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COMPETENCY BASED LEARNING MATERIAL

SECTOR : SOCIAL, AND OTHER COMMUNITY DEVELOPMENT


SERVICES

QUALIFICATION : BEAUTY CARE (NAIL CARE) SERVICES NC II

UNIT OF COMPETENCY : PRESENT RELEVANT INFORMATION

MODULE TITLE : PRESENTING RELEVANT INFORMATION


HOW TO USE THIS COMPETENCY-BASED LEARNING MATERIAL

The unit of competency, “Present Relevant Information”, is one of the


competencies of Beauty Care (Nail Care) Services NC II, a course which
comprises the knowledge, skills, and attitudes required for a TVET trainee to
possess.

The module, Presenting Relevant Information, This unit covers the


knowledge, skills and attitudes required to make a pro-active and positive
contribution to workplace innovation..

In this module, you are required to go through a series of learning


activities in order to complete each learning outcome. In each learning outcome
are Information Sheets, Self-checks, Operation Sheets, Task Sheets, and Job
Sheets. Follow and perform the activities on your own. If you have questions,
do not hesitate to ask for assistance from your facilitator.
Remember to:

 Read information sheet and complete the self-checks.


 Perform the Task Sheets, Operation Sheets, and Job Sheets until you are
confident that your outputs conform to the Performance Criteria
Checklists that follow the said work sheets.
 Submit outputs of the Task Sheets, Operation Sheets, and Job Sheets to
your facilitator for evaluation and recording in the Achievement Chart.
Outputs shall serve as your portfolio during the Institutional
Competency Evaluation. When you feel confident that you have had
sufficient practice, ask your trainer to evaluate you. The results of your
assessment will be recorded in your Achievement Chart and Progress
Chart.

You must pass the Institutional Competency Evaluation for this


competency before moving to another competency. A Certificate of Achievement
will be awarded to you after passing the evaluation.

Date Developed: Document No.


BEAUTY CARE (NAIL CARE)
July 2022 Issued by:
SERVICES NC II
Developed by: ARKSTONE ACADEMY
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BEAUTY CARE (NAIL CARE) SERVICES NC II
COMPETENCY BASED LEARNING MATERIALS

LIST OF BASIC COMPETENCIES

No. Unit of Competency Module Title Code

1. Participate in workplace Participating in workplace 400311210


communication communication

2. Work in a team Working in a team 400311211


environment environment

3. Solve/address general Solving/addressing general 400311212


workplace problems workplace problems

4. Develop career and life Developing career and life 400311213


decisions decisions

5. Contribute to workplace Contributing to workplace 400311214


innovation innovation

6. Present relevant Presenting relevant 400311215


information information

7. Practice occupational Practicing occupational 400311216


safety and health policies safety and health policies
and procedures and procedures

8. Exercise efficient and Exercising efficient and 400311217


effective sustainable effective sustainable
practices in the practices in the workplace
workplace

9. Practice entrepreneurial Practicing entrepreneurial 400311218


skills in the workplace skills in the workplace

Date Developed: Document No.


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MODULE CONTENT

UNIT OF COMPETENCY : Present relevant information

MODULE TITLE : Presenting relevant information

MODULE DESCRIPTOR : This unit of covers the knowledge, skills and attitudes required
to present data/information appropriately.

NOMINAL DURATION :

At the end of this module, you MUST be able to:


1. Gather data/ information
2. Assess gathered data/ information
3. Record and present information

Date Developed: Document No.


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COMPETENCY SUMMARY

Qualification Title : Beauty Care (Nail Care) Services NC II

Unit of Competency : Present relevant information

Module Title : Presenting relevant information


Introduction

This unit of covers the knowledge, skills and attitudes required to present
data/information appropriately.
Learning Outcomes:

Upon completion of this module, you MUST be able to:

1. Gather data/ information


2. Assess gathered data/ information
3. Record and present information

ASSESSMENT CRITERIA

1. Evidence, facts and information are collected


2. Evaluation, terms of reference and conditions are reviewed to determine whether
data/information falls within project scope
3. Validity of data/ information is assessed
4. Analysis techniques are applied to assess data/ information.
5. Trends and anomalies are identified
6. Data analysis techniques and procedures are documented
7. Recommendations are made on areas of possible improvement.
8. Studied data/information are recorded.
9. Recommendations are analysed for action to ensure they are compatible with the
project’s scope and terms of reference.
10. Interim and final reports are analysed and outcomes are compared to the criteria
established at the outset.
11. Findings are presented to stakeholders.

Date Developed: Document No.


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LO1. GATHER DATA/ INFORMATION

CONTENTS:

1. Machineries/equipment and their application


2. Software/programs

ASSESSMENT CRITERIA:

1. Evidence, facts and information are collected


2. Evaluation, terms of reference and conditions are reviewed to determine whether
data/information falls within project scope

CONDITIONS:

The students/learners must be provided with the following:

1. Manuals
2. Hand-outs
3. Multimedia
4. Video tape
5. Brochures
6. CD’s
7. Internet access
8. Computer

ASSESSMENT METHODS
1. Written
2. Interview

Date Developed: Document No.


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Learning Experiences

Learning Outcome 1

Gather data/ information

Learning Activities Special Instructions

Read Information Sheet 6.1-1: Read and understand the


“Machineries/Equipment and their information sheet and check yourself
application” by answering the self-check. You
Answer Self-check 6.1-1
must answer all the questions
Read Information Sheet 6.1-2: “Software
correctly before proceedings to the
Programs”
Answer Self-check 6.1-2 next activity
Refer to operation Sheet on “Using
accounting software” from CORE CBLM on Refer to Task sheets, it will help you
Use Relevant Technologies practice your skills.

The performance criteria checklist


will guide and help you evaluate
your work as you are practicing your
skills.

Evaluate your own performance


using the performance criteria
checklist. When you are ready,
present your work to your trainer for
final evaluation and recording.

If you have questions and


clarification fell free to ask your
trainer.

Date Developed: Document No.


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Information Sheet 6.1-1
MACHINERIES/EQUIPMENT AND THEIR APPLICATION

Learning Objectives:

After reading this information sheet, you must be able to:

1. Study appropriate technology based on work requirements


2. Identify and select appropriate technology based on work requirements
3. recall the importance of using office equipments and machines,
4. explain the objectives of office mechanization and describe its advantages and
disadvantages,
5. describe the main features and uses of accounting machines, computer.

Equipments and machines have become an essential part of a modern office. A large number of
appliances and machines are used for speedy, accurate and efficient performance of office
activities. With fast technological development, there is mechanization in office operations
resulting in increase of efficiency.

Importance and Objectives of Office Mechanization

Importance:

Efficiency in the office is just as important as efficiency in the factory. Office machines and
appliances are all such equipments which save time and labor in office work. Now-a-days
machines are very popular in offices because of the following reasons:

 The use of machines save time and labor of office assistants. For example, calculations
which human beings may need hours to perform are carried out in seconds with a
computer.
 The machines eliminate boredom and fatigue which are harmful for health.
 The operational cost of office is reduced as use of machine eliminates wastage of labor.
 Use of machines has added to accuracy in office work. Cross checking is possible with
the help of machines. Paper work is usually neat, clean and uniform in appearance.
 Use of machines in office is the indicator of modernization.
 When office worker uses same machine for longer time, he develops special skill which
is helpful in office work.

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Objectives of Office Mechanization

Mechanization of office refers to use of machines and equipments in office. These days
machines and equipments are widely used in offices. Mechanization in the office has the
following objectives:

 Saving of time: Machines turn out more work than what is manually possible. They
work faster and thus there is considerable saving of time.
 Saving of labor: Office machines are labor saving devices. Large volume of work can be
handled by fewer employees and thus there is saving of labor.
 Increasing accuracy: One of the objectives of using machines is accuracy of work
especially in accounting, computation and calculations. They minimize clerical errors.
 Reduction of monotony: The repetitive nature of office work is generally monotonous
and cause boredom. Human labor can be spared of these effects when machines are used.
 Reduction of chances of fraud: Machines like cash Register etc. put a check on frauds
and misappropriation.
 Improving quality of work: Written work produced with the help of machines is usually
neat, clean and uniform in appearance.
 Ensuring better control: Mechanization of office enables the management to exercise
more effective control over activities. For example, use of Time Recorder at the factory
gate ensures better control over attendance.
 Improving good will: The use of machines results in better service to the customers and
public. This enhances the prestige of the organization.

Advantages and Disadvantages of Mechanization

There are a number of advantages and disadvantages of office mechanization.

Advantages:

The benefits of using office machines and equipments are as follows:-

1. Reduction in operating costs: Office machines are labor saving devices. They save
manual effort and increase productivity and thus lead to overall reduction in operating
costs.
2. Higher efficiency: The speed of work is greatly increased. This results in higher
efficiency on account of saving in time. Written matter is generally neat and legible.
3. Greater accuracy : Mechanization ensures accuracy of work, prevents clerical
4. Relieves monotony: The monotony of all routine work is reduced with the help of
machines. This gives considerable satisfaction to office staff.
5. Effective control: Mechanization enables management to exercise more effective control
over office activities. For example, data can be analyzed by computers promptly to check
the quickly of work done.

Date Developed: Document No.


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6. Better service: The use of machines results in improvement of office services and
activities. For example, the invoices, statements and other documents are prepared in
legible form and distributed and dispatched more promptly. This enhances the popularity
of the organization.

Disadvantages:

There are certain limitations associated with mechanization of office services. These limitations
are outlined below:

1. Heavy investment: Many office machines like computer require huge initial investment.
Generally it may not be possible to make the maximum use of a costly machine. An idle
machine is as wasteful as idle labor.
2. High maintenance cost: Machines require periodical repair, cleaning, oiling and
maintenance. This involves an additional cost for the organization. Apart from this,
running cost may also be very high e.g., computers need air-conditioning and special
attention. Breakdown of machine may cause considerable loss.
3. Cost of skilled operators: special skills are required for operating machines and it is
necessary to pay more for employees who are skilled and trained. Money has also to be
spent on the training of office staff.
4. Problem of changing existing system: Machines purchased for specialized jobs cannot
be adopted to new systems. Machines make the existing system less flexible.
5. Employee’s resistance: Employees generally do not like installation of machines due to
fear of unemployment and losing their jobs.
6. Risk of obsolescence: Some machines are liable to become obsolete in a relatively short
period of time. The wastage is greater if the machine is comparatively expensive.

Accounting Machines

Every office has to provide accounting services to the organization. These services may be
provided manually or with the help of Accounting Machines. The mechanization of accounting is
becoming increasingly important in large organizations as they have to cope with a large amount
of figure work. Accuracy and speed are the main features of accounting machines and it enables
analysis of various types of figures for different purposes within minutes or even seconds.
Some of the more common types of accounting machines are:

1. Adding Machines
2. Calculating Machines
3. Cash Registers

1. Adding Machines

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Various type of adding machines are available in the market. They can be operated manually or
electrically and they may be listing or nonlisting types. Listing machines provide printed record
but non-listing machines give the result. In a manually operated machine, keys are depressed and
the machine adds and prints when the crank at its side is pulled. In electrically operated machine,
the power bar takes the place of crank. These machines may also perform other mathematical
operations like subtraction, multiplication and division. There are three kinds of adding
machines–ten key type, full keyboard type and half keyboard type.

Adding machines are used for several clerical operations e.g., listing of cheques and invoices,
totaling payments by cheque or cash, preparing trial balance, tallying wage payments, checking
cash balances, preparing sales analysis and preparing cost-sheets.

2. Calculating Machines:

A calculating machine can perform a variety of functions: addition, subtraction, multiplication,


division, percentages, square and cube roots etc.

There are five types of calculating machines –


(1) Printing,
(2) key driven,
(3) Rotary,
4) Automatic and
(5) Electronic calculator.

A brief description of these calculators is given below.

The printing calculator provides printed details of the calculations made and the result
of each calculation.

The key-driven calculator is the full keyboard non-listing machine and can be manually
or electrically operated.

The Rotary calculator is primarily used for division and multiplication. Any composite
number is added, multiplied, subtracted or divided by one rotation of a handle - clockwise
or anti-clockwise action.

The Automatic calculator is actually a rotary calculator but operates electrically. The
operator has merely to press a button to set it in motion.
The Electronic calculators are available with full-bank keyboards which perform
calculations quickly by the use of electric transistors and impulses. These machines
contribute greatly to office efficiency by eliminating routine mental calculations. They
also contribute to economy in staffing and can perform a variety of functions with speed
and accuracy. Calculations become a pleasure instead of monotonous work. The main

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drawbacks are: the machines are expensive for small offices and they cause loss of
mental ability.

3. Book-Keeping Machines

These machines enter information in accounting books and transfer amounts from one book to
another through posting. Various types of posting machines are available e.g., full keyboard, ten
keyboard, full keyboard with typewriter, ten keyboards with typewriter, analysis keyboard,
automatic, etc. These machines are used for various functions such as: entering transactions in
journal and cash book, posting them in ledger accounts, preparation of receipts and payments
sheets, payrolls, ledger accounts and balance sheet.

The machines are fitted with programming devices which may be preset for a number of
different jobs. The merits of these machines are: legibility and tidiness of entries, checking of
accuracy, printing of balances, cumulative totaling and preparation of payroll, pay slip and
personal record. The accounting machines are somewhat expensive and need skilled operators.

They are also subject to frequent breakdowns.

Cash Registers:

These machines record on paper roll cash receipts. The customers in departmental stores need
receipts and cash memos. The operator receives the amount, keeps it in shelves made below the
machine and issues receipt or cash memo. The machine prints the amounts on rolled paper which
is visible through a glass panel on the top of the machine. It automatically records cumulative
total of receipts. At the close of the day, the owner or manager can open the machine lock to
know the total sales. The amount kept in shelves can be checked with the cumulative total.
The merits of the equipment are: The record of cash receipts is neat, clean and accurate. There is
no chance of arithmetical errors. Any time the total amount of sale can be known. The chances of
fraud are eliminated. Duplicate copy of receipt is not needed. The main drawbacks are:
Correction of errors is difficult and the receipts do not have complete details. In spite of these
demerits this machine is used widely in business houses and at collection counters of different
organizations.

COMPUTER

These days the computer is the most commonly used machine in big offices. A computer is a
machine that can perform a variety of operations such as: arithmetical calculations, comparison
of data, storage of information, analysis of data and preparation of diagrams and charts. The
main component of computer is the ‘memory’ unit. The input data and ‘programmers’ are fed
and
remain available for reproduction. With the help of Word Processing Program one can compose
letters, memos, reports etc. visible on screen, edit them, save them and print as often as needed.
A document is given a file name and stored on disk or cassettes. You can produce an error-free
Date Developed: Document No.
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document as per your requirement. You move shadow ‘editing cursor’ around the screen to
correct mistakes, to insert, delete and move blocks of text from one place to another.

High speed, flexibility and accuracy are three main advantages of the computer. The main
disadvantages are: high initial and operating cost, need of trained staff and serious disorder in
case of breakdowns.

Date Developed: Document No.


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Self Check 6.1-1

I - Fill in the blanks:-

1. One of the characteristics of a modern office is the increasing use of


office ....................
2. The term ............... means replacement of manual work by machines.
3. Office machines are .............. saving devices.
4. Office machines minimize clerical .............
5. Mechanization of office work is often resisted by ............

II - Which of the following statement are true and which are false?

1. Machines can do the work of storage, analysis and interpretation of information


within shortest possible time
2. Office equipments help the management in keeping the employees busy and
dissatisfied by providing repetitive work.
3. Machines tend to make the existing system flexible
4. Machine operations call for additional cost in the form of repair and maintenance.
5. An idle machine is as wasteful as an idle labor.

Date Developed: Document No.


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Answer to Self Check 6.1-1
I. – Fill in the blanks
1. machines
2. mechanization
3. labor
4. errors
5. employees

II. true or false

1. T
2. F
3. F
4. T
5. T

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Information Sheet 6.1-2
SOFTWARE PROGRAMS

Learning Objectives:

After reading this information sheet, you must be able to:

1. Study appropriate technology based on work requirements


2. Identify and select appropriate technology based on work requirements

Sage 50 Complete Accounting

Easily Organize and Manage Your Business

Sage 50 Complete Accounting delivers the efficiency your business requires whether you're after
rapid expansion, steady growth, or maintaining stability. This comprehensive solution lets you
easily manage customer contacts and sales, customize inventory and vendor management,
automate purchasing and shipping, track jobs and projects, and more!

 Cinch the deal with a new customer by guaranteeing next day delivery - you know
exactly what inventory is available
 Successfully launch a new product - you can easily identify and market to your most
loyal and profitable customers
 Accurately determine the best course of action for reducing costs - you can create custom
reports and "what if" scenarios using real-time data from Sage 50
 Become more efficient and productive while managing your business with customer,
vendor, and inventory management centers, and screen-level security with multi-user
options

What Sage 50 Complete Accounting Offers

Support for your business success

Sage 50 Complete Accounting 2013 helps you work more efficiently by using dashboards,
management centers, and automation of key tasks. It is an easy-to-use, comprehensive solution
with screen-level security and automatic accounting checks that give you the accuracy and
control you need. Of course, when you work more efficiently, you save time and money.

 Invoice customers by mail or email


 Automate purchase orders

Date Developed: Document No.


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 Manage inventory using a variety of costing methods
 Check for common accounting errors with Internal Accounting Review
 Automate purchase orders

Insight into how your business is doing

See what's most important to you in an instant by using customizable dashboards and
management centers. From account balances to inventory levels, you will know right away how
your business is doing. Sage 50 Complete Accounting includes:

 Business Status Center


 Customer Management Center
 Vendor Management Center
 Inventory Management Center

Improved decision making

Running a small business means making tough decisions nearly every day. Sage 50 puts relevant
information at your fingertips so you can make the best, most informed decisions. Whether you
choose from the 100+ built-in reports or create your own using Sage 50 Business Intelligence5,
you will get a clear perspective for improved decision making.

 Business Intelligence has built-in templates for sales, purchasing, inventory and financial
reporting
 Reports are always up-to-date with the latest data – no export or manipulation required

QuickBooks Accounting Basics

The QuickBooks computer program by Intuit is used by many small businesses to track finances.
QuickBooks permits users to enter a single transaction that creates a double-entry accounting
effect. Accurate financial reports require a double-entry system. However, because users don't
see both offsetting sides of every transaction, there is potential for misunderstanding the
accounting effects of QuickBooks entry screens.

Double-Entry Accounting

Double-entry accounting maintains financial accuracy by keeping balance to the equation


stating that Assets (such as cash, inventory, accounts receivable, and equipment) minus
Liabilities (loans and other amounts owed) equals Equity (the company's worth to its
owners). Each transaction has more than one component that keeps this equation in balance.

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Profit increases Equity, which is offset by how the profit is utilized---either increasing
Assets (by deposit in a bank account or purchasing equipment) or reducing Liabilities (by
paying off debt). Since Profit is comprised of Income minus Expenses, then Income
increases Equity and Expenses decrease Equity.

Journal Entries

QuickBooks permits entries that are true double-entry bookkeeping transactions by using the
input screen to "Make General Journal Entries." Using this screen requires understanding the
accounting terms "debit' and "credit," which refer to the offsetting entries that keep the
accounting equation in balance. The combined debits for all accounts must equal the
combined credits. "Debits" increase Asset or Expense accounts. "Credits" increases Liability,
Income, and Equity accounts.

Income

A sale increases income (with a "credit") and increases an asset (with a "debit") to keep the
accounting equation in balance. The asset that is increased is either the checking account (for
deposits of cash sales) or accounts receivable (for credit sales).

Using the "Create Invoices" function in QuickBooks therefore affects income (as a credit)
and accounts receivable (as a debit). The "Receive Payments" function in QuickBooks
reduces accounts receivable (a credit) and holds the funds for deposit (a debit to the bank
account).

Using "Make Deposits" without first creating invoices causes an increase in the bank account
(a debit) and increases income (a credit).

Expenses

Receiving a bill increases accounts payable (with a credit) and increases an expense (with a
debit) to keep the accounting equation in balance. Paying a bill with a check decreases the
checking account (with a credit) and decreases accounts payable (with a debit).

Using the "Enter Bills" function in QuickBooks therefore causes an increase in accounts
payable (a credit) and an increase in an expense (a debit). The "Pay Bills" function in
QuickBooks reduces accounts payable (a debit) and records a credit to either the bank
account (if a check is written) or a credit card account (if that is the form of payment for the
bill).

Using "Write Checks" without first entering a bill for payment causes a bank account
decrease (a credit) and expense increase (a debit).

Date Developed: Document No.


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Self Check 6.1-2 True or False

1. Receiving a bill decreases accounts payable (with a credit) and increases an expense
(with a debit) to keep the accounting equation in balance.
2. Using the "Create Invoices" function in QuickBooks therefore affects expense (as a
credit) and accounts receivable (as a debit).
3. The "Receive Payments" function in QuickBooks reduces accounts receivable (a credit)
and holds the funds for deposit (a debit to the bank account).

4. QuickBooks permits entries that are true double-entry bookkeeping transactions by using
the input screen to "Make General Journal Entries.

5. Sage 50 Complete Accounting 2013 helps you work more efficiently by using
dashboards, management centers, and automation of key tasks.

Date Developed: Document No.


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Answer to Self Check 6.1-2

1. False
2. False
3. True
4. True
5. True

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Operation Sheet 6.1-1
Title : Using Accounting Software
Performance Objective : Accounting software comes in a variety of flavors, from the
extremely simple, such as Intuit Quicken and Microsoft Money,
to extremely sophisticated, such as those from Goldmine or
Peachtree. Both varieties of accounting software do a lot more
than just balance your checkbook.

Supplies :
Steps/Procedure : 1. Select the software that fits your business. There are many
packages out there that are dedicated to specific industries
and contain applications you may not find in more generic
programs.

2. Explore all the options. Most users of accounting software


only take advantage of a fraction of the capabilities of the
options available to them. These can include job costing,
invoicing, payroll, tax tools and other capabilities.

3. Check out the package's customization options. Using these


can save a ton of time and can be used to adapt the
software's capabilities to your needs.

4. Budget adequately for training and support services. The


more you and your employees know about using the
software, the more productive they'll become.

5. Take advantage of any "extras" that may be included with


the software, such as document scanning, imaging and
matching, which allows it to recognize document, such as
an invoice, and match it to an identical document stored on
your computer.

6. Consider replacing or updating old, outdated accounting


software. In addition to new features, there's the likelihood
that customer support for the old software has expired.

7. Carefully evaluate your needs. If all you need is basic


accounting functions with a few extras, you may be able to
save a few bucks. But don't be too stingy. Allow for
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expansion.
Assessment Method:

QUALITY CRITERION:

1. Identified key areas of using accounting software

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LO2. ASSESS GATHERED DATA/ INFORMATION

CONTENTS:

1. System and Information Technology


2. 5S (Proper House Keeping)

ASSESSMENT CRITERIA:

1. Validity of data/ information is assessed


2. Analysis techniques are applied to assess data/ information.
3. Trends and anomalies are identified
4. Data analysis techniques and procedures are documented
5. Recommendations are made on areas of possible improvement.

CONDITIONS:

The students/learners must be provided with the following:

 Manuals
 Hand-outs
 Multimedia
 Video tape
 Brochures
 CD’s
 Internet access
 Computer

ASSESSMENT METHODS
1. Written
2. Interview

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Learning Experiences

Learning Outcome 2

Assess gathered data/ information

Learning Activities Special Instructions

Read Information Sheet 6.2-1: “System and Read and understand the
Information Technology” information sheet and check yourself
Answer Self-check 6.2-1 by answering the self-check. You
Refer to operation Sheet on “Designing must answer all the questions
Accounting Software” from CORE CBLM on
correctly before proceedings to the
Use Relevant Technologies
Read Information Sheet 6.2-2: “5’s (Proper next activity
House Keeping)”
Answer Self-check 6.2-2 Refer to Task sheets, it will help you
Refer to operation Sheet on “Implementing a practice your skills.
sustainable 5S program” from CORE CBLM
on Use Relevant Technologies The performance criteria checklist
will guide and help you evaluate
your work as you are practicing your
skills.

Evaluate your own performance


using the performance criteria
checklist. When you are ready,
present your work to your trainer for
final evaluation and recording.

If you have questions and


clarification fell free to ask your
trainer.

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Information Sheet 6.2-1
SYSTEM AND INFORMATION TECHNOLOGY

Learning Objectives:

After reading this information sheet, you must be able to:

1. Use relevant technology in carrying out function based on work requirements


2. Use applicable software and hardware as per job requirement
3. Observe management concept as per established industry practices

Overview of an Accounting Information System

An accounting information system is a method of keeping records for a company. It combines


accounting principles and an information system, such as a computer, to maintain records and
provide information to those involved. Most accounting information systems are computerized
now, but some small businesses still keep manual records.

Transactions

Accounting records are recorded based on transactions. When money is earned, received, or
paid out, a transaction occurs. All of these transactions are recorded and are part of the
accounting cycle.

The Accounting Cycle

The accounting cycle begins with transactions. The transactions are analyzed, journalized,
and then posted to the appropriate accounts in the general ledger. Using a computerized
information system program is the simplest way to record these transactions, and averts many
errors. When a transaction is posted in a computerized program, it automatically gets posted
to the accounts in the ledger. A lot of errors are avoided this way. In the accounting cycle,
once all of the transactions for a period are posted, the computer calculates an unadjusted
trial balance. At this point, adjusting entries are calculated and key-punched. The computer
then generates an adjusted trial balance.

Financial Statements

The computer keeps track of all of this information, which makes bookkeeping simpler,
quicker and involves less paperwork. The computer prints out all financial statements and no
time is spent calculating them by hand. The final step of the accounting cycle is to close out
the books, by preparing closing entries. Using a computerized system again makes this easier
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to do. The last thing that is printed is a post-closing trial balance, and the accounting cycle is
complete for the year.

Benefits

The benefits greatly exceed the negatives in an accounting information system. As long as
the correct information is entered into the system, the computer provides accurate, useful
information. Accounting periods in the system have the ability to be changed, to offer
printouts of any time frame or period needed.

Finding The Right System

Each company must find the right system for their particular field. For instance, a
construction company needs a different system than a retailer needs. Finding the right system
is essential to making the job easier and providing the most accurate information as possible.

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Self Check 6.2-1

1. It is a method of keeping records for a company.


2. Accounting records are recorded based on_____________.
The transactions are 3. _________, 4. ___________, and then posted to the
appropriate accounts in the 5. ______________.

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Answer to Self Check 6.2-1

1. Accounting information system


2. Transactions
3. Analyzed,
4. journalized,
5. general ledger

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Operation Sheet 6.2-1
Title : Designing Accounting Software
Performance Objective : An accounting information system contains the processes that a
company uses to report accurate and valid financial
information. Business owners and managers need information
to make business decisions to improve operations and
profitability. External business stakeholders use financial
information to assess the company's financial health and
determine if the company will offer a decent financial return on
investments. Creating an accounting information system
typically follows a few basic steps, regardless of the company's
operations.
Supplies :
Steps/Procedure : 1. Outline where source documents come from. Source
documents include vendor invoices, utility bills and payroll,
among other items. Owners and managers must outline
these items so they can determine how to best process them
in the company's accounting or finance department.

2. Implement individual accounting functions. Accounting


functions can include accounts payable, accounts
receivable, general accounting and other functions. Each
function must be able to receive information in a timely
manner and enter it into the company's accounting ledger.

3. Create outputs such as financial statements or reports. The


purpose of an accounting information system is to turn
financial transactions into usable information. A
compilation of transactions reported in a statement or report
allows owners and managers to quickly review their
company's financial performance.

4. Determine the final recipient for accounting information.


Internal accounting reports do not usually need to follow
national accounting standards, which allow this information
to be less formal. Accountants may spend less time
preparing this information. Formal reports for outside
stakeholders will require formal reports that must follow
specific guidelines.

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Assessment Method:

QUALITY CRITERION:

1. Identified key areas of using accounting software

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Information Sheet 6.2-2
5’S (PROPER HOUSE KEEPING)

Learning Objectives:

After reading this information sheet, you must be able to:

1. Use relevant technology in carrying out function based on work requirements


2. Use applicable software and hardware as per job requirement
3. Observe management concept as per established industry practices

5S Housekeeping
 5S Housekeeping is fundamental for enhancing the value for the customer
 5S Housekeeping is the foundation for all the organizational systems/processes
which, in turn, enhance value to customers

5S Housekeeping: A Glance
 Since early 80’s in Japan
 Pioneer- Toyota, Japan

 Systematic approach to good housekeeping


 People oriented approach: every individual can contribute to improve his workplace
 Practice oriented approach: cleaner, better, effective and safer workplace
 5S stands for the five good housekeeping principles

Vision

 To keep both one’s external and internal house in order, develop a sensitivity for one’s
surroundings and a concern for the environment at large
 A systematic and rational approach to workplace organization and methodical
housekeeping with a sense of purpose

Advantages
 Workplace becomes cleaner and better organized.
 Shop floor and office operations become easier and safer.

 Results are visible to everyone- insiders and outsiders. Problems detected fast.
 Visibility gives rise to further improvements. Increased number of suggestions.

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 People are disciplined.
 It instills pride among people.
 Happier employees with high morale and greater employee involvement.
 Better use of floor space.
 Less work in progress and inventories. Less time in material handling.
 Retrieval time minimized. Better flow of work. More time for improvement activities.
 Low machine breakdown rate. Low down time. Better preventive maintenance.
 Low accident rate.
 High yield of materials.
 High and consistent product quality. Low overall cost.
 Company image enhances and generates more business.

Elements of 5S

5S comprises 5 simple steps:


1. Seiri: Sorting out. Remove unnecessary items as appropriate
2. Seiton: Systematic arrangement. Prefix a place for everything and put everything in place
3. Seiso: Spic and span. Cleaning not for beautification alone but with a sense of purpose.
4. Seiketsu: Serene atmosphere/sanitizing. Environmental cleanliness.
Standardization. Develop standards/evaluation criteria.
5. Shitsuke: Self discipline/training. Create awareness of all 4Ss and train to implement.

Steps to Implement the 5 Elements of 5S

Seiri

•Classification- sort out


•Elimination- remove unnecessary items as appropriate
•Storage- frequent use/rare use items
- close location/distant location
- identification of items
•Fix responsibilities and share responsibilities
•Monitor progress

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Rough Criteria for Seiri

•Not used for a year- Check and throw


•Used only once in last 6 to 12 months- Store at a distance
•Used only once in last 1 to 6 months- Store at a central place in the work area
•Used weekly/hourly/daily- Store near work site

Seiri: Obstacles

•Seiri is not as easy to practice as it seems


•It is wasteful to throw things away
•We might possibly use them later
•It was so much trouble for me to make these things
•I know it is not used but it is in good condition, let it be there
•I want everything here. I may use these any time, I can’t tell when. So don’t remove any
thing
•If you think it is “such a waste to throw it away”, we can’t get started

Seiton

•Ensure rational layout of machines, equipment, cabinets


•Place frequently used items at the point of use
•Prefix a place for everything and put everything in place
•Use labels, color codes to identify
•Use index for files, records and drawings
•Plan storage with easy irretrievability
•Mixed up items in cabinets should be organized
•Make cabinets, shelves, racks self explanatory through identification aids
•Have visual controls for checking missing items

Seiso

•Develop standards of cleaning


•Clean up work place, machines and tools after use
•Clean up supply line (no leakage, blockage, clogging with oil/dirt
•Assign responsibilities and schedules for cleaning
•Clean waste bins at end of shift/day
•Clean light bulbs, fans, shades, reflectors
•Pay special attention to scrap yard, gardens, go downs
•Scrap and chips from machines could fall directly in to collecting bins

Seiketsu

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•Identify 5 S areas
•Develop standards/evaluation criteria with workmen (SOP’s and housekeeping
standards)
•Establish checking procedure 5W + 1H
•Establish feedback procedure 5W + 1H
•Wear neat and clean uniform
•Wear protective clothing
•Provide adequate lighting, ventilation, exhaust
•Check electrical wiring, cables, switches
•Maintain sanitary/hygienic conditions in wash rooms, locker rooms, canteen and kitchen
•Earmark smoking and eating areas
•Look for heavy noise, vibrations and heat in machines, analyze for root cause and take
action
•Create visual control systems
•Devise ways to expose hidden problems
•Create standards

Shitsuke

•Create awareness of first 4 S’s


•Develop action details for maintaining standards
•Make them easily understandable
•Give specific directions
•Display correct work procedure on the floor
•Correct deviations on the spot
•Maintain punctuality
•Conduct audits
•Demonstrate sincerity in following rules
•Share success to enthuse others

Consequences of Not Practicing 5S

Seiri

•The unwanted clutters up the place and the wanted is hard to find
•More time spent for searching things
•More space required
•We can’t bring in new things in the same place
•Causes mis-identification and rejected parts are moved to work station

Seiton

•Things are seldom available when needed. More time spent for locating misplaced things
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•Defective and good items/similar looking items get mixed up
•Items are lost
•Prone to accidents
•Loss of production
•Excess inventory
•Pressure for more space

Seiso

•Dust and dirt will affect the machine performance


•Cleaning reveals hidden problems which may get overlooked otherwise
•Dust and dirt affect performance and aesthetic quality
•Unpleasant work place

Five Levels of 5 S Housekeeping

•Housekeeping of one’s inner self


•Following the 5 S principles and reducing waste
•Extending the 5 S concept to include ergonomics
•Extending the 5 S concept to include aesthetics
•Maintaining records and educating others

Stages of 5S Housekeeping

Stage 1: Floor is full of unwanted material


Stage 2: Clutter found by the walls
Stage 3: Factory/office is clean but tools, papers, files and materials disorganized
Stage 4: Storage area/offices are clean and furniture, documents, material organized
Stage 5: Factory/office is immaculate

Critical Factors/Steps in Implementing 5S


 Top /Senior Management commitment
 Leadership by location heads

 Awareness training programs for all employees


 Launching of 5S program
 Allocation of funds
 Identification on 5S areas
 Team formation involving employees
 Developing standards

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 Developing checklists
 Guidance, training, sorting out problems
 Developing audit check lists
 Publishing audit results
 Reviewing audit findings, follow up corrective actions
 Holding competitions- awards

Implementation Methodology
 All employees to undergo 5 S Housekeeping training
 A vision statement to be evolved and started with all employees

 Divide the organization into convenient zones


 Divide each zone in to convenient sub-zones
 Decide on date(s) for launching 5 S in each zone, sub-zone
 Take pledge (refer the section titled "5S Pledge" for couple of formats of the pledge as
examples. they can be customized to your requirements)
 Apply 5 S principles step by step
 Form audit teams
 Carry out audits

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Self Check 6.2-2

1. Give the Stages of 5S Housekeeping

2. Give the five Levels of 5 S Housekeeping

3. 5S comprises 5 simple steps: What are they?

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Answer to Self Check 6.2-2

1. Give the Stages of 5S Housekeeping

Stage 1: Floor is full of unwanted material


Stage 2: Clutter found by the walls
Stage 3: Factory/office is clean but tools, papers, files and materials disorganized
Stage 4: Storage area/offices are clean and furniture, documents, material organized
Stage 5: Factory/office is immaculate

2. Give the five Levels of 5 S Housekeeping

•Housekeeping of one’s inner self


•Following the 5 S principles and reducing waste
•Extending the 5 S concept to include ergonomics
•Extending the 5 S concept to include aesthetics
•Maintaining records and educating others

3. 5S comprises 5 simple steps: What are they?

 Seiri: Sorting out. Remove unnecessary items as appropriate


 Seiton: Systematic arrangement. Prefix a place for everything and put everything in
place
 Seiso: Spic and span. Cleaning not for beautification alone but with a sense of
purpose.
 Seiketsu: Serene atmosphere/sanitizing. Environmental cleanliness.
Standardization. Develop standards/evaluation criteria.
 Shitsuke: Self discipline/training. Create awareness of all 4Ss and train to implement.

Date Developed: Document No.


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Operation Sheet 6.2-2
Title : Implementing a sustainable 5S Program
Performance Objective : Implementation of a 5S program creates a cleaner, safer and
more organized work environment. It is a continuous quality
improvement effort typically utilized in a manufacturing work
environment with the goal of achieving enhanced efficiency.
The term "5S" refers to five words that begin with S: sort
(remove unneeded items), set in order (have everything in its
place), shine (clean work area), standardize (systemize cleaning
and identification methods) and sustain (involve people to
maintain the program for the long term). Involvement,
accountability and education are imperative to enable a
successful business outcome and sustainable 5S
implementation.

Supplies :
Steps/Procedure : 1. Inform all involved about the initiative. Give each of them a
document that explains and defines the program in detail,
how it will impact their business area and how the program
transition will be supported.

2. Encourage to create a more organized, efficient work


environment. This involvement can be accomplished by
scheduling multiple meetings by area.

3. Prepare a 5S deployment schedule communicating the


expectations necessary to meet the program requirements.
This involves preparing processes and procedures that are
formulated visually and in writing. They should include
flowcharts, diagrams and a "how to" explanation of the
program steps.

4. Construct a communication plan regarding 5S


implementation. This involves designing a spreadsheet that
includes what the communication will be, when it will be
distributed, and the medium used to distribute the
information and the name of the person responsible.

5. Align 5S training with the deployment schedule.


Management and staff should be included in the learning
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event.

6. Instruct to create a list and action plan for their area based on
identified waste. This is the program's "sort" or "seiri" step,
which includes assessing and listing what workers have, what
they need, unnecessary objects and known difficulties or
hazards. A reasonable time frame to accomplish the task is 15
working days.

7. Instruct workers to focus on arranging materials and


equipment. This is the "set" or "seiton" step. Employees
should organize and position items based on efficiency needs
and logical order. This task is included in the action plan.

8. Initiate work team and management engagement in the


cleanup process. This is the "shine" or "seiso" step of the
process. It includes documenting the specifics of the cleaning
guideline, the frequency and the requirements.

9. Standardize the cleanup process. Do this by utilizing and


finalizing the documentation that was created. This is the
"standardize" or "seiketsu" step, which includes scheduling
the proposed activities accordingly.

10. Develop a follow-up plan that includes checklists and criteria


for ongoing audits. This is the "sustain" or "shitsuke" step of
the process. It includes appointing individuals to be
accountable for oversight and ongoing maintenance of the
implemented 5S program.

Assessment Method:

QUALITY CRITERION:

2. Identified key areas of implementing a sustainable 5S program

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Date Developed: Document No.
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LO3. RECORD AND PRESENT INFORMATION

CONTENTS:

1. Corrective and preventive maintenance


2. Upgrading of technology
3. Organizational set-up/work flow

ASSESSMENT CRITERIA:

1. Studied data/information are recorded.


2. Recommendations are analysed for action to ensure they are compatible with the
project’s scope and terms of reference.
3. Interim and final reports are analysed and outcomes are compared to the criteria
established at the outset.
4. Findings are presented to stakeholders.

CONDITIONS:

The students/learners must be provided with the following:

 Manuals
 Hand-outs
 Multimedia
 Video tape
 Brochures
 CD’s
 Internet access
 Computer

ASSESSMENT METHODS
1. Written
2. Interview

Date Developed: Document No.


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Learning Experiences

Learning Outcome 3

Record and present information

Learning Activities Special Instructions

Read Information Sheet 6.3-1: “Corrective Read and understand the


and Preventive Maintenance” information sheet and check yourself
Answer Self-check 6.2-1 by answering the self-check. You
Read Information Sheet 6.3-2: “Upgrading must answer all the questions
technology”
correctly before proceedings to the
Answer Self-check 6.3-2
next activity
Refer to operation Sheet on “Set-up an
organizational structure” from CORE CBLM Refer to Task sheets, it will help you
on Use Relevant Technologies practice your skills.

The performance criteria checklist


will guide and help you evaluate
your work as you are practicing your
skills.

Evaluate your own performance


using the performance criteria
checklist. When you are ready,
present your work to your trainer for
final evaluation and recording.

If you have questions and


clarification fell free to ask your
trainer.

Date Developed: Document No.


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Information Sheet 6.3-1
CORRECTIVE AND PREVENTIVE MAINTENANCE

Learning Objectives:

After reading this information sheet, you must be able to:

1. Apply maintenance of technology in accordance with the industry standard operating


procedure, manufacturer’s operating guidelines and occupational health and safety
procedure
2. Maintain updating of technology through continuing education or training in
accordance with job requirement
3. Report appropriate action for technology failure/ defect to the concerned/ responsible
person or section

Maintenance policies define when and how often equipment will be checked, maintained and
upgraded. Simulations provide practice on how to perform maintenance tasks. Maintenance can
be corrective (fixing broken things) or preventative (managing wear and tear) to maintain
performance. Simulations also help managers set maintenance policies, from determining how
much time to allow to how many people are needed.

Review the maintenance manuals provided with the equipment. Ask the equipment manufacturer
or vendor for copies of the maintenance manual if you do not have them. The maintenance
procedures and periods the manufacturer recommends should be the basis for your own
maintenance policies.

Run simulations of how to perform maintenance. Verify that you have all of the necessary tools
and skills to perform the work. Determine how many people and how much time is required to
perform the work while running simulations.

Set a work schedule for maintenance to be performed. This will be a reoccurring entry on the
calendar. Mark the days the maintenance is to be performed.

Add the maintenance window, the time frame when equipment will be shut down for
maintenance and repairs, if any are found necessary, to the employee schedule. This will identify
who will perform these tasks in the next maintenance window.

Provide adequate time in a maintenance window for repairs to be made during that time. Set
policies to allow more time than required to complete the work in case any repairs are found to
be necessary. It is very common to find damaged parts or necessary repairs while performing
maintenance. And it is better to repair it when production is already shut down for maintenance
than to have an unexpected failure.

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Verify that employees are following maintenance policies. Perform spot checks of workers
performing maintenance to verify they are doing the work correctly. Have employees who have
trouble following maintenance policies run through simulations of proper practice under skilled
supervision.

Review maintenance policies periodically. Process improvements should be captured in the


policy updates.

Include maintenance, shop floor management and engineers in the periodic review of
maintenance policies. They may be able to provide recommendations for improvements or
identify problematic areas.

Determine the average rate of equipment failures in the facility. Then establish maintenance
policies that ensure at least having sufficient staff on hand to fix the number of expected failures
per day. Have enough staff to cover both expected failures and still perform planned
maintenance. Another option is to have slack in the maintenance schedule to move preventative
maintenance to cover unusually high corrective maintenance demands. Simulation of multiple
failures can help determine if the regularly scheduled teams can cover the increased demands.

Measure maintenance policies by the results they produce. If too much time between systems
checks results in frequent breakdowns, shorten the maintenance interval.

When new equipment arrives, perform maintenance simulations with the new equipment. Ensure
that employees are familiar with its maintenance procedures before installing the item or turning
on the power.

If there is too much idle time by maintenance staff, consider allowing them to help with
operations work as long as that work doesn't interfere with their ability to respond to repairs.

Verify that production and maintenance schedules are in sync. Never send staff to work on
running equipment if maintenance should be done on powered down equipment.

5 S Audit
 Form an audit team for each zone consisting of 4-5 members. The members should
belong to that zone. One member may belong to another zone so as to maintain
impartiality.
 Auditing should be carried out once a month or once in two months based on a carefully
prepared check list.

Principles of Gemba and Kaizen

Gemba and kaizen are Japanese words; the former means "real place" and the latter means
"improvement" or "change for the better." Kaizen refers to the practices that focus on continuous
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improvement in specific business areas like manufacturing, business processes, management and
engineering. Combining the two words in the business context means that gemba is where the
real, value-adding activities of improvement take place. Gemba kaizen consists of three
approaches: management-oriented kaizen; group-oriented kaizen and individual kaizen.

Problem Identification

The first gemba kaizen principle is to identify the problem; wherever a problem arises, there
is room for improvement. Once you identify the problem, everyone concerned works toward
a suitable solution, and after brainstorming, you pick the best solution to implement.
Identifying the problem and working toward a solution should make the job easier, eliminate
activities that are wasteful, make the job safer and more productive, and improve the quality
of the product.

Standardization

In order to make improvements in business operations, processes have to be measured. Only


when there are precise standards for each worker, process and machine will change for the
better if possible. The gemba kaizen philosophy is to challenge prevailing standards and
replace them with newer and better standards constantly, for continuous improvement. The
kaizen principle is based on the fact that small improvements lead to larger rewards for an
organization.

Start With the Easiest Changes

After identifying the problem, participants divide it into smaller components that can have
individual solutions, starting with the easiest changes that can be implemented. Making small
changes increases the possibility of success, at a fairly quick pace. Instant or near instant
gratification is a great motivator to move onto bigger changes. Once the first phase of project
change is successful, it is easier and more inspiring to move onto the next. Another aspect of
this kaizen principle is to work on one area of change at a time, for however long it takes to
implement the change. The primary aim should be to make changes that are long-lasting and
sustainable.

Employee Involvement

Kaizen principles in lean manufacturing prepare the groundwork for every employee within
an organization to take part in the decision-making process. Trusting in employees to
determine improvements that will be best suited to a system is vital for change. The
employees actually involved in a process know best how the work is carried out. They are in
a good position to innovate to improve the system. When ideas originate with the workers
themselves, on implementation, resistance to change is eliminated.
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Self Check 6.3-1

1. What is Gemba Kaizen?

2. What are the three approaches of gemba kaizen?

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Answer to Self Check 6.3-1

1. What is Gemba Kaizen?


Gemba and kaizen are Japanese words; the former means "real place" and the latter
means "improvement" or "change for the better." Kaizen refers to the practices that focus
on continuous improvement in specific business areas.

2. What are the three approaches of gemba kaizen?


 management-oriented kaizen;
 group-oriented kaizen and
 individual kaizen

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Information Sheet 6.3-2
UPGRADING TECHNOLOGY

Learning Objectives:

After reading this information sheet, you must be able to:

1. Apply maintenance of technology in accordance with the industry standard operating


procedure, manufacturer’s operating guidelines and occupational health and safety
procedure
2. Maintain updating of technology through continuing education or training in
accordance with job requirement
3. Report appropriate action for technology failure/ defect to the concerned/ responsible
person or section

There are many essential tools that contribute to the success of a small business. Investing major
amounts of cash to upgrade your existing small business is not a requirement. Changing the way
you access important business files on the go, conducting your important business meetings and
presenting ideas to prospective clients are no longer difficult tasks with costly price tags. With a
little help, you'll be able to easily learn how to upgrade inexpensive technology.

Below are some of the steps in upgrading inexpensive technology:

 Share your computer desktop. There are many available applications that will allow users
to share their computer desktop with employees all over the world. Instead of wasting
valuable time emailing presentations and then waiting for feedback, you will be able to
get an instant response by sharing your desktop. With a reliable desktop or notebook
computer and a stable Internet browser, you will be able to set everything up within a few
minutes.
 Use free conference calling whenever possible. Most small businesses can take full
advantage of the free conference calling features available over the Internet. Using a
VOIP application will give you access to business associates or employees in multiple
areas. If you decide to take it one step further, use the video conferencing feature that
many of these tools have already built into them and you can turn a faceless meeting into
a lively one.

 Use Contact Management Software to organize important customer data. Instead of


relying on memory to remember all of your valuable customers, consider using a contact
management application to update this process. You will not have to wonder if you have

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forgotten important customer information. Several email programs have a great feature
that lets users manage customer information seamlessly.

 Contact associates and customers via messaging applications. Instead of playing phone
tag with business associates or employees, consider using an instant messaging
application. It will increase the productivity level of your business because it's always on.
Most individuals use text or instant messaging as a preferred way of contacting others.
Adding this already used feature to your business atmosphere will introduce it to positive
changes.

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Self Check 6.3-2

I. Give the steps in upgrading inexpensive technology.

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Answer to Self Check 6.3-2

I. Give the steps in upgrading inexpensive technology.

 Share your computer desktop


 Use free conference calling whenever possible
 Use Contact Management Software to organize important customer
 Contact associates and customers via messaging applications

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Information Sheet 6.3-3
ORGANIZATION SET UP/WORK FLOW

Learning Objectives:

After reading this information sheet, you must be able to:

1. Apply maintenance of technology in accordance with the industry standard operating


procedure, manufacturer’s operating guidelines and occupational health and safety
procedure
2. Maintain updating of technology through continuing education or training in
accordance with job requirement
3. Report appropriate action for technology failure/ defect to the concerned/ responsible
person or section

Work Flow

A workflow consists of a sequence of concatenated (connected) steps. Emphasis is on the flow


paradigm, where each step follows the precedent without delay or gap and ends just before the
subsequent step may begin. This concept is related to non overlapping tasks of single resources.

It is a depiction of a sequence of operations, declared as work of a person, a group of persons, [1]


an organization of staff, or one or more simple or complex mechanisms. Workflow may be seen
as any abstraction of real work. For control purposes, workflow may be a view on real work
under a chosen aspect,[2] thus serving as a virtual representation of actual work. The flow being
described may refer to a document or product that is being transferred from one step to another.

Workflow concepts are closely related to other concepts used to describe organizational
structure, such as silos, functions, teams, projects, policies and hierarchies. Workflows may be
viewed as one primitive building block of organizations. The relationships among these concepts
are described later in this entry.

Six Sigma

Six Sigma is a business management strategy, originally developed by Motorola in 1986. Six
Sigma became well known after Jack Welch made it a central focus of his business strategy at
General Electric in 1995, and today it is widely used in many sectors of industry.

Six Sigma seeks to improve the quality of process outputs by identifying and removing the
causes of defects (errors) and minimizing variability in manufacturing and business processes It
uses a set of quality management methods, including statistical methods, and creates a special
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infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are
experts in these methods. Each Six Sigma project carried out within an organization follows a
defined sequence of steps and has quantified financial targets (cost reduction and/or profit
increase).

Methods

Six Sigma projects follow two project methodologies inspired by Deming's Plan-Do-Check-Act
Cycle. These methodologies, composed of five phases each, bear the acronyms DMAIC and
DMADV.[15]

 DMAIC is used for projects aimed at improving an existing business process.[15] DMAIC
is pronounced as "duh-may-ick".
 DMADV is used for projects aimed at creating new product or process designs.[15]
DMADV is pronounced as "duh-mad-vee".

DMAIC

The DMAIC project methodology has five phases:

 Define the problem, the voice of the customer, and the project goals, specifically.
 Measure key aspects of the current process and collect relevant data.
 Analyze the data to investigate and verify cause-and-effect relationships. Determine what
the relationships are, and attempt to ensure that all factors have been considered. Seek out
root cause of the defect under investigation.
 Improve or optimize the current process based upon data analysis using techniques such
as design of experiments, poka yoke or mistake proofing, and standard work to create a
new, future state process. Set up pilot runs to establish process capability.
 Control the future state process to ensure that any deviations from target are corrected
before they result in defects. Implement control systems such as statistical process
control, production boards, visual workplaces, and continuously monitor the process.

Some organizations add a Recognize step at the beginning, which is to recognize the right
problem to work on, thus yielding an RDMAIC methodology.[17]

DMADV or DFSS

The DMADV project methodology, also known as DFSS ("Design For Six Sigma"), features
five phases:

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 Define design goals that are consistent with customer demands and the enterprise
strategy.
 Measure and identify CTQs (characteristics that are Critical To Quality), product
capabilities, production process capability, and risks.
 Analyze to develop and design alternatives, create a high-level design and evaluate
design capability to select the best design.
 Design details, optimize the design, and plan for design verification. This phase may
require simulations.
 Verify the design, set up pilot runs, implement the production process and hand it over to
the process owner(s).

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Self Check 6.3-2

I. What are the five phases of DMADV project methodology?


II. What are the five phases of DMAIC project methodology?

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Answer to Self Check 6.3-2

I. What are the five phases of DMADV project methodology?

1. Define design goals that are consistent with customer demands and the enterprise
strategy.
2. Measure and identify CTQs (characteristics that are Critical To Quality), product
capabilities, production process capability, and risks.
3. Analyze to develop and design alternatives, create a high-level design and evaluate
design capability to select the best design.
4. Design details, optimize the design, and plan for design verification. This phase may
require simulations.
5. Verify the design, set up pilot runs, implement the production process and hand it over to
the process owner(s).

II. What are the five phases of DMAIC project methodology?

1. Define the problem, the voice of the customer, and the project goals, specifically.
2. Measure key aspects of the current process and collect relevant data.
3. Analyze the data to investigate and verify cause-and-effect relationships. Determine what
the relationships are, and attempt to ensure that all factors have been considered. Seek out
root cause of the defect under investigation.
4. Improve or optimize the current process based upon data analysis using techniques such
as design of experiments, poka yoke or mistake proofing, and standard work to create a
new, future state process. Set up pilot runs to establish process capability.

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Operation Sheet 6.3-3
Title : Set-up an organizational structure
Performance Objective : Setting up an organizational structure involves such things as
reporting structures and work processes. One of the most
important tools of an organizational structure is the
organizational chart. This chart provides a picture of the various
departments, who makes the decisions in the departments, and
who reports to whom. Attention must also be paid to how the
work is done in these departments as well as the required
relationship between departments.
Supplies :
Steps/Procedure : 1. Determine the reporting structure from top down
beginning with the highest executive level in the company.
Identify the employees for all of the departments including
the managers and supervisors on an organizational chart
(diagram showing the reporting relationships).The type
(horizontal, matrix, hierarchical) of organizational structure
is determined by company goals and needs.

2. Identify the work-flow process within and between


departments. Examine how the work gets done starting with
the beginning step all the way to the end result. Analyze any
problem areas and determine solutions. Mapping (drawing a
picture) of how the work flows is a good way to identify
possible glitches or roadblocks.

3. Select an organizational structure team to analyze


the proposed reporting structure and the work-flow process.
The team should consist of employees and managers from
various departments who have the ultimate responsibility for
the work getting done. Inviting the input of a team helps to
ensure acceptance of the structure.

4. Submit the organizational chart for approval to the


appropriate decision makers (usually executive officers).
Conduct a practice run of the work-flow process to mitigate
any problems or issues that may arise before go-live (the
real process) begins. Debrief the practice run for the
positives and the lessons learned (possible issues).

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Assessment Method:

QUALITY CRITERION:

1. Identified key areas of implementing an organization set up

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Resource:

http://www.nos.org/srsec319/319-31.pdf
http://na.sage.com/Sage-50-Accounting-US/products/complete?isnow=sage50us
http://www.ehow.com/list_7425861_quickbooks-accounting-basics.html
http://www.ehow.com/about_6398907_overview-accounting-information-system.html
http://5s-housekeeping.blogspot.com/
http://www.ehow.com/info_8302015_principles-gemba-kaizen.html
http://en.wikipedia.org/wiki/Workflow

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