Establishing a consumer classification of defects for bath soap: An application of total quality management concepts

Date of Publication

1994

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Marketing Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Marketing and Advertising

Abstract/Summary

As part of its quality control, Colgate-Palmolive Philippines, Inc. (CPPI) uses a system of classification of defects. The current system is a product of organizational quality evolution. At first, CPPI's quality inspectors were the judge on the severity of defects. This system led to adversarial relations because defect ratings are subjective and the threat of quality inspector's abuse of power became immanent. This prompted management to change the classification of defects. The new system must be standardized and must integrate the views of the different functions of the company.

The current system of classification was based on cross-functional discussion of defects. It identifies product defects and rates them as minor, major, or critical depending on the severity. A minor defect is that which if found by consumers will not affect their purchase decision. A major defect is that which if found by consumers will make them think twice before buying. A critical defect is that if found, the consumers will not buy the product anymore.

Analyzing the trend, the next system should undoubtedly be one based on consumer's viewpoint. As the current system was set internally, the new system of classification must be set externally. This is pursuant to the belief that companies only exist for their customers. This research paper proposes to come up with a consumer classification of defects.

Two TQM concepts guided this paper. These were customer focus and total involvement. For this study to be intensive, the researchers narrowed down the list of CPPI products to only one through a pre-test survey. Brand variability was the criterion used to determine the product that was studied. This ensured that the respondents have a wide range of brands to evaluate. As the pre-test survey results show, consumers use the highest number of brands for bath soap.

There were four (4) Focus Group Discussions (FGDs) made to explore consumer perception of defects. The results of these FGD's showed substantial difference between CPPI's classification of defects as against consumers' views on defects.

The researchers then came up with a classification of defects based on the FGD's. This classification was put into a survey. The 354 sample verified the defects as to whether they consider them as defects and to whether they should be rated as such (minor, major or critical). There were 19 minor defects, 4 major defects and 10 critical defects. Based on the survey results, the respondents agreed that indeed these were defects and that they should be rated as such. Only one minor defect and 3 major defects did not hurdle the 50% + 1 majority frequency required.

This paper has proven that consumers do not think the way technical people in CCPI do. But as consumers are the ultimate end-user of any business, their expectations must be met. To this, the researchers recommended that CPPI implement the consumer classification of defects. They suggested these phases of implementation to lessen the friction with resistance to change. The researchers also recommended for CCPI to educate its consumers on quality, to constantly update the consumer classification and to come up with other consumer classification for its other products.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU09783

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

116 numb. leaves

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