Growth and Development in TQM of

MERALCO-Meter Testing

Submitted by:

EARL JERIC D. TING

JEZRELLE ABBIE V. TRIA
EUNICE I. MEJIA
JAMES L. REYES

Bachelor of Science in Electrical Engineering

Submitted to the College of Engineering and Information Technology

Department of Electrical Engineering and Technology

In Partial Fulfillment of the Requirements

for the program of Bachelor of Science in Electrical Engineering
 ACKNOWLEDGEMENT

This section is dedicated for giving my gratitude towards the people who have helped me

along the way in accomplishing my research about Growth and Development of TQM of

MERALCO-Meter Testing. First and foremost, I would like to thank God for always guiding me

and for keeping me safe during my research.

Secondly, I would like to thank my family for giving me a chance to live a good life. To

my Mother who was always taking care since I was born until this day. And to my Father who

was working for us to have food on our plate every day.

I would also like to thank my university, the Polytechnic University of the Philippines for

guiding us to achieve our dreams.

Then, to my classmates and friends, who were there for me through thick or thin. Also, to

my professor who guided me in finishing my OJT.

Lastly, to Meralco for giving me this wonderful opportunity to experience working as an

Electrical Engineer that gave me the knowledge that I would surely be able to use someday.

Also, to their employee who gave me their wisdom that I will never forget.
 TABLE OF CONTENTS

Chapter I

I. Introduction

II. Statement of Problem

III. Hypothesis

IV. Scope

V. Definition of terms

Chapter II

I. Literature

Chapter III

I. Methodology (Details Method’s Procedure)

Chapter IV

I. Result and Data (Details of Main Finding)

Chapter V

I. Conclusion
CHAPTER I

I. INTRODUCTION

The MERALCO also known as Manila Electric Company, which was originally known

as Manila Electric Railroad and Light Company during 1903 and served to provide electric light

and power and an electric street railway system to Manila and its suburbs back then. The

facilities that Meralco built to provide these two services represented for many years the largest

single investment of American private capital and know-how in the whole of East Asia.

For a little more than four decades, Meralco provided Manileños their first modern mass

public transportation system with electric streetcars which in the twenties were supplemented by

busses.

Up until now, it became the Philippines' largest distributor of electrical power covering

36 cities and 75 municipalities, including Metro Manila. Still operating at 114 years in service up

to present. Serves over 6 million customers and committed to being the total energy solutions

provider of choice.

Quality means meeting requirements and meeting customer needs, which means a defect-

free product from both the producer’s and the customer’s viewpoint. Both quality control and

quality assurance are used to make quality happen. Of the two, quality assurance is the more

important.

Quality is an attribute of a product. A product is something produced, such as a

requirement document, test data, source code, load module or terminal screen. Another type of

product is a service that is performed, such as meetings with customers, help desk activities and

training sessions. Services are a form of products, and therefore, also contain attributes. For

example, an agenda might be a quality attribute of a meeting.

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CHAPTER I

A process is the set of activities that is performed to produce a product. Quality is

achieved through processes. Processes have the advantage of being able to replicate a product

time and time again. Even in data processing, the process is able to replicate similar products

with the same quality characteristics.

Quality Assurance is associated with a process. Once processes are consistent, they can

"assure" that the same level of quality will be incorporated into each product produced by that

process.

Meter Testing Asset Management is part of the Network Asset Management of

MERALCO. Meters that is being brought out to different household and establishments have

passed to different stages of quality check and programming of the meters. Some of the meters

are from General Electric, Landis + Gyr and many more. Meters are checked straight from the

factory. In testing single phase meters, there are four types of testing where CamCal is used and

the testing file is programmed by an authorized person which is Light Load Accuracy Test, Full

Load Accuracy Test, Power Factor Accuracy Test, and No Load Accuracy Test. After the

accuracy tests, barcodes are being scanned to get the assigned code for each meter then the

technician accomplishment report and the tracking form where he double checks the encoded

tests and the signs it

MSAM have produced manuals to standardize their work. New workers must read it and

memorize it by heart through their journey in their work as part of MSAM. Issues in some

leaders came up as we interviewed them. Lack of leadership is their weakness but also their

factor of motivation, not to join their leader’s wrong attitude but excel in their work as they

continue their work as an engineer, technician, lead man.

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CHAPTER I

II. STATEMENT OF THE PROBLEM

The world industry is constantly changing, business organizations strategizes to cope up

and ensure continuous profits. A company strives forward to the achievement of objective Vision

and Mission to stay in service and prevent business failure.

However many problems are encountered in business particularly customer service and

product quality. Quality and services is somehow related and are both essential to businesses.

How can company make sure that its products are worth it. How will they provide high quality

products free from deficiencies and product’s performance is being effectively maximize?

Quality can be measured through customer satisfaction. What strategies is up their sleeves to be

able to incorporate expectations if their products and services they render. How will quality

management help and improve handling customer product and services and minimize expenses

on labor and equipments.

TQM is used to stabilize organization continuous growth and development. Directs

organization to meet customer requirements and implement competitiveness and efficiency on

how QMS will approach problems and help acquire solution that will benefit company. Does a

company with TQM be innovative in providing skills which industry requires. What are the

contributions of TQM to current development.

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CHAPTER I

III. HYPOTHESIS

Total Quality Management describes a management approach to long term success

through customer satisfaction. In a TQM effort, all members of an organization participate in

improving processes, products, services, and the culture in which they work. Total Quality

Management could make the company MERALCO successful by having a strategic and

systematic approach of management to achieving MERALCO’s vision, mission, and goals. This

process, called strategic planning or strategic management, includes the formulation of a

strategic plan that integrates quality as a core component.

MERALCO uses TQM to All employees participate in working toward common goals.

Total employee commitment can only be obtained after fear has been driven from the workplace,

when empowerment has occurred, and management has provided the proper environment. High-

performance work systems integrate continuous improvement efforts with normal business

operations. Self-managed work teams are one form of empowerment.

The company MERALCO

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CHAPTER I

IV. SCOPE

The Total Quality Management or TQM is defined as a managing in a continuous effort of the

organization and the people involved. The total quality management helps to improve and

understand the quality of products and services. It can make a company a successful by having a

strategic and systematic approach of management in order to achieve goals and mission of a

company. In Total Quality Management, it helps the company to have a gradually improving the

operations of their business.

The MERALCO-MSAM or Metering Services Asset Management have the qualities of tackling

the quality management and assurance. In that the scope of this study is all about the:

• Benchmarking

Meralco – MSAM have their standards and they have a measurement of the quality of the

organization policies, products and they also have standard measurements that they are

following.

• Plan-do-check-act (PCDA) cycle

Meralco – MSAM have their plans before they do a statement or report before an action will do.

It’s plan first then they have an action and then they check if the products and the process is good

and okay.

• Process Management

Meralco – MSAM tackles about the process management of their metering services. In this part

the process management of their metering service, they talk about their inspection plan and

testing plan of their metering services

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CHAPTER I

• Failure Analysis

Meralco – MSAM tackles about the failure analysis. They have failure analysis in which they

look on the failure of the metering services then make a statement and report.

• Product Design Control

Meralco – MSAM have their product design control. In each product design, they have quality

control and assurance of their products. In the company, it helps them to organize the different

product designs

• Statistical process control

Meralco – MSAM have their reports on the beginning of the plan and then after they have

implemented it, they also have their reports in a statistical process of the quality control and

assurance of each products they have.

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CHAPTER I

V. DEFINITION OF TERMS

MERALCO – Manila Electric Railroad and Light Company

MSAM – Metering services asset management

SPQP – Service or Product Quality Planning

PM – Preventive Maintenance

MPM – Monthly Preventive Maintenance

QPM – Quarterly Preventive Maintenance

APM – Annual Preventive Maintenance

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CHAPTER II

I. LITERATURE

Quality serves as an important asset in every company. Quality can be stated as a feature

that can draw distinction of a product or service from its competitors. According to

managementstudyguide.com that Total quality management is defined as a continuous effort by

the management as well as employees of a particular organization to ensure long term customer

loyalty and customer satisfaction. TQM ensures that every single employee is working towards

the improvement of work, culture, processes, services, systems and so on to ensure long term

success. According to Garvin: “Quality is an unusually slippery concept, easy to visualize and

yet exasperatingly difficult to define.”

According to Dale H. Besterfield “Quality principles and tools can improve both

manufacturing and general business processes; the goal is to exceed customer expectations to

achieve business strategy. Total Quality Management is a structured system for satisfying

internal and external customers and suppliers by integrating the business environment,

continuous improvement, and breakthroughs with development, improvement, and maintenance

cycles while changing organizational culture.”

(source: http://164.100.133.129:81/eCONTENT/Uploads/Total_Quality_Management.pdf)

Every business develops a strategy on how they will ensure that the customer will be

satisfied to the products and services they render and a plan ensure that customers would return.

It is necessary to collect data and analyze what customer desire, then implement development

program that will utilize the data gathered. These programs focus on customer responsiveness,

product improvement, and cost savings, thus defining a differentiation business-level strategy

based on high quality and low cost (Hill, 1988). (go.galegroup.com)

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CHAPTER II

In the illustration above, it shows great importance that the management has a customer

focus attitude. In every decision made it is wise for the management to enlist all the details that

may be a great support to the final product. To meet the expectation is a great success that may

be a stepping stone to have more opportunities to sell products. Without customers there would

be no job to perform, no requirements to be met, and no reason anyone would wish to purchase

your company's stock- TQM: Guiding Principles for Communication. It is also advisable to have

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CHAPTER II

direct communication with the customer to have an idea on what they desire and make a decision

out of the data gathered.

An enterprise fabricates good products and satisfying services to meet its customer’s

expectations. Quality is a major element in a customer’s choice of products and service.

Customers know that certain companies produce better-quality products than others, so they buy

accordingly. That means a firm should consider how the consumer defines quality. - Dale H.

Besterfield. According to W. Edwards Deming, author and consultant on quality, said, “The

consumer is the most important part of the production line. Quality should be aimed at the needs

of the consumer, present and future.” “From this perspective, product and service quality is

determined by what the consumer wants and is willing to pay for. Since consumers have

different product needs, they will have different quality expectations”- Besterfield.

As stated aside from products, a business also offers services. High quality service can

lead to increase of loyal customers. It is a stepping stone for continuous growth that will lead the

business to prosperity. According to Lovelock and Wirtz (2004) “Service is an economic activity

that creates value and provides benefits for customers at specific times and places by bringing

about a desired change in, or on behalf of, recipient of the service” (Total quality management

in service sector: A literature review www.researchgate.net)

Customer satisfaction is a feature that a business organization must excel on. According

to The Impact of Service Quality on Customer Loyalty: A Study of Banks in Penang, Malaysia

stated that Perceived service quality is a global judgment or attitude relating to the superiority of

the service, whereas satisfaction is related to a specific transaction (Parasuraman et al., 1988). On

the other hand, customer satisfaction has frequently been suggested to be the leading determinant

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CHAPTER II

of loyalty (Lam & Burton, 2006). Ehigie (2006) suggests that there is a significant positive

relationship between customer satisfaction and customer loyalty/retention. As such, customer

satisfaction in this research is acting as a mediator between service quality and customer loyalty.

(source: www.ccsenet.org/ijms)

Employee empowerment and involvement will be a great asset in the company. If an

employee had a proper training, they would have a better performance and better handling on the

task given. Great performance leads to rapid growth and development. Communication between

employees and manager within the firm is the key feature to understanding and openness to new

ideas. “One of the more responsible acts management can perform is recognizing that their

employees can make significant contributions to the success of the organization. If management

provides the tools and training, a great deal can be accomplished through employee

empowerment and involvement (E & I). However, the employee must be properly pre- pared for

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CHAPTER II

such responsibilities. Management should set the standard by creating an environment

conducive to openness without fear of reprisal or ridicule. At all times communication must be

polite and conducive to enhancing self-esteem. The best way to get started is as with all the other

guidelines: establish a steering committee to set the policy and the guidelines for

implementation. Then create the opportunity for employee involvement teams to get the program

underway.” - John P. Pekar.

A business must be devoted to continuous development to improve performance, services

and quality. To acquire a safe spot in the business industry it is wise to come up with a plan

considering future circumstances. “Futuristic quality planning is necessary to assure successful

applications of new systems, processes, and products. Futuristic quality planning applies equally

well to existing processes or products because it perpetuates continuous improvement” -Jack P.

Pekar. It is best to use a structured approach for this planning process. This will assure

consistency of purpose and allow easy inclusion of participants who have had experience on

other quality planning teams. As Jack P. Pekar said “A method I have applied over the years fits

the needs of both service and product manufacturing. Both activities re- quire futuristic quality

planning to assure efficiency of operations and customer satisfaction. Service/product quality

planning (SPQP) is a structured approach that can be applied to any business activity. A method

I have applied over the years fits the needs of both service and product manufacturing. Both

activities re- quire futuristic quality planning to assure efficiency of operations and customer

satisfaction. Service/product quality planning (SPQP) is a structured approach that can be

applied to any business activity”

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CHAPTER III

I. METHODOLOGY

We took steps to research the company to know more about how they handle the Total

Quality Management of MERALCO. We then constructed a problem about the TQM of the said

company. Then, we brainstormed questions to solve the constructed problem. After we created

questions that we need to ask to answer our constructed problem. We then contacted the Talent

Resourcing of MERALCO to inquire for an appointment, but we we’re unfortunately declined

because they need a letter of request for interview. We contacted the previous intern, JAMES

FERNANDO L. REYES of the said department from MERALCO to have a private interview

about the TQM of MSAM department.

In meeting JAMES FERNANDO L. REYES we first ask him the definition of the TQM

in their department. After he defined TQM, we then proceeded to ask him the questions created

to properly understand how MERALCO handles the quality in their meters in the MSAM

department.

We asked the following constructed question:

1. What is the company involved in the total quality management?

2. In MERALCO-MSAM, what is the part of this company that have its total quality

management?

3. How your company does give importance in Total Quality Management?

4. Do you do Inspection Test Plan or ITP? And How?

5. What information you can share to us about the meter testing?

6. How can you assure the quality of the meter testing?

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CHAPTER IV

I. RESULT AND DATA

Respondent: Intern in MSAM

1. What is the company involved in the total quality management?

MERALCO- Metering Services Asset Management

2. In MERALCO-MSAM, what is the part of this company that have its total quality

management?

In every 50 boxes of meter, they are checking 7 random boxes. In this they have quality

control area. They wait to have caRefully check the meter, it is either it is new from the factory

or reconditioned meters. In this part, it should not fail or else they will check again the box and

back in the first step again.

3. How your company does give importance in Total Quality Management?

It is important. First, they have their handbook that is used and followed in the testing

area. In the handbook, it is written there on what they will do and what they should not do and it

also contains the standard of the quality control and assurance.

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CHAPTER IV

4. Do you do Inspection Test Plan or ITP? And How?

Yes, they have their team for the inspection test plan. They have the one who organizes

and clean the meter testers in monthly, quarterly or annually?

5. What information you can share to us about the meter testing?

Every meter testing bench, they have assigned name, it is recorded then it will be on the

testing bench in Preventive Maintenance (PM), their devices are tagged in the MPM (Monthly

Preventive Maintenance), QPM (Quarterly Preventive Maintenance), and APM (Annual

Preventive Maintenance). Yung APM, QPM, at MPM have their difference regarding on how

they will clean their meter testing.

6. How can you assure the quality of the meter testing?

Every meter is tested more than a few times to check if the result of the testing is

consistent before considering the quality of the meter. Each member of the team has its own role

and they test it more than several times to gather data which then is referenced to the standard to

check if the meter passes the test. After every inspecting there is a report submitted one report is

called accuracy verification.

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CHAPTER IV

7. What are the materials used to test accuracy of meters?

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CHAPTER V

I. CONCLUSION

We concluded that the Total Quality Management of Meralco’s Meter Testing Area is

developing therefore controlled and the meters are in a great quality. The stationed devices

that tests meters are monitored daily and the problems are quickly fixed by the maintenance

team which consists of the following: Leadman, Technicians, and an Engineer. The meters

are straight from the factory to the area therefore new and quickly programed, the meters are

tested with the its accuracy and when a meter has a problem, it is considered defect and upon

checking and configuring. The growth of the TQM of Meter Testing has improved because

of their approach in managing the quality of the testers and of course, the meters that are

being distributed to various places in the Philippines.

All employees participate in working toward common goals. Total employee

commitment can only be obtained after fear has been driven from the workplace, when

empowerment has occurred, and management has provided the proper environment. High-

performance work systems integrate continuous improvement efforts with normal business

operations. Self-managed work teams are one form of empowerment.

This mid-year, they started the monthly meeting and discussion about safety and it

gives awareness and knowledge to the people that is part of Meter Testing, from the highest

to the lowest position. They also strengthen their group through team building, occasional

gatherings like Christmas Party.

17