The

·I@ PRODUCTIVITY~
Newsletter of the OAP-Productivity & Development Center April-June 1998

4oth APO Governing Body 1st PQA Awarding Ceremony

Meeting hosted by DAP
held in Malacaiiang
The40th Session of the AsianProduc-
tivityOrganization'sGoverningBcxly,
of which the DAP, as the National
ProductivityOrganizationinthe Phil-
ippines (NPO) is a member, was held
on June 2-5, 1998 at the Garden Ball-
room, EDSA Plaza Hotel in Manila.
ToeeventwhichcoincidedwithDAP's
.5th anniversary celebration was at-
tended by forty-four delegates from ,
seventeen member-countries. In time with the Centennial celebration of Philippine independence, the
first Philippine Quality Award (PQA) award ceremony was held on June
Among the highlights of the meet- 3, 1998 in the Heroes' Hall of the Malacafumg Palace with President Fidel
ings are the annual report of the APO V. Ramos as Keynote Speaker. Seven organizations were given PQA
Secretary-General, Policy Directives awards, and two, PQA citations. The recipients were:
and Program Strategies of the APO,
Report of the 38th Meeting of the PQA Quality Proficiency Award
HeadsofNPQs,ReviewofAPORegu-
lations, Appointment ofthe new APO A. Manufacturing Company Category:
Amkor-Anam Pilipinas, Inc.
Secretary-General, and appointment B. Small & Medium Enterprise Category:
of Auditors. The GBM also had a Data General Philippines
special paperpresentation on ''Emerg-

-~ges
ing Productivity Issues and Chal- PQA Quality Commitment Award
Amidst the Asian Currency
Crisis" by Dr. Federico Macaranas, A. Public Sector Category:
City Government of Marikina
President, Clemente Holdings (Asia)
Ltd. B. Manufaturing Company Category
(continued on page 5)
- American Microsystems, Inc. (Philippines)
- Electronic Assemblies, Inc.
- San Miguel Yamamura Asia Corporation
What's Inside? -Yazaki-Torres Manufacturing, Inc.

PDC Seminars for PQA Citations

the Academe..................... 2
PRODSTATS ........................ 4
55 Pilot Implementation
at Cater King Food Corp.... 5
sowing the Seeds of
p & Qin Marikina..............6
Audio-Visual Productivity
Aids .................................... 7
A. Public Sector Category:
- National Statistics Office
- Bureau of Customs
In his keynote address, the President, wh o is also the Patron of the PQA,
said, "Freedom and excellence are two values basic to man's perpetual
striving to improve himself. Excellence, at the individual or organizational
level, can be done best in an athmosphere of self-reliance and creativity;
(continued on page 3)
 2 THE PRODUCTIVITY MANAGER APRIL-JUNE 1998 APRIL-JUNE 1998 THE PRODUCTIVITY MANAGER 3

PDC Conducts Series of
Seminars for the Academe
In response to the increasing de-
mand for Productivity and Quality
trainingbytheacademe,DAP-POC,
through its training arm, the Philip-
pine Productivity & Quality Train-
ing Institue (PPQTI),helda series of
seminars and related activities be-
tween April and June.
PDC conducted the second batch of
the Foundation Course on P&Qfor the
Academe on April 22. The course
was attended by 35 participants
from 23 tertiary schools nationwide.
The course included a session on
productivity measurement which
was highly appreciated by the par-
ticipants.
To respond t o the academe's inter-
est in TQM, a Seminar on TQM in
Education was conducted on May
19-20. The seminar focused on the
Philippine Quality Award Criteria
for Performance Excellence in Edu-
cation with Dr. Luis Ma. R. Calingo,
APO expert, as main resource
speaker.
Seminar on Productivity Measurement PQA Awarding... (from page 1)
GP Promotion Mission
for Integrated Microelectronics, Inc. for SMEs and the search for excellence, on a national scale, presupposes that a nation
is politically and economically free."
An In-house Seminar on Productivity Measurement for middle managers
DAP-PDC, through its Technical
and supervisors from both the production and support services depart-
Services Group-Small & Medium The PQA is a major program of the National Action Agenda for Produc-
ment of Integrated Microelectronics, Inc. was organized jointly by the tivity. With the PQA, the Philippines joins three other Asian countries that
Enterprises Unit (TSG-SMEs) will
Training and Development and Total Quality Management Departments have national quality awards. These are Japan (Japan National Quality
conduct a Green Productivity (GP)
of IMI and the DAP-PDC's Productivity Research & Information Group Award), Malaysia (Prime Minister's Award) and Singapore (Singapore Qual-
Mission to small and medium en-
(PRIG) on March 11-13, and June 16-18, 1998, respectively. ity Award). Their common objective is to give national recognition to
terprises (SMEs), the academe and
organizations for outstanding performance in quality and productivity.
government offices in Region IV
It aimed to enable managers to determine the overall productivity per- All four systems have adapted the American Malcolm Baldrige National
and Baguio City on August 10-21,
formance of the organiza~ion; identify areas for improvement; generate 1998 through a series of seminar- Quality Award (MBNQA) criteria for international comparability. The
necessary data for . use m benchmarking with other companies; and, PQA's criteria consist of seven categories, namely, Leadership; Strategic
workshops, executive briefings, and
generate data as basis for corporate strategic planning; the activity covered Planning; Customer and Market Focus; Information and Analysis; Hu-
roundtable discussionas.
the fundamentals of producti~ity measure~ent; the productivity meas- man Resource Focus; Process Management; and Business/Organizational
urement process and an overview of the ma1or productivity technologie. Results.
-~Green Productivity is a concept in-
~ tegrating environmental protection
Prod~ctivity Measurement technologies presented include the Objectives and productivity improvement as a Levels of the Philippine Quality Awards
Ma~l.X ~e~od (0~, a pro~enmethodology to achieve accountability and key to sustainable development.
motivation m service functions; Value-Added Productivity M urement The program calls for a clean, effi-
(YAPM), a tool which utilizes value-added as the measure 0 ;as tput for cient and environment-friendly pro-
establishing optimum number of employees and developin;: value- d uction system that minimizes
added man~gemen~ pl~ and Total Factor Productivity Measurement waste and decreases cost. Through
(TFPM)~which provi~es ~ormation on the effect of productivity changes the mission, DAP-PDC intends to
on pr?fit for strategic options. The training culminated in an action- address the increasing impact of
plannmg workshop. ~
environmental regulations, stand-
ards and global competition to- PQA QUALITY MASTERY AWARD
wards the business viability of Phil-
PDC Conducts 5S
ippine SMEs.
for Lepanto Mining
~a,,.• .
DAP-POC's Industry and Services
o~ PBODUCTIVITY\t t.Specifically, it aims to: PQA QUALITY PROFICIENCY AWARD

Dr. Calingo was also the main
speaker in the Orientati~n on T~M
for the Technical Education & Skills
Development Authority (TESDA) on
June 3, attended by 24 senior offi-
cers. This was followed by an in-
house Orientation for the Commission
on Higher Education (CHED) on June
4 a ttended b y 27 staff members.
H e was also main speaker in the
Orientation on the Quality Assessment
Survey (QAS ) f or the University ofthe
Philippines-College of Engineering. It
w as a ttende d by 16 members of the
execu tive committee &a representa-
tive from the s tu dent council. 0
unit (TSG-IS) conducted a Trainers'
Training for SS Facilitators on May 19-
21 and a Top Management Orienta-
tion on SS on July 9 for Lepanto Con-
solidated Mining Company.
The Trainers' Training for SS
Facilitators equipped 5S Facilitators
with the tools to implement 5S in their
respective areas. The Top Manage-
ment Orientation provided opportu-
nities for the observance of 5S prac-
tices. As a result of the training,
facilitators have conducted 5S orien-
tation to some 500 employees.
Lepanto Consolidated Mining Co. is
the first company in the mining in-
dustry to implement 5S. tt
MI\NJ\C[l<
a. Establish formal tie-ups with
is published by the Development AcadernY target partner organizations;
of the Philippines-Productivity & Development PQA QUALITY COMMITMENT AWARD
Center (DAP-PDC)
b. Conduct briefings and semi-
nar-workshops to create
EDITORIAL BOARD
CARLOS A SAYCO, JR awareness on GP concepts and The PQA institutional set-up is as follows: the President of the Philippines
PLARIDEL Y. SANTIAGO techniques among SMEs, part- is the Award Patron; the Department of Trade and Industry (DTI) Secre-
MAGDALENA L. MENDOZA ner organizations and inter- tary is the Award Manager; and a PQA Committee with the DTI Secre~~ry
ELENA A. CRUZ ested large industries; as chair and the presidents of the Development Academy of the Philip-
ARNEL D. ABANTO pines (DAP) and the Philippine Quality and Product~vity Movement as
c. Evaluate candidate SMEs for vice-chairs for the public and private sectors, respectively. Representa-
Managing Editor: JOSEF B. SABIO tives of the Philippine Society for Quality Control (PSQC), Dep artment of
APO's GP Demonstration Fac-
Associate Editors: JASMINE A.
tory Program; and, Budget and Management (DBM), Management Association of the Philip-
SANJUAN TE pines (MAP), Civil Service Commission (CSC), and ~ational Wages &
MYRA D. LAZAR
Computer Artist: d. Build DAP's technical com- Productivity Commission (NWPC) are PQA Committee members. A
XAVIER J. JAVIER
Circulation: CECILLE P. ROA petence in GP Promotions. \tt Management Committee, with representatives from the DAP-Productiv-
Secretary: CELIA F. BINA5 (continued on page S)
 4 THE PRODUCTIVITY MANAGER
PRODSTATS
11111111
Increase in TFP Growth to Prop Up
Expected Decline in GDP Growth
by PDC Productivity Research & Infonnation Services Group
IN 1997, the Philippines registered a GDP growth of
5.71 % (Figure 1) which is a drop from the previous year's
5.85%. This indicates a slow down in economic recovery
which can be attributed to the on-going foreign currency
crisis. However, increased foreign capital investment in
the early part of the year slowed down the drop in i
employment rate from 5.88% to 1.95%, which is the lowest
since that of 1995.
Figure 2 indicates that the country's economy, typical of
growing economies, continued to be capital-driven. Prob-
ably as a reaction to the crisis, productivity increased,
registering a slight Total Factor Productivity (TFP) growth
of 0.53% compared to the previous 0.24%.
Figurw 2. Decompoohlon af C:OP Crowth.
J 2
,If
AoH~t--f=l---"_._-+---'--'--+--t::=.___i _ ~
f
! .J
..
-4L----------------__J
,...
'"" '"'
.... l"4
The growth in TFP can be attributed to the growth of labor productivity (Fi
is a slow down in capital productivity growth which increased only by O890/4gure ) which grew by 3.16%. 'fhere
APRIL-JUNE 1998 APRIL-JUNE 1998 THE PRODUCTIVITY MANAGER 5
TSG-Agri Implements 5S Pilot Implementation at Cater King Food Corp.
National Level Productivity Indicators
PARCoDeP with DAR
The DAP-PDC Technical Services
Group-Agriculture (fSG-Agri) will be
implementing the Productivity-based
Agrarian Reform Community Devel-
opment Program (PARCoDeP), an 8-
month project with the Department
of Agrarian Reform (DAR)which will
beginonJunelS,1998. PARCoDePis
a component of the DAR program
Flgu111. Growth In CDP, TFP, C.pital Slock and EmployrrM1nL aimed to support the Agrarian Re-
form Communities (ARCs), specifi- .
cally the third phase of development
-'Farm Productivity Improvement).
PARCoDeP is a multi-factor and proc-
DAP-PDC's Technical Services Group-Small & Medium Enterprises Unit
!
1
ess community development pro-
(TSG-SME) is conducting a project on SS Pilot Implementation at Cater
.:
f O
r - -- - 7~====::::!.:=========:l!!===~ gram specifically designed to improve
the Productivity and Quality (P&Q)
King Food Corporation, Quezon City, from June to November 1998. The
•l
project aims to lay the groundwork for company-wide Total Quality
of five pilot ARCs, namely: Nagsurot
(Ilocos Norte), PANAT A (Ilocos Management.
Norte), CDC-8 (Negros Oriental),
"',m~--;,,.;,
.., ,...
---;::------___ _j
CDC-9 (Negros Oriental), and
A Top Management Orientation on Total Quality Management, 5S and
other P & Q techniques was held on May 28, followed by the first SSA udit
Monopolo-New Sibonga Cluster
on June 1. ASS Core Group which will be responsible for the kick-off and
~avao del Sur). The project will be maintenance of the SS program was formed. Training for the core group
unplemented in four phases:
was conducted on June 16-18, 1998, which also included an Action
Situational Analysis and/or Needs Planning Workshop. The first SS Audit was conducted on June 30, 1998
Assessment, Capability Building and
by the Core Group with the guidance of the PDC project team. ~
Figurw J. Growth in TFP c · ~&Q Advocacy, Technology Trans-
"
~lal and Llbor Productivity
fer, and Program Evaluation. In-
r-------___, tended beneficiruies are the five pilot
ARCs, development facilitators, and
1st PQA Awarding... (from page 3)
•Capability-building efforts•
involved DAR personnel. \t ity & Development Center (DAP-
PDC), PSQC, DTI and other Charita B. Rovira, Program Officer IV,
40th APO Goveming...(from page 1) participated in the Observational
agencies, assists the PQA Commit-
tee, and provides technical and Study Mission (OSM) on Investment
In his annual report, Secretary-Gen-
eral Kenichi Yanagi cited the impor- secretariat support. Lastly, there Improvement Approaches in TQM-
tance of human resources develop- are also the Board of Judges and the Practising Organizations, held on
... ment, research & development, tech- Team of Assessors. Dr. Luis Ma. June 2-5, 1998 in Taiwan, Republic
Calingo and Dr. Colin Mills, APO of China. It aimed to study the best
lff7
nology transfer and supporting· in-
dustry. He cited the introduction of technical experts advised the Phil- practices in Total Quality Manage-
19tG J?IJ7
the Advanced Program for the Devel- ippines in the design and ment best-in-class organizations,
opment of Productivity Specialists implementation of the system. tr study manufacturing and service
aimed to develop the core competen- standards, learnnew approaches in
3 . achieving customer satisfaction, and
cies of NPOs to meet country-specific "Nothing endures but change."
requirements. DAP-PDC conducts study new concepts and emerging
o as compared to 1.31 % in 1996. With - Heraclitus
•
the basic program for the course. \tt trends in TQM in Taiwan. \t
(continued on page B)
 6 · THE PRODUCTIVITY MANAGER
1998 Philippine Quality Award
Sowing the Seeds of Productivity & Quality:
the City Government of Marikina
MARIKINA IS composed of 14 barangays with a total
population of almost 400,000 and home to about 10,500
commercial and industrial establishments. Being the ·
first in the public sector to receive a PQA Quality
Commitment Award (PQA), Marikina is honored for
beginning a quality journey and sowing the seeds of
quality and productivity.
Clear Vision
Since 1992, the city's vision has been clear and simple:
an industry and government-friendly, happy working
class community. Through planning, the administra-
tion ofMarikinaensures that this vision is implemented
through programs and projects.
Sound and Purposive Business Approach
The City Government of Marikina assures its taxpayers
that every cent they pay to the government would be
returned to them in the form of programs and services.
Mayor Bayani Fernando recalls, in his recent State of
the City Address, that "with a meager income, they
realized it would be a tall order to bring about changes
within a short span of time."
"We brought competence to the government to the last
employee and acquired the necessary equipment-
gradually but steadily introduced proper engineering
with a little creativity and utilized the town's resources
to the hilt," continues Mayor Fernando. As a result,
Marikina gets things done at less expense to the gov-
ernment. For instance, the city garbage collection
registered an efficiency of 98% of the total garbage
generated at 200 tons/day (the highest in Metro Ma-
nila) covering 344 days a year with zero backlog.
Set of Values
Bayanihan, efficiency, honesty, integrity and formality
served as the moving spirit of both the officials and
APRIL-JUNE 1998 APRIL-JUNE 1998 THE PRODUCTIVITY MANAGER 7
J.\U Dlo..'/l SUJ.\L
PRODUC'f l'/ffY J.\lDS
Quality Circles: "Kapag may The Suggestion Scheme: Philippine Quality Award:
Kalidad, May Pag-unlad" "Ordinary Ideas, Extraordinary "Excellence: A Quality of Life"
(Where tliere is Qirnlity, there is Results", 15 mins. (Part 1), 14.35 mins.
Progress) 16 mins.
The Suggestion Scheme Video pro- Part I of PQA Video series is in-
This video features decision-mak- vides a systematic approach for en- tended as an orientation material
ingthrough teamwork, which is the hancing effective bottom-up com- for prospective applicants, such as
essence of Quality Circles. It also municationbysoliciting suggestions priva~e companies and government
highlights the themes discussed from employees, thus empowering agencies, from all sectors and in-
during meetings, and the tools used them to contribute to their organi- dustries. It covers the PQA objec-
aconductingproblemanalysis. The zation's improved productivity and tives and the criteria to be consid-
~idea features medium·- sized quality. The video also presents ered by applicants:: Leadership,
manufacturing and service compa- guidelines for writing suggestions, Strategic Planning, Customer and
nies ~ the Philippines that have suggests themes, and classifies sug- Market Focus, Information &
sustamed their QC Program over gestions. Representatjves of manu- Analysis, Human Resource Focus,
the years. Also included are testi- facturing and service industries Process Management and Business/
monials of top management per- share the benefits gained (i.e. en- Organizational Results. Also in-
sonnel and employees intended to hanced employee morale, creativ- cluded are insights by quality prac-
employees. The conc~pt of productivity is tau ht to enc~urage and inspire other com- ity, increased cost-effectiveness in titioners Dr. Colin Mills, Dr. Luis
everybody from the highest official to th 1 g panies to implement their own QC work production) from ~plement- Ma. Calingo, Ms. Carmencita T.
1 /1 b e owest em- Programs. ing Suggestion Scheme. Abella, Sec. Cesar A. Bautista, etc.
p oyee a orer.. As a result, people-centere d and tota1
qua Iity service culture evolved in the c·ty
. I d th
Th is i government. Green Productivity- Management System, human re-
e to e development ofprogram th t d
· 11 s a aresoun In Pursuit of Better Quality of Life sources development and environ-
and socra y acceptable.
Asian Productivity Organization ment, ecobusiness opportunities,
Major Programs 553 pp, 1996 and global cooperation in technol-
ogy transfer & information sharing.
The National Approach to This publication is a compilation of
M~ik~'s programs include Saving the Marikina River
Dzszplma sa Bangketa, Squatter-Free Marikin Ha 1 ~ Accelerate Progress- papers presented at the 1st APO The Quest for Productivity &
Free Roadways, Puno Kahit Saan (Th h a, s: e A Primer on the National Action World Conference on Green Pro- Quality
f . e w ole town 1s a Agenda for Productivity d uctivity held in Manila, December DAP-PDC, 40 pp, 1996
nlu~seMry oil trBees), 5-Minute Quick Response Time Peo- 1996 attended by 450 participants
p e s a ' arangay Talyer Midni ht D ' DAP-PDC, 44 pp, 1996
Bayan, Sports for Health an'd Wealthg D octlor, Bantay£ from 22 countries and jointly organ- This monograph presents a docu-
C t lB · . . , eve opment o This primer presents the essential ized/ implemented by the Asian mentation of productivity efforts
en ra usmess District, and Effective Waste Manage- Productivity Organization and the initiated and implemented by six
ment through proper engineer· An d e tails of the National Action
the Lakbay-Aral enables Ma . ~g. other program, Agenda for Productivity (NAAP). Development Academy of the Phil- selected companies in the manufac-
h 1 rikma to benchmark with It includes the concepts, principles, ippines. turing and service sectors. It pro-
o_t e~ ~cdal government units (LGUs) and other agen- ·
framework; the Sectoral Productiv- vides insights into the implementa-
c1es ms1 e and outside the country.
ity ActionAgenda;theNAAPPresi- It includes presentations by re- tion of productivity and quality im-
dential Directives and the Proposed nowned experts on sustainable in- provement programs and detail
In a span of five years, Marikina has rec . d 30 . company initiatives in the applica-
· 1and nahonalawards
· dustrial and agricultural develop-
reg1ona includin eIVe . ma1or Productivity Advocacy Program
Award for Innovat·10 dE g the Galmg Pook and Guidelines. ment, ISO 14000, Environmental tion of technologies such as TQM,
n an xcellence in L I G Labor-Management Consultation,
ance in 1995 and 1997 d oca overn- (For orders and inquiries on PDC publications & videos, please contact DA~-PDC Promotions
in the Phili . 1 an the Most Outstanding City & l11stit11tiona/ Development Office, OAP Bldg., San Miguel Ave., Pasig City. Tel. no. 631-21- 5S, and Quality Control Circles.
ppmes ast year. ~
67/43, e-mail: (cpq)dap mis1@mozcom.com)
 8 THE PRODUCTIVITY MANAGER
5S Pilot Implementation
-- at CSC-MIO
With the goal of developing the Civil
Service Commission (CSC) as a
model public service organization
where 5S is being practised, DAP-
PDC, through its Technical Services
Group-Public Sector unit (TSG-PS)
is conducting a Pilot Implementa-
tion of 5S at the CSC-Management
Information Office (CSC-MIO) from
02 February to September 1998.
The project is intended to: a) instill ment strategies are implemented, there is still hope of reducing the rate of
productivity and quality conscious-
ness among CSC employees; b) _
create awareness on how 5S can be
practiced to make office work more
efficient, effective and economical;
and c) develop CSC' s capabilities in
applying 5S.
In line with these the project team
has conducted / will conduct the fol-
l owing activities: a) situation
appraisal (February 2); b) organiza-
tion and training of the 5S Core
Group (February 24-26); c) 5S
orientiation (March 17-18, attended
by 100 employees); d) promotional
activities and project launching
(March 19, with CSC Chairman
Corazon Alma G. De Leon attend-
ing); e) on-site advising and
technical assistance (not less than
twice a month); f) project audits;
(first 5S audit, July 22, second audit,
August 24, w ith the third audit
scheduled for September 18). Project
evaluation will be done before the
project ends sometime in Septem-
ber 1998. • ~
"The difference between the
impossible and the possible
lies in a persons's
determination."
- Tommy Lasorda
APRIL-JUNE 1998
Increase in TFP Growth (from page 4)
the continuing crisis, slow capital investment and employment growth is
expected to continue for the next two years.
Due to the on-going regional currency crisis, the expansion of both capital
and labor is expected to slow down. This calls for increased productivity
interventions, aimed at generating awareness on the crisis and implement-
ing productivity improvement strategies at the firm and industry levels to
prop up expected decline in GDP. As long as TFPgrowth continue to
increase, economic reforms, political stability and productivity improve-
economic downturm. •
QC TOOLS Word Search •
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may pag-unlad" ~
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