index improvement plan4

7/28/2019 INDEX IMPROVEMENT PLAN4

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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


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Table of content

I. Executive Summary

1-2

II. Organizational Profile

3

A. Company Profile 3-6

B. Customer Profile 7

C. Organization Activities and Programs Reflective of The Principles and Elements of

TQM 7-8

D. Quality Organization 8-10

E. Training and Education 10-11

F. Cultural Transformation 11-12

III. Companys Market Position

12

A. Industry Overview/ Status 12

B. Market Competition 12-15

C. Company Standing 15-19

IV. Improvement Plan 19

A. Selected Area for Improvement 19

B. Reasons/ Factors/ Bases for Selecting Specific Area for Improvement 19


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C. Action Plan 20-23

V. Conclusion

23-24


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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.


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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.

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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.

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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


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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.

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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.

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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

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MANAGER/OWNER

CASHIER/RECEPTIONI HAIRDRESSE

HAIRDRESSE

HAIRDRESSE

HAIRDRESSE

HAIRDRESSE

HAIRDRESSE

HAIRDRESSER


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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

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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

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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.

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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.

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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. Index Salon has provided General

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

philosophy, core value and beliefs, purpose mission. The effectiveness of an

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.

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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.

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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)

IndexSalon

FSalon

Ricky

Salon

David

Salon

Critical SuccessFactors

Weight Rating Score Rating Score Rating Score Rating Score

CustomerLoyalty.

0.10 4 0.40 3 0.30 2 0.20 3 0.30

EmployeesCommitment

0.15 4 0.60 4 0.60 4 0.60 4 0.60

Financial Position 0.15 4 0.60 4 0.60 4 0.60 4 0.60

Management 0.15 4 0.60 4 0.60 4 0.60 4 0.60

PriceCompetitiveness

0.10 4 0.40 3 0.30 3 0.30 3 0.30

Teamwork 0.10 3 0.30 3 0.30 3 0.30 3 0.30

TechnologicalAdvances

0.10 4 0.40 4 0.40 4 0.40 4 0.40

Training 0.15 3 0.45 3 0.45 3 0.45 3 0.45

Total 1.00 8.75 3.55 3.45 3.55


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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 Loyaltyshows 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.

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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

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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

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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


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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: Total

Budget for desired projects 34

Complaints of customers 7

Defective products/waste products 24

Given less priority for Education and Development of

Company and employees 53

Lack of internal communication 11

Training insufficiency 49


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Useless monitoring of quality performances 27

TOTAL 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.


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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.


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Time/Chant Chart

ime table

ctivities

2009 2010

June July August Septemb

er

October Novembe

r

Decembe

r

January

urvey

unding

edesigning/up

rading

Wider space for

he

mprovement

ycle

cquisition of

materials and

quipment

raining of

ersonnel

Start operation

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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


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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

fashion. By nature all people loves all things that makes them beautiful and

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.


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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.

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BIBLIOGRAPHY

Mello, J.M., Strategic Human Resource Management, Cincinatti Ohio, 2002.

Oakland, J.S. TQM Test with Cases (2nd edition) Burlingtom MA, 2000.

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