TOTAL QUALITY MANAGEMENT OF LA PRIMERA POLLO INCORPORATION

(LPPI): A PROPOSAL
Chapter 1. THE PROBLEM AND ITS BACKGROUND
Introduction
In such a competitive environment resulted from world globalization and
liberalization, firms survive with much difficulty unless they create the competitive
advantage over their competitors (Adam et al., 2001; Samson & Terziovski, 1999;
Terziovski & Samson, 1999). With the increasing competitive, business survival
pressure and the dynamic, changing customer-oriented environment, total quality
management (TQM) has been recognized as one of the important issues and
generated a substantial amount of interest among managers and researchers (Ahire
et al., 1995; Benson et al., 1991; Flynn et al., 1995; Powell, 1995; Samson &
Terziovski, 1999; Sousa and Voss, 2002; Terziovski & Samson, 1999).
Since 1980s, TQM has been regarded as one of effective ways for firms to
improve their competitive advantage (Kuei et al., 2001). Leading pioneers in the
quality area, such as Deming (1986) and Juran (1993), asserted that competitive
advantage can be gained by providing quality products or services. Additionally, Eng
and Yusof (2003) argued that quality holds the key competitiveness in todays global
market. In addition, TQM has widely considered as an effective management tool to
provide business with stability, growth, and prosperity (Issac et al., 2004).
The benefits of quality improvement can not only be reflected on decreasing
costs, but also on maximizing business profits. In terms of quality improvement, what
really counts for a firm is not just cost minimization, but the effect of superior quality
has on maximizing profits (Freiesleben, 2005). Thus, the study of the relationship
between quality management and firm performance is critical for firms and
researchers to better understand the effects of quality management onto different
levels of firm performance.
In order to accomplish the requirement of quality, firms have to spend time
and effort on the implementation of TQM. To this end, firms will introduce quality
management practice by communicating TQM philosophy and/or principle
effectively. In addition, the application of TQM can be implemented to enhance the
relationship between firms and their suppliers. Moreover, the implementation of TQM
can also increase customer satisfaction by providing preeminent products or
services and meeting customer requirements.
Background of the Study
Total Quality Management (TQM) is a management philosophy which focuses
on the work process and people, with the major concern for satisfying customers and
improving the organizational performance. It involves the proper coordination of work
processes which allows for continuous improvement in all business units with the
aim of meeting or surpassing customers expectations. It emphasizes on totality of
quality in all facets of an organization with the aim of reducing waste and rework to
reduce cost and increase efficiency in production.
TQM is applicable to any organization irrespective of size, and motives, even
the public sector organization are fast adopting the ideology in order to make them
effective in meeting public demands. However, the adoption of the ideology by most
organization has been hampered due to their non compliance with the procedures
and principles of TQM implementation. While some organization, run TQM like a
program which they expect to function and perform the magic all by itself, others
have used a half hearted approach to it, by using some bits and pieces of the
principles. This has accounted for the failure of most organization in meeting up to
their expected target from implementing this ideology. There is a need to continue to
buttress the benefits that accrue to organizations from the implementation of TQM,
especially in developing economies, such as Philippines where the adoption of these
principles seems farfetched to organizations. The LPPI, under poultry-industry based
business gives us a true picture of the shortcomings of organizations in their quest to
make profit at the expense of quality.
In this regard, the researchers choose the study to serve as a help for LPPIs
Quality Improvement. This may include critical success factors that greatly affect the
organizations performance towards attainment of higher quality performance. In fact,
as future tycoons, this study will provide us initial knowledge on how TQM shape
company operational motions and how can it drive your company into success.

Theoretical Framework
One way of boosting organizations performance is to identify and eliminate
bottle-necks or the things that holding you back. One approach is to use Theory of
Constraints (TOC).
You've likely heard the adage, "A chain is only as strong as its weakest link,"
and this is what the Theory of Constraints reflects. It was created by Dr. Eli Goldratt
and was published in his 1984 book "The Goal."
According to Goldratt, organizational performance is dictated by constraints.
These are restrictions that prevent an organization from maximizing its performance
and reaching its goals. Constraints can involve people, supplies, information,
equipment, or even policies, and can be internal or external to an organization. As
per TQM, there is several critical success factors that may help enhance or hammer
down the system.
The theory says that every system, no matter how well it performs, has at
least one constraint that limits its performance this is the system's "weakest link."
The theory also says that a system can have only one constraint at a time, and that
other areas of weakness are "non-constraints" until they become the weakest link.
You use the theory by identifying your constraint and changing the way that
you work so that you can overcome it.
The theory was originally used successfully in manufacturing, but you can use
it in a variety of situations. It's most useful with very important or frequently-used
processes within your organization.
This can also be similar to a Health Care Analogy which concerns Diagnosis,
Design of a Treatment Plan and the Execution of the Treatment Plan. A symptom
that persists should be treated, as it needs to undergo series of observations before
a doctor can give you medicine and how often you may take this or even design you
to other additional medical treatments.


Conceptual Framework
Conceptual Framework of the study is an illustrative diagram of the intention
of the researchers to search the linkage between the level of general opinion on
TQM, and the level of importance and practice on TQM as perceived by the LPPI
Employees. The research, as shown in the diagram, served on the direct impact of
employee profile, level of TQM general opinion, importance, and practice on the
proposal of TQM Implementation in LPPI. Proposal of TQM Implementation can be
measured depending on the findings. The conceptual model is shown in Figure 1.

INPUT PROCESS OUTPUT











Figure 1. The Conceptual Model of the Study



Employee Profile
Age
Sex
Educational
Attainment
Position/ Area in-
charge in the
company
Literature Review
Level of LPPI
Workers General
Opinions towards
TQM
Level of Importance
and Practice of the
LPPI employees on
TQM in terms
Literature Review


Proposal of
Total
Quality
Management

(Measured by result of the
Section 3 of the
questionnaire)
Development of
Questionnaires
Data Gathering
Statistical Treatment
Analysis and
Interpretation of Data
Weighted Mean
Frequency
Verbal Interpretation
Statement of the Problem
The researchers sought answer to the following questions:
1. What is the demographic profile of the employees in terms of:
1.1 Age
1.2 Gender
1.3 Highest Educational Attainment
1.4 Position/ Area in-charge in the company
2. What is the level of general opinion on TQM as perceived by the LPPI
Employees?
3. What is the level of Importance and Practice of the LPPI employees on TQM in
terms of:
3.1 Management Leadership
3.2 Resource Management
3.3 Measurement and Feedback
3.4 Continuous Improvement
3.5 Supplier Quality Management
3.6 Systems and Process
3.7 Education and Training
3.8 Work Environment and Culture
4. Is there a significant difference between the level of general opinion and the level
of Importance/Practice on TQM as perceived by LPPI employees?




Hypothesis
1. There is no significant relationship between the level of Understanding and the
level of Importance and Practice as perceived by LPPI employees.

Significance of the Study
In this section, the researches convey the substantial value of the research
study. This is where the possible beneficiaries of the study enumerated.

Managers. Total Quality Management is a key point for the company in helping
obtaining higher profit gain. Managers can be applauding for being one who
successfully implements TQM.
Operational Management. TQM encompasses widely in the area of operations and
services through this, one can learn skills on how to implement proper total quality
management which would be a great help in surpassing day-to-day and long lasting
undertakings of the company.
Workers. Quality management systems force company departments to work as a
team. Workers from different areas of the company become reliant upon one another
to produce a quality product that meets and exceeds the customers' expectations. A
quality system incorporates measures that affect sales, finance, operations,
customer service and marketing. They can also harness their abilities because of the
aid of TQM. Unleashing shared visions and views among managers and workers can
trigger active atmosphere at work and continuous progress.
Clients/Customers. Quality management ensures customer satisfaction. The quality
management program provides a methodology to use to create the type of product
the customer desires. Loyalty and referrals are expected when clients/customers are
being sufficed with your services and products. TQM greatly affects how these
aspects will respond through the business. High revenues are expected, too.
Future Researchers. They can get some insights on the findings of the study
particularly for those who will be working in operational activities of a company. This
can also serve as a future reference for upcoming researches.
Researchers. As future managers, we can have initial knowledge of how TQM
should properly implement and how well this can help in the progress and prosperity
of a business. It can set clearer minds for us maybe undergoing in these kind of
practice.

Scope and Delimitations of the Study
Researchers aimed to investigate the employees level of understanding
about TQM. On the other hand, the level of Importance and Practice is calculated by
means of eight TQM Critical Success Factors. Furthermore, the need for a proposal
of TQM depends on the entity LPPI really needs to be implemented.
The study was limited to LPPI workers who are really engaged only in the
operational activities of the organization.

Definition of Terms
For an easy understanding of the terms that appear in this study, operational
definitions of some of the terms are listed below:
Critical Success Factors of TQM (CSFs)- limited number of areas which help to
provide management and quality policy, social responsibility, satisfactory results and
ensure the organizational strategic planning, customer focus and satisfaction,
competitive performance
Continuous Improvement- is an ongoing effort to improve products, services, or
processes
Education and Training- equipment of knowledge and skills to deliver high quality
of services and products
LPPI employees/ workers- these are employees subdivided by tow: the
management and the operational personnels
Management Leadership- involves articulating a vision for the future that is clear
and compelling and also providing a strategic leadership
Measurement and Feedback- process in which information about the past or the
present influences the same phenomenon in the present or future. As part of a chain
of cause-and-effect that forms a circuit or loop, the event is said to "feed back" into
itself.
Quality- perceptual, conditional, and somewhat subjective attributes and may be
understood differently by different people; fitness for use; the totality of features and
characteristics of a product or service, which bear on its ability to satisfy a given or
implied need
Quality Management directing an organization so that it optimizes its performance
through analysis and improvement.
Resource Management- the efficient and effective deployment of an organization's
resources when they are needed.
Supplier Quality Management- describes the methods and processes of modern
corporate or institutional buying
Systems and Process- understanding how things influence one another within a
whole.
Total Quality Management (TQM) - is a management approach of an organization,
centered on quality, based on the participation of all its members and aiming at long
term success through customer satisfaction and benefits to the members of the
organization and to the society
Work Environment and Culture- peoples belief and atmosphere within the
workplace

Chapter 2. REVIEW OF RELATED LITERATURE AND STUDIES
Foreign Literature. TQM is a philosophy aimed at achieving business
excellence through the use and application of tools and techniques, as well as the
management of soft aspects, such as human motivation in work (Juran & Gryna,
1980). Berry (1991) defined the TQM process as a total corporate focus on meeting
and exceeding customers expectations and significantly reducing costs resulting
from poor quality by adopting a new management system and corporate culture.
Quality management is a long-term process that relies on relative achievements
through continuous improvement. Successful TQM implementation can only come
from radically challenging and changing the culture of the organization (Zairi, 1996).
Therefore, one may say that TQM is a philosophy, concept and powerful
management approach. It involves management and empowerment of people in
order to create satisfied customers and improve organizational performance.
In order to be successful in implementing TQM, first, one needs to know what
critical success factors of TQM Saraph et al. (1989) defined critical factors as those
critical areas of managerial planning and action that must be practiced to achieve
effective quality management in a business unit. There are numerous factors to be
stressed as facilitators for successful TQM implementation. Almost all these factors
are identified and developed for large firms, with few exceptions.
Yusof & Aspinwall (2000a,b, 2001) extensively reviewed the literature of TQM
practices of SMEs and studied CSFs (critical success factors) for TQM. This study
adopted the TQM factors developed by Yusof and Aspinwall (1999, 2000c), with
minor modifications to suit the characteristics of SMEs in Malaysian automotive
suppliers.
TQM has helped many organizations improve their competitiveness and profit,
such as Motorola, British Airways, Xerox, IBM and Hewlett Packard. These success
stories can be found in various literatures. Although there are many successful case
studies of implementing TQM, there are also many failure experiences (Ahire et al.,
1996).
Several authors report problems in TQM implementation: low quality
standards, failure to measure quality, lack of incentives for employees consistently to
provide quality goods and services, insufficient commitment by management to
implementing quality (Masters, 1996; Radovilsky et al., 1996; Tatikonda & Tatikonda,
1996; Nwabueze, 2001). These failures can be avoided if the barriers to implement
TQM and the problems can be overcome.
Awareness of the barriers and problems should be emphasized when training
organizations in TQM concepts and methods. Any organization can benefit from a
better understanding and knowledge of TQM. (H. R. Zadry & S. M. Yusof)
Juran, one of the quality gurus, defined quality as fitness for use. Quality of a
product or a service in simple terms is its suitability for use by the customer. Quality
has to be perceived by the customer. Perception of the supplier is also important, but
the customer experience of quality of a product or service is more important. Quality
does not mean an expensive product; on the contrary, it is fitness for use of the
customer.
International Organization for Standardization (ISO), the world body for
standards defined quality as per the ISO 9000 standard is: The totality of features
and characteristics of a product or service, which bear on its ability to satisfy a given
or implied need.
Thus, the standard definition of quality is common both to products and
services. It is essentially satisfying the customer needs, both stated and unstated
(implied). The latter is more dominant in a service. When there is a contract for
supply of a product or service, the needs will be specified clearly. In other situations,
it is the responsibility of the supplier to identify and define them.
According to ISO 9000 Standards, Quality management comprises All
activities of the overall management function that determine quality policy, objectives
and responsibilities and implement them by means such as Quality Planning (QP),
Quality Assurance (QA), and Quality Improvement (QI) within the quality system.
The quality system consists of the organizational structure, procedures, and
processes and resources needed to implement quality management. The company
must have an objective and policy for quality of the products and services. They
should plan for meeting the objective and include QA, QC and methodology for
improvement. There must be a clear organizational structure for building quality into
the products and services with necessary resources. The quality management
should be implemented formally with well-defined processes and procedures and
trained resources.
It was Feigenbaum who coined the phrase Total Quality Control. The
concept is known in Japan as Company Wide Quality Control (CWQC). In 1985, the
Americans came up with the term Total Quality Management (TQM) to represent
essentially the Japanese way of Quality Management.
Tai-ichi Ohno of Toyota Motors refined an idea for Just-In-Time. This means
that at no stage of manufacturing nobody or nothing waits for anything. This is to
ensure that there is no wastage of machinery, materials and manpower. JIT focuses
on right scheduling so as to keep inventory as low as possible. This requires a
perfect partnership between supplier and customer.
ISO 9000 Standards were released for the first time in the year 1987 to bring
in system for quality in every organization. The standard was revised in 1994 and
later in the year 2000. The standard in the latest version advocates TQM and
continuous process improvement.
TQM is a management approach of an organization, centered on quality,
based on the participation of all its members and aiming at long term success
through customer satisfaction and benefits to the members of the organization and to
the society.
TQM should be the basis of all the activities in the organization as it aids in
achieving the organizations objectives and goals. TQM aims at continuous
improvement of the current practices so that the customer satisfaction and employee
satisfaction improve day by day.
According to British Standards Institution (BSI), UK, entitled TQM Part I, guide
to management principles BS7850: Part I: 1992, TQM represents Management
philosophy and organization practices that aim to harness the human and material
resources of an organization in the most effective way to achieve the objectives of
the organization. It means that every machinery, material and men should be
effectively utilized to fulfill their organizations objectives.
Total Quality Management is a way of managing an organization with the
objective of carrying out right jobs right the first time and every time. In quality
management, there is thumb rule called 85/15 Rule. It means that the root causes of
85% of the problems in the organization are due to faulty systems and 15% are a
result of the behavior of employee. The top management is responsible for the faulty
systems. Therefore, the most important agent for correcting a faulty system and
enabling TQM is the top management. The leaders, who broke away from the
traditional style and adopted TQM-based style of management, have been well
rewarded. The TQM based leadership for TQM involves everyone in the organization
in value adding activities.
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.
An organization should enter into TQM only after a thorough analysis of the
requirements of resources, changes to be made in the management of the
organization and the benefits the organization is going to get out of TQM. They
should realize that TQM is a never-ending process and it will take some time to see
success. They should not adopt TQM unless they are convinced about TQM. They
should also realize that there is no other alternative. Through TQM, the CEO would
be creating hundreds of empowered teams to take on the TQM journey in a
continuous manner. TQM implementation needs careful planning about the
organizational framework for communications, visions, mission and objectives of the
organization, policy for constituting improvement teams, procedure for improvements
and the methodology for their implementation. The CEO and QC members have to
invest time for TQM to happen. It also calls for putting quality at the centre stage of
management of the organization. Every improvement action should follow the Plan-
Do-Study-Act (PDSA) cycle so as to implement improvements without creating
confusion in the organization. Although, initially TQM may call for more efforts, as it
evolves, it will result in reducing non-value adding processes and waste.
TQM means gradual and continuous improvements of the processes within
the organization. TQM consists of finding new opportunities for improvements of
processes, improving them, measuring improvement and then repeating the cycle
again and again.
Jurans trilogy brings out that good financial results are achieved in an
organization through three managerial processes namely, planning, control and
improvement. Juran suggests similar analogy for better quality results. The quality
trilogy consists of the same three managerial processes and aimed at improving
quality of product and services. They are Quality Planning, Quality Control and
Quality Improvement.
The quality planning activity starts much before the production operation
begin. During quality planning the needs of the customers are identified; the product
and the processes that will facilitate making the product are developed to meet the
needs of the customer. Then the operation starts at time t=0. The operating
personnel operate the processes and produce the products. They will find a number
of deficiencies in the product thus made; which make the percentage defects higher.
It could be as high as 20 percent. The deficiencies might have occurred due to errors
in the planning process. Juran calls this region of high defects as the chronic waste
region. During this phase, a large number of defects are found and corrected through
quality control. The process operators apply control to prevent things from getting
worse. In the due course of time, due to quality improvement initiatives, a new zone
of quality control is reached. This gain was achieved through the third process
namely quality improvement. Now the percent defectives may reach 5 percent. This
achievement is due to quality improvement action initiated by the organization. Ones
the performance stabilizes at the new zone of quality control, the quality plan has to
be updated.
Kaizen is a Japanese word. It means gradual, orderly and continuous
improvement. Kaizen does not need any capital investment, but it requires time and
efforts of every employee in the organization, right from the top management.
Continuous improvement is achieved through improving the current way of
manufacturing and eliminating waste.
Kaizen is a Japanese strategy for continuous improvement. Kaizen
succeeded because it is a good management practice. These practices can be
employed by any organization located anywhere in the world. Kaizen calls for never
ending improvements. This means that improvement is not a one-time activity, but a
continuous activity. After sometime, ones the process is stabilized, the employees
will be able to find out some more scope for improvement. Then again the
improvement is made. That is why the word continual maybe more appropriate
rather than continuous improvement. Thus Juran trilogy and Kaizen aim at
continuous improvement.
An organization functions with a set of processes. Maintenance involves
activities directed at maintaining current technological, managerial and operating
standards. While efforts are going on for improving the processes, the present
activities should continue as per the current standards without any interruption. It
should not come to a halt. Kaizen involves small, continuous improvements of the
current processes. Thus, an organization will be involved in two distinct activities
simultaneously namely, maintenance and kaizen. The improvement function aims at
the revising the current standards. Kaizen is different from innovation. Innovation
aims at dramatic improvement in the existing processes. Therefore, innovation is
beyond the scope of kaizen. However, kaizen has to be carried out along with
maintaining continuity in the current operations in the organization.
It is the primary responsibility of the workers to maintain the existing system.
The top management and the middle management make efforts in finding out
improvement opportunities. The supervisors will also participate in Kaizen efforts but
their main responsibility will be to maintain the current system. While the workers
and the supervisors concentrate on maintaining the current status and production,
middle management and the top management have to take keen interest in the
following activities towards Kaizen: Maximizing efficiency and productivity of
employees as well as the plant; Improving the quality of the process, plant and
thereby the product; Minimizing the inventory levels and Work In Progress (WIP)
(WIP means that making the product has started but not finished due to some
reasons, beyond the control of the organization); Improving ergonomics to facilitate
the human resources to maximize their output with more comfort; Call for suggestion
from workers; Enabling teamwork; Improving systems in the organization.
There are essentially three basic principles of Kaizen: Work place
effectiveness; Elimination of waste, strain and discrepancy; Standardization. Work
place effectiveness Japanese have developed the 5s rules addressing the work
place effectiveness. Eliminating waste, strain and discrepancy Kaizen is achieved
through application of 5s tools for work place effectiveness and elimination of three
MUs. Muda for waste, Muri for Strain and Mura for Discrepancy.
The waste are not free, but have been paid for by the organization, since
those who produce wastes also get paid and the material wasted cost money.
Therefore, one has to minimize and ultimately eliminate the waste in an organization.
The waste, strain and discrepancy in respect of the following are to be reduced and
finally eliminated: Human Resources, Production volumes, Inventory (materials),
Time, Working space, Machinery, Techniques, Facilities, Tools and Jigs, and
Thinking.
Kaizen stresses standardization of processes, materials, machinery, etc. with
the following objectives: Represents the best, easiest and safest way to carry out a
job in the form of operating procedures and work instructions; Represents the best
way to preserve know how and expertise and standardize the procedures for the
same; Evolve effective means to measure performance and standardize the same;
Standardize all the procedures that are used in the organization for maintenance and
improvement of process; Standardize the training programs; Standardize the audit or
diagnosing problems; and standardize the procedures for preventing occurrence of
errors and minimizing variability
Thus, Kaizen consists of three basic principles namely the application of 5s
(sort, straighten, scrub, systematize, and standardize) for improving work place
effectiveness and simultaneously reducing and eliminating three MUs as well as
standardization of methodologist.
The benefits of an effective Total Quality Management (TQM) implementation
can be studied with three different perspectives. Firstly, from the operating angle, the
reason that TQM has became a hot topic in both industry and academe is that it can
be applied to improve/enhance global competitiveness (Flynn et al., 1995; Samson
and Terziovski, 1999). Firms with effective TQM implementation can accomplish the
internal benefits such as improving quality, enhancing productivity enhancement, or
realizing better operating income (Corbett et al., 2005; Hendricks and Singhal, 1997).
Secondly, from the financial performance perspective, careful design and
implementation of consistent and documented quality management systems can
contribute significantly to superior financial performance (Corbett et al., 2005).
Further, firm with an effective TQM implementation can significantly outperform on
the stock price performance (Hendricks and Singhal, 2001). Finally, from the
knowledge management (KM) viewpoint, the implementation of TQM can also
increase and enhance organizational knowledge, which in turn helps more
understanding of how quality management practices can affect firm performance
(Linderman et al., 2004).
TQM also encompasses the field of Food. This philosophy is indeed needed
for consumer is critically sensitive for the quality of the product they will pay money
for. The publication Assuring Food Safety and Quality: Guidelines for
Strengthening National Food Control Systems was prepared to enable national
authorities, particularly in developing countries, to improve their food control
systems. These Guidelines replace the earlier FAO/WHO publication Guidelines for
Developing an Effective National Food Control System (1976) - FAO Food Control
Series No. 1; WHO Food Control No. 1. For over 25 years this publication has been
the definitive reference for developing countries in planning, organizing, and
implementing their national food control programmes. Much has changed in the
intervening period. There have been advances in the control of foodborne hazards
as well as improvements in food inspection and surveillance systems. Globalization
of the food supply chain, the increasing importance of the Codex Alimentarius
Commission, and the obligations emerging from the World Trade Organization
(WTO) Agreements have resulted in unprecedented interest in the development of
food standards and regulations, and the strengthening of food control infrastructure
at the country level.
Globally, the incidence of food borne diseases is increasing and international
food trade is disrupted by frequent disputes over food safety and quality
requirements. Many food control systems need to be revised and strengthened if
improvements are to be realized. It has never been more important for developing
countries to implement and enforce a food control system based on the modern
concept of risk assessment. These Guidelines provide important information on the
principles and practices of food control and the trend away from a merely punitive to
a preventive approach to food control.
Responsibility for food control in most countries is shared between different
agencies or ministries. The roles and responsibilities of these agencies may be quite
different and duplication of regulatory activity, fragmented surveillance and a lack of
coordination are common. There may also be wide variations in expertise and
resources between the different agencies and the responsibility for protecting public
health may conflict with obligations to facilitate trade or develop an industry or sector.
These Guidelines provide information for government agencies to assist in the
development of national food control systems and to promote effective collaboration
between all sectors involved in the management and control of food safety and
quality. They highlight the importance of developing effective relationships and
mutual support among government agencies and institutions involved in food control
and other stakeholders, particularly the food industry and consumer groups.
The foremost responsibility of food control is to enforce the food law(s)
protecting the consumer against unsafe, impure and fraudulently presented food by
prohibiting the sale of food not of the nature, substance or quality demanded by the
purchaser.
Confidence in the safety and integrity of the food supply is an important
requirement for consumers. Food borne disease outbreaks involving agents such as
Escherichia coli, Salmonella and chemical contaminants highlight problems with food
safety and increase public anxiety that modern farming systems, food processing
and marketing do not provide adequate safeguards for public health. Factors which
contribute to potential hazards in foods include improper agricultural practices; poor
hygiene at all stages of the food chain; lack of preventive controls in food processing
and preparation operations; misuse of chemicals; contaminated raw materials,
ingredients and water; inadequate or improper storage, etc.
Consumers expect protection from hazards occurring along the entire food
chain, from primary producer through consumer (often described as the farm-to-table
continuum). Protection will only occur if all sectors in the chain operate in an
integrated way, and food control systems address all stages of this chain.
As no mandatory activity of this nature can achieve its objectives fully without
the cooperation and active participation of all stakeholders e.g. farmers, industry,
and consumers, the term Food Control System is used in these Guidelines to
describe the integration of a mandatory regulatory approach with preventive and
educational strategies that protect the whole food chain. Thus an ideal food control
system should include effective enforcement of mandatory requirements, along with
training and education, community outreach programmes and promotion of voluntary
compliance. The introduction of preventive approaches such as the Hazard Analysis
Critical Control Point System (HACCP), have resulted in industry taking greater
responsibility for and control of food safety risks. Such an integrated approach
facilitates improved consumer protection, effectively stimulates agriculture and the
food processing industry, and promotes domestic and international food trade.
Food and Drug Administration (FDA) 1994 indicated that the prime focus of a
HACCP program should be food safety (Scheuplein,1996) in the food industry. In the
food industry, food safety principles and practices have always been integrated into
activities identified with quality management systems. Food hazards may be
introduced at any stage of the food chain, thereby adequate control throughout the
food chain is essential. HACCP is widely recognized in the food industry as an
effective approach to establishing good production, sanitation and manufacturing
practices that produce safe foods. Processing companies have incentives for
HACCP adoption to prevent losses of reputation and market share should an
outbreak occur. Adoption of HACCP as a regulatory standard has been motivated
first by food safety concerns, and only second by a desire to facilitate trade (Caswell
and Hooker, 1996). The most basic concept underlying the HACCP system is that of
prevention rather than inspection.
A food company which operates with a quality management system can be
expected to have an HACCP system that specifically targets food safety. It is a
methodological, flexible and systematic application of the appropriate science and
technology for planning, controlling, and documenting the safe production of
foods(Herrera, 2004). The principles of HACCP are applicable to all phases of food
production, including basic husbandry practices, food preparation and handling, food
processing, foodservice, distribution systems, and consumer handling and use
(Gaitan, 2004). The successful application of HACCP requires the full commitment
and involvement of management and the workforce, using a multidisciplinary
approach that should include, as appropriate expertise in agronomy, veterinary
health, microbiology, public health, food technology, environmental health,
chemistry, and engineering. The development of an effective HACCP program is an
intricate process generally comprised of three steps including hazard assessment,
critical control point development, and implementation (Sveum,1996)
Local Literature. In accordance to the third volume of Health Policy Notes
of Department of Health Issue No. 4, Assuring Food Safety in the BFAD
Strengthening Program: A Collective Will, accessibility and availability of safe foods
is a basic right of every Filipino. However, the obligation of keeping the safety of food
is a shared responsibility in the Philippines. Since food safety incidents are related to
health risks and consequences, the Department of Health (DOH) plays an important
role to assure that the food being prepared or eaten will not cause harm to its
consumers. Being the principal health agency in the country, measures are
undertaken for prevention and control of food safety problems.
Considering that food products undergo numerous handling from farm to
plate, the need to have a strong food control system must be established. In the
Philippines, the Bureau of Food and Drugs (BFAD) under the leadership of DOH has
been implementing the countrys food control system in partnership with other
government agencies. However, recent food safety incidents, such as the deliberate
melamine contamination of milk and milk products from China that was initially found
in pet food products in 2006, sparked the interests of the public to examine the
current status of food control system.
BFAD serves as DOHs key regulatory agency and implementer of the
countrys food control system. Republic Act (RA) 3720 mandates the agency to
ensure safe and good quality processed food, drug and cosmetics and to regulate
the production, sale and traffic of the same to protect the health of the consumer.
Further, the Consumer Act of the Philippines or RA 7394 reiterated BFADs duty to
protect consumers from adulterated or unsafe product with false, deceptive and
misleading information. RA 7394 involves other national agencies like the
Department of Trade and Industry (DTI) which will aid the local producers, exporters
and importers of food as well as the consumers in trade; Department of Interior and
Local Government (DILG) with the Local Government Units (LGUs) for food safety
implementation in the local government units, and the Department of Agriculture
(DA).
Current Good Manufacturing Practice (cGMP) is a key factor for industries to
produce good quality, safe and affordable products. There is a need to review,
improve and revise the cGMP as embodied in Administrative Order No. 208 s. 1974
Human Food; Current Good Manufacturing Practice (Sanitation) in Manufacture,
Processing, Packaging or Holding. Improvement and revision should aim to align
cGMP for human food with international standards of cGMP (e.g. USDA and / or EU
cGMP). Additionally, the cGMP should be improved to allow for consistent industry
implementation and regulatory inspection by BFAD regulators. Once trained under
the new cGMP, BFAD regulators shall be able to improve/strengthen their industry
inspection and performance.
Other laws and regulations were created to serve as the bases and support
for the implementation, monitoring and surveillance of food safety. Among these are:
The Food, Drugs, and Cosmetic Act Republic Act No. 3720- RA 3720 has
the basic provisions of ensuring safe and good quality supply of food and
regulate the production, sale and traffic of the same to protect the health of
the people. The Bureau of Food and Drug here was thereby established to set
standards for food and adopt measures to ensure pure and safe supply of
food.
The Consumer Act of the Philippines Republic Act No. 7934- The Consumer
Act of the Philippines was established in 1993. The aim of RA7934 was to
develop and provide safety and quality standards for consumer products and
to undertake research on quality improvement of products and investigate
causes and prevention ofproduct-related deaths, illnesses, andinjuries.
The Code of Sanitation of thePhilippines Presidential Decree 856- This code
provides for sanitationrequirements for operating a foodestablishment.
Presidential Decree No. 7- Creation of the National Meat Inspection
Commission
Foreign Studies. Recent studies have examined the relationship between
total quality management and various levels of business performance (Das et al.,
2000; Kaynak, 2003; Mohrman et al., 1995). The importance of exceptional quality is
demonstrated by The Walt Disney Company in operating its theme parks. The focus
of the parks is customer satisfaction. This is accomplished through meticulous
attention to every detail, with particular focus on the role of employees in service
delivery. Employees are viewed as the most important organizational resource and
great care is taken in employee hiring and training. All employees are called cast
members, regardless of whether they are janitors or performers. Employees are
extensively trained in customer service, communication, and quality awareness.
Continual monitoring of quality is considered important, and employees meet
regularly in teams to evaluate their effectiveness. All employees are shown how the
quality of their individual jobs contributes to the success of the park.
In the food service industry the use of quality control tools as one aspect of
quality management is important in identifying quality problems. Grocery store
chains, such as Kroger and Meijer, must record and monitor the quality of incoming
produce, such as tomatoes and lettuce. Quality tools can be used to evaluate the
acceptability of product quality and to monitor product quality from individual
suppliers. They can also be used to evaluate causes of quality problems, such as
long transit time or poor refrigeration. Similarly, restaurants use quality control tools
to evaluate and monitor the quality of delivered goods, such as meats, produce, or
baked goods.
Although many results of prior studies supported the positive effects of TQM
on organizational performance (Hendricks & Singhal, 1997; Kaynak, 2003; Madu et
al., 1995; Sun, 2000; Terziovski & Samson, 1999), there were several researches
which found the implementation of TQM might lead to ineffectiveness of firm
performance (Choi & Eboch, 1998; Dale et al., 1998; Lemak et al., 1997; Reed et al.,
1996).
The most important factor in the success or failure of TQM efforts is the
genuineness of the organizations commitment. Often companies look at TQM as
another business change that must be implemented due to market pressure without
really changing the values of their organization. Recall that TQM is a complete
philosophy that has to be embraced with true belief, not mere lip service. Looking at
TQM as a short-term financial investment is a sure recipe for failure.
Another mistake is the view that the responsibility for quality and elimination of
waste lies with employees other than top management. It is a let the workers do it
mentality. A third common mistake is over- or under-reliance on statistical process
control (SPC) methods. SPC is not a substitute for continuous improvement,
teamwork, and a change in the organizations belief system. However, SPC is a
necessary tool for identifying quality problems. Some common causes for TQM
failure are
Lack of a genuine quality culture
Lack of top management support and commitment
Over- and under-reliance on statistical process control (SPC) methods
Companies that have attained the benefits of TQM have created a quality
culture. These companies have developed processes for identifying customer-
defined quality. In addition, they have a systematic method for listening to their
customers, collecting and analyzing data pertaining to customer problems, and
making changes based on customer feedback. You can see that in these companies
there is a systematic process for prioritizing the customer needs that encompass the
entire organization.

Local Studies.
One viewpoint why companies continue to assess their total quality
management is to give their consumers food satisfaction as well as food safety. But,
the increasing concern for food safety is undeniable. Food-borne outbreaks involving
agents such as Escherichia coli, Salmonella and chemical contaminants like
formaldehyde and melamine highlights the problem with food safety. BFAD
recognizes these but the agency is faced with challenges that when addressed, can
enhance food safety measures in the country. Based from the foregoing discussions,
the following gaps have been identified: Decreasing number of human resources,
Insufficient infrastructure and laboratory services, Insufficient source of reliable
information on Food Safety for Consumers, Lack of coordination among the different
agencies involved in the Food Safety Program, and lack of food standard
development division in BFAD.
To address these gaps, it becomes relevant for BFAD to strengthen its role
and function. Using the House Bill No. 3293 as a work in progress document for their
proposed amendment, they recommended adequate flexibility to BFAD in terms of
budgetary requirements which will be beneficial considering that these could take a
structure and system that is time and situation responsive that is the income
retention principle. The issues on the need for regulatory visibility across major
economic and health hubs in the country and the need for human capital expansion
are envisaged to be addressed. Part of the proposal is also restructuring the bureau /
administration which will be product-based and therefore doctrines, standards and
enforcement are closely linked together and are more rationally focused insofar as
resource allocation. This policy can also address the need to augment the lacking
human resources in the bureau / administration.
The second but very important mandate of BFAD, per RA 7394, is the
establishment of standards that is based on scientific principles to fulfill the objective
of consumer health protection and fair practices in food trade. These standards will
guide the industry on specific requirement that would make their product safe and of
good quality. These will also guide the FDRO evaluators in the assessment of the
product, guide the inspectorate on what to monitor in the establishments because
these standards also include recommended codes of practice, and guide our
laboratory on what analysis must be conducted. A unit in the BFAD must be
identified to address World Trade Organization (WTO) concerns and Sanitary and
Phytosanitary (SPS) concerns including research and data gathering when it comes
to prioritization of identified need for technical food regulations.
The Memorandum of Agreement entered with the Industrial Technology
Development Institute Department of Science and Technology (ITDI-DOST) and
BFAD in 1993 must be renewed for the assistance in the research in the
development of these standards.
Thus, creation of a research and development unit is also crucial in
strengthening the food regulations of the Bureau. This must be manned by technical
experts in food microbiology, food processing, health and nutrition claims, and food
standards. They will coordinate with other agencies and the academe on standards
development.
Additional strengthening measure that was set forward by BFAD is the
establishment of Memorandum of Agreements with agencies like Bureau of Customs
and the development of joint administrative order with the National Meat Inspection
Service (NMIS), as well as, strong partnership with the LGUs. This will promote
greater ties between inter-agency networks and recognize definitive roles of each to
meet their desired objectives.
With regard to the effort in harmonizing the national coordinated food safety
program, an executive order was drafted. The document is still being reviewed but it
proposes the creation of a Coordinating Committee on Food Safety (CCFS) that will
effectively coordinate efforts from various agencies of the government, international
organizations and private sector. In the current draft, CCFS will be composed of the
following: Department of Science and Technology Secretary as the Chair and
Department of Health Secretary as Co-Chair and Secretaries from Department of
Agriculture, Trade and Industry, Interior and Local Government will serve as
members. Included also as members are the Chair of the National CODEX
Committee and representatives from the academe and private sector (food industry).
BFAD also sees the potential of the Department of Education (DepEd) as
source of reliable information on food safety especially when this information is made
available in schools. Thus, inclusion of DepED in CCFS is highly relevant. The
National Epidemiology Center and National Center for Disease Prevention and
Control of the DOH are also reliable sources of information and studies on food- and
water-borne-related diseases or outbreaks.

Chapter 3. METHODS AND PROCEDURE
Research Method
The nature of this study is a descriptive one. Therefore, an exploration is done
in order to describe the concepts and mechanisms of TQM. More attention is given
to identifying the meaning of concepts under discussion, and that, in turn, forms a
well-defined basis for evaluation of other related aspects afterwards. This implies
that the research work is mainly based widely accepted pioneering TQM ideas to
established Successful TQM Implementation against critical success factors.
The researchers need to provide questionnaires for collecting needed
information.
Sampling Design
The objective of the survey was to investigate the level of General Opinion,
and the level of importance and practice in LPPI. To that end, a questionnaire was
developed to collect data for this research. Particularly, the population of
Management and the operational personnel are the target number that will undergo
evaluation and assessments. It is compose of 10 persons and 166 workers (as listed
below), respectively.
Both Management and the Operational Personnel will answer questionnaires
with three sections.




Table 1. Distribution of Worker Respondents in every Area
Workers
(as designated by areas)
Total Number Sample Size
(70%)
Controller 4 3
Hanging of Live Bird 12 8
Killer 4 3
Feather Remover 4 3
Head Cutter 12 8
Feet Cutter 12 8
Rehanger 12 8
Opener 2 1
Drawer 12 8
Intestine Remover 4 3
Liver Picker 4 2
Gizzard Picker 4 3
Crops Remover 8 6
Rejection 2 1
Lung Remover 6 4
Trachea Remover 6 4
Final Rejection 4 2
Packing 60 42
Total 166 117

Table 1 shows the distribution of respondents in every area. Seventy percent
(70%) of the population of LPPIs workers in their operations designated by their
area was considered as one of the subject of the study, computed under simple
random sampling. Also, management consists of a Head Manager, two (2) Quality
Heads, five (5) Manufacturing Line Inspectors and two (2) Lead mans. This
probability of selection method ensures that every sampling unit meeting up the
defined target population has a known, equal, non-zero chance of being selected.
Hair, et.al.,2003.

Instrumentation/ Techniques
The questionnaire consists of three (3) parts. The first part investigates the
employee background participating in the research. This includes age, sex, their
educational attainment and their position/area in the company. The second part was
a questionnaire explores the general TQM opinions in LPPI workers which consist of
10 questions.
The practical level of Importance and Practice as distinguish by LPPI
employees was explored in the third part of the questionnaire by using critical
success factors/TQM initiatives of TQM for small-medium enterprises. Management
Leadership- 6 questions; Resource Management- 5 questions; Measurement and
Feedback- 5 questions; Continuous Improvement- 4 questions; Supplies Quality
Management- 5 questions; Systems and Processes- 4 questions; Education and
Training- 4 questions; Work Environment and Culture- 4 questions. In this part,
respondents will be ask to rate two aspects on a five point Likert scale: first, the level
of importance placed on each statement in each critical factor; and, second, the
extent to which they thought it is currently a practice in the organization. For the
perceived importance, the rating scales range from 1 = not important at all, 2 = not
important, 3 = neutral, 4 = important, 5 = very important; while for the extent of
practice was given as 1 = very low, 2 = low, 3 = moderate, 4 = high, 5 = very high.
Then, the results of these questionnaires will be the aid on what TQM practice the
researcher will be proposed to LPPI.
Content of the question items on TQM general opinions and TQM Practices
were adopted and modified based from the questionnaire developed by H.R Zadry
and S.M. Yusof, 2006 for Malaysian Automotive Suppliers.
Data Gathering Procedures
The researchers will ask the permission of company, LPPI, for conducting the
study and the questionnaire itself. Upon approval, the researchers will personally
administer the distribution of questionnaires. Researchers may, for some instances,
observe the flow of the business for supporting the questionnaires result and TQM
Practice LPPI that will be subject for a proposal.

Data Processing and Statistical Treatment
After the retrieval of the questionnaires, the data needed to answer listed
problems will be tallied and tabulated. The results will be presented in tables with the
use of Microsoft Office Excel. In the analysis and interpretation of data, the
researchers will make use of the following statistical tools:
1. Frequency and percentage distribution will be used to describe the LPPI
employees profile in terms of age, gender, educational attainment and the position/
area in-charge in the company.
2. Weighted Mean, to describe the level of General Opinions on TQM as perceived
by the LPPI employees (as listed in the section 2 of the questionnaire) and the level
of Importance and Practice of the LPPI employees on TQM in terms of eight Critical
Success Factors (as listed in the section 3 of the questionnaire).
Range or Scale Weight General
Opinions
TQM
Importance
TQM Practices
4.51- 5.00 5 Strongly Agree Very High Strongly Agree
3.51- 4.50 4 Agree High Agree
2.51- 3.50 3 Neutral Moderate Neutral
1.51- 2. 50 2 Disagree Low Disagree
1.00- 1.50 1 Strongly
Disagree
Very Low Strongly
Disagree

3. The proposal for TQM or TQM entity will be interpret by verbal interpretation and
can only be analyze after obtaining needed information coming from the three-
section questionnaire.





THE QUESTIONNAIRE

Dear Respondents,
The research is presently conducting a study about A Proposal of TQM in
LPPI.
In this regard, we humbly ask for your cooperation in answering the
questionnaires that have been prepared and attached to this letter. We assure you
that all information that you will give will be treated confidentially.

You may accomplish the information by putting check () on the blank.
Age: _____ 18- 23 years old Gender: _____ Male
_____ 24- 29 years old _____ Female
_____ 30- 35 years old
_____ 36 years old and above
Highest Educational Attainment:
_____ Post Graduate
_____ College Graduate
_____ High school
_____ Elementary
_____ Vocational
Position/Area designated in the company:
_____ Controller
_____ Hanging of Live Bird
_____ Killer
_____ Feather Remover
_____ Head Cutter
_____ Feet Cutter
_____ Rehanger
_____ Opener
Section 1: EMPLOYEE PROFILE

_____ Drawer
_____ Intestine Remover
_____ Liver Picker
_____ Gizzard Picker
_____ Crops Remover
_____ Rejection
_____ Lung Remover
_____ Trachea Remover
_____ Final Rejection
_____ Packing


Directions: This section seeks your honest opinion of TQM. The following
statements are presented for your evaluation.
Please tick () the number of response which best represents the level of agreement
that indicates whether you:
Scale: 5 Strongly Agree
4 Agree
3 Neutral
2 Disagree
1 Strongly Disagree
Statement Degree of
Agreement
5 4 3 2 1
1. TQM is a management philosophy and practice is use to
ensure the effective and efficient use of all available
resources.

2. TQM aims to make customer satisfaction as the focus of a
business.

3. Teamwork and participation are important for achieving
continuous improvement culture.

4. Training and Education are vital elements with respect to
Section 2: GENERAL TQM OPINIONS



This section attempts to determine the level of TQM implementation in LPPI. Please
tick () your perception on the importance of each statement listed below and the
extent practice in your organization.
Please use the following scales:
A. IMPORTANCE (The level of perceived importance of the factor);
1 = Not Important at All 3 = Neutral Important 5 = Very Important
2 = Not Important 4 = Important
B. PRACTICE (The extent or degree of practice in your organization)
1 = Very Low 3 = Moderate 5 = Very High
2 = Low 4 = High
For example: Quality Policy is communicated to all employees.
If Importance = 4, this means it is perceived by you to an important element
for successful TQM.
and Practice = 5, this means that it is very highly practiced.
TQM implementation.
5. Statistical Techniques (such as statistical process control,
design of experiments, etc.) are important to ensure
consistency of product and process quality.

6. Supplier involvement is vital in supporting quality
improvement.

7. Management Leadership commitment and support
determine the success of new change initiatives.

8. Management must provide adequate resources in every
aspects of the business.

9. A work environment, which is conducive for improvement is
created through management worker partnership.

10. Initiative such as Kaizen (continuous improvement)
suggestion schemes, quality circles, etc. will motivate
employees to participate in Quality Improvement.

Factors
Importance Practice
Section 3: TQM PRACTICES
MANAGEMENT LEADERSHIP
1 2 3 4 5 1 2 3 4 5
1. Top Management ensures that every
employee knows the companies mission
and business objectives.

2. Top Management strongly promotes staff
involvement in Quality Management and
Improvement.

3. Managers and Supervisors empower
employees.

4. Communication links are established
between employees and Top Management.

5. Top Management takes care of employee
well-being (e.g welfare, help and safety
provisions).

6. Company fulfills its social responsibilities
(such as environment friendly operation,
charity to school, etc.).

RESOURCE MANAGEMENT
1. HR Ability considered in improvement
activities.

2. Employees are given information and
training they need to do the job effectively.

3. Employees are given tools they need to
do the job effectively.

4. Sufficient financial resources are provided
to support improvement activities.

5. Company manages its material resources
effectively.

MEASUREMENT AND FEEDBACK
1. Customer satisfaction level are measured
and monitored.

2. Information on Quality and customers are
collected and analyzed.

3. Information on operational and financial
performances are collected and analyzed.

4. Employees views are listened to and
acted upon.

5. Employees performance are measured
and recognized.


CONTINUOUS IMPROVEMENT
1. There is a quality improvement
coordinating body (e.g. Quality Control
Committee).

2. Improvement teams are active in all
areas.

3. Quality Improvement tools and
techniques are widely used.

4. The company practices continuous


improvement of all its products, services and
processes.
SUPPLIER QUALITY MANAGEMENT
1. Suppliers are selected on the basis of
quality aspects.

2. Company ensures that suppliers can
maintain high technical standards and
meeting quality specification.

3. Quality regularly conducts suppliers
quality audits.

4. Company works closely with suppliers
toward long term partnership and
improvement.

5. Suppliers provide relevant quality record
and data.

SYSTEM AND PROCESSES
1. Systems and procedures for quality
assurances are implemented.

2. Internal data collection system and daily
evaluation is established.

3. Market Information and feedback system
is established.

4. The employees involved in different
processes know how to evaluate them.

EDUCATION AND TRAINING
1. Top Management always updates their
knowledge.

2. Employees are trained for job related
skills.

3. Employees are trained on total quality
concepts.

4. Continuous learning is provided through
education and training.

WORK ENVIRONMENT AND CULTURE
1. A pleasant environment exists in all
working areas.

2. Positive values such as trust, honesty,
hard working are fostered by management.

3. Teamwork and involvement are normal
practices in the company.

4.The company adopts employee
satisfaction initiatives (such as suggestion
schemes, profit sharing, etc.).