Republic of the Philippines

BATANGAS STATE UNIVERSITY

The National Engineering University
Lipa Campus
A. Tanco Drive, Marawoy, Lipa City, Batangas, Philippines 4217
Tel Nos.: (+6343) 980-0385; 980-0387; 980-0392 to 94 loc. 3129
E-mail Address: ce.lipa@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

Office of the College of Engineering

IE 411- QUALITY MANAGEMENT SYSTEMS

CASE STUDY

APPLICATION OF QUALITY IMPROVEMENT TOOLS AND TECHNIQUES IN

_____________________________________________________________________________

IMPROVING THE PRODUCT AND SERVICE QUALITY IN LS CLOTHING SHOP

Submitted by:
De La Rosa, Mary Janine I.
Hirang, Catherine M.
Penera, Jaylord
Sumadsad, Rica Mae M.

Submitted to:
Engr. Earvin S. Rosita

December 2022
I. Introduction

A set of characteristics that consumers anticipate from goods or services are referred to as
quality. Design, performance, reliability, stability, efficiency, profitability, affordability, and
responsiveness are just a few of the many factors that go into its design. In other terms, quality
refers to adherence to predetermined standards. It also suggests a way to assess how successfully
goods or services achieve their goals. Generally speaking, it is a perceptual and subjective
feature. Quality cannot be defined individually; rather, it may be viewed from many different
perspectives. It is a complicated occurrence that involves a wide range of individuals. The
concept of quality cannot be unified.
Excellent goods and services are made sure of by "quality management." A product's
performance, reliability, and durability can all be used to assess its quality. To set a business
apart from its competitors, quality is a key factor. Quality products are essential for long-term
income and profitability. With an effective quality management program, your business may
grow, eliminate waste, increase accountability, reduce the time spent redoing work, and improve
its reputation and image. It empowers workers to put quality before quantity and put in great
effort to succeed in whatever they do. To develop and practice new strategies to produce
products that are preferable to those competitors and eventually result in higher sales and profits
for the company, quality management holds the customer's feedback and expectations which are
of the utmost importance. All processes must be continuously improved, monitored regularly,
and checked for any flaws or problems. It serves as a resource for managing the company's
operations successfully and profitably. It enables to spot issues before they become serious so
that it will be easy to take appropriate action.
Tool for quality management helps in problem understanding and decision-making.
Additionally, it is essential for improving the standard of goods and services. It employs efficient
quality management. The company will experience fewer issues if methods, employees, and
results are of high quality. Tools for quality management assist businesses in gathering and
analyzing data so that employees can quickly comprehend and interpret data.
II. Background of the Study

As the clothes market and fashion sector continue to grow and develop, more clothing
businesses place a strong emphasis on their designs and displays. In the modern era, a clothes
store serves as both a venue to sell items and a showcase for the character and traits of our
clothing brands. In other words, a clothing store has traditionally been a location where
customers can shop for and experience beauty and spirituality. In this way, the designs and
displays in clothing stores only serve to entice customers to enter, enjoy the clothes they choose,
and ultimately purchase clothing. Clothes store designs and displays have served as a crucial
brand marker for clothing companies and the clothing business. One of the most successful
sectors of the global economy is the garment sector. Since it is one of the fundamental needs of
people, demand for it never ceases. This causes very intense competition in the market, ranging
from the brand name, quality, and pricing to promotion. Clothing and apparel businesses that
offer reasonably priced yet high-quality goods expand practically everywhere.

LS Clothing shop is a local brand small shop located at Tibig, Lipa City, Batangas. The
business started during the year 2018. Social media like Facebook serves as a crucial tool for the
business to recognize. This clothing shop became popular for its high-quality clothes that are soft
and comfy to wear. The clothing shop offers different items such as leggings, pajamas, tokong,
squarepants, joggers, shorts, blouses, sleeveless, spaghetti, dress, ternuhan, t-shirt, sando, muscle
tee, and many other items. These items have assorted colors and designs that's why there are a lot
of choices. Customers and suppliers who want to buy can send a private message on the
Facebook page of the shop or call the owner to its phone number. They can also go to the shop if
they want to see and buy items. The LS Clothing Shop also offers retail and wholesale of items,
especially to those resellers. Customers can easily contact the shop if they have queries and if
they are interested in the items. Customers can also browse on the Facebook page to see items
and the shop may send those pictures of available items from time to time. The shop also offers
delivery for those buyers who are from far places.

As the shop continuously grows, there are also challenges that they encountered. There
are instances that the shop received complaints from the customers. The shop address and
respond immediately to the customer's concern regarding the items that they buy. The clothing
shop considers it as a tool that may utilize to improve the offering of goods and services. They
follow up with customers after receiving their feedback, attending to their issues, demonstrating
empathy, providing swift answers, and keeping them informed. A customer complaint can help
identify issues with goods, services, personnel, or internal processes. Businesses look into those
issues and make improvements to stop further complaints.

III. Objectives

This chapter demonstrates the process or quality problems that have been identified, as well
as their analysis and solution using QC tools, design, and established improvement initiatives.

We, students identified some problems on this clothing shop along its processes, services and
quality. Here is a list of some client concerns and issues that the clothes store is having and
which urgently require improvement.

1. Overpriced Items

The clothes that the store sells to the public are allegedly overpriced because their selling
price does not meet their actual worth.

2. Delivery Issues
The employees that are assigned for delivery failed to deliver the items on time.

3. Difficulties in Returning Damaged Items

After delivering the items and customers received items that have damage, it is hard for
them to return the items especially when they are from far locations.
4. Damage or Defects
Some items has damage or defects and it has been noticed by the customers after the
delivery of the product.

5. Wrong Sizing
Although customers of different sized could be captivated by the items in the shop, if
customers don't see their size represented within the selections, they may not buy anything.

Quality Tool
The Pareto chart is a quality tool that was used in this study. The students identified some
of the issues that the LS Clothing Shop encountered, and constructed a Pareto chart to determine
which issues were the most serious and needed to be addressed first.

According to Jaware et al., (2018), a Pareto chart is used in statistical process control for
quality improvement. After collecting data is necessary to arrange it properly to focus on the
most important factor which is responsible for 80% rejection of products in the manufacturing
industry. The Pareto principle is also known as the 80/20 rule.

The chart below is Figure 1, and it shows the particular problems that LS Clothing
encounters. The shop's overpriced items got the most complaints, totaling to eighty-five (85).
The delivery issues had the second-highest number of complaints, totaling fifty-three (53) while
the difficulties in returning got the third-highest number of complaints, totaling thirty (30).
Twenty (20) complaints from customers about damage or defects. Last but not least, there were
twelve (12) complaints about the wrong sizing.

The students come up with some improvements and solutions to the shop's problems with
the help of the Quality tool.
 Figure 1. Problems encountered by LS Clothing Shop

Design and Improvement Initiatives

The bottom line of the clothing shop could be greatly affected by improving the customer
experience and satisfaction. The design and development for better improvement of the issues
faced by the LS Clothing shop are listed below:

1. Overpriced Items
You can base a price on your customers or so-called customer-based pricing. By doing
so, you can avoid overpricing, and it will be an advantage to its shop competitors.

2. Delivery Issues
The business should contact the driver, tell them how was the delivery status is, and track
the orders at all times, too. You can use some tracking apps. Customer satisfaction is raised when
a customer service can view the status of a delivery.

3. Difficulties in Returning Damaged Items

The shop must be responsive to the customer's concerns in returning the damaged items.
They must contact the customer right away on how they will easily return the items and changed
it to new one. They may also give a calling card to the buyers so that they can contact the owner.
The shop must have an assigned employee who will pick up the damaged items to the buyers and
deliver it again as soon as possible.

4. Damage or Defects
The shop must be more restrictive. As much as possible, owner or the supervisor must
monitor and supervised the work of their employees every hour. They must observe the process,
know the cause of defects items, and how to eliminate it. It is important also to check right away
if there's any defects and damage on the clothes.

5. Wrong Sizing
The shop may put size charts in the clothing shop for customers who want to purchase. It
can help the shop gain customers since every buyer considers the sizes of clothes before
purchasing. It is also helpful to the customers to know what sizes of clothes are available in the
shop. Also, the employees in the shop must check the sizes before delivering them to the buyers.

IV. Methodology

This chapter shows the documented current situation of the chosen subject of the study, as
well as any suggested initiatives or improvements.

The students find different problems when it comes to the services, processes and quality of
products served by the selected business, named LS Clothing Shop. The pictures below are
labeled according to the customer complaints.
 Figure 2. Overpriced Items

Figure 3. Delivery Issues Figure 4. Difficulties in Returning Damaged

Items

Figure 5. Damage or Defects Figure 6. Wrong Sizing

Proposed Plan for Improvements or Intuitive

1. For the over priced items, the shop must use pricing strategy and customer based-
pricing in finding the price that will increase their returns while still attracting
customers, setting price that will still be acceptable and affordable.

2. The company should get in touch with the driver or delivery man, let them know how
the delivery is going, and keep an eye on the orders as well. There are tracking apps you
can utilize. When a customer became updated and can see the status of a delivery, it will
exceed their satisfaction.

3. When the customer wants to return the damaged products, the store must accommodate
their concerns. The customer must be informed as soon as possible on how to simply
return the exchange them to new items. In order for the buyers to get in touch with the
owner, they might also provide them phone cards. The store must designate a specific
employee to pick up the damaged items and deliver the new items to customers as
quickly as feasible.

4. The process must be monitored. Every hour, the employer or supervisor must oversee
and monitor the employees' work. They need to keep an eye on the process, understand
what causes defective items, and know how to fix it. Additionally, it's crucial to check
the clothing immediately for flaws and damage.

5. Customers who want to buy clothes must find size charts in the clothing store. Since
every customer considers the sizes of the clothes before purchasing, it may help the shop
attract more customers. Knowing what sizes of clothing are offered in the store is also
useful information for the customers. Before giving the items to the customers, the shop
staff must also check the sizes.
V. Presentation, Analysis, and Interpretation of data
This chapter deals with the presentation, analysis and interpretation of data gathered in
the study.

TYPE OF PROBLEMS TOTAL CUMMULATIVE

TOTAL PERCENTAGE PERCENTAGE
PROBLEMS
Overpriced Items 84 42% 42%

Delivery Issues 53 37% 69%

Difficulties in Returning Damaged

30 26% 85%
Items

Damage or Defects 20 19% 95%

Wrong Sizing 11 2% 100%

Figure 7. Interpretation of the Pareto chart containing the different types of problem that are received LS
Clothing Shop in Figure 1.

Firstly, the type of problem “overpriced items” is the highest in ranking with a total of 84
customer complaints and 42% of total percentage and cumulative percentage. According to
Deutsch (2020), it's crucial to be open and honest with customers about the causes of your
expensive products while highlighting the value you're providing. It is not a haphazard attempt to
make money. Along with the less physical element of hospitality, prices also include labor costs,
rent, taxes, insurance, upkeep, and so forth. By outlining the justification for the price and
emphasizing the quality of what you offer, you have the opportunity to establish a relationship
with the buyer.

On the other hand, the “delivery issues” gathered a total of 53 customer complaints
ranked as second with a total percentage of 37% and cumulative percentage of 69%. Due to
COVID-19 restrictions and the explosive growth of third-party delivery companies based on
Mercurio, delivery service companies in the country have been experiencing growth since the
start of the pandemic. They have been expanding their services and operations to meet the rising
demand of customers and businesses (2020).
 In addition, the “difficulties in returning damaged items” have a total complaints of 30
and total percentage of 26% and 85% in cumulative percentage. In the event of a breach of the
expressed warranty, the consumer may choose to have the items fixed or have their purchase
price reimbursed by the warrantor, as stated in the Consumer Act's Chapter 3, Article 68, Letter
F. If the product is repaired whole or in part, the warranty work must be completed within 30
days and adhere to the express warranty.

The “damage or defects” garnered a total of 14 customer complaints, 7% of total

percentage and 96% of cumulative percentage. According to Gopalakrishnan's study from 2021,
product quality in the textile and clothing sector is determined by the class and standard of the
fibers, yarns, fabric construction, color fastness, surface patterns, and the finished garment items.
The types of consumer categories and retail locations have an impact on the quality requirements
for export.

Lastly, “wrong sizing” is the least complaint that the LS Clothing Shop received with a
total of 11. As it is shown on the table the total percentage is 2% and the cumulative percentage
is 100%. Poor fit or wrong sizing is the most typical justification for returning an online
transaction, according to Digital Commerce 360. In fact, according to TIME, 40% of internet
purchases are returned, primarily for sizing problems. Due to inaccurate sizing systems,
behaviors like ordering the same item in various sizes online and returning the ones that don't fit
are becoming increasingly popular and causing significant losses for online businesses.

Figure 8. PDCA Cycle of Managing Complaints

PLAN DO
Identify the problem Stared analysing the
encountered by the problem and
customer proposed the action

ACT CHECK
Execute the plan to Monitor the
maintain the improvements to
satisfaction of ensure quality and
customer service provided
 The Plan, Do, Check, and Act of Managing the Complaints Encountered by the Clothing
Shop is shown in Figure 8. The goal of the plan is to pinpoint the issues that LS Clothing Shop
has with customers. The next step is Do, begin evaluating the issue and recommending a course
of action to address and avoid brand damage. The third step is to check and track the
advancements to guarantee the standard of the services offered to customers. Finally, carry out
the plan to keep the customers satisfied.

VI. Conclusions and Recommendations

Conclusion
The highest complaint of the customers was “overpriced items” with 42% and has 84
complaints. "Delivery issues" came in second place with 37% and 53 total customer complaints.
With 30 complaints (26%), "difficulties in returning damaged items" comes in third. Following
that, there have been 14 complaints and a total of 7% “damage or defects”. Finally, there were 11
complaints overall, or 2%, about the “wrong sizing”.
To sum up, the "overpriced items" of clothing, "delivery issues" for their purchases, and
"difficulties of returning damaged items" are the top three issues that LS Clothing Shop is now
dealing with. In order to meet the needs of its clients, LS Clothing Shop must enhance their
service.

Recommendation
The study found that every complaint is a chance to raise customer satisfaction and
quality standards across the board. Based on this, LS Clothing Shop should conduct a survey
once a month to learn about the concerns and opinions of each client in order to implement
additional improvements and satisfy customer recommendations. There are numerous ways to
conduct a survey, they can be digital and delivered via links, or they can be created the old-
fashioned manner and distributed in person using printed copies. However, since the business's
owner has a page, clients can get in touch with them through messenger. The survey must be
reliable so that the owner can use the results to enhance the clothing's services.