Cost of Quality

Cost of Conformance Cost of non-conformance

Original Cost 1, 670,000 1, 670,000

Website 80,000

Training 25,000

Additional personnel 50,000


Inspection 8,000

Total 1,833,000 1,670,000

From the data above, the expected cost of quality is P1,833,000 in implementing the
recommendation. There is a 9.76% increase of cost from the original cost. Though there is an
increase in the cost, quality in the firm should improve. Customers would be served more
efficiently, orders would be more organized the occasions of delay in receiving the appliances
would be solved through the website. The delivery of defective appliances would be lessened
because the firm would a lot a portion of its resources to inspection though it would increase the
cost the benefit would reward the firm more than what it spent for this aspect. This can lead for
the firm to have a greater opportunity revenue since their clientele would be satisfied with the
improved efficiency of the internal and external communication brought by the quality
improvement which was their main complaint.

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