*Brief History*

About SBMA

The Subic Bay Metropolitan Authority (SBMA) is the operating and implementing arm of the
Government of the Philippines for the development of the 262 square mile (670 square kilometer) area
of Subic Bay Freeport (SBF) into a self-sustaining tourism, industrial, commercial, financial, and
investment center to generate employment opportunities. This area was the former US Naval facility in
Subic Bay.

Spain discovers Subic Bay's natural deep and strategically located harbor and soon builds a naval
fortress. 1992A After almost 90 years as an American military facility, Subic is turned over to the
Philippines after the Philippine Senate rejects the renewal of the 1947 US-Philippines Military Bases
Agreement and the Mt. Pinatubo eruption destroys base facilities. 1992B

1800 1909 1992 1992

1800 The US Navy selects Subic Bay as a repair and supply depot due also to its strategically located
safe and natural deep harbor. 1909 R.A. 7227 creates the Subic Bay Metropolitan Authority to
promote and develop the Subic Special Economic Zone into a self-sustaining, industrial, commercial,
financial and investment center to generate employment opportunities in and around the zone, and to
attract and promote productive foreign investments.

On March 13, 1992, the Philippine Congress passed Republic Act 7227, known as the Bases Conversion
and Development Act of 1992, in anticipation of the pullout of the US military bases in the country.
Section 13 of RA 7227 created the Subic Bay Metropolitan Authority (SBMA) to develop and manage the
Freeport which provides tax and duty-free privileges and incentives to business locators in the special
economic zone.

Richard Gordon, then the mayor of the City of Olongapo, became the first SBMA chairman.

Mayor Gordon with 8,000 volunteers took over the facility to preserve and protect US$8 billion worth of
property and facilities when the last U.S. Navy helicopter carrier USS Belleau Wood sailed out of Subic
Bay on November 24, 1992 and started the conversion of the military base into a free port like Hong
Kong and Singapore.

On its fourth anniversary on November 24, 1996, Subic Bay hosted the leaders of 18 economies during
the Fourth Asia- Pacific Economic Cooperation (APEC) Leaders' Summit. By that time, this emerging
investment haven had already successfully attracted companies like Federal Express, Enron, Coastal
Petroleum now El Paso Corporation, Taiwan computer giant Acer and France telecoms company
Thomson SA to establish operations in the Freeport.

Richard Gordon was SBMA chairman and administrator and was succeeded by Bataan Representative
and Harvard Business School graduate Felicito C. Payumo in 1998.

In August 2004, Executive Order No. 340 was issued by then President Gloria Macapagal-Arroyo. This
Executive order reorganized the SBMA Board of Directors and segregated the powers, functions and
duties of the chairman and those of the SBMA administrator. Ayala Land founding president Francisco H.
Licuanan was appointed SBMA Chairman and former Development Bank of the Philippines (DPB)
chairman Alfredo C. Antonio was appointed SBMA Administrator in line with this Executive Order.

In 2006, Kings Point's US Merchant Marine Academy alumnus Commodore Feliciano G. Salonga was
appointed Chairman/Head of Agency, and Wharton graduate Armand C. Arreza was appointed SBMA
Administrator and Chief Executive Officer.

Succeeding Salonga and Arreza at the end of their six-year term was seasoned business executive and
entrepreneur Roberto V. Garcia who was appointed by President Benigno S. Aquino III as SBMA
Chairman and Administrator in 2011.

ABOUT US

The Total Quality Management (TQM) Office is dedicated to providing the SBMA with total quality
services from innovations to quality management practices and solutions that improve the quality of life
and satisfy the needs of internal and external customers. It is also tasked to guide, teach and mentor
employees in quality of work for a fruitful and meaningful career and advancement opportunities, as
well as investor-locators for a superior rate of return, resulting from practicing total quality management
and maintaining their ISO-certification, if any.

VISION

The TQM Office envisions the whole Subic Bay Freeport Zone, with the SBMA as the administrator and
steward of the Freeport Zone, and all its investor-locators as ISO-certified companies, all practicing total
quality management to improve the quality of life inside the Freeport Zone.
VALUES

"Our raison d'etre is preserving and improving life." All our actions must be measured by our success in
achieving this goal. We value above all our ability to serve everyone who can benefit from the
appropriate use of our services, thereby improving the quality of life of our customers.

"We are committed to the highest standards of ethics and integrity." We are responsible to our
customers from SBMA employees and management, to the environment we inhabit, specifically the
Freeport Zone. In discharging our responsibilities, we do not take professional or ethical shortcuts. Our
interactions with all departments/units/offices of the SBMA, including its customers, must reflect the
high standards we profess.

"We expect revenues or profits, but only from work that satisfies customer needs and benefits the
whole Subic Bay Freeport Zone." Our ability to meet our responsibilities depends on how efficient and
effective we serve the SBMA. By maintaining the SBMA as a total quality organization and ISO-certified
government-owned and controlled corporation (GOCC), we expect to continually improve the financial
position of SBMA, as a state-owned corporation.

"We recognize that the ability to excel - to most efficiently and effectively meet customers' needs and
stakeholders' concern - depends on the integrity, knowledge, imagination, passion, skill, diversity, and
teamwork of employees, and we value these qualities most highly." To this end, we strive to create an
environment of mutual respect, encouragement, and synergy - a working environment that rewards
commitment and performance and is responsive to the needs of employees and their families.

OUR FUNCTIONS

ISO - Quality Management System Implementation

Conduct ISO Awareness seminar

Document core processes

Assist in quality manuals preparation

Assist in setting of performance metrics

Conduct quality trainings to support ISO implementation

Prepare/assist in preparation of ISO-required documents

Institute continuous organization-wide improvement systems

Institute continuous organization-wide learning of quality concepts and methodologies

Integrate, align and synchronize other quality methodologies/concepts with ISO-Quality Management
System
TOTAL QUALITY MANAGEMENT IMPLEMENTATION

Undertake quality assessment of SBMA using the Malcolm Baldrige system

Institutionalize customer relationship management systems as a support of ISO-requirements.

Institutionalize Six Sigma methodologies, Quality Circles, 5S and other quality concepts/methodologies
to support organizational operations

Conduct organizational development (OD) activities to strengthen the productivity improvement

initiatives of SBMA.

FREQUENTLY ASKED QUESTIONS (FAQS)

What Is ISO?

ISO stands for "International Organization of Standardization". Instead of using an acronym (IOS) they
used the Greek work for "equal", which is ISO.

What Is ISO 9000?

ISO 9000 is a series of documents that define requirements for the Quality Management System (QMS)
standard. ISO 9001 is one of the documents in this set, containing the actual requirements an
organization must be and do in compliance with the international standards of ISO, particularly
becoming an ISO 9001:2008 registered.

How Do I Get ISO Registered?

To become ISO 9001 registered, your organization will need to implement a Quality Management
System that complies with the requirements of ISO 9001:2008 version, run that system and collect
records, then have a third party auditor called a Registrar come and audit your system.

What Are The Benefits Of ISO 9000?

Benefits of implementing ISO 900 in an organization include: (1) Well-defined and documented
procedures improve the consistency of output or product; (2) Improved efficiency of operations due to
established standard operating procedures, processes and policies; (3) Optimized company structure
and operational integrity; (4) Clearly defined responsibilities and authorities; (5) Improved accountability
of individuals, departments, and systems; (6) Improved communication and quality of information; (7)
Improved records in case of litigation against the company; (7) Formalized systems with consistent
quality, punctual delivery, and a framework for future quality improvement; (8) Documented systems
with useful reference and training tools; and (9) Improved relationships with customers and suppliers.

In short, being an ISO-certified company really makes good business sense.

What Is The Difference Between ISO 9000 And ISO 9001?

ISO 9000 is often used to the set of ISO Quality Management System documents. ISO 9001 is the
document that contains the requirements for the Quality Management System. You will register to ISO
9001; while ISO 9000 is a guidance document on the fundamentals and vocabulary for quality
management systems. ISO 9002 and ISO 9003 are no longer in use. All companies or organizations
register to ISO 9001.

What Is ISO 9001:2008 Then?

ISO 9001:2008 is part of the ISO 9000 family of standards, and is the document that lists the
requirements that an organization must comply with to become ISO 9001 Registered. ISO 9001 is an
internationally recognized Quality Management System.

Is There An ISO 9000 Certification?

ISO 9000 Certified is technically incorrect, as ISO 9000 does not have requirements. ISO 9001 Certified
means an organization has met the requirements in ISO 9001. It defines an ISO 9000 Quality
Management System (QMS).

How Does ISO 9001 Affect Our Product?

ISO 9001 does not define the actual quality of your product or service. The standard helps you achieve
consistent results and continually improve the process. Thus, if you can make a good product most of
the time, this helps you make it all of the time. It's just good business practice to go ISO.

What Documents Are Required To Meet ISO 9001?

The ISO standard requires a Quality Manual, Quality Goals and Objectives, a Quality Policy and specific
Procedures for Document Control, Control of Quality Records, Control of Non-conforming Product,
Corrective Action, Preventive Action, and Internal Quality Audits. These are the specific procedures
mentioned by the Standard, and you must have these procedures, but you must also pay close attention
to the clause that requires documents needed by the organization for effective planning and control of
processes. This means that even though only six procedures are required for your organization, your
organization must determine what other procedures are required for your organization.

What Are The Drawbacks To ISO 9000?

There are costs associated with the implementation and maintenance of the quality management
system. You will need to have a Registrar come every six (6) months or a year to make sure your system
still meets requirements. Most companies find that the improvements within the company pay for these
costs.

What Are The Contents Of ISO 9000?

ISO 9001 contains requirements for a Quality Management System. The requirements are broken down
into 5 sections covering: Quality Management System, Management Responsibility, Resource
Management, Product Realization and Measurement Analysis & Improvement.
What Is Total Quality Management?

There is no one definition of total quality management or TQM just as it cannot be derived from a single
idea or person. The TQM-SBMA defines TQM as: Total means that everyone from the President or CEO
down to the lowest rank-and-file participates in quality initiatives and that it is integrated into all
business functions; Quality means meeting or exceeding customer (external and internal) expectations;
Management means improving and maintaining business systems and their related processes or
activities. Given all these, total quality management is a philosophy, a science, a work ethic, a process,
and a system. It is a continuous improvement of people and organizations. The "total quality company"
exists where people want it to exist, and are willing to work together in creating it for themselves. TQM
is and never has been a "one-man show", whether historically, conceptually or operationally.

What Is Then The Relationship Of TQM With ISO 9000, Particularly The Quality Management System Of
ISO?

ISO is said to lay the foundation of a quality company. With a good solid foundation of your processes,
procedures, systems and policies, it is now much easier to attain productivity and efficiency. It becomes
easier to produce your product at a low cost with quality. Though both ISO and TQM aim for customer
satisfaction, the ultimate vision of a quality company is total quality management or to become a TQM
company.