PhilHealth Imus Branch is experiencing an average increase of

65.04% complaints on the membership system from

January 2014 to June 2014

A company study presented to the faculty of the
College of Engineering, Architecture and Technology
De La Salle University Dasmarias
Dasmarias, Cavite

In Partial Fulfilment of the requirements for the Degree of
Bachelor of Science in Industrial Engineering

Submitted By:
Arabe, Jan Andre
Aquino, Arvin
Gumila, Kenneth
IEE41


Submitted to:
Engr. Ma. Socorro M. Bunda
August 2014
CHAPTER I


1.1 INTRODUCTION
PhilHealth Inc. was established in 1995 to serve as a service health sector of the
Government for the Filipinos to help their needs especially in the financial assistance
when it comes to hospitalizations. The company offers compensation and health
insurances for all the members that had been admitted in hospitals by assisting them
when it comes to financial. As long as the hospital is accredited by PhilHealth, any
person admitted to that certain hospital can reimburse payments made by them.
Philhealth Inc. vision is Bawat Pilipino, Miyembro, Bawat Miyembro, Protektado,
Kalusugan Natin, Sigurado while its mission is Sulit na Benepisyo sa Bawat Miyembro,
Dekalidad na Serbisyo para sa Lahat.
Since PhilHealth is a service health sector of the government, it is important for
all the Filipinos especially those who are incapable of paying such fees. And by
providing their service, system is very important. Implementing a good and effective
system will most likely to lead in perfect execution of the service they are providing. In
this study, case of a certain ineffective system of their process is to be undertaken to
have the idea what are the reasons behind and how do they affect the flow of the
process.


1.2 BACKGROUND OF THE STUDY

There are a lot of factors and reasons why the system of their process is
ineffective that results in unsatisfying service. It may come from the employees,
materials, equipments, or the system itself. Ineffective system greatly affects the whole
process of their service for the Filipinos.
The researchers found out and observed that the system of their process has a
problem when it comes in the first step of their process which is the system of
membership. In this process, customers are having a lot of troubles and complaints.
Membership consists of enrollment, submission of requirement and payment. During
membership process, the researchers observed that the membership system has three
problems namely long queuing line, slow system server and lastly dissemination of
information. Long queuing line are due of multiple transactions by the customers who
have been asking questions especially when it comes to requirements and including
outside transactions. By this scenario, the customer next to them will have a long time
waiting for them. Slow system server are due by their internet system (PLDT and
Globe), PhilHealth is accommodating an average of 500 applicants a day. By having
only two back up internet system would not be enough to sustain and update the
records of the applicants and members. Lack in dissemination of information would
result into confusion of applicants regarding the procedures and passing of
requirements. This can greatly lead into customer dissatisfaction due to unclear
presentation of information.

1.3 PROBLEM STATEMENT
PhilHealth Inc. Imus branch is experiencing an average of 65.04% of customer
dissatisfaction in their membership system process from the month of January to June
2014.

1.4 OBJECTIVES OF THE STUDY
General Objectives
Minimizing Philhealth Imus Branch in experiencing an average increase of
65.04% complaints on the membership system from January 2014 to June
2014
Specific Objectives
To eliminate multiple transactions
To improve system server
Wider dissemination of information

1.5 SCOPE AND LIMITATIONS
The study was conducted in PhilHealth Inc. located at MYP GBY Phil. Corp. bldg
Aguinaldo Highway, City of Imus, Cavite. The study focuses on a certain system of their
process where problems are occurring. The study will only consider the data gathered
from February 2014 July 2014.
1.6 SIGNIFICANCE OF THE STUDY
For the students
This study will help them to be more optimistic in dealing with problems in the
system of an industry in the near future. This study will also serve as part of their
experience as they deal in the field of Industrial Engineering. This study will help them
be enlightened and to familiarize the Systems Analysis and Design.

For the company
This study will help them to improve the system of their process and to be able to
provide satisfying service to their beneficiaries. This study will also serve as their
understandings and knowledge of their strength and weaknesses.
For the readers
This study will help them to get new ideas and concepts related to Systems
Analysis and Design. This study will also serve as their guidance whenever they want to
conduct study regarding systems analysis and may also use as their reference for
researches.











1.7 DESIGN AND METHODOLOGY


Observation
The researchers were able to observe the algorithm of the system of their
process in membership system last August 1, 2014. Brainstorming has to be done to be
able to think for the alternatives.
Interview
The researchers were able to interview and accommodated by the Head of the
PhilHealth Inc. Imus branch, Mrs. Beng Fontanilla. She showed first the important
overviews of the technicalities of the system of their process, how it works and ends.
Mrs. Fontanilla also provided the researchers all the necessary data and information
needed.

Mrs. Beng Fontanilla, Head of PhilHealth Inc. Imus branch
Mr. Benjie Rodil, Supervisor of PhilHealth Inc. Imus branch


Some of the questions asked
1. What mostly are the common problems occur in the process?
2. How many employees do you have?
3. How do you manage problems occurring in the process?
4. How many customers do you accommodate in a day?
5. How many customers have you been not accommodated in day?
1.8 DEFINITION OF TERMS
System Server A program that provides services to other computer
programs (and their users) in the same or other computers.
Insurance A thing providing protection against a possible
eventuality.
Hospitalization The act or an instance of being hospitalized.
Membership The state of belonging to or being a part of a group or
an organization.
Dissemination Pertains of spreading a certain thing or idea.
Enrollment The process of registering or enlisting, to become a
member of an organization.
Verification The act or process of verifying and clarifying.







0
5,000
10,000
15,000
20,000
25,000
Jul|Jan Aug|Feb Sep|Mar Oct|Apr Nov|May Dec|Jun
F
r
e
q
u
e
n
c
y

Months
Membership
2013
2014
CHAPTER II
PRESENTATION AND ANALYSIS OF DATA

Table 2.1 Data for Comparison of Membership Records
2014 2013
Month Frequency Month Frequency
January 20,456 July 16,523
February 18,319 August 15,095
March 19,220 September 17,167
April 21,213 October 15,586
May 20,173 November 17,002
June 19,192 December 18,194
Total 118,573 Total 99,567

Table 2.1: shows the Comparison of Membership Records between the period of July to
December 2013 and January to June 2014














Table 2.2 Data for Increase in Membership Records
July-Dec 2013 Jan June 2014 Increase % Increase
99,567 118,573 19,006 65.15%

Table 2.2: shows the amount increased from July to December 2013 to January to
June 2014 and its corresponding Percentage increase.
Source:
BenjieRodil
Social Insurance Officer III
Table 2.3 Data for Records of Complaints from January 2014 to June 2014
Type of
Complaint
Frequency
January February March April May June Total Percentage
Written 124 135 118 141 138 145 801 62.14%
E-mail 76 67 72 91 85 97 488 37.86%
Total 200 202 190 232 223 242 1,289 100%
Percentage 15.52% 15.67% 14.74% 18% 17.30% 18.77% 100%

Table 2.3: shows the data for records and complaints grouped according to its type from
January to June 2014. E-mails and written are the two types of complaints that are submitted to
PhilHealth.

Table 2.4 Data for Records of Complaints from July 2013 to December 2013
Type of
Complaint
Frequency
July August September October November December Total Percentage
Written 91 83 78 85 76 72 485 62.10%
E-mail 51 43 47 54 52 49 296 37.90%
Total 142 126 125 139 128 121 781 100%
Percentage 18.18% 16.13% 16.01% 17.80% 16.39% 15.49% 100%

Table 2.4 shows the data for records and complaints grouped according to its type from July to
December 2013.

Source: BenjieRodil
Social Insurance Officer III
Computation:

()


Table 2.5 Data for Concern of Complaints
Complain Frequency Percentage
Slow System Server 672 52.13%
Long Queuing Line 419 32.51%
Lack of Dissemination of
Information
198 15.36%
Total 1289 100%

Table 2.5: shows the complaints of customers and members regarding their concerns
that are submitted to PhilHealth.

Table 2.6 Data for Increase in Complaints
Complaints July-Dec 2013 Jan June 2014 Increase % Increase
Written 485 801 316 65.15%
Email 296 488 192 64.86%
Total 781 1,289 508 65.04%

Table 2.6: shows the increase in type of complaints and the total number of complaints. Also the
percentage increase is included in the table.

Source: BenjieRodil
Social Insurance Officer III


Table 2.7 Percentage Contributed
Problem Complaints Total Percentage

Method
Long Queuing Line 419
617

47.87% Lack of
Dissemination of
Information

198
Machine Slow System
Server
672 672 52.13%


Figure 2.1 FISHBONE DIAGRAM
















Figure 1: shows the percentage contribution and their corresponding number of units brought by
machine and method to the problem.
Slow System Server
Lack of Dissemination
of Information
PhilHelath Imus
Branch in
experiencing an
average increase
of 65.04%
complaints on the
membership
system from
January 2014 to
June 2014

METHOD 47.87%
(617 complaints)
MACHINE 52.13%
(672 complaints)

Long Queuing Line
Figure 2.1 Process Flow Chart
Membership Process























Fill up form PMRF
application form
Fall in line for
transactions
Verification

Enrollment
Fall in line for
Payment
Payment in cashier

Figure 2.2 Enrollment breakdown






Up



Passing of requirements In this scenario, customers must pass their document
that includes valid Identification Card, Photocopy of NSO birth certificate and
other required documents for them to be able to enroll in the membership.

Updating dependents and other record In this case, customers check and
update the records of their documents and the beneficiaries of their insurance.
Updating records includes changing of civil status, address etc.


Changing of membership type This case is particularly to members who are
already member then a change in their status in occurred and so they must
change their type of membership for their insurance to be applicable.
Enrollment
Passing of
requirements
Updating
dependents and
records
Changing of
membership type

Figure 2.3 Process Flow Chart Proposal
Membership Process






















Passing of
requirements
Fill up form PMRF
application form

Enrollment and
Payment
Verification

Problem Tree

















Long queuing
line
Slow system
server
To eliminate 65.04% customer dissatisfaction in the membership system from
the months of January to June 2014

Dissemination of
Information
Opportunity loss Profit loss Dissatisfied
customer
CAUSES
EFFECTS
Problem Tree Analysis

CAUSES
Long queuing line
Some of the people do not have the patience to wait for their turn especially if the
line is too long. By this scenario, they intend to walk out and cancel their enrollment in
membership.

Slow system server
Since system server is not updated, they cannot clearly process the enrollment
stage of their applicants during membership. By this, they cannot properly store to their
data base the information given by their customers.

Dissemination of information
We all know that almost all the members of the PhilHealth, Inc. are from low
class community and PhilHealth disseminates their information about their requirements
through common means of advertising only and their advertisement does not reach
most of their common applicants.

EFFECT
Opportunity loss
Long queuing line can cause impatience and frustrations to customers. This can
lead to loss of the opportunity of the company to serve more applicants for membership
because of the customers long time waiting.
Profit loss
Slow system server greatly affects the process of enrollment in membership. By
having this kind of system may lead to profit loss because the claims of the company
will decrease because of the present server that they are having.

Dissemination of information
Dissemination of Information causes dissatisfaction to customers because of
their lack of disseminating their information regarding procedures, requirements and
registrations. Customers also will not be able to apply properly and clearly due this
existing problem.




Objective Tree


















Improve system
server
Adding inquiry
station
To eliminate 65.04% customer dissatisfaction in the membership system from
the months of January to June 2014

Wider
dissemination of
information
Satisfied
Customer
Elimination of
multiple
transactions
Compliance of
requirements
MEANS
ENDS
OBJECTIVE TREE ANALYSIS
MEANS
Improving system server
Since system server is slow, it would help the operation if the system
server will be improved to make a smoother and faster entry of all information
given by their customers not just every once in a while but constantly, and fixing
any problem there is will greatly uplift the productivity level of any system.

Adding inquiry station
In any system procedures like membership, it is unavoidable that
customers would have a lot of questions and concerns that has to be attended
more often than not, these concern require immediate response to ensure the
satisfaction of the customer and the clarity of the response given. Providing an
inquiry counter will help build a stronger connection with the customers and will
help eliminate any hesitation in them to discuss or ask anything

Wider dissemination of information
PhilHealth is one of the most known Insurance Company in our country.
By this, adding advertisements about their registrations and requirements are
needed since we all know that most of the members came from the lower class
of the society and also in order for the applicants to be enlightened what should
they do and what should they submit.

ENDS
Satisfied customer
Since system is already faster, PhilHealth members will be satisfied
because they will be served faster and more members will be accommodated
and customers

Elimination of multiple transactions
Since additional counter is already in effect, elimination of multiple
transactions will be eliminated because counters for inquiry is already provided
and long queuing of line will also lessen.

Compliance of requirements
If most of the customers of PhilHealth are already informed about the
procedures for registrations and passing of requirements, they can already
pursue their plans of being a member of PhilHealth without any hesitations.





CHAPTER III
ALTERNATIVE COURSES OF ACTION

ACA#1 IMPROVE SYSTEM SERVER
As you have seen in the table below, It shows the actual speed of the system
server of PhilHealth. Researchers observed that their server is not enough to process
all of its members and their applicants records in regards to the enrollment for
membership. By this, researchers proposed that improving their system server by
adding and updating their internet system would help them to avoid confusions and
improper storage of records of their members to their data base. Through this, it would
result into better customer satisfaction.
Existing
Internet Connection Internet Speed Cost
Globe Home Tattoo 7 Mbps 2,499
Proposed
Internet Connection Internet Speed Cost
PLDT Home Fibr 20 mbps 5,800 php
Advantages:
1. Increase profit
2. Will prevent improper storage of records
3. Assurance of fast and reliable online system
Disadvantages:
1. Additional costs for meetings
2. Additional costs for the new internet system

ACA#2 ADDITIONAL INQUIRY STATION
As you have seen in figure 3.2, It shows the actual counters available for the
applicants for membership. Since it has only four counters inclusive of one special for
seniors and PWD, researchers observed that the counters are not sufficient for them to
accommodate all of their applicants including walk in customers resulting in long
queuing of line especially that most of their customers and members includes out of line
transactions. Researchers proposed that adding an additional counter for inquiries
would prevent long queuing of line caused by multiple transactions of their customers.
This would also result to have more opportunity to have applicants for membership.






Figure 3.2 Existing Counters


Advantages:
1. Will have more opportunity to have customers
2. Elimination of multiple transactions
3. Will prevent long queuing of line

Disadvantages:
1. Additional costs for meetings
2. Additional costs for salary of the employee to be hired
3. Familiarization of their walk in customers

ACA#3 WIDER DISSEMINATION OF INFORMATION
Since most of the members of PhilHealth are from lower class of the society.
Researchers observed that PhilHealth lacks of disseminating their information regarding
their procedures and requirements to the lower communities which are not reached by
their common advertisements. Through this, researchers proposed that wider
dissemination of information through posting tarpaulins and radio advertisements in
lower class municipalities would really help most of their customers and applicants to
have information of what they should do and submit before applying for the
membership. Since the customers and applicants have already been informed, they can
already pursue of their plans of being a member of PhilHealth without any hesitations.


Advantages:
1. Compliance of requirements
2. Will increase customer satisfaction
3. Will have smooth application

Disadvantages:
1. Additional costs for meetings
2. Additional costs for additional advertisements
3. Additional costs for transportation















Cost Benefit Analysis
Alternative Courses of Action
ACA #1 COST BENEFITS
Improve System
Server
Home Pldt Fibr
internet
connection
(20mbps)
PHP 5800.00
Tangible Intangible

Profit will increase
by 151,200php
semi annually
Less hassle for
the workers and
applicants

ACA #2 COST BENEFITS
Additional
Inquiry Station


Additional Inquiry
Station


Tangible Intangible

Profit will increase
by 104,000 semi
annually



Multiple
Transactions will
be Eliminated

Long Queuing
Line will be
Eliminated





ACA #3 COST BENEFITS
Wider
Dissemination of
Information
Tarpaulin (6x6ft)
PHP 700.00

Tangible Intangible

Profit will increase
by 120,00 semi
annually
Awareness of
walk-in applicants














CHAPTER IV
CONCLUSION AND RECOMMENDATION

CONCLUSION
PhilHealth Inc. was established to serve as a service health sector of the
Government for the Filipinos to help their needs especially in the financial assistance
when it comes to hospitalizations. The study was conducted in PhilHealth Inc. located at
MYP GBY Phil. Corp. bldg Aguinaldo Highway, City of Imus, Cavite. The study focuses
on a certain system of their process where problems are occurring. Researchers
observed that the system of their process has a problem when it comes in the first step
of their process which is the system of membership. The study will only consider the
data gathered from February 2014 July 2014. This study concludes that complaints
and customer dissatisfaction regarding their enrollment procedures are caused by the
following namely: Slow system server, long queuing of line and lastly lack of
dissemination of information. To minimize the complaints and customer dissatisfaction
experienced by PhilHealth Inc, researchers proposed the following alternatives:
Improving system server, adding inquiry station and wider dissemination of information.




Recommendation
The proposed alternative courses of action can be a big help to the company, all
of these are needed to minimize the complaints and customer dissatisfaction
experienced by PhilHealth, Inc.
First is to improve their system server in order to prevent improper storage of the
records of their applicants and members also to assure fast and reliable online system.
Second is to add an inquiry station for all the applicants and walk in customers who
have questions regarding their application and updating of their records. This will
eliminate multiple transactions occurring. Last is wider dissemination of information
through posting tarpaulin advertisements regarding their requirements and procedures
for the membership to prevent customer dissatisfaction and will result into compliance of
requirements.








CHAPTER V
DETAILED PLAN OF ACTION
Table 5.1 Detailed Plan of Action
WHEN ACTIVITY PEOPLE CONCERNED

October 23, 2014
Meeting regarding the
proposal of the new
process and methods to be
implemented
Managers and Supervisors
October 24, 2014
Presentation of the
proposal
Managers and Supervisors
October 27, 2014 Approval of the proposal Managers and Supervisors
October 28, 2014
Implementation of proposed
alternative course of action
Managers, Supervisors and
employees
October 29, 2014
Adaptation of the alternative
course of action to be used
Managers, Supervisors and
employees

In this table, it shows that the first activity will be the schedule of the meeting
regarding the proposal of the new processes regarding the system changes, People
concerned are managers and Supervisors. For the second activity which is Presentation
of the Proposal, the people concerned are the managers and Supervisors. Analyzing
and evaluation of the proposal will take 2-3 days. After 2-3 days, approval will take
place immediately. After the approval, Managers and Supervisors need to notify the
employees and workers of the changes that will happen in the company. The adaptation
of the alternative courses of action to be used of the company will be the last activity.