final tqm chapter 1-5

7/29/2019 FINAL Tqm Chapter 1-5

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COLEGIO DE SAN JUAN DE LETRANINTRAMUROS, MANILA

MANILA WATER

PRESENTED TO:

COLLEGE OF BUSSINESS

ADMINISTRATION AND ACCOUNTANCY

IN PARTIAL FULFILLMENT

OF

THE REQUIREMENTS

IN TOTAL QUALITY MANAGEMENT

SUBMITTED BY:

FLORES, VINCE MARTIN

MENORO, CAMILLE JOY

OCSAN, ROSE ANN

MK3A

SUBMITTED TO:

PROF. MA. LUISA PORCIUNCULA, MBA

JANUARY 16, 2013


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CHAPTER 1

COMPANY DESCRIPTION

I. Background of the Company

The water distribution network in Metro Manila before 1997 was in bad shape.

Unregistered connections tapped to the city's aging mainlines were everywhere. Access to

water supply by a growing metropolis was spotty, with only a few areas actually experiencing

24-hour supply. And the leaks were all over the place. This situation prompted the Philippine

government to enact the National Water Crisis Act in 1995, attempting to address the

burgeoning populations need for improved water services.

The pragmatic solution was to turn over the operation of the network to the private

sector. Thus, in August 1997, the Ayala-led Manila Water Company took over the operation of

the East Zone of Metro Manila as agent and contractor of the government-owned Metropolitan

Waterworks and Sewerage System under a 25-year concession agreement.

The concession agreement also granted Manila Water exclusive rights to the use of

land and facilities for the production, treatment and distribution of water, as well as the rights to

operate the sewerage system.

The East Zone is home to some 6.2 million people now. It includes the cities of Makati,

Pasig, Mandaluyong, Marikina, San Juan and Taguig, most parts of Quezon City, some parts of

Manila, and the municipality of Pateros. It also covers cities and municipalities in Rizal Province

further east of Metro Manila.

Taking on the rehabilitation of a largely dilapidated network was a tremendous task. The

first five years were far from smooth sailing as the company was besieged with both internal and

external challenges. These problems included a currency crisis in 1997, the El Nio

phenomenon in 1998, an arduous arbitration process a little after that, and a myriad of political

uncertainties on the national front that increased regulatory pressure on the company.

To ensure the survival of Manila Water, the company's management realized that the process of

transformation must begin internally - through its people.


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Almost 90 percent of Manila Water's workforce was then composed of former MWSS

employees. They were a key driving force that brought success to the privatization endeavour.

With proper training and motivation, the company was able to bring out the best from its

employees whose talent and skills had been honed through many years of dedicated service to

the MWSS, and now, to Manila Water.

Empowerment was a crucial element in the transformation. While the top management

provided general policies and strategic directions, mid-level managers were given a free hand to

plan and implement changes in their respective territories. Skilled workers were transformed

into knowledge workers. Cross-functional teams called "clusters" were formed in order to assist

the management in formulating key policies and decisions as it focused on certain corporate

issues.

Although formal boundaries were in place, the company continues to encourage a

"seamless" structure where everyone was free to assist in the corporate programs that may be,

strictly speaking, outside of his formal scope of duties and responsibilities. The company makes

sure that everyone is involved, in one way or another, in attaining its overall corporate

objectives.

As part of the company's management decentralization policy, the East Zone was

divided into eight business areas - Pasig, Taguig, Makati, Mandaluyong, Cubao, Balara,

Marikina and Antipolo-Rizal. These business areas were further subdivided into smaller and

more manageable territorial boundaries called business zones - which were further subdivided

into supply zones - in order to allow greater focus and faster response time to customer

problems.

Fiscal discipline was another key element in the transformation. The first few years were

the survival years for Manila Water. Limited loan funding was available at that time, and the

company made sure that it maximized the use of its resources. Projects were implemented

through careful planning and prioritization while operating costs were efficiently minimized.

The company has also achieved significant progress in expanding its sewerage and

sanitation services. Manila Water has successfully constructed 33 sewage treatment plants,

which can process up to 100 million liters of wastewater per day. The company also continues


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to offer septic tank desludging services to customers in its territory as part of its sanitation

program.

These improvements benefit a great number of people from the lower-income sector of

the populace. Through the companys Tubig Para sa Barangay (Water for the Poor) program,the company was able to reach out to 1.6 million residents, as well as 300 public service

institutions, from marginalized communities who previously had no access to clean and

affordable water.

All these were achieved through massive capital investments totalling PHP 33 billion as

of the end of 2009. Over the years, more than 3,200 kilometers of new pipelines have been laid

out in various areas to improve service delivery and minimize water losses.

This, the company believes, not only benefits the organization itself but ensures the

welfare of all its stakeholders, consistent with its intention of fulfilling not only the needs of the

people today but also the needs of the future generations as well.

It is a tribute to this philosophy and forward-looking mindset of Manila Water that

government regulators extended in 2009 the original 25-year concession agreement with the

company by another 15 years, allowing it to implement an ambitious PHP 450 billion investment

plan until 2037 while ensuring tariff rate affordability for its customers.

Corollary to its success, the company has also expanded its reach beyond borders with

business ventures that are now trying to duplicate what it has accomplished in the East Zone.

These include a 25-year concession agreement to operate the Laguna Water Company

through the provision of water and wastewater services to the municipalities of Cabuyao and

Bian and the city of Sta. Rosa in Laguna.

A joint venture agreement over a similar period has also been forged for the operation,

management and expansion of water and wastewater facilities of Boracay Island Water

Company in Boracay, Aklan, and the country's premier tourist destination. Manila Water has

also expanded its business operations outside of the country to provide management and

technical expertise in the development of water and wastewater projects, and to enhance its

competitiveness and visibility as an international operator in the world's major economies.


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At present, Manila Water has operations in Ho Chi Minh City in Vietnam under a leakage

reduction project. In Tirupur, India, Manila Water is providing facilities operations and

maintenance services. Manila Water, in consortium with other partners, has also acquired

United Utilities Australia and will act as international operator and manager in the delivery of

water, wastewater and other environmental services.

All told, these accomplishments are a tribute to the leadership and vision of Manila

Water's management, as well as the dedication of a 1,600-strong workforce, most of which are

now part-owner of the company through the employee stock option plan or ESOP. It is important

to note, however, that the success of the company is also the result of a healthy collaboration

among stakeholders - including the public sector - all working towards the common goal of

improving lives and securing the future today.

1.1 Board of Directors

FERNANDO ZOBEL DE AYALA

Chairman of the Board and Executive Committee, Filipino

Mr. Ayala has been a Director of the Company since May 15, 1997. He

is the president and COO of Ayala Corporation; Chairman of Ayala

Land Inc., Co-Chairman of Ayala Foundation, Inc.; Board Member of

Integrated Micro-Electronics, Inc., Globe Telecom, Inc., Bank of the

Philippine Islands, and Pilipinas Shell Corporation; Vice Chairman of Habitat for Humanity

International; Member of the World Economic Forum, INSEAD East Asia Council and World's

President's Organization ; Member of the Board of Directors of Caritas Manila, Kapit Bisig para


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sa Ilog Pasig Advisory Board, and Pilipinas Shell Foundation. Mr. Fernando Zobel de Ayala

graduated with a B.A. in Liberal Arts degree from Harvard College in 1982. He also holds a

Certificate of International Management at INSEAD, France.

JAIME AUGUSTO ZOBEL DE AYALA

Vice Chairman, Filipino

Mr. Ayala has been a Director of the Company since May 15, 1997.

He also holds the following positions: Chairman and CEO of Ayala

Corporation; Chairman of Globe Telecom, Inc., Bank of the Philippine

Islands, and Integrated Micro-Electronics Inc.; Vice Chairman of

Ayala Land, Inc.; Co-Vice Chairman of Mermac, Inc., and the Ayala

Foundation; He graduated with B.A. in Economics (Cum Laude) degree from Harvard College in

1981 and obtained an MBA from the Harvard Graduate School of Business in 1987.

GERARDO C. ABLAZA, JR.

President and CEO, Filipino

Mr. Ablaza has been a Director of the Company since November 26,

2009 and became the president on June 30, 2010. He is a Senior

Managing Director of Ayala Corporation and a member of the AyalaGroup management committee, a post he has held since 1998. Mr.

Ablaza graduated summa cum laude from De La Salle University in 1974 with an AB degree

major in Mathematics (Honors Program).

ANTONINO T. AQUINO

Director, Filipino

Mr. Aquino has been a Director of the Company since April 24, 1998.He was elected president of Ayala Land, Inc. last April 1, 2009.

Formerly, he served as President of Manila Water from 1999 to 2009.

He has been with the Ayala Group in various capacities for the past

30 years and now holds the position of Senior Managing Director. Mr. Aquino completed the

academic requirements for masteral degree in Business Management at the Ateneo Graduate


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School of Business and completed his Bachelor of Science, major in Management degree, at

the Ateneo de Manila University.

DELFIN L. LAZARO

Director, Filipino

Mr. Lazaro has been a Director of the Company since May 6, 2002.

He is also a Senior Managing Director of Ayala Corporation. He

graduated with B.S. in Metallurgical Engineering degree from the

University of the Philippines in 1967 and took his MBA (with

Distinction) from Harvard Graduate School of Business in 1971.

JOHN ERIC T. FRANCIA

Director, Filipino

Mr. Francia has been a Director of the Company since April 12,

2010. He is a Managing Director and a member of the Management

Committee of Ayala Corporation since January 2009. Mr. Francia

received his undergraduate degree in Humanities and Political

Economy from the University of Asia and the Pacific, graduating Magna Cum Laude. He then

completed his Masters Degree in Management Studies at the University of Cambridge in the

United Kingdom, graduating with First Class Honors.

RICARDO NICANOR N. JACINTO

Director, Filipino

Mr. Jacinto has been a director of the Company since April 11, 2011.

He has served as a Managing Director of Ayala Corporation from

May 2000 to December 2011. He completed his Masters in Business

Administration at the Harvard University in 1986.


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Akinobu Ogata

Director, Japanese

Mr. Ogata is the Senior Vice President & Division COO of the

Environment and Infrastructure Business Division of Mitsubishi

Corporation since April 2012. He joined Mitsubishi Corporation in

April 1978 and held the following positions: Senior Vice President &

Division COO of New Energy & Power Generation Division from April 2010; General Manager of

New Energy Business Unit from August 2007; General Manager of Technology & Business

Development Department Innovation Center from April 2007; and Department Manager of

Machinery in Houston Branch of Mitsubishi International Corporation from November 2003. He

also served in the following offices of Mitsubishi Corporation: Cairo Liaison Representative

Office in November 1981 and Istanbul Branch in October 1991. He has a Faculty of Economics

degree from the Keio University, Japan in 1978.

SIMON GARDINER

Director, British

Mr. Gardiner has been a Director of the Company since April

11, 2011. He is the Head of Legal at United Utilities Group PLC, which

he joined in 2002. He has a masters degree from Cambridge

University and is a qualified UK solicitor.

OSCAR S. REYES

Independent Director, Filipino

Mr. Reyes has been an Independent Director of the Company since

February 3, 2005. He finished his B.A. degree major in Economics

(Cum Laude) at the Ateneo de Manila University in University in 1965, and took the MBA

program at the Ateneo Graduate School of business. He also took post-graduate studies at

Waterloo Lutheran University and Harvard Business School, among other schools abroad.


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JOSE L. CUISIA, JR.

Independent Director, Filipino

Mr Cuisia has been an Independent Director of the Company since

April 12, 2010. He is presently the Philippine Ambassador to the

United States of America and Vice Chairman of the Philippine

American Life and General Insurance Company (Philam Life).

Ambassador Cuisia graduated from De La Salle University with AB-BSC degrees (Magna Cum

Laude) and earned an MBA degree from The Wharton School, University of Pennsylvania in

1970 as a University Scholar.

SOLOMON M. HERMOSURA

Director, Filipino

Mr. Hermosura has been Corporate Secretary of the Company since

April 3, 2006. He has been a Managing Director of Ayala Corporation

since 1999. He has been the General Counsel and Compliance

Officer of Ayala Corporation since 2009 and Corporate Secretary of

Ayala Corporation since April 2011. He earned his Bachelor of Laws

degree from San Beda College in 1986 and placed third in the 1986

Bar Examination.

1.2 Vision Statement

Vision

To become a leader in the provision of water, wastewater, and other environmental

services which will empower people, protect the environment, and enhance sustainable

development.


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1.3 Core Values

These include Integrity of the person, dignity of work, pride in excellence, concern for

others and commitment to national development.

Integrity and Primacy of the Person

We are a company of professionals whose unique roles and individual contributions

towards corporate goals provide us with concrete opportunities to develop character and

purpose in our personal lives.

Dignity of Work

Our company engenders in us a sense of pride and satisfaction in the fruits of our talentsand efforts, which we place at Manila Waters service, as part of a dynamic and well-knit team.

Price in Exellence

We strive for excellence because turning out the highest quality products and services is

the most fitting tribute to our customers and to society at large, to our company, to our

colleagues and to ourselves.

Concern for Others

We support people and non-government organizations which link needs with

resources in the unending work of social development.

Commitment to National Development

We place a premium on loyalty, not only in our relationships and responsibilities, but also

to our roots which are the social and civic ground that has nourished and strengthened our

enterprise. We purposely translate our commitment to national development into corporate

vision and business venture


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1.3 Company Profile

Manila Waterhas been acclaimed as a shining example of a successful public-private

partnership not only in the Philippines but even in the international community. As the

concessionaire of the Metropolitan Waterworks and Sewerage Systems, Manila Water provides

water and wastewater services to over 6 million people from 23 cities and municipalities of

eastern Metro Manila and Rizal Province, which include Pasig, Mandaluyong, Marikina, Taguig,

Pateros and parts of Manila and Quezon city.

As a staunch advocate of social development and environmental protection, Manila

Water's business philosophy is anchored on the need to build sustainable communities and

preserve the environment that provides the resources integral in its business operations. With

its social and environmental commitments perfectly aligned with its business objectives,Manila

Water continues to make significant improvements in network efficiency and service quality. It

has now given parallel focus in pursuing aggressive environmental initiatives particularly in the

areas of wastewater management and climate change.


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1.4 Organizational Chart of Manila Water

Manila Water is run by a group of dedicated leaders who are united by a common goal:

creating value not only for the organization but also for the companys stakeholders, including

the public and the environment.

In order to achieve this, the company is committed to maintaining the highest standards

of corporate governance. Already set in place are provisions that promote a culture of

transparency and honesty within the organization, from the Board of Directors all the way

through to each employee.

There is no member of the team that doesnt contribute to the companys continued

success. Solid teamwork is what makes Manila Water such an indomitable force in the industry.


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CHAPTER 2

DEPARTMENT TO BE AUDITED

I. Department to be Audited

It is the goal of Manila Water to have a safe and productive workplace at all times. This

Department offers important guidelines for all employees to have a safe and healthy working

environment. Naturally, procedures and guidelines alone are no guarantee that accidents and

injuries will not occur.

The cooperation of the employees, adherence to the guidelines contained within and use

of safe acts and behaviours while doing their daily tasks are critical elements in making theworkplace safe for them, the co-workers and the people around them. Be consistently alert for

hazardous situations, and strive to perform every assigned task in a safe manner. Accidents can

be avoided by the use of good judgment and adherence to Manila Waters Safety and Health

program. Always work safely and encourage others to do the same.

Safety Solution Department

Table of Organization January 2013


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Responsibilities of Safety Solution Department

Safety

Development and communication of Safe Work Method/Safe Systems of Work

Corporate Safety Program Management (Competence, Training and Awareness

Programs)

Vendor Safety Program Management

Contingency

Development and communication of the companys Emergency Preparedness

and Response plans.

Organization of company-wide, quadrant-based and facility level drills and

exercises

Contingency Asset Management

Policy Management

QEHS Management System preparation (including Gap Analysis Review),

QEHS policies, guidelines and procedures development and communication

IMS Program Management and Consultancy


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II. Functions of Safety Solution Department

These are the functions under the sales and customer services are following:

1. Dealing with Accidents

2. Emergency and Evacuation

3. Workers Safety

4. Public Safety and Site Security

5. Preparing the Confined Space Entry

6. Lockout/Tagout (LOTO)

1. Dealing with Accidents

Definition: Disaster preparedness is one of the strength of our company. We view employees

as our most valuable resource.

Objective: This procedure is developed in keeping the Manila Waters commitment in

preventing accidents and injuries. Also the Effective implementation and consistent compliance

with this is a must.

Scope: Protection on well-being of everyone on the project, including the customers, vendors

and the public.

Dealing with Accidents

Send a first aider and/or doctor or ambulance

Separate the cause and the victim if possible, e.g. switch off electricity supplies, turn off

powered plant before assisting the casualty

Move a casualty only to prevent further injury


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2. Emergency and Evacuation



Objective: This procedure is being prepared for an emergency can mean the difference

between living and dying. It is encouraged to understand your part in responding to an

emergency.


and the public.

Check the heart and breathing; give emergency aid as

necessary

Stop any bleeding; raise the injured part and apply

Kee the victim warm and reassured

Take care not to become a casualty yourself

Do not remove evidence

Tell your immediate supervisor and follow theprescribed reporting an emergency procedures.


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3. Workers Safety



Objective: This procedure is being prepared for an emergency can mean the difference

between living and dying. It is encouraged to understand your part in responding to an

emergency.

Scope: Protection on well-being of everyone on the project, including the customers, vehicles

and the public.

Planning for an emergency

Know the location of the nearest medical

Identify a plan for emergency rescue

Identify the nearest rescue agency

Reporting an emergency

The nature of the emergency fire, medical,police, etc.

5W+H (What, When, Where, Why, Who +How

The location of the emergency

Workers Safety

Check for any hazard. Look for the STARRT card andidentify the risks/hazards present on site.

Look for the safety officer and discuss thecontent of the STARRT card.

Check for the complete first aid kit. The kit shouldhave the following minimum requirements


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4. Public Safety and Site Security



Objective: This procedure is being prepared for Construction operation in public areas must

cause minimum disruption to pedestrians and road users.


and the public.

Public Safety and Site Security

Secure site fences at all times. Warning and informative signs should always be available

Use bollards and caution tape (at least 1.5 m space in between) to secure the site

Use board ups for all open excavation works

Excavated material should only occupy one side of the trench

Traffic maintenance and control should be in place

Road crossing should be maintained


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5. Preparing the Confined Space Entry

Definition: Confined spaces include, but are not limited to, water towers, storage tanks,

process vessels, bins, boilers, ducts, sewers, utility vaults, sumps, and some trenches.

Objective: This procedure is being prepared for making sure that a confined-space entry permit

has been completed prior to entry. This will assure that all conditions have been met for safe

entry and that an emergency plan has been established.


and the public.

If warning signs or barriers are to be used to prevent unauthorized entry or to protectentrants from external hazards, they should be placed on or around the confined space.

Place all tools, safety equipment, monitoring equipment, etc., near the confined space.

Isolate all mechanical and/ or electrical hazards.

Purge or ventilate the confined space.

The entry supervisor will test the atmosphere

The entry supervisor will test for flammable gas

level.

Preparing the Confined Space Entry


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6. Lockout/Tagout (LOTO)

Definition: Lockout is a technique used to prevent the release of hazardous energy, or to

prevent the hazardous energy from escaping. A padlock is placed on the appropriate energy

isolating device that is in the off or closed position.

Objective: This procedure is developed in keeping the Manila Waters commitment in

preventing accidents and injuries. Also the Effective implementation and consistent compliance

with this is a must.


and the public.

Application of Lockout/Tagout:

Alert the operator that power is being disconnected.

Prepare for shutdown

Shutdown equipment

Removal of Lockout:

Ensure equipment is safe to operate

Safeguard all employees

Remove lockout/tagout devices. Except in

emergencies, each device must be

removed by the person who put it on.

Isolate equipment

Apply the lockout devices

Follow the prescribed checklist

Last person to take off lock

Verify if the equipment is being isolated

Take the necessary action to control the stored

energy


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CHAPTER 3

Eight Total Quality Management Principles

Principle 1 - Customer Focus

Customer Focus - organizations depend on their customers and therefore should

understand current and future customer needs, should meet customer requirements and strive

to exceed customer expectations.

Questions:

How do you comply with customer's needs?

- We provide 24 by 7 water service to our customers that is being regulated by Metropolitan

Waterworks and Sewerage System. We create a positive experience not only when selling

our service but also after sales (sort of call feed backing). We see to it that if a customer

calls, we respond/give feedback within 24 hours and close their concern within three days.

How do you measure customer's satisfaction?

-We conduct a survey called PAWS every 1-3years to measure the customer satisfactionacross Concession Areas of Manila Water (Part of QC, Marikina, Mandaluyong, San Juan,

Pasig, Taguig, Pateros, Rizal Provinces, Makati and portion of Manila)

Do you give privileges like discounts and other benefits to your customers? What are

those please specify?

-Yes. Free desludging for every 5 years (dubbed as LibreSipsipPosoNegro Manila Water,NangangalagasaKalikasan... We also have 5% discount for Senior Citizen provided that

their rate is residential.

What are the strategies to meet customer's needs?

- We are a customer centric company, and this approach can add value to a company by

enabling it to differentiate itself from competitors who do not offer the same experience.

Another strategy is under promise over deliver. On the other hand, we also have the

Kasangga Day wherein we invite our partners per City (like Barangay Officials,

Homeowners Officers, City Hall partners, Key Accounts etc.) in one gathering to solicit their

comments, advices and other suggestions in order to improve our service


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How do you evaluate customer satisfaction?

- Customer satisfaction is merely ensuring that we give the right service to our customers

and making them feel that they are always important to us.

Synthesis

They do their best in order to attend to the customers needs . They always prioritize

them to retain their loyalty. They do their best to provide their customers with service that isbusinesslike in its efficiency, yet personal in its delivery. They are also open for feedbacks to

enhance their services and make sure that they always get to attend to each and everyones

concerns.

Conclusion

Compliance with ISO 5.2 Customer Focus and ISO 8.2.1 Customer Satisfaction. These

two standards are obtained since they always make sure to get the customers opinions about

their company and all of these things will be implemented soon enough to satisfy them even

more.

Principle 2 - Leadership

Leadership-Leaders establish unity of purpose and direction of the organization. They

should create and maintain the interval environment in which people can become fully involved

in achieving the organizations object.

Questions:

How does the company motivate their employees to get the best output?

- The company is very dynamic, it consists of levels and the highest level is the Mincom

level they give clear direction to employee to meet the objectives, we came together as one.

How do you carry the vision and mission of the company?

- We have 3 kinds of planning that we should follow


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Strategic - Where the company want to go set of direction of objectives.

Tactical - To realize the strategic objectives planning to support and lastly.

Execution - In which here we apply the planned.

In establishing trust, how does your employee work his/her jobs?

- Trust is very important to us, especially in dealing with others. One way to motivate is to

trust the assigned work, giving support in all resources.

How is the operation of the company run from day to day basis?

- Operating based in tactical plans, we do the right, our target. There are lots of good ideas,

but it is not aligned.

How is the company providing an exceptional customer service?

- Safety Solution Department. Our responsibility is being replaced by service. Every program

must serve customer, to make our individual safe and healthy and make our employee

productive.

Synthesis

Manila Waterdoesnt only focus on customers but also to their employees. They want t o

train them in order to offer great service with the customers. On a daily basis, they use

operating base tactical plans. The company wants to build trusts towards the people they hire

so that the flow of their relationship with each other is smoothly handled.

Conclusion

Compliance with ISO 6.2.2 Competence, awareness and Training. This standard is

obtained since Manila Water makes sure that they give the proper trainings to the employees.

Customers are rest assured that the staffs is properly prepared for any responsibilities.


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Principle 3 - Involvement of People

Involvement of People - People at all levels are the essence of an organization and their

full involvement enables their abilities to be used for the organizations benefit.

Questions:

What are the benefits you give to your loyal employee?

- Performing individual reward, such as incentives, bonus, when they meet target expect to

receive maximum award and also recognition.

Whenever problems occur, how does your company handle the situation?

-Anticipation of problem, we identify the possible risk on the problem, fixing problems before

it occurs.

What are the activities that you do in order encourage your employee's interest with

their jobs?

- How we fuel the passion, it is not about the job, servicing the people is our passion.

Do you make sure to listen to your employee's opinions or insights towards a certain

situation?

- Yes, everyday brainstorming, were informal; we talk possible and risk whenever we havean idea.

What happens to those employees who don't intentionally commit mistakes but as a

result, problems occurs?

- We give chance, its part of learning process, and experience in terms of decision making.

Synthesis

Manila Wateris open for the employees opinions not only for the customers. They also

do brainstorming so that they can improve certain things. That is always important because if

you already have the best company, you still have a room for enhancement or improvements. It

is also important to acknowledge the good things that your employees do because this will give


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them an inspiration to strive harder and when an employee is inspired to do their job perfectly,

that means more great feedbacks from the customers regarding the companys performance.

Conclusion

Compliance with ISO 8.5.2 Corrective Action and ISO 8.5.3 Preventive Action since the

company makes sure that there is a certain punishment for every action that are done wrong so

that the employees will not commit the same mistakes again.

Principle 4 - Process Approach

Process Approach -A desired result is achieved more efficiently when activities and

related resources are manages as a process.

Questions:

What are the techniques you use to minimize cost and to maximize the use of

resources?

- We make sure and focus value proposition will be the end of benefit of certain tasks.

Is it beneficial to the company as well as to the customers if you use

processes in servicing the consumers?- Yes.When there process, there should be documentation, we always have one standard,

to maintain the quality of the company.

Did your activity made a negative impact to the customers? If ever, what is that and

why?

- Sometimes the interconnection of pipes that may cause interruption. Its normal. But we

action as soon as possible and explain the service more to maintain the loyalty of the

customer itself.

Did you measure the inputs and outputs of the process?

- Yes. The company make sure the success of target of programs.


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Are responsibility, authority, and accountability clearly established for managing the

process?

- Yes. Before they start in their responsibilities it is clearly define and always inform.

Synthesis

Manila Water makes raw water potable through its water treatment plants. This potable

water is then delivered to customers through a distribution system made up of a network of

pipes and pumping stations. Afterwards, the water used by customers is treated in the

companys wastewater treatment plants before being discharged to rivers and other water

bodies.

Conclusion

Compliance with ISO 8.2.3.2. This standard is obtained that the company make sure that

the process of their system is in a normal and doesnt have any defective that will infect the

system of their process at the same time can easily distribute and providing that it is safe to

deliver for every customers and will not harm anybody.

Principle 5 System Approach to Management

System Approach to Management Identifying, understanding and managing a system

of interrelated processes for a given objective improves the organization's effectiveness and

efficiency.

Questions:

In achieving the companys objective how is it efficient?

- Setting the goals, clear objectives of executing result to efficiency.

How do you handle conflicts between your subordinates?

- We always take each side. We balance no bias.

Did they continually improve the system through measurement and evaluation?


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- Yes. It is part of ISO. The company always follow the cycle. The Plan, Do, Check, Act.

What are the estimate the resource requirements and establish resource constraints

prior to action?

- We make sure the success of target of customers.

Did they understand the interdependencies among the processes of the system?

- Yes of course. Back to PDCA cycle.

Synthesis

Manila Water Co. never allows conflicts to be a hindrance for a better workplace. They

want to make sure that all the employees are getting along with each other. As for theobjectives, they make sure that the standards of the company are being followed for a better

outcome with the customers.

Conclusion

Compliance with ISO 5.1 Management Commitment. The company management make

the things done with the aid of people and other resources. They work together to achieve some

goals which exist in the environment. Also, they work together with relationships between the

objects and their attributes related to each and other and to the environment.

Principle 6 Continual Improvement

Continual improvement should be a permanent objective of the organization.

Questions:

How do you examine your company whether you need to change something or not?

- Based on audit findings, it should be complete to know what to be change.

Do you ask for your customer's feedbacks consistently?

- Yes, we have customer feedback form, to consistently know our customers needs.


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What are the trainings that you give to your employees to make sure to reach

customer's satisfaction?

- Customer Service Institute.

Did you use periodic assessments against established criteria of excellence to

identify areas for potential improvement?

- Yes, part of annual audit, periodic assessment.

What are the establish measures and goals to guide and track your improvements?

- It is based on pre planned objectives.

Synthesis

Customers are very reliable when it comes to change. That is why we listen to their

concerns all the time. By asking your client your performance rating they give their feedbacks on

how to improve our services to aim for excellence.

Conclusion

Compliance with ISO 8.5.1 Continual Improvement and ISO 8.5.2 Corrective Action.Manila Water is very strict when it comes to improvements in their service. They want to make

sure that all concerns are attended. The company is so open-minded for the customers and

they want a lifetime commitment with them. Employees are also trained well enough so that

they know what to do on whatever circumstances they are going to be involved in the future.

Principle 7 - Factual Approach to Decision Making

Factual Approach to Decision Making - Effective decisions is based on the analysis of data and

information.

Questions:


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Does applying the principle of factual approach to decision making helps the people

in the sales department of Manila Water Co.?

- Definitely yes. Are the data and information are sufficiently accurate, reliable and accessible?

- Yes, we have the newly launched this March 2012 which is called the BI or Business

Intelligence. This new system helps every personnel of the Company especially those who

are out in the field like the Senior Territory Managers to access all needed data in just few

minutes.

Do you take measurements and collect data and information relevant to the

objective?

- Yes, we have specific parameters per Key Result Area which are being monitored on a

weekly basis.

Did they analyse the data and information using valid methods?

- Yes.

Is the decisions and take action are based on the results of logical analysis balanced

with experience and intuition?

- Definitely with logical analysis since there are available tools to be utilized.

Synthesis

Underlying this principle, decision making is very important role of the company.

Primarily, the company itself should have a strategic planning by assessing the desired goal of

the company in future as well as to have a clear vision.

Conclusion

Compliance with ISO 7.3.6 Design and Development Validation and 7.3.7 Control of

Design and Development Changes. The company understand of what current status is, and

what is expected in the future. This allows for objective decision making that will lead to positive

actions. The basis for factual approach to decision making is the performance based


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management system. There must be evidence records that the quality objectives are monitored

and that corrective actions are taken when they are not achieved.

Principle 8 - Mutually Beneficial Supplier Relationships

Mutually Beneficial Supplier Relationships - An organization and its suppliers are

interdependent, and a mutually beneficial relationship enhances the ability of both to create

value.

Questions:

In increasing the ability to create value between company and its supplier does it

more beneficial?

- Yes.

The company can choose the suppliers who can offer good quality of merchandise at

low cost.

- Yes, we have this ISO certified procurement process.

How would the company and its suppliers innovate their service for the best

outcome?

- By enhancing their existing service and seeking customers feedback about the new

output.

Did suppliers search for the best service that will attract customers especially at low

price?

- Yes.

Did they share information and future plans?

- Yes At some instances since we cannot share all future plans to our suppliers for

security reasons and we are also bounded by Non-Disclosure Agreements especially about


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our expansion plans (approval phase) like our local projects such as Clark Water, Cebu

Water, Laguna and Boracay Water and even our International projects like Thu Duc in

Vietnam, Jakarta Indonesia.

Synthesis

Relationship with the suppliers is more important and the commitment. Manila Water

ensure that all services will be examined and undergo by the quality control to prevent such

damages and as well as to avoid mistrust. Plus, sales will be meet by the company if continuous

delivery of good service thru mutual relationship with the suppliers

Conclusion

The company can create partnership by encouraging its suppliers to become customer-

focused. It can organize meetings with its suppliers to better communicate purchasing needs.

The organization can motivate the supplier to move towards quality management system. The

organization can organize training for the staff of its suppliers to better communicate issues of

meeting requirements and also to develop them.


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CHAPTER 4

ISO AUDIT

4 Quality Management System

4.2.1 General

The quality Management System documentation shall include:

a.) Documented statements of a Quality policy and Quality objectives.

b.) Quality Manual

c.) Documented procedures required by the International Standard

Question:

4.2.1a Do all of your employees know or have the copy of quality policy to maintain

and gain the customer satisfaction?

Yes, because all employees are trained with the companys rules and regulations

for them to be guided accordingly to maintain the companys standa rd and

procedures and give an exceptional customer service.

4.2.1b Is the quality company manual clearly defined the Quality Management

System?

Yes, because the company manual has the scope of quality system and

justification for any exclusions; Description of quality management system

processes and their interrelations; Reference to documented procedures

(Supporting Documentation).

4.2.1c Do you have any documents that tackle about the requirements of ISO?

Yes, we do have the documents.


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FINDINGS: The Head of Safety Solution Department was able to show us the proof when it

comes to the required documents of the ISO. They also show us the Quality manual, and their

Quality policy. The company is in compliance with ISO 4.2.3 control of documents.

4.2.4 Control of Records

Question:

4.2.4 How does the management/manager in the sales department ensure that

everyone in the department is doing their task properly and communicates

within the organization?

Through evaluation and monitoring of the employees.

FINDINGS: The Safety Solution Department do have records on how they evaluate their

employees which helps the management to monitor its people to become more beneficial in the

organization. Therefore, every employee in the department is being observed and evaluate by

their managers to ensure that every responsibilities and tasks are done properly which will make

more productive and efficient in their daily work.

5 Management Responsibility

5.1 Management commitment

Top management shall provide evidence of its commitment to the development and

implementation of the quality management system and continually improving its efficiency by:

a.) Communicating to the organization the importance of meeting customer as well as

statutory and regulatory requirements.

b.) Establishing Quality Policy

Question:

5.1a How do you make sure that the organization meets the customers

statutory and regulatory requirements?


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6 RESOURCE MANAGEMENT

6.2 Human resources

6.2.2 Competence, awareness, and training

b.) Provide training or take other actions to satisfy these needs.

Question:

Do you give any training to the sales personnel before hiring them in the company?

Yes, all employees undergo companys orientation for them to know the rules and

regulation of the organization. And giving them information about the companys

background, discuss to them the standard operational procedure to be guided

accordingly.

d.) Ensure that its personnel are aware of the relevance and importance of their

activities and how they contribute to the achievement of the quality objectives.

Question:

How do you ensure that employees in the department are aware of their respective task

and responsibilities for the company to achieve its objectives?

As a Head of Safety Solution Department, I am responsible for the work performance of

the members of this department. We have protocols to each of the management levels.

And these are described in terms of their possible job titles and their primary

responsibilities and the paths taken to hold these positions. We also organize meetings

to always remind the employees about their task and responsibilities.

6.4 Work Environment

Question:

How does the manager/management in Safety Solution Department manage its work

environment for them to achieve goals needed in the organization?


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The management make sure that the work environment are suitable not only for the

employees but most especially to the customers. Setting the business where it is easily

being reached by many people. Giving them proper ventilation where in it is comfortable

not only to the employees but also to the customers.

8 Measurement, analysis and improvement

8.2 Monitoring and Measurement

8.2.1 Customer Satisfaction

Question:

How do you monitor the needs of the customer in your company?

By asking the customers right away according with their wants and needs for us to know

what their concerns are. Plus, We conduct a survey called PAWS every 1-3years to

measure the customer satisfaction across Concession Areas of Manila Water (Part of

QC, Marikina, Mandaluyong, San Juan, Pasig, Taguig, Pateros, Rizal Provinces, Makati

and portion of Manila).

8.4 Analysis of Data

c.) Characteristics and trends of processes and products including opportunities for

preventive action.

Question:

What kind of process do you implement in the department that will ensure that work is

done precisely?

Monitoring of Every program that must be serve customer, to make our individual safe

and healthy and make our employee productive.

8.5. Improvement


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8.5.1 Continual Improvement

The organization shall continually improve the effectiveness of the quality management

through the use of the quality policy, quality objectives, audit results, analysis of data corrective

and preventive actions and management review.

Question:

How do you improve the effectiveness of quality management system in thedepartment

through the use of quality policy, quality objectives, audit results, analysis of data,

corrective and preventive actions and management review?

The keystone of our department is the concept of the customer and staffs working

together. For this to become effective, we maintain good relationship with our customers.

However, sustainability in the quality of service is the focal point of each department of

the company. Moreover, in our department we make sure that we follow all the rules and

regulations stated. We have our own certain strategies to maintain and improve our

quality management system for the continuous progress of the company.


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CHAPTER 5

ANALYSIS, RECOMMENDATION & CONCLUSION

1. Analysis

Environmental issues are the sustainability of water supply and preservation of natural

resources, both of which are essential in ensuring continued access to and availability of water.

It is to ensure development of the economical customers. The water they get from Manila Water

is safe, thus improving not only the familys health condition but also their quality of life in a very

significant way. Manila Water continues to provide quality of water and wastewater services to

public institutions part of it is to see is to see the their living conditions improve.

The most visible initiative in relation to sustain the environment with the goal of

conserving resources, services improvement plan ensures that all new facilities will be operated

at a minimal cost it is not directly benefit customers but also help pollution in Metro Manilas

waterways. Manila Water intends to further strengthen commitment to sustainability, which is

made possible because of a more aggressive service improvement plan that have put together.

They believe it is important to bring together various stakeholders to ensure that it is

carried through and are sustainable that will increase our effectiveness in giving back thecommunities and the publics does the Manila Water serve. It is a major challenge for Manila

Water is to maintain steady water supply to our customers. Thus, their projects are aimed at

improving the reliability and efficiency of their service. They believe in motivating an individual to

his full potential, and in his ability to contribute to the organization. The management continue to

develop and improve the quality of process service for the benefit of the customers.

2. Recommendation

Water resources, in any surface and underground, should be managed on the basis of

long-term water management plans, so as to follow an integrated approach regarding all

relevant aspects of water quantity and quality, abstraction and discharge, supply and protection.

It should promote the rational and equitable allocation of water resources among all users by

applying appropriate regulatory and economic instruments in terms of quality and quantity as


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well as any potential effects on the environment, to provide continuing incentive for water users

to control both pollution and wastage of water resources.

Highest priority should be given to preserving and protecting high quality waters for

potable use where there is either present or potential demand management should beencouraged as providing an effective solution to water problems within the framework of a

national water management policy. Pollution control measures should be applied as close to the

source as possible.

Authorities should ensure that the water pollution control measures they implement do

not lead to uncontrolled pollution transfers to other water resources or to soil or air systems.

Monitoring is an essential tool of pollution control and should be developed adequately. They

should facilitate public information and participation to promote more informed decision-making

and to enlist public support for proposed activities.

3. Conclusion

The Company focuses on water supply treatment and distribution, wastewater. Manila

Water believes that the continued sustainability of its business is dependent on the communities

that it serves and the environment that supports its resources. With this in mind, the company

will be able to address the needs of the communities, the environment and the economy,

without sacrificing quality.

The company Develop and promote programs that would nurture, protect and conserve

our natural resources. Make sure that the construction of new facilities and adoption of new

technologies support the principles of sustainability. Design and develop an environmental

management system that would ensure the sustainability of the company operations. An activity

that aims to make the community or environment better from what it is today for the benefit of

tomorrows generations.

The protection of the environment as another important component of Sustainable

development addressed by the Company through its efforts in ensuring that water resources are

protected. Manila Water ensures that employees enjoy competitive compensation, benefits and

rewards to improve their standard of living, are provided with appropriate development and

training opportunities for their professional and personal growth and are operating in safe and

final tqm chapter 1-5

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