Republic of the Philippines

NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY

Sumacab Este, Cabanatuan City, Nueva Ecija

Submitted by:

DACANAY, ANGEL MARIE M.

GARDOCE, APRIL JOY F.

VILLARAMA, MARY JOYCE L.

VILLEGAS, JOVIELYN A.

BSBA 3B STUDENTS

Submitted to:

Mrs. JOY SAVELLANO

PROFESSOR
I. INTRODUCTION

About the Subject

This subject provides learners with an understanding of quality control and improvement
systems. The course includes study of topics related to quality management approaches, design
and implementation of quality-related procedures and related technologies. This also involves
topics on how all the departments and employees of an organization can work into the
improvement of processes underlying the production of goods and services. The focus of the
course is on enhancing goods, services, and the business environment, it also tackles strategies,
tools and methods in TQM that can help in reducing costs and to meet and exceed needs and
expectations of customers and other stakeholders of an organization.

The Course Requirement

This course requirement is a research presentation about Total Quality Management (TQM)
were the researcher choose one organization and conduct a research regarding the total quality
management tools, operations and strategies their chosen organization has been implementing.
The researcher identify, describe or explain the strategies, make an assessment or evaluation, and
use appropriate quality tools to formulate improvement suggestions. This course requirement
assesses the students’ ability to apply the theory and concepts in a practical real-life situation,
based on their understanding of its effectiveness to the operation of the organization, in
establishing good partnership with other businesses/organization, as well as in maintaining loyal
customers/clientele. Findings of this course requirement be presented online via video
presentation.

Objective/Purpose of the Course Requirements

The purpose of this course requirements is to provide the students with foundational
information on Total Quality Management theory and practices in all areas of business at all
levels. The utilization of the practices should ultimately be used to improve business outcomes
by providing tools to use the best practice to improve the business outcomes.

II. THE ORGANIZATION

Name

The organization’s name is Alalay sa Kaunlaran, Inc. (ASKI).

Address

The main branch of ASKI is located at 105 Maharlika Highway, 3100 Cabanatuan City,
Nueva Ecija, Philippines

Nature of the operation

The nature of the operation of Alalay sa Kaunlaran, Inc. (ASKI) is, they implements
different loan products depending on the areas being covered. For highly urbanized areas, the
company employs ASA Methodology and individual Lending programs, both regular and small
market vendors. For rural areas, the company applies the Alalay sa Kabuhayan Program. The
following is the loan products that ASKI offer;

1. Alalay sa Kabuhayan Program (AKP): Group loan model for income generating projects.

2. Alalay sa Magsasaka Program (AMP): Loans extended to small farmers for crop
production, acquisition of farm machinery and other agro-enterprise needs.

3. Individual Lending Program (ILP): This program caters to home-based businesses or

businesses inside and outside the public market or central business district. it aims assist
 micro, small and medium enterprises with additional business capital and entrepreneurial
training for business expansion. Likewise, to create more jobs and increase income.

SIKAP - for microenterprises requiring smaller capital.

UNLAD - for progressing and big business requiring higher capital.

SALARY - business or consumer loan where payment is deducted to the employee’s salary.

4. Micro Housing - Alalay sa Pabahay Program (APP): Loan for house construction
improvement and lot purchase.

5. Micro-agri: Loan that caters to agricultural production and agri-business ventures in

agrarian communities.

6. Consumer Loan Programs

Salary Loan Program: Loan facility for employees of local government units and selected
private companies.

Cellular Phone Loan: Loan for purchase of cellular phones, which enables client to ease
communication and generate additional income thru load selling.

Insurance Loans: aims to support the marginalized sector in times of sickness and death.

7. Tricycle Operators and Drivers Insurance Program (TODIP)

8. Kapamilya Insurance Program (KIP) SAVINGS PRODUCTS

Capital Build- up (CBU) - This fund is made up of compulsory savings required by ASKI,
which aims to instill value of thrift, and savings among clients. Every borrower set aside a
modest amount of the loan amortization for his/her capital build- up. A member is required to
save at least 15% of the total approved loan. Over time, every client gradually saves and
accumulates his/ her own business capital. CBU can only be withdrawn when the client no
longer wants to avail loan.

INTEGRATED COMMUNITY DEVELOPMENT PROGRAM

ASKI recognizes the unique qualities of each community the clients dwell in, and in order to
inculcate a difference, it will have to immerse itself in each of these communities, stir up the
people’s desire for growth, and have them commit to its active pursuit. ComDev works with the
community through a community organizer who facilitates the development process. He/ She
assist the community in organizing and mobilizing a people’s organization that will be
responsible for planning and implementation.

Key Officials

A group of business leaders in Nueva Ecija, out of Christian zeal and compassion, joined as
a response to the issues and help deliver the economic turnaround, through micro- enterprise
development.

Rolando B. Victoria is reaping the rewards as President and CEO of the ASKI Group of
Companies, Inc.
The founding members are as follows:

Mr. Norberto R. Diego, Sr.

Dr. Jacinto C. Gotangco,Sr.

Dr. Gemiliano C. Calling, Sr.

Mr. Marceliano Buco

Miss Trinidad Viloria

Miss Elenita Salvador

Mr. Aurelio Llenado

Company’s History

ASKI was officially registered with the Securities and Exchange Commission (SEC) on
March 23, 1987 under the name "A1alay sa Kaunlaran sa Gitnang Luzon, Incorporated" as a
non-stock, non-profit organization committed to the promotion and development of micro and
small-to-medium enterprises and the delivery of social services.
In 1995, seeing the needs of its clients in times of sickness, ASKI, through its Credit Risk
Guarantee Fund (CRGF), stalled glvmg financial assistance to its clients for their hospitalization
and medical expenses, Php l,000 if a client gets hospitalized and Php 500 if his/her spouse or
dependent child suffered illness and was hospitalized. ASKI also gave donations to the bereaved
family of the client in times of death.
Further, in 1999, recognizing that the said financial assistance is not sufficient as a response
to the difficulties encountered by the clients and their families m time of death and/or serious
illness and also, in order to mitigate the risk of accounts becoming uncollectible due to death and
disability, ASKI introduced the Mutual Aid Fund (MAF) Program. In this program, in addition
to membership fees, clients contributed a certain amount upon the death or disability of a MAF
member or upon the death of his/her legal spouse or legitimate fully-dependent child. The
amount contributed, net of outstanding loan balance with ASKI, is awarded to the bereaved
client and/or his/her beneficiaries to help ease-out the expenses related to death or sickness. This
later evolved into clients paying fixed amounts upon every loan renewal instead of paying their
actual contribution. The transition was decided on the basis of a growing outreach of ASKI,
which would support the possible claim for benefits. This would also simplify the collection and
monitoring process of the program. As per analysis of the actual contributions received from
clients and the benefits awarded to clients and their families, the Organization decided to fix the
contribution to Php 350 every loan release.
True to its vision of a transformed and progressive community, ASKI joined other
microfinance institutions (MFIs) in organizing the Risk Management Solutions (RIMANSI),
Inc., an institution that would help MFIs in setting-up their own mutual benefit associations.
Thus, through the help of RIMANSI and CARD Mutual Benefit Association. the first MBA
emanating from an MFI, Alalay sa Kaun1aran, Inc. Mutual Benefit Association (ASKI MBA)
was born. On June 21 2006, ASKI MBA was officially registered with the Securities and
Exchange Commission (SEC) as a non-stock, non-profit organization. And on October 5, 2006,
ASKI MBA was issued a license to operate by the Insurance Commission (IC).

Awards/Achievements/Milestone of ASKI

 On October 29, 2020, AGC President Rolando B. Victoria is 2020 ADFIAP CEO of the
year. He joined the microfinance institution even without compensation. With a borrowed
table, an old typewriter, and an electric fan he got as a wedding gift, he started the operation
of ASKI. Now, Mr. Rolando B. Victoria is reaping the rewards as President and CEO of the
ASKI Group of Companies, Inc.

 On September 30, 2020, ASKI becomes first Sustainability Certified MFI globally. ASKI
achieved the status of Sustainability-Certified Financial Institution and received the award in
this year’s Karlsruhe Sustainable Finance Awards & Certification Ceremony held at the
Achat Hotel in Karlsruhe, Germany.

 On November 11, 2015, ASKI Global Limited conferred Company of the Year at the
Asia CEO Awards 2015. ASKI Global Limited emerged tops inthe category that it was
nominated in at the recent Asia CEO Awards 2015.

 On October 16, 2015, ASKI Global Limited nominated in Asia CEO Awards 2015

 On June 1, 2015, Metrobank Foundation sustains winning streak: Gains top awards in
Philippine Quill and Avil Awards

 On February 13,2014, Metrobank Foundation presents PEACE award to ASKI

 On December 11, 2013, Metrobank is lone global recipient of The Banker’s Financial
Inclusion Award

 On April 13, 2013, ASKI Global Ltd, graduates receive Bagong Bayani awards

After more than 30 years in the development industry, ASKI Group of Companies, Inc. has
achieved great milestones and surpassed steep challenges in its journey. From a small office in
Cabanatuan City, ASKI blossomed and continuously grows to serve not only those in the rural
communities but overseas Filipino workers as well. Currently, ASKI has a total portfolio of
Php1.7 billion with 98 branches in Regions 1, 2 and 3 and serving more than 100,000 clients and
insuring more than 800,000 members and their families
The organization has also created its name in local and international front in bringing about
change to the lives of many and innovating its strategies to better cater the needs of the people. It
has developed trust and entered partnerships to different institutions inclined to the mission of
ASKI. Similarly, ASKI has strengthened its alliance with its fellow institutions in the industry
across the country to work together to better address the needs of poor families.
Reason why we choose ASKI as the subject of our report

ASKI is a well-known non profit organization in Nueva Ecija. This organization help a lot of
our poor fellowmen and studying it will make out research more interesting and informational.
Aside from that, information and data are available. It make us easy to gather information about
the company. Also because of the availability of data, the study guarantee that it is base on facts.

III. TOTAL QUALITY MANAGEMENT APPLICATION OF THE ORGANIZATION

TQM Tools and Techniques

Microfinance Price Analysis Tool

NOTE: not all bubbles sizes in this graph represents number of borrowers. These bubbles are
shown as a uniform small size.

TQM Principles

1. Continuous Improvement

The ASKI team regularly checks staff compliance with anti-corruption policies and
procedures as part or regular internal audits. The company do immediate feedback and respond
to problems within two weeks. In addition to providing better services to clients, the text system
help them to identify problems, enforce the Code of Conduct and Discipline and ensure that our
employees keep their behavior in mind during all interactions with clients.

2. Customer Focused

The main focus is staff relations with customer. It outlines the company’s core values like
God-centerdness, integrity, stewardship, excellence, and commitment to serving the needy. It
stresses ASKI’s expectation for client treatment especially the importance of maintaining high
job performance, such as quality portfolio, while observing the highest standards of customer
service. The code also covers practical matters such as being on time, maintaining client
confidentiality, and avoiding conflicts of interest, such as receiving gifts from client.

3. Communication

In 2010, ASKI conducting client satisfaction surveys through a research team. During these
interviews, the team asks clients if they receive respectful and ethical treatment from ASKI loan
staff. This report is given to branch and senior management who use it to check staff service
performance and improve on any weaknesses.

TQM Practices

1. Process Management

ASKI welcomed Republic Act 10693 or the “Microfinance NGOs Act” that strengthens non-
government organizations engaged in microfinance operations. The law benefits and protects
microfinance institutions and more importantly its delivery of services to micro entrepreneurs
and unbankable poor families.

2. Committed leadership

The CEO of ASKI joined the microfinance institution even without compensation. With a
borrowed table, an old typewriter, and an electric fan, he started the operation of ASKI. He
accepted the position without any compensation in the first few months because as a new
microfinance institution, ASKI had no capital to speak of. They start their operation with a loan
portfolio of Php 460, 000 provided by Maranatha Trust of Australia. ASKI started without any
available funds, literally from scratch. During the pilot year, Mr. Victoria had to bring the even
bond paper, carbon paper and other office material for ASKI’s use. After one month, the
typewriter and the electric fan were stolen. They restored to caroling during the Christmas season
and approaching the friends of their Board to raise needed funds. After 33 years, it shows he
made the right decision and it is all worth it. Now, Mr. Rolando B. Victoria is reaping the
rewards as President and CEO of the ASKI Group of Companies, Inc.

3. Strategic Planning

ASKI has an effective participatory annual budget process with monthly review of budget
when all variances to budget of plus or minus 10% are reviewed, understood, and acted upon.
ASKI has a business plan that extends to 2010 with financial projections, which have been
completed with the involvement of all management.

TQM Methodology

1. 100% Commitment

Driven Management - determination and willingness to champion the initiative kept social
enterprise a number one priority even in the face of crisis.

2. Continual Improvement

Openness to innovation - the ASKI IT department complies with the demand to continually
improve the ASKI system to meet local and international standards. In additions, the continuous
equipping of BOT and Management Committee with the latest innovations and Business
Development Strategy.

3. Customer Driven

Listening to clients - ASKI recognizes what the clients have to say when it comes product
and service delivery. Researches such as market researches, client retention survey, drop out
study, competition analysis and product development like insurance loan for tricycle drivers,
customer satisfaction survey on the health insurance products, and customer satisfaction on
ASKI MBA are conducted to assess if the products and services offered by ASKI appropriately
respond to their needs.

4. Employee Empowerment

Empowering employee - at year 2016, one hundred twenty-six migrant workers completed
their financial literacy training under the Citi-ASKI Overseas Workers Financial Stability
Program. This initiative has been empowering migrant workers by equipping them with
fundamental financial management skills since 2012.

TQM Process and Implementation

Alalay Sa Kaunlaran, Inc. (ASKI) is on its 22nd year as a Microfinance Institution (MFI)
committed in making openings towards a dynamic community. Thru Three Pronged
Methodologies, ASKI outperforms more exertion to help clients in getting quality
administrations. ASKI goes past the bounds of microfinance, because it wanders into Issue-
Based Community Organizing (IBCO) towards improvement. This time, replying the call to help
on the conveyance of social administrations on marginalized ranges for innate people groups (IP)
and lowlanders (non-IPs). Besides, ASKI moreover bolsters clients by giving preparing
improvements for business improvement consequently presenting their items to a more extensive
showcase network. ASKI engages individuals, past the call of microfinance.
Challenged by the mission to advance countrywide socio-economic advancement and
otherworldly change, and the endeavors of other improvement NGOs, ASKI advance burrowed
profound and wide on its courses of administrations. In 2002, ASKI propelled its Coordinates
Community Advancement Program, which has given ASKI acknowledgment by the PCFC for its
“Microfinance Plus” administrations. In 2003, the Organization chosen to go past its guests,
Central Luzon, and extended to Districts 1 and 2. This strong step inevitably gave way to the
selection of a modern title, Alalay Sa Kaunlaran, Inc., dropping the express “Sa Gitnang Luzon”.
The modern title, which has given modern motivation to its Board, administration, and staff, was
authoritatively enlisted with SEC on September 23, 2004.
Advance, in April 2004, the organization set-up a isolated unit for its Trade Improvement
and Bolster Administrations, which is an coordinates conveyance instrument of non-financial
administrations that points to supply clients with the use, opportunity bases, and markets
required to form their businesses succeed. Hence, this completes ASKI’s three-pronged
procedures: microfinance improvement, coordinates community improvement, and commerce
advancement and bolster administrations. With these, ASKI trusts to contribute to the realization
of the “Eight (8) Thousand years Development Goals (MDG)”, which the Philippine
Government has committed to realize by 2015 (NSCB, 2006). For the another five a long time,
the Organization plans to reach out to over 80,000 clients over 29 branches.
In spite of the fact that obstacles may come on its way, ASKI will proceed to plan
methodologies that will be of more offer assistance to the all encompassing improvement of the
small scale- business visionaries, since ASKI accepts that through stewardship, judgment, regard
and commitment to serve destitute, a community can live in a fair and caring society, and will
involvement the completion of life.

Organization’s Commitment to Satisfy Customer’s Needs

ASKI continue to integrate sustainable practices in their system and operation by improving
their economic value while managing their impact on the environment and society. In spite of
calamities in the previous years that hit the areas of their operation, they continuously provide
services to their clients as they remain committed to a responsible and client-centered
microfinance. The clients remain at the heart to their operations.

ASKI continuously promote community development, environmental protection and

Christian values as aligned with their core values. ASKI has not engaged in any activity that
contradicts to the organization’s moral and ethical values like violation of laws, danger to
community and social welfare and damage to environment. ASKI are the strong advocate of
Client Protection Principle after being conferred as the first microfinance institution in the
Philippines to be SMART Campaign Certified organization.

The ASKI Group of Companies, Inc. Is now undergoing the Sustainability Standards and
Certification Initiatives (SSCC) under the auspices of the European Organization for Sustainable
Development (EOSD) based in Karlsruhe, Germany and the Association of Development
Financing Instruction in Asia and the Pacific (ADFIAF).

Leadership for Total Quality Management

AGC President and CEO receives sustainability leadership award

ASKI Group of Companies, Inc. President and CEO Rolando B. Victoria was recognized as
one of the “Sustainability Leaders of the Year” by the European Organization for Sustainable
Development (EOSD), ADFIAP and the City of Karlsruhe in Germany.

Arshad Rab, CEO of EOSD said: “Making the economy socially and environmentally
sustainable requires dedicated leaders in all sectors of economy, but particularly in financial
services. Mr. Roland B. Victoria is one of those leaders who has demonstrated proven success in
leading ASKI by creating social and environment value. People congratulate him for receiving
the Certification of Merit in the category “ Sustainability Leader of the Year Award 2018.”

IV. GENERAL IMPRESSION/OBSERVATION AND REACTION

Generalization of the report

Management is the key area for ASKI to achieve significant growth in the coverage of the
target market. ASKI recognized the need to compete in the market for highly capable personnel
and to formalize management processes have grown significantly without internal crisis.
 Although management is reflected in all aspects of the institution, this indicator specifically
highlights the management team. ASKI believes that a consolidated senior management team is
one of the most perceptible characteristics of a successful institution. Members of the ASKI
senior management team possess the indispensable commitment to their work and be empowered
to flexibility and effectively make decisions based on technical criteria.

ASKI have a strong board of trustees that collectively have the skills to provide the support
and wise advocate required of an NGO in the process of emerging into a bank. The BOT’s main
role is to set the strategic direction, monitoring progress, and being the inspiration of the
business. Many board members are also regular donors.

Board members are re- elected each year and several board members have remained on the
BOT for many years. There is a strong spirit of friendship between board members,
management, and staff and it is suggested that Board members periodically review the
relationship to ensure that there is sufficient challenge and objectivity.

Observation and Reaction

By doing this term paper, Alalay sa Kaunlaran (ASKI) is a productive place to work as they
implemented the Total Quality Management very well.

The leader is inspirable, ASKI struggles a lot nevertheless he take the risk and trust his
ability even it is difficult and we admire him for that. A lot of benefits are provided, training for
staff development , approachable leaders, very considerable hours of working, allows employees
to have quality time with their family and allows them to have time with God first before start
working.

V. INSIGHTS GAIN

APPENDICES

References/Links

http://aloe.socioeco.org./article843_en.html

http://www.socioeco.org/bdf_fiche-document-1506_en.html

https://issuu.com/askiphilippines/docs/aski_annual_report_8-16-2019?ff

http://www.e-mfp.eu/blog/perpectives-frontline-how-aski-philippines-dealing-covid-19-crisis

https://www.quality-assurance-solutions.com/quality-audit-checklist.html

https://www.findevgateway.org/paper/2015/07/developing-tool-measure-client-satisfaction-and-
protection

https://www.mftransparency.org/microfinance-pricing/philippines/005-ASKI/

https://www.mftransparency.org/microfinance-pricing/philippines/PH-005-V01/#c=PH,

https://www.glassdoor.com/Reviews/ASKI-Reviews-E610618.html

http://www.askiglobal.com.sg/category/awards/

https://www.aski.com.ph/

https://issuu.com/askiphilippines/docs/newsletter_april-june_2016_48c99fe4d76e78

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