Far Eastern University Institute of Accounts Business and Finance In partial fulfillment of the course requirement in Total Quality

Management Improvement Plan

INDEX SALON
(Recto Manila Branch)

Prepared by: Mangaran, Aliza Kristine S. Roberto, Julie Ann M. Vivas, Maricris Badoy, Regine Herbolario, Eric S. Punzalan, Princess Angela D. Yap, Avelinjhee A. Catli, Fely Jane Ramales, Ma. Fianne Mabalot, Graciela

Table of content I. Executive Summary 1-2 II. Organizational Profile 3 A. Company Profile B. Customer Profile C. Organization Activities and Programs Reflective of The Principles and Elements of TQM D. Quality Organization E. Training and Education F. Cultural Transformation III. Companys Market Position 12 A. Industry Overview/ Status B. Market Competition C. Company Standing IV. Improvement Plan A. Selected Area for Improvement B. Reasons/ Factors/ Bases for Selecting Specific Area for Improvement 12 12-15 15-19 19 19 19 7-8 8-10 10-11 11-12 3-6 7

C. Action Plan V. Conclusion 23-24

20-23

ACKNOWLEDGEMENT

Movies were made remarkable because of the people behind the camera. Likewise this study will not be noteworthy without the presence of the people behind the researchers.

First and foremost, researchers would like to give thanks and glory to the Almighty for His amazing grace and guidance.

Researchers would also like to extend their appreciation to their beloved parents for their support and understanding. Without them, this paper will not even exist.

Also, the researchers would like to extend their deepest gratitude to their respondents who patiently answered our surveys seriously. Without them this paper will not going to be possible. Thank you very much for your solemn participation.

I.

EXECUTIVE SUMMARY The various beauty salons presently cover not only women's beauty aspects but

also include men's beauty regimen. The beauty salons, which use modern accessories, are more in demand compared to those using traditional or less modern techniques for beauty care regimes. The modern salons always seem more appealing and attractive as they offer a lot of other facilities other than just the beauty treatments. The more spacious the salon is, the better it is for the customers who can feel free to sit anywhere they want. The interior decoration of the beauty salons matter a lot these days as presently the aspect of mental and emotional association with any place is very important without which the customers won't feel like coming back to the same place over and over again. In most reputed beauty salons must have facilities to allow the customers to lie down and relax while they get their hair shampooed or they can get a really relaxing facial done and feel pampered. Most beauty salons provide for magazines and books so that the customers can read them while they wait for their turn. The salons should have a sunny ambience with bright colors and decoration, as a dull and drab salon may not inspire the customer to come back. The salons which are more famous with the customers use modern accessories and best quality products from the cosmetic houses like Revlon, Lakme and Garnier, Avon and LOreal etc. Beauty treatments have always included the aspects of skin care, hair care, eye care and lip care as well. 1

Most beauty salons make use of modern equipments like advanced hair dryers and hair curlers which act instantly on your hair giving you instantly a desired gorgeous look Index is a full-service beauty parlor dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price. It is a parlor offering value-priced services for the entire family. There are other parlors in Quezon City Home site, but provide only minimal services, whereas the upscale parlors in Manila areas and can be inconvenient due to scheduling requirements and cost. We will address a market need for low-cost parlor with good customer service. Index sets itself apart from other beauty parlors that offer only one or two types of services. There are a number of parlors like ours, but they are mainly in the very high income parts of Manila and surrounding areas. We do not intend to compete with these parlors. We wish to offer a middle ground for those clients who can't quite afford those high-end luxury beauty parlors. Our business atmosphere will be a relaxing one where clients can be pampered. Our strategy is a simple one: satisfied clients are our best marketing tool. When a client leaves our business with a new look, he or she is broadcasting our name and quality to the public. Most of our clients will be referrals from existing clients. We will also ask clients for referrals, and reward them with discounted or free services depending on the number of clients they bring. We will also offer discounts to the new clients who have been reffered. 2

II.

ORGANIZATIONAL PROFILE

A. COMPANY BACKGROUND 1. Brief History Since it was founded in 2000, Index Salon Essentials has been one of the biggest full service professional-only beauty products distributors in the Caribbean. Together with salon professionals, their mission has been to promote the growth and development of our industry through education and good quality products. For us, it has been a privilege to be part of such a spectacular industry, representing lines that support, not only our philosophy, but our clients too.

Index

Salon Essentials prides itself on its unflinching compromise with the

professional beauty industry, supported by, not only our staunch defense of our clients interest, but with our constant pursuit of improving the salons business, and always, upping ourselves through service and innovation. Our industry knowledge and

experience guarantees a constant flow of ideas, trends and new products. Recognition and gratefulness are just part of what clients can expect from our staff.

Index Salon Essentials currently services the market through their sales force and stores across Metro Manila and one of the branch of this Salon is in Recto, Manila Our store locations cater to each and every need of the salon professional, including nails, hair, skin care and business development. Not only we provide products and equipment, but we also inspire our clients to be creative and develop their skills on our

3 workshops. At Index Salon Essentials, we understand that education is key to success, and, we focus on the growth and success of salon owners, industry professionals and manufacturers, whom we consider our business partners.

2. Mission Statement Our mission has been to promote the growth and development of our industry through education and good quality products

Vision Statement To be the best in providing Customer Satisfaction, it is not enough to meet the needs and wants of our customers, it is important that we take extra steps necessary to make sure that our customers feel not only satisfied but also SPECIAL. 3. Business Purposes To serve the clients or customers with their satisfaction and give what is best for the quality service offered by them. The company should be able to performed more on patience and understanding by the wants of the customers. To have the heart and soul to share our time and resources with the less fortunate of our community not simply by providing funds for their immediate needs, but by creating opportunities so that may build a better future for themselves. 4

To maintain high growth and profitability so that Index Salon may continue to be of service to its Customer, its Associates and its community. 4. Core Purpose and Values The purpose of the organization should be a development from the core values and should quickly and clearly convey how the organization is to fulfill its role. The core values represent the organizations basic principle about what is important in business, its conduct, its social responsibility and its response to changes in environment. They should act as a guiding force, with clear and authentic values, which are focused on employees, suppliers, customers, society at large and safety. The success of the Index salon initiate depends on its values. Index Salon

practices a transparency to its customer and employees. They believed Honesty is the best policy as part of individuals lifestyle but must also realize that it is also one of the anonymous important keys in running an establishment, especially for its success. No under the table deal policy is being practiced part of their values. Like any other beauty salon companies, Index Salon consider consistently in the improving of their products and services. It has to update their product and services periodically innovative in entails the invention and design or radically new products and services, embodying novel ideas, discoveries and advanced technologies and the continuous development and improvement of existing products and services to enhance their performance and quality. For the better part of a century, Index Salon corporate values have been centered on the phrase. Protect Our Good Name. 5

5. Quality Philosophy INDEX SALON operates on a principle which is followed worldwide by all Index Salon branches. Maintaining a global viewpoint, we are dedicated to offering services and products of the highest quality, yet at a reasonable price for worldwide customer satisfaction. Index Salon philosophy is based on the companys guiding principle and advocates for fundamental beliefs: Respect for the Customers/Individuals Imitative and Trust 6. Organizational Structure
MANAGER/OWNER

CASHIER/RECEPTIONI ST

HAIRDRESSE R1 HAIRDRESSE R2 HAIRDRESSE R3 HAIRDRESSE R4 HAIRDRESSE R5 HAIRDRESSE R6 HAIRDRESSER 7

B. Customer Profile 1. Internal Customers The company recognizes their own employees as their internal customers 2. External Customers Some of the Company and Customer which they consider as their external customersLike F Salon, Ricky Reyes and other competitors. C. Organization Activities and Programs Some of the Organization Activities and Programs of Index Salon which are reflective of the Principles and Elements of Total Quality Management are. (1) 5s approach, (2) Kaizen method, (3) Six Sigma, (4) Total Preventive Maintenance, (5) Total Quality Circle or TQC. According to the Index Salon they define 5s as sorting, systemizing, sweeping, standardizing and self disciplines. This would enhance a procedural method in

establishing better production and at the same time right attitude towards work. Kaizen is a philosophy of small step continuous improvement by all employees. In Kaizen, the suggestions and rewards are small but the implementation is rapid. Kaizen team is a group of people who do similar work meaning voluntarily, regularly, in normal working time, to identify, analyze and solve work related problems, under this leadership of their supervisor. They make recommendation to management. Kaizen is 7

a philosophy of continuous improvement of all employees in an organization so that they perform their tasks a little better each day. It is a never ending journey centered on the concept of starting a new each day with the principle that method can always be improved the emphasis is on encouraging everyone to make improvement. Six sigma was described by the manager refers to the statistics. The Sigma is a discipline approach for improving performance by focuses in enhancing value for the customer and eliminating costs, which add no value D. Quality Organization Index Salon promotes quality circles. There are no formal rules governing the size of a quality circle. Membership usually ranges from three to fifteen people with an average of seven to eight. As the circle become larger than this, it becomes more increasingly difficult for all members of the circle to participate. Great care is needed to ensure that every meeting is productive, a matter how long it lasts or how frequently is it held some activities may took place during a circle meeting. (1) Training, (2) Problem identification, (3) Problem Analysis, (4) Preparation and recommendation for problem solution, (5) Management Presentations. A quality circle usually selects a project to work on through discussion within the circle. It is sometimes necessary for quality circles to contact experts in a particular field like beautician. Quality experts, safety officers or even other personnel. They strongly encourage this communication and they used to invite specialists to attend meetings 8

and other advice.

The experts are considered to be consultants, the quality circle

retaining responsibility for improving a process or solving the particular problem. This provides the powerful motivation of allowing people to take some part in deciding their own action and futures. Only this can be effective it management believes in it and is supportive. The company also have Product Assurance department. This Department was built to ensure that errors were made and to reduce waste products. This is broadly to the prevention of problems with regard to the product itself. With this there will be the establishment of a good quality product through identified and solved problem. 1. Process Improvement Teams/Project Teams It is our mission to improve the lives of customers and communicate where we all live, work and play. We will continue to develop and build product in local market around the world to create value for our entire customer. Our established directions for the 21st century provide the balance of fun for the customers and responsibility for the society and the environment. This is demonstrated through advanced technologies such as new equipment for better and good quality service for the customers. Such as the extending eyelids machines, and the style of the nails use of nail machines and other important equipments as one of the important basis in new technological approach in salon business.

2. Quality Improvement Tools It has been Index Salons corporate philosophy serve the customers the highest quality for total customer satisfaction. And this commitment extends even further. It does not end after the deal is closed at the services offered by its customers care program begins the moment a costumer drives their new Index Salon. 3. Quality Strategies In order to achieve managements goal of No. 1 customer satisfaction, and the ensure quality as the top priority. Index Salon has invested in the most modern production facilities in the beauty industry. Index Salon SPA facility operates with the latest equipment, the most advanced in the local industry involving new system in making your industry improved and developed. E. Training and Education 1. Team Building Programs Every organization should define the policy in relation in Education and training. The company should contain principles and goals to provide a framework within learning experience/experiences may be planned and operated. Training for quality should have an appreciation of the personal responsibility for meeting the customer requirements for everyone. Responsibility for the training of employees in quality rests with management in all level. 10

2. Personnel Involvement There must be a constant teamwork for the improvement of the company. Index Salon, practices continuous teambuilding. This is an efficient way to improve and allows individuals and organizations to grow. Team building is very essential factor to achieve the satisfaction of their customers. Education provided or

employees are essential for their awareness with the processes in the company where they are employed to attain this. Operations Maintenance Training. F. Cultural Transformation 1. Then and Now The culture of an organization is harmed by the beliefs, behaviors, norms, rules and climate in the organization. Any organization needs to comprise its guiding The effectiveness of an Index Salon has provided General

philosophy, core value and beliefs, purpose mission.

organization depends on the extent to which people perform their roles and more towards the common goals and objectives. The company has been very observant with their Total Quality Management especially total circles. Because of continuous improvement that has been materialized due to occurrence of new technologies noticeably there are greater advances which really aided.

11

2. TQM Challenges Some of Total Quality Management challenges of Index Salon today are was reduction program and quality improvement program. These wastes are the activities associated with doing unnecessary work or holding stock as the result of errors, poor organization or poor communications, the wrong materials etc. This occurs when the

results of work fail to reach designed quality standards and detected before transfer to the customer takes place. Total Quality Management also has been there focused. A focus in prioritizing TQM must be consistent in order to provide good services to achieve customers satisfaction and loyalty. III. COMPANYS MARKET POSITION (CMP)

A. Industry Overview/Status B. Market Competition There are a lot of competing Salons that forms the Salon Industry. A big

competitor of INDEX includes F Salon, Angels Salon and OKAY Salon. These firms are all vying for Excellency of quality services and products for the satisfaction of their customers. They offered a lot of new services for the customers. 1. Competitors Profile There are three progressing and competing salons in the vicinity which are F Salon, Angels and OKAY Salon which will also serve as the direct competitors of Index Salon. 12

2. Market Standing Based on our survey conducted to 50 correspondents along the locality of the salon, F Salon got 10%, Ricky Salon got 8% and David got 21% which leaves Index Salon a 61% possible market share. But then quality of service and sales outcome would depend on the number of potential customers that would entrust their looks to this newly established salon. The 61% possible market share is indispensable for every aspiring businessman but its reality would never be overlooked a planned marketing program would clearly result to a good outcomes. 3. Comparative Profile Matrix (CPM)
Index Salon Critical Success Factors Customer Loyalty. Employees Commitment Financial Position Management Price Competitiveness Teamwork Technological Advances Training Total Weight 0.10 0.15 0.15 0.15 0.10 0.10 0.10 0.15 1.00 Rating 4 4 4 4 4 3 4 3 Score 0.40 0.60 0.60 0.60 0.40 0.30 0.40 0.45 8.75 F Salon Rating 3 4 4 4 3 3 4 3 3.55 Score 0.30 0.60 0.60 0.60 0.30 0.30 0.40 0.45 Ricky Salon Rating 2 4 4 4 3 3 4 3 3.45 Score 0.20 0.60 0.60 0.60 0.30 0.30 0.40 0.45 3.55 David Salon Rating 3 4 4 4 3 3 4 3 Score 0.30 0.60 0.60 0.60 0.30 0.30 0.40 0.45

Listing the weight for a particular Critical Success Factors is important to come up with the most important factor that attributed for achieving firms success. Among all the Critical Success Factors noted, Employees

Commitment, Financial Position, Management and Training should be given much weight due to obvious reason of reaching the goal of the company, three factors comprises it all. 4. CPM analysis and Interpretation Customer Loyalty shows that the Index Salon who ranked highest against its competitors. This is due to the guarantee of quality product with better price that can afford any individual who wishes to visit and have their services. Price Competitiveness costumer loyalty was supported by price

competitiveness. SPAS from Index Salon are more affordable than the rest including in its fair and just price is the service, which satisfies their customer. Employees Commitment, Financial Position, Management and

Technological Advances showed that all in the line Salon Company as excel in four (4) critical success factors. This only proves how competitive they are in there of making tires possibly for customers needs. Teamwork and Training minor strength was evaluated for teamwork and training. These are reflected through employees capacities and capabilities. 14

It can easily be solved through encouraging its employees and help to develop. In overall views, with the total weighted score (TWS) of 3.75 which proves that in merely outstanding way Compared to F Salon and Ricky who ranked second with TWS 3.55 and David with TWS of 3.45. Index Salon was able to deliver justice for all the credits that was given for good reputation and in return, the company struggles to give what their consumers need and serve as a model for others firms to excel more.

C. Company Standing 1. Perceived Competitive Advantages Index Salon is considered the one of the top and the worlds leading salon. The reason behind their competitive advantage is that aside form being known to the mass, they also an ISO Certified that marked the progress made in developing as a word class organization. It is their edge the product and services that marketable to all customers because of its quality. The company thinks about prioritizing in making the firm to be No. 1 but they prioritize what their customer need in achieving true success. 2. Established Best Practice Framework The management strictly focuses on the best practices or the framework for the 15

customer and employees relationship. The important factor that the company must focuses on the honesty the service that they give to the customer that satisfies their needs. The employee customer relationship is important. In dealing a situation, like this the management of the employees whos involved in dealing with the customer must be fair and honest. The marketing process o an organization must take the lead in establishing the tune requirements for the product or services. The chief executive of an organization should accept the responsibility for and commitment to a quality policy in which he/she must really believes. The content of the policy of an organization should be made known to all employers. The preparation and implementation of a properly through out quality policy together with continuous monitoring make for

smoothes production or service operation, minimize errors and reduce waste. The management must also understand and communicate the requirement of their supplies, and inform them of changed and provide feedback on their performance. And to practice the no under the table policy the management must first to know what their vision are and mission, discipline is another factor to prevent this situations. It may help the company to have a good images to their customer that they are not allowing the under the table deal. 3. TOWS Threat: Increasing of price of materials need 16

 The trust and confidence of the target market are not yet established. Opportunities Formulation of new ideas and concepts regarding the innovation of the salon. Increasing demand for convenience.

Weakness: The current economic situation, which is quite down and low so the supposed to be customers will be lessen. Strength: Unique innovation of the salon Accessibility of the business established for the target market Serves convenience for all customers High quality services offered Technologically advance features and services. 4. Internal and External Factor Evaluation Matrices The internal factors evaluation shows the internal strengths and weaknesses of the company. Internal strengths were given good rates in which financial position, ISO

17 certification, technology and worlds largest salon company get as major strengths and the rest rated three (3) or minor strength. For external strength budget was the major weaknesses. And their may lead to lack of funds for certain projects of the firm like training for preventing error production. The External factors evaluation for Index Salon has excellent ratings especially for opportunities of the firm. Through having few threats they should be more focused and observed of cheap imports and tough competitors. 5. Consumers Feedback System SURVEY RESULTS Problems: Budget for desired projects Complaints of customers Defective products/waste products Given less priority for Education and Development of Company and employees Lack of internal communication Training insufficiency 53 11 49 Total 34 7 24

18 Useless monitoring of quality performances TOTAL 27 205

IV.

IMPROVEMENT PLAN

A. Selected area for Improvement The group decided to select the SPA facilities as the area for improvement. The organization should consider its workers to be more aware in the said SPA; also their employees must have proper training in conducting SPA services, as provide customers good services. Availability of necessary equipments is also important to improve the performance of the personnel and give better service to the customers. B. Reasons for Selecting Specific Area for Improvement As what has been mentioned, the SPA facility of the Index Salon is not enough in order to give customers satisfying services. They need to complete their

equipments as well as the design of the room should be wider compared to its existing design. We choose this area for improvement to maintain and to further increase the number of customers visiting the place. In order to remain viably competitive, the company needs to work more in training their employees who are assigned in SPA services.

19 C. Action Plan Proposed Improvement Based on the standing of the company/Salon there is no major problem, regarding customers loyalty which the Index Salon has to be solved. But merely

because of tough competition their benefit of Total Quality management every process should be observed. This does not necessarily prove that the companys internal

position is weak. Due to continuous improvement towards Total Quality, certain minor problem should be given attention so as to prevent present problems from getting worse. Statement of Desired Action The Index salon needs to improve the part of their SPA and the performances of their employees in accommodating their customers. Based on the researchers observation, the SPA facilities are not enough for two to three customers at the same time and the employees were not able to accomodate their customers effectively. This is the only problems that they were observed in the said salon.

20 Time/Chant Chart
2009 June July August
Septemb er

2010 October
Novembe r Decembe r

January

Time table activities Survey

Funding

Redesigning/up grading Wider space for the improvement cycle Acquisition of materials and equipment Training of Personnel Start operation

21

Improvement Process Survey of which of all the Index Salon needs some improvements Funding of the supposed redesigning that will soon materialize. The planning of the new designs or the upgrading of some services Widening of the space for the new look for the services offered Training of Personnel who would supervise or would be involved in the operation of producing the new version of the services offered by Index Salon Acquisition of equipments and materials that will be needed in the production of the newly improvement version Start of the Production of the business. Improvement Cost The improvement of cost in the said Index Salon should be not less than 15,000 in all designs and renovation of the said place for SPA as well as for the training needs of the employees. Improvement Benefits Aside from the obvious improvement of the SPA design and use, it would also bring much more profit to the salon and on the part of the supposed

22 customers, more comfort, relaxing in every time they need to visit the place or salon.

V.

CONCLUSION Beautification of oneself is not an unusual passion for man and women of all

ages.

Wearing the best and the trendiest fashion is a way to look the best in By nature all people loves all things that makes them beautiful and

fashion.

beautification of oneself is not impossible to be set up as one of the industry in the business. Index Salon has a lot of factors which attributes to its own class. Speaking of problems and risks, with this study which the group has conducted strategies; we believe that Index Salon had proven its excellence when it comes to Total Quality Management. Precisely with all the responses done in survey forms, the company was able to correspond with the changes, challenges and success of which they should really be recognized as number one. But since, in Total Quality Management every detail in process systems should be kept perfect. The study is not a perfect research for anyone to agree for, but learning from it and gaining knowledge from this case study at least somehow contribute for some weaknesses that can still be cured. A simple research which is very concise yet could be very useful for long

term goal of Index Salon.

23

To the proposed plan, INDEX will prosper, become well known and will gain a lot of customers that will patronize their offered services. The very essence of this

research of this study is not only for the company to do the task but also for the employees to do their part. Valuing every opportunity offered by the company and their loyalty and to use if against which they are employed. Teamwork is a reflection of unity and cooperation. Simplest strategy yet composes the foundation of though and competitive firm.

24

BIBLIOGRAPHY Mello, J.M., Strategic Human Resource Management, Cincinatti Ohio, 2002. Oakland, J.S. TQM Test with Cases (2nd edition) Burlingtom MA, 2000.

25