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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
6
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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