Research on total quality management Essay Example

one of the biggest business conglomerates in the Philippines, with interests spanning alcoholic and non-alcoholic beverages, food, packaging, power, oil, and telecommunications. On October 1, 2007, San Miguel Brewery separated from SMC and was subsequently listed on the Philippine Stock Exchange on May 12, 2008. In 2009, Kirin Holdings Co. Ltd. of Japan acquired a significant portion of SMB's shares from SMC at PHP 8.841 per share. With over a 95% market share in 2008,SMB holds a prominent position as the largest beer producer in the Philippines.

The Company has five breweries strategically located across the Philippines and a highly developed distribution system serving approximately 471,000 retail outlets. Before San Miguel Brewery Inc. was created, all of SMC's beer operations were under the San Miguel Beer Division ("SMBD"), a business unit of SMC. San Miguel Brewery Inc. was incorporated on July 26, 2007, and the domestic beer business was separated from SMC starting on October 1, 2007. The purpose of separating SMC's domestic beer business into SMB was to realize the value of SMC's flagship business. San Miguel beer, which started with a single product in a single brewery in 1890, has now expanded into a range of popular beer products that cater to the specific tastes and preferences of beer drinkers in various segments and markets in the Philippines, over a period of more than 117 years.

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San Miguel Brewery offers a range of nine beer brands. These include San Miguel Beer/Pale Pilsen, San Miguel Premium, All-Malt Beer, San Miguel Super Dry Cerveza Negra (San Miguel Dark

Beer), San Mig Strong Ice, Red Horse, Extra Strong Beer, San Mig Light, San Miguel Alcoholic Malt Beverage, and Gold Eagle Beer.

III. Vision and Mission

The objective of the San Miguel Beer Division Sales Force is to establish a reputable and esteemed sales organization within the worldwide beverage industry. Our aim is to satisfy both present and future customer demands by delivering outstanding products, systems, and services. We seek to enlarge the Philippine beer market through effective and efficient selling methods as well as distribution of SMBD's merchandise. This approach will aid in accomplishing the Company's objectives of market dominance, cost effectiveness, and quality superiority while ensuring optimal returns. We endeavor to make San Miguel easily accessible for our customers at any time or location.

The company's Total Quality Management

A. The focus of the company is on quality human resource planning.

SMB implements human resource planning to handle future uncertainties that may impact their workforce. This involves considering the availability of their human resources and ensuring they have an adequate number of employees with the necessary capabilities. By doing so, SMB can easily adapt and make improvements when unexpected situations arise as they have already planned for such occurrences. They also provide guidance and coaching to their HR Accounts Management team to deliver excellent HR services.

Provides professional and proactive HR services and advice to managers and supervisors in various areas such as Recruitment, Manpower Planning, Organization Management, Training and Development, Compensation and Benefits, Performance Management, Management Development Program, Human Resources Information Management/SAP-HR, Culture Management Initiatives, and Employee/Labor Relations. Acts as the specialist in Recruitment and Selection

to ensure consistency of practices among HR staff and timely acquisition of talented individuals for vacant positions.

When recruiting employees, the company ensures that the applicants are suitable for the position based on job descriptions and specifications. In the event of a job vacancy, the branch posts a notice on the bulletin board. All employment applications received by the bank are reviewed by the HR department for appropriate action. For SMB, the manager is authorized to screen and select applicants, but HRD confirmation may be required. The recruitment process includes receiving applicants, conducting preliminary and evaluation interviews, testing, in-depth interviews, evaluating applicants, referring to branch needs, advising applicants on reference checking or clearance, physical examination, selection, and placement. To ensure high-quality recruitment and selection, the branch follows a series of procedures outlined in their manual.

When applying for a permanent position, candidates must meet basic employment requirements and fulfill additional criteria including medical and dental examinations, personality evaluation or psychological testing, and character investigation. A probationary employee is an individual newly hired to fill a vacant position who undergoes close observation and assessment for a specified period. This probationary period aims to evaluate the employee's capability and competence in performing their duties. At the end of the sixth month of probation, the manager decides whether to terminate or retain the employee and grant them a permanent appointment. If a probationary employee fails to meet regular employment criteria, they are dismissed without receiving termination pay. On the other hand, a regular employee is someone who has successfully completed their probationary period and received a permanent appointment.

C. Employee Relations

San Miguel Brewery

values social responsibility, which leads to employee retention and reduces turnover and training costs. Employees stay with the company because they genuinely believe that SMB appreciates them. Programs aimed at reducing absenteeism also improve productivity and save money for the Company. Welfare programs also promote pride among San Miguel Group staff members. At San Miguel Brewery, the focus is on building a familial bond among employees rather than just boss-subordinate relationships. There is mutual respect among coworkers, especially since some employees are stockholders who have ownership in the company. Additionally, employees receive fair compensation, fostering unity and collaboration within the organization.

D. San Miguel Brewery implements Total Quality Management practices, including trainings such as the 5 'S' method and a files management system, with a particular focus on the Record Retention System (RRS). This system establishes standards for file organization using specific codes.
E. San Miguel Brewery also places importance on Quality Control and Quality Assurance, conducting quarterly and unannounced audits in both the workplace and the plant.

The workplace audit involves enforcing specific rules for employees regarding the use of company facilities. For example, employees are not allowed to place any personal items on their working tables, as specified by the rules. This is done to ensure compliance with workplace audit standards. In the plant audit, the focus is on ensuring that machines checking the bottles are fully automated. The manufacturing process follows stringent quality assurance guidelines, utilizing high-grade machines and equipment with the latest models. Production is conducted with great attention to cleanliness, eliminating any foreign matter from the bottles.

F. Quality Services

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F.

We provide high-quality services.

San Miguel Brewery is dedicated to delivering exceptional service to fulfill the requirements of all customers. The company acknowledges the significance of treating each customer equally and appropriately, irrespective of personal preferences. They provide training for sales employees to assist them in effectively dealing with challenging customers. San Miguel Brewery strives to foster customer loyalty by offering discounts, gifts, and other advantages, which they compare to the courtship process known as "ligawan." The manager emphasizes that establishing positive relationships with both outlets and customers is crucial in guaranteeing long-term customer loyalty.

G. Customer Complaints

At San Miguel Brewery, customer complaints are seen as an opportunity to showcase their commitment to both their products and customers. To effectively handle these situations, supervisors and secretaries receive specific training on managing customer complaints. The company encourages customers to voice concerns about products or employees with the assurance that these issues will be promptly addressed.

San Miguel Brewery has established a standard procedure for resolving complaints within 48 hours. Failing to meet this deadline automatically leads to escalation of the matter to the next level. When receiving a complaint, it is crucial to "contain the situation." This may involve urging complainants to consume the company's products as evidence of their safety and lack of testing before delivery – a strategy known as "containment" which protects against unjustified criticism from the media.

Figure 2: SMB process of dealing with Customer Complaints H. Marketing Strategies SMB Manager was unable to disclose their Marketing Strategies as it encompassed their confidential quality plans for promoting their products. However, she emphasized that the Marketing Strategies vary depending

on the location. For instance, in Ilocos, different strategies are required to target the diverse types of customers they serve in that area. Furthermore, she assured us that last year's strategy is not being retained for this year, as strategies are continuously enhanced and evolve rather than remaining constant.

I. Management Quality Services

The management monitors the work of their staff in providing quality service. Dealers have specific measurable and quantifiable objectives that are evaluated quarterly and annually. The annual performance appraisal determines if the key performance indicators or specific objectives were achieved. It also determines if a Dealer is eligible for a performance appraisal increase or decrease. Employees are ranked based on exceeding or falling below expectations, and Managers cannot alter recorded points.

SMB supports their employees in training and development to maximize productivity. Employees are trained to have multiple skills and undergo training in different departments to expand their knowledge. This also serves as job enlargement, preventing boredom from doing the same activities throughout their career and allowing for rotation to avoid operational paralysis in the absence of one person.

K. Performance Evaluation

SMB utilizes key performance indicators (KPIs) to assess and encourage excellence in employee job performance. These KPIs serve as a reliable reference for each employee, guiding them towards success. Unlike some cases where employees rely on managerial or supervisory recommendations for promotions, San Miguel does not follow this practice. The company remains committed to their values and commitment to quality by consistently evaluating performance. Ultimately, the Key Performance Indicator determines whether an employee is qualified and deserving of promotion consideration.

L. Future Plans