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Big Picture C

Week 6 - 7: Unit Learning Outcomes (ULO): At the end of the unit, you are expected to

a. Rationalize the concept and importance of Forecasting;

b. Rationalize the three decision making environments and illustrate a decision tree; and

Big Picture C in Focus: ULOa.

a. Rationalize the concept and importance of Forecasting

Metalanguage

In this section, the most essential terms relevant to the study of forecasting and to
demonstrate ULOa was operationally defined and discussed in the essential knowledge
to establish a common frame of reference as to how the texts work in your chosen field
or career. In business firms, managers are all interested to forecast future sales by
predicting future demands. In the past, forecasting has been difficult since the lack of
system entails manual thinking on how to do it, some may even base it on different factors
like movement of the animals but due to the advancement of technology life has been
better and advantageous to the business firms. A lot of choices are available in
forecasting, some do the simple and others prefer the complex method. Statistical
tools/methods have been very helpful in analyzing extensive data nowadays.

1. Forecasting. Process of predicting a future event.

2. Short-range forecast. A forecast plan that last for 1 year but usually done in 3
months.
3. Medium-range forecast. This category ranges from 3 months to 3 years. This time
forecast is useful for annual planning and other major plans.
4. Long-range forecast. This ranges from 3 years to 5 years or more depending on the
firm.
5. Economic forecasts. Address business cycle by predicting inflation rate, money
supply, housing starts, etc.;
6. Technological forecasts. Predict rate of technological progress which can result in the
birth of exciting new products, requiring new plants and equipment; and
7. Demand forecasts. Projection of demand for a company’s products or services.
8. Qualitative Forecasts. This forecast includes the use of expertise and experiences
from renowned experts in the company or outside the company.
9. Quantitative Methods. Forecasts that employ mathematically modeling to forecast
demand.

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Essential Knowledge

To perform the aforesaid big picture (unit learning outcomes) for the last two weeks of the
course, you need to fully understand the following essential knowledge that will be laid
down in the succeeding pages. Please note that you are not limited to exclusively refer to
these resources. Thus, you are expected to utilize other books, research articles and
other resources that are available in the university’s library e.g. ebrary,
search.proquest.com etc.

1. Forecasting. Process of predicting a future event. Its result was used as the major
basis for all business-related matters such as but not limited to Human Resource,
Operations and Productions, and Capacity and Lay out.

Forecasting offers Walt Disney a strategic edge. In Disney, forecasting was very
helpful in assessing some crucial business operations like predicting queueing lines
for rides, opening the park early for peak season, identifying when to let cartoon
characters to parade to divert attention of the customers instead of being impatient for
long lines for rides. “Managing demand” is where Disney is good at, they have several
techniques applied to address issues and this was formulated out of the forecasting
that the park managers do every day. Their habit is to conduct daily attendance,
weather forecast, and seasonal assessment of seat sales and vacations in order to
prepare them especially on peak season. Few cast members were working during
slow days. In general, Forecasting is a major key why Disney maintain its popularity
all over the world, all that they do provides customer satisfaction to tourist that is why
it’s considered as the “happiest place on earth”.
2. Forecasting Time Horizons. There are three categories of time horizon that
businesses should consider in making a forecast:
1.1 Short-range forecast. A forecast plan that last for 1 year but usually done in 3
months. This is very important for managers to do this short-range forecast since
it aids them in deciding matters in purchasing, planning, human resource
management and others.
1.2 Medium-range forecast. This category ranges from 3 months to 3 years. This
time forecast is useful for annual planning and other major plans.
1.3 Long-range forecast. This ranges from 3 years to 5 years or more depending on
the firm. Usually this is done first since planning usually starts with the Big Picture.
This is used in strategic planning, Project Management, Business Expansion and
more. It is used in planning for new products, capital expenditures, facility location
or expansion, and research and development.
3. Types of Forecasts. There are three major types of Operation’s planning:

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1.1 Economic forecasts. Address business cycle by predicting inflation rate, money
supply, housing starts, etc.;
1.2 Technological forecasts. Predict rate of technological progress which can result
in the birth of exciting new products, requiring new plants and equipment; and
1.3 Demand forecasts. Projection of demand for a company’s products or services.
These forecast is also called sales forecasts, drive a company’s production,
capacity, and scheduling systems and serve as inputs to financial, marketing,
and personnel planning.
2. Strategic Importance of Forecasting. Forecasting is indeed crucial in business
firms, because applying this makes you one step ahead from your rival competitor.
Forecast outcome drives major decisions in different unit/department that is why it’s
crucial.
3. Seven Steps in Forecasting. Forecasting follows seven basic steps.
● Identify the main use of forecasting;
● Choose the specific items that needs to be forecasted;
● Identify what time horizon to be considered in forecasting;
● Select your chosen forecasting model (s);
● Conduct data gathering in forecasting;
● Do the forecast; and
● Check, validate and implement results
4. Forecasting Approaches. Just like when you are conducting research, forecasting
has 2 approaches, these are:
4.1 Qualitative Forecasts. This forecast includes the use of expertise and
experiences from renowned experts in the company or outside the company.
Their intuition, and wisdom has been seen as relevant especially when there is
unclear or little historical data. Qualitative forecast also has four different
techniques:
4.1.1 Jury of executive opinion. Selected high-level experts were asked
convene to do the analysis by using different statistical models. This
technique needs cooperation and collaboration since it requires working
together. Two heads are better than one yes, however combining
intellectual persons in one room is indeed a challenge due to problems
like “Group think” the tendency to eradicate someone who does not
conform with the idea of the majority.
4.1.2 Delphi method. This technique is Panel of experts, queried iteratively.
This process goes on and on until agreement will be reached. Made up of
three groups of participants: decision makers (evaluate feedback and
decision-making), staff (administer survey) and respondents (people who
can make important judgments).
4.1.3 Sales force composite. To forecast using this technique, estimates was
anchored from the individual salesperson to aggregated, meaning from

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micro to macro context. The individual salesperson forecast their sales

combined from local to national level. However, Sales representatives
might overly forecast it to make it sound positive to the top level.
4.1.4 Market Survey. Ask the customer about purchasing plans. Just like
conducting research, this is useful for various management planning. The
result of the survey can then be utilized for analysis in product
improvement and others.
4.2 Quantitative Methods. Forecasts that employ mathematically modeling to
forecast demand. When company operation is ‘stable’ and extensive historical
data exist Quantitative Methods is best to use. This includes variety of
mathematical techniques.
4.2.1 There are five quantitative forecasting methods, but only three will be
discussed in this unit, all of which use historical data. This method
assumes that history affects the future, no other factors was considered
just basing on the values.
4.2.2 Time-Series Components. A time series is based on an equally distributed
sequential data (weekly, monthly, quarterly, and so on). The decomposition of
time series is seen below:

4.2.2.1 Trend Component. Persistent, overall upward or downward

pattern. Changes due to population, technology, age, culture, etc.
Typically, several years’ duration.

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4.2.2.2 Seasonal Component. Regular pattern of up and down

fluctuations due to weather, customs, etc. Occurs within a single
year.

4.2.2.3 Cyclical Component. Repeating up and down movements.

Affected by business cycle, political, and economic factors and
has multiple years’ duration. Often causal or
associative relationships.
4.2.2.4 Random Component. Has an erratic, unsystematic, ‘residual’
fluctuations due to random variation or unforeseen events. It has
short duration and is nonrepeating.
4.2.3 Naive Approach. This approach exemplifies that previous demand equates to
future demand period. For instance, If March sales were 70,000 then April sales
will also be 70,000. This is good when operation and other factors are stable,
and this is also good for small and starting businesses.
4.2.4 Moving Average Method. Moving Averages are a series of arithmetic
measures used where there are limited or constant conditions or there is no
pattern present. Used often for smoothing, which gives cumulative data
interpretation over time. The method below was used to calculate the moving
average:

Moving average 
 demand in previous n periods
n

Example: Donna's Garden Supply needs a 3-month moving average outlook,

plus a shed revenue prediction for next January.

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4.2.4.1 Weighted Moving Average. This is utilized if trend, and pattern are
present, if there is an unstable operational process WMA is bet to
use than the first two techniques. In this, immediate past data were
treated more that the older data. The experts are the ones who will
identify the appropriate weights based on his/her judgements of
course with analysis of why they choose it.

Example: Donna’s Garden Supply wants to forecast storage shed sales by

weighting the past 3 months, with more weight given to recent data to make
them more significant.

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4.2.5 Potential Problems with Moving Average. Increasing n smooths the

prediction but allows it less prone to changes. Does not well predict patterns
and needs comprehensive historical details.
4.2.6 Exponential Smoothing. A weighted moving average forecasting technique
in which an exponential function weights data points. Weights decline steadily,
with most current data weighted higher. Needs smoothing constant (α) varying
from 0.05 to .50 for business applications where the expert subjectively selects.
It entails little documentation of past records. The method for processing data
is seen below:

Example: A car dealer predicted 142 Ford Mustangs in February. The current
demand in February was of 153 cars. The dealer needs to estimate March demand
using the exponential smoothing model using a smoothing constant selected by
management, α = .20.

Predicted demand = 142 Ford Mustangs

Actual demand = 153
Smoothing constant a = .20

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Thus,

4.2.7 Effect of Smoothing Constants. The smoothing constant usually varies

from.05 to.50. Older values become less important as it rises. Thus, where
underlying average is expected to shift, choose high α values Prefer low α
values where underlying average is constant. The impact of smoothing
constant on the data as used is seen below:

4.2.8 Common Measures of Error. We cannot guarantee a 100 percent assurance

for all our forecast that is why margin of errors were considered. However, to
guide us in the future, measuring errors can be of great help. We do the
calculation by choosing the model that gives us the least forecast errors by
using the formula below:

4.2.8.1 Mean Absolute Deviation (MAD). A calculation of a model 's

overall prediction error. We use the formula below for solving the
MAD:

MAD 
 Actual - Forecast
n

Example: The Port of Baltimore has discharged huge quantities of

grain from ships over the past 8 years. The activity manager at the
port needs to check the usage of exponential smoothing and see

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how well the method performs in unladed tonnage estimation. He

predicts the first quarter's unloaded grain estimate was 175 tons.
Two α-values will be examined: α = .10 and .50

Compare the actual data with the data we forecast (using each of
the two α values) and then find the absolute deviation and MAD.

Then,

4.2.8.2 Mean Squared Error (MSE). The average of the squared

differences between the forecasted and observed values. In solving
MSE we used the formula below:
 Forecast errors 
2

MSE 
n

The operations manager for the Port of Baltimore now wants to

compute the MSE with same data in the previous example. Below

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is the computation for .10 smoothing constant. Try to compute for

the .50 smoothing constant.

4.2.8.3 Mean Absolute Percent Error (MAPE). The measure of the total
difference between the projection and the actual values, calculated
as a percentage of the actual values. To measure MAPE follow the
following formulation:
n

100 Actual i  Forecasti / Actual i

MAPE  i 1
n
The Port of Baltimore wants now to calculate the MAPE when α =
.10 with same data in the previous example. Below is the
computation for .10 smoothing constant. Try to compute for the .50
smoothing constant.

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4.2.8.4 Comparison of Forecast Error. As you can see, all of the three
Forecast Error Measurement arrived with same conclusion that the
using α = .10 is better than using the α = .50 due to its lesser error.
It is also important to note that in selecting smoothing constant the
underlying previous data should be the basis. To reiterate, choose
high values of α when underlying average is likely to change Choose
low values of α when underlying average is stable.

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Self-Help: You can also refer to the sources below to help you
further understand the lesson:

* Heizer, J. and Render, B. (2011). Principles of Operations management. 10th edition.

Upper Saddle River, NJ: Prentice Hall, pp 133-148.

* Schroeder, R. G., Goldstein, S. M. and Rungtusanatham, M. J. (2017). Operations

management in the supply chain: decisions and cases. 7TH edition. New York, NY:
McGraw-Hill Education, pp 186-197.

Let’s Check

RESEARCH EXERCISE 2. Provide your own discussion in the blank spaces. Cite and
give References following the APA format latest edition (10 points).
Note: Answer will be rated according to this points: Answer= 6 pts, References = 4 pts.
1. Give examples of an international industry in which demand forecasting is dependent
on the demand for other products. Elaborate.
Answer:
______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

References

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Let’s Analyze

QUIZ EXERCISE 6. Answer the problem in the space provided.

Volkswagen 's iconic Beetle sales have risen steadily over the past 5 years at Car
dealerships in Nevada (see table below). In 2004 the sales manager had estimated that
revenue in 2005 would amount to 410 VW. Use exponential weight smoothing of α = .30,
develop forecast for year 2006-2010 and compute for MAD, MSE, and MAPE:
Year Sales Forecast
2005 450 410
2006 495
2007 518
2008 563
2009 584
2010 ?

Answer:

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In a Nutshell

The importance of rationalizing Forecasting is vital. In this portion, you will be required to
state your arguments or synthesis relevant to the topics presented. I will supply the first
two items and you will continue the rest.

1. Predictions are never accurate, and unexpected external conditions will affect the
prediction.
2. Product family and aggregated forecasts are more accurate than individual product
forecasts. Same goes with short and medium-range forecast because of its possibility
to be affected by uncontrollable factors (political, environmental, technological etc).
3. All forecasting error measurement arrives with same analysis, it’s up to you what
option to choose. But, the Mean Absolute Percentage Error gives a more thorough
result since it is presented in percentage. The lowest and highest error is clearly
identified unlike the other two measures who gives you an infinite number of errors.

Your Turn

4.____________________________________________________________________

______________________________________________________________________

5.____________________________________________________________________

______________________________________________________________________

______________________________________________________________________

Q&A LIST.
In this section, students may list down all emerging questions or issues to help you in
your review of concepts and essential knowledge. Specific discussion on questions
will be tackled on the scheduled video conferencing.
Do you have any Questions or clarifications?
Questions/Issues Answers
1.

2.

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3.

KEYWORDS INDEX.

Forecasting Naïve Approach Moving Average Market Survey

Weighted moving Exponential Smoothing Constant Jury of Executive
Average Smoothing Opinion
Delphi Method Economic Forecasts Sales force Composite Technological
Forecasts
Demand Forecast Time-series Model Pattern Trend

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Big Picture C in Focus: ULOb.

b. Rationalize the three decision making environments and
illustrate a decision tree;
Metalanguage
For you to discuss ULOb, you will need to have an idea of the concept on Decision
process in Operations. Operations Manager are not just guessing in their decisions, they
need to have basis and good at decision making by using models appropriate for it.
Identifying the exact tools is subjective to the personality of the decision maker however
the success and failure of both parties lies on the quality of their decisions. There are
several decision making environment and we must consider each of it making decision
under: uncertainty, risk and certainty.

1. Decision Tables. A tabular way of evaluating alternatives to actions and their state
of nature.
2. Maximax. This criterion was used to identify the best of all the best alternatives
considering the best-case scenario.
3. Maximin. Considering the worst-case scenario, this criterion selects options of the
best among the worst outcome.
4. Equally likely. If decision-makers are uncertain but still wants a safer decision, this
criterion was usually used.
5. Expected monetary value (EMV). The expected payout or value of a variable that
has different possible state of nature, each with an associated probability.
6. Expected value of perfect information (EVPI). The difference between the payoff
under perfect information and the payoff under risk.
7. Decision Tree. A graphical way of evaluating alternatives to judgment and
environment conditions.

Essential Knowledge
Before we proceed further with the topic, it is highly important that we rationalize
discussion on Decision Making Environments then illustrate it in a Decision Tree.
1. Decision Tables. A tabular way of evaluating alternatives to actions and their state
of nature. Tables of decision place reasoning on decision making.
1.1 Shown below is Getz Product decision table, portrayed are the alternatives,
pay-offs for the different states of nature. In each alternative, 2 states of
nature were considered and a conditional value were identified to check the
consequences or outcome of such decision.

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Example ► Getz products now wishes to organize the following information

into a table. With a favorable market, a large facility will give Getz Products a
net profit of $200,000. If the market is unfavorable, a $180,000 net loss will
occur. A small plant will result in a net profit of $100,000 in a favorable market,
but a net loss of $20,000will be encountered if the market is unfavorable.

1.2 Types of Decision-Making Environments. The quality of decisions made are

of course dependent on the input they have and the current scenario they are in.
That is why a three decision-making environments were checked:
1.2.1 Decision making under uncertainty. When there is complete
uncertainty as to which state of nature in a decision environment may
occur, we rely on three decision methods. But in the end, as to which is
the best criterion to use among this three are dependent on your
personality:
1.2.1.1 Maximax. This criterion was used to identify the best of all the
best alternatives considering the best-case scenario. This
criterion chooses the highest possible gain. This criterion was
usually used by optimistic decision makers.
1.2.1.2 Maximin. Considering the worst-case scenario, this criterion
selects options of the best among the worst outcome. In short,
the alternative with the least possible loss or no loss at all was
chosen. This is commonly used by pessimistic decision makers.
1.2.1.3 Equally likely. If decision-makers are uncertain but still wants
a safer decision, this criterion was usually used. The highest
average value of the states of nature were considered.
Assumes each state of nature is equally likely to occur.
1.2.1.4 Shown below is an example on how decision making under
uncertainty was used in decision making. As presented,
Maximax choice is to construct a large plant. Maximin choice is
to do nothing. Equally likely choice is to construct a small plant.
As you see, only the Equally likely has a computation in which
you’ll just have to get its row average.

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1.2.2 Decision Making Under Risk. If probabilities are known as to what states
of nature will likely to occur, then solving the Expected monetary value
(EMV) per alternatives is the best way to decide under risk. Probabilities
are identified by the expert who analyzes the current situation or the states
of nature, probability must all sum up to 1 or 100.
1.2.2.1 Expected monetary value (EMV). The expected payout or
value of a variable that has different possible state of nature,
each with an associated probability. To compute EMV, we use
the formula below:

Example► Getz Product’s Operation manager believes that the

probability of a favorable market is exactly the same as that of an
unfavorable market, that is, each state of nature has a .50 chance of
occurring. He can now determine EMV for each alternative.

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1.2.3 Decision Making Under Certainty. If the data/information is certain to be

given by an expert or consultant solving the Expected Value of Perfect
Information (EVPI) is a need. However, the problem now is the worth of
the perfect information that they’ll give us. Going back to Getz Products
sample, the manager of the project has been approached by a marketing
research company which proposes to help him determine whether to build
the plant to manufacture storage sheds. The marketing firm is positive that
they can provide certain data using technical analysis. In other terms,
Getz 's climate should change from one under-risk decision-making to one
decision-making under certainty. For the details the communications
consulting agency will bill Getz $65,000. Will the business employ the
operation manager? And if the research data were absolutely correct, is it
worth $65,000? Given the fact that they can give you a logical analysis
for such decision, the willingness to spend for such information is the
question now. This environment will enable us to check whether the
charge of $65,000 is worth it given the perfect information.
1.2.3.1 Expected value of perfect information (EVPI). The
difference between the payoff under perfect information and
the payoff under risk. Mathematically expressed in:

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To find EVPI, we must first compute the expected value with

perfect information (EVwPI).
1.2.3.1.1 Expected value with perfect information (EVwPI).
The expected (average) return if perfect information is
available. To calculate this value, we choose the best
alternative for each state of nature and multiply its payoff
times the probability of occurrence of that state of nature.
Mathematically:

Example:

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1.2.4 Decision Tree. A graphical way of evaluating alternatives to judgment and

environment conditions. EMV is the most commonly employed standard for an
interpretation of the decision tree.
1.2.4.1 The Decision Process in Operations. Analyzing problems with
decision trees involves five steps:
1. Problem identification;
2. Plan and illustrate it to the decision tree;
3. Identify probabilities to the states of nature;
4. Approximate pay-offs for each alternatives considering the
different states of nature; and
5. Compute for the EMV for each alternative starting from right
to left for each state-of-nature.
1.2.4.2 Fundamentals of making a Decision Tree. In making a decision
tree it is very vital to check the basic terms and nodes in formulating
it. You may refer below:

Using the Getz Product problem as exampled in the decision making

under risk portion, we have:

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Note: The short parallel lines indicate the branch "prune,"

because it is less attractive than another alternative
available which can be discarded.

1.2.4.2.1 Complex Decision Tree. When a series of choices needs

to be made, decision trees are much more efficient tools
than decision tables. Not to elaborate, below is an
example of a complex decision tree used in Getz Products
considering many alternatives and state of nature.

Self-Help: You can also refer to the sources below to help you
further understand the lesson:

* Goetsch, D. L. and Davis, S. B. (2016). Quality Management for organizational

excellence: Introduction to Total Quality Management. 8th edition. Pearson
Education, Inc., River Street, Hoboken, New Jersey 07030, 272-278.
* Heizer, J. and Render, B. (2011). Principles of Operations management. 10th edition.
Upper Saddle River, NJ: Prentice Hall, pp 700-711.

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Let’s Check
ASSIGNMENT EXERCISE 6. Identify the term described in every items. Place it in the
blank space provided.
____________________1. This means an occurrence or a situation over which the
decision maker has little or no control.
____________________2. The first step in making a decision Tree is to assign
probabilities to the states of nature.
____________________3. This is the difference between the payoff under certainty and
the payoff under risk.
____________________4. The course of action or strategy that may be chosen by the
decision maker.
____________________5. The expected (average) return if perfect information is
available.
____________________6. A tabular means of analyzing decision alternatives and state
of nature. Decision tables force logic into decision-making.
____________________7. A criterion that finds an alternative that maximizes the
maximum outcomes.
____________________8. A graphical means of analyzing decision alternatives and
states of nature. EMV is the most commonly used criterion
for decision tree analysis.
____________________9. A criterion that assigns equal probability to each state of
nature.
____________________10. The expected payout or value of a variable that has different
possible state of nature, each with an associated probability.
ASSIGNMENT EXERCISE 7. Enumerate the following:
1. Decision Making Environments: ________________________________,

________________________________, and ___________________________.

2. Decision Methods under uncertainty: ________________________________,

________________________________, and ___________________________.

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3. Decision Process in Operations:

● __________________________________________________________

● __________________________________________________________

● __________________________________________________________

● __________________________________________________________

● __________________________________________________________

Let’s Analyze

QUIZ EXERCISE 7. Solve the problem below and write your answer in the blank space
provided.
PROBLEM► T.S.T. Amer's Nevada stores have a 100-day season. T.S.T. The
probability of specific store traffic, based on historical reports of skiing conditions as seen
in the table below, has been created. T.S.T. Have 4 merchandising strategies, each
targeting a common brand name. Each plan yields a net income for each day as described
in the chart. He also has a meteorologist friend, who for a small fee will accurately tell
tomorrow’s weather so T.S. can implement one of his four merchandising plans. Answer
the requirements below:

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Answer:
a) Develop a decision tree that illustrates all the information in the table.

b) What is the Expected Monetary value – EMV (Show solution below)?

EMV A1 EMV A2

EMV A3 EMV A3

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c) What is the Expected value with perfect information (EVwPI)?

d) What is the Expected Value of Perfect information (EVPI)?

e) Given the table above determine the appropriate decision under uncertainty
using Maximax, Maximin, and Equally Likely. Present it in a table:

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In a Nutshell

The importance of rationalizing decision-making environment using table and tree is vital.
In this portion of the unit, you will be required to state your arguments or synthesis relevant
to the topics presented. I will supply the first two items and you will continue the rest.

1. Using decision making under uncertainty highly relies on the kind of personality the
decision maker have. For instance, if the decision maker is optimistic then he/she will
decide using Maximax. If he/she is pessimistic, he/she will use Maximin. Lastly, if the
person wants to be safe then Most likely would be his/her option.
2. “Doing Nothing” option should not be considered at all times. One must check the
situation you are in. Example, since we are experiencing a pandemic right now,
Schools and Universities must not consider “Doing Nothing” option regarding the
resumption of class just because vaccine is not yet available. Educational Institutions
must venture on flexible learning instruction to continue educating students.

Your Turn

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3.____________________________________________________________________

______________________________________________________________________

4.____________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

Q&A LIST.
In this section, students may list down all emerging questions or issues to help you in
your review of concepts and essential knowledge. Specific discussion on questions
will be tackled on the scheduled video conferencing.
Do you have any Questions or clarifications?
Questions/Issues Answers
1.

2.

3.

KEYWORDS INDEX.

Expected Value with Decision Tree Decision Table Alternatives

Perfect Information
State of nature Maximax Maximin Equally Likely
Expected Value of Expected Monetary Prune Payoff
Perfect Information Value

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Big Picture D

Week 8 - 9: Unit Learning Outcomes (ULO): At the end of the unit, you are expected to
a. Discuss the Total Quality Management’s concept, tools, gurus, and the art of good
housekeeping as used in international business.

Big Picture D in Focus: ULOa.

a. the Total Quality Management’s concept, tools, gurus, and the art
of good housekeeping as used in international business.

Metalanguage

In this section, the most essential terms relevant to the study of Total Quality Management
and to demonstrate ULOc was operationally defined and discussed in the essential
knowledge to establish a common frame of reference as to how the texts work in your
chosen field or career. The total quality concept has been accepted at US in the late
1980s and early 1990s. Yet, many statistical tools emerged such as the Six Sigma, Lean,
teamwork, continual improvement, customer satisfaction, and employee involvement that
aids business firm in the journey to total quality management. With this, combining the

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different elements and statistical tools leads to the birth of the total quality concept. This
topic gives you a general concept about total quality management.
1. Total Quality Management. An all-inclusive and well thought-out means to
organizational management that searches to advance the quality of processes,
products, services and culture through continuing minor changes in reply to constant
feedback.
2. Cost of Quality. A tool that enables a corporation to determine the extent at which its
resources are used for activities that prevent bad quality, that evaluate the quality of
the goods or services of the enterprise, and that benefit from internal and external
failures.
3. THE 5S. This is a method used in good housekeeping that aims to organize offices,
rooms, warehouse and other workstation to achieve efficiency in the company
workflow.
Essential Knowledge

To perform the aforesaid big picture (unit learning outcomes) for the last two weeks of the
course, you need to fully understand the following essential knowledge that will be laid
down in the succeeding pages. Please note that you are not limited to exclusively refer to
these resources. Thus, you are expected to utilize other books, research articles and
other resources that are available in the university’s library e.g. ebrary,
search.proquest.com etc.

1. What is Quality. We have to consider quality first in order to grasp overall output.
Quality has been described by a variety of different entities and organizations in
several different forms. Find the Definitions below:
● Performance that meets or exceeds expectations.
● Performance that meets the customer’s needs.
● Consistently meeting customer needs and expectations.
● Satisfying the customer today and getting better tomorrow.
1.1 Customers that are into businesses will define quality very clearly using
specifications, standards, and other measures. This makes the point that
quality can be defined and measured. Although few consumers could define
quality if asked, all know it when they see it. This makes the critical point that
quality is in the eye of the beholder. With this we can conclude that the definition
of quality lies in the wants of the customers.
1.2 Quality issues are dealt with people every day like eating in restaurants, buying
groceries, shopping for clothes, purchasing appliances, furniture and others.
Quality Perception is a key factor in which customers are classified in the
market. In purchasing something, criteria were usually set by the customers
and assessment began whether to buy it or not. If criteria were met, then quality
is determined.

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1.3 One way of recognizing quality as a consumer-drive definition is to take the

example of restaurant dining. How do you assess restaurant quality? The bulk
of people present these requirements as:
● Service
● Response time
● Food preparation
● Environment or atmosphere
● Price
● Selection
This example gets at one aspect of quality—the results aspect. Does the
product or service meet or exceed customer expectations? This is a critical
aspect of quality, but it is not the only one. Total quality is a much broader
concept that encompasses not just the results aspect but also the quality of
people and the quality of processes.
2. Total Quality Management. An all-inclusive and well thought-out means to
organizational management that searches to advance the quality of processes,
products, services and culture through continuing minor changes in reply to
constant feedback. Moreover, it is a business approach that aims to improve the
organization 's productivity by continually enhancing the efficiency of its goods,
facilities, employees, procedures and environments.
3. Three Legged Stool of Total Quality of Management. Let us now discussed the
three-legged stool which is customer-focused to easily understand the concept of
total quality. This ensures that the consumer as the primary arbiter on what is
appropriate in terms of pricing is in the "driver's seat" for total quality. Each of the
three legs is a specific feature of the philosophy of total quality (i.e. quantities,
individuals, and processes). The stool's "tests" leg makes the argument that it will
and will measure quality. The stool's "men" leg makes the argument that a good
or service cannot be checked for price. Instead, people who are motivated to do
their work the best way will invest in it. The stool's "processes" leg refers to
processes having to be changed, constantly and indefinitely. Where now is
deemed outstanding will be just average tomorrow. And "good enough" is rarely
sufficient enough.

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4. Importance of Total Quality Management. Quality is used to quickly improve the

growth of the organization by better implementation and alignment. Customer’s
voice promotes the development of the product and services. This can give the
business firm a competitive edge over its rival. “No quality, no sales. No sales, no
profit. No profit, no jobs.” –VP of the United Auto Workers.
5. Six Different Perspectives of Quality. Every individual has different perception
of Quality, below are the different perspective on what quality is:
● Transcendent Perspective: means excellence, meeting beyond
expectations;
● Product Perspective: quantities of product attributes, the more features it
offers the more it’s perceived as quality;
● User Perspective: fitness for intended use means if the product is usable
to the customer.
● Value Perspective: quality vs. price, the price of the product is worth the
price.
● Manufacturing Perspective: conformance to specifications, specs are
functional.
6. Types of Quality
● Quality of Design. Based on market research;
● Quality of Conformance. Meeting the standards or user based
characteristics defined in the design phase after the product is
manufactured. Defect detection, Detect root cause analysis and defect
prevention.
● Quality of Performance. How sound the product functions or service
performs when put to use.

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7. Cost of Quality. A tool that enables a corporation to determine the extent at which
its resources are used for activities that prevent bad quality, that evaluate the
quality of the goods or services of the enterprise, and that benefit from internal and
external failures. Below is a diagram which summarizes the various quality costs.

7.1 Prevention Cost. This cost was incurred to prevent future cost that will be
incurred. Few examples include processes, conduct seminars and training,
Regular inspection, etc.;
7.2 Appraisal Cost. This is also called as inspection costs. These cost are
incurred during the manufacturing process, this is done to avoid defects and
post-purchase service from its customers to ensure high performance product.
Usually a sample per batch produced was inspected based on its specification
and criteria set, if approved then that batch will then be shipped to the
customers;
7.3 Internal failure costs. As a result of inspection some defects were identified
beforehand, these costs incurred for such defective product are known as
internal failure costs. Examples of internal failure costs include cost of rework,
rejected products, scrap etc;
7.4 External failure costs. It is normal for customer to return the product due to
some defects. This activity is part of the post-purchase services of the firm.
However, this is not good to a company since it is part of the external failure
cost in which the company already had incur such cost. External costs of
failure cover replacements, substitutions, lack of revenue due to bad
reputation, liability for losses arising from the usage of faulty goods etc. Default
product shipments will annoy consumers, destroy reputation and may reduce
sales and profits.
8. Elements of TQM:

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3.1 Ethics. A combination of written and unwritten codes of principles that govern
decisions and actions within a company.
3.2 Integrity. Consistency of actions, values, methods, measures, principles,
expectations and outcomes at workplace. TQM does not work in an
environment where employees criticize and backstab each other.
3.3 Trust. Builds cooperative environment. Relationship based on reliance.
9. Benefits of TQM. TQM creates a good corporate culture, better reviews from the
customer, and better performance from employees.
10. Gurus of TQM. The concept of TQM was created due to the individual contribution
of concepts by the different quality guru. It is a combination of interrelated concepts
that aims to formulate a complex approach in doing business. There are three
quality gurus who are considered as the pioneers in developing the concept of total
quality management these are: W. Edwards Deming, Joseph M. Juran, and Philip
B. Crosby. Aside from them notable gurus were also acknowledged and these are:
Armand V. Feigenbaum and a number of Japanese experts, such as Kaoro
Ishikawa.
10.1 W. Edwards Deming. Known as the father of Quality Control. Has been
honored by naming the highest award of quality in Japan known as the Deming
Prize. Known for its contributions of the following: 14 Points, Deming Chain
Reaction, Theory of Profound Knowledge, PDSA (Deming Cycle) as shown
below. Through a distinct phrase he does not define quality and emphasized
that the roles of top management to be the pioneer through evolving processes
and structures are quite significant. He stresses the importance of identifying
and measuring customer requirements, establishing manufacturer
relationships, leveraging functional teams to identify and solve quality issues,
enhancing employee expertise, employee participation, and implementing
continuous improvement.

10.1.1 DEMING’S 14 POINT METHODOLOGY

1. Constancy of purpose

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2. The new philosophy

3. Cease dependence on inspection
4. End lowest tender contracts
5. Improve every process
6. Institute training on the job
7. Institute leadership
8. Drive out fear
9. Breakdown Barriers
10. Eliminate exhortations
11. Eliminate arbitrary numerical targets (numerical quotas)
12. Permit pride of workmanship
13. Encourage Education
14. Top management’s commitment

10.1.2 DEMING’S 7 Deadly Diseases

1. Lack of purpose in developing goods and services that have a market
that is adequate to hold the organization in operation and provide
jobs;
2. Short-term profit stress; short-term analysis motivated by
apprehension of unfriendly efforts to take control, and demand from
bankers and shareholders to raise dividends;
3. Personal management review systems by goals with no tools or
services given to meet objectives; requires performance reviews,
quality ranking and annual assessments;
4. Job-hopping by managers;
5. sing just clear evidence and knowledge in decision-making, with little
to no understanding about what is uncertain to unclear;
6. Extreme medical costs; and
7. So much risks and obligations on the part of attorneys working on
contingency services.
10.2 Philip B. Crosby. He wrote the book Quality is free in 1979. He Established
the absolutes of quality management, the only performance standard is zero
defects and the basic elements of improvement. To him, “Mistakes are
caused by two factors: lack of knowledge and lack of attention”. Education
and training will remove the first cause, while the second is cured by a
sincere dedication to success (zero flaws) while attention to detail.
10.2.1 Four Absolutes of Quality
● The definition – Quality is conformance to requirements, not
goodness.
● The system – Prevention, not appraisal
● The performance standard – Zero defects

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● The measurement – The price of non-conformance to

requirements, not quality circles.
10.2.2 14 Step Methodology
1. Management commitment
2. Quality improvement Team
3. Quality Measurement
4. Cost of Quality
5. Quality awareness
6. Corrective action
7. Zero defects planning
8. Supervisor training
9. Zero defects day
10. Goal setting
11. Error-cause removal
12. Recognition
13. Quality Councils
14. Do it over again
10.3 Joseph Juran. Assisted the Japanese in their reconstruction processes
after WWII. He is the editor of the Quality Control Handbook (1951).
Popularized the Quality Trilogies: Quality planning, Quality control & Quality
improvement. For him, Quality control must be essential part of
management, quality is no mistakes, quality must be planned, there are no
shortcuts to quality, and make use of problems as sources of improvement.
The formula in getting it are the following:
● Create an awareness about the need and purpose an opportunity
for improvement;
● Set goals for improvements;
● Systematize paths to attain the goals (begin a quality council,
identify problems, choose projects, assign teams, delegate
facilitators and so on);
● Give training;
● Do projects to resolve problems;
● Inform progress;
● Provide recognition;
● Communicate outcome
● Keep score; and
● Uphold thrust by making yearly improvements component of the
regular systems and processes of the company.
10.3.1 Quality Trilogies

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● Quality Planning includes defining the requirements, needs

and desires of the client, recommending goods and services,
establishing targets, preparation, project management,
monitoring, identification and dissemination of outcomes and
changes in systems;
● Quality Control Concerns the creation of standards, the
recognition of measures and their processes, the comparing of
findings with existing requirements and the development of
discrepancies and the action taken toward discrepancies; and
● Quality improvement. This includes the usage of formal
annual improvement projects and plans, the need for change,
the coordination of initiatives, the recognition of triggers, the
procurement and testing of solutions and the establishment of
checks to insure that the improvements achieved are sustained.
10.3.2 In his view, the approach to managing for quality consists of:
● The irregular problem is detected and acted upon by the
process of quality control;
● The constant problem needs a special process, namely, quality
improvement; and
● Such constant problems are traceable to a poor quality planning
process.
10.4 Walter A. Shewhart. “Grandfather of Quality Control” (20th century)
1891-1967 University of Illinois. Moved to California wed and get his
doctoral degree in physics. Member of the group “American Society for
Quality Control”. He mentored Juran & Deming and is known for using
Control Charts. He developed the Shewhart cycle: PDCA cycle. His work
created the foundation for statistical process control measures used
today.
10.5 Dr. Armand Feigenbaum (1922). Popularized several concept such as
the Total Quality Control-Principles, Practice and Administration (1961),
Company-wide Quality Control (Japanese version). He was the one to first
classify costs (prevention, Appraisal, Internal & External costs) and
provided the Steps to Quality: Quality Leadership, Modern Quality
Technology & Organizational commitment.
10.5.1 Ten points on TQM
1. Quality is consciousness programmed not only a technical
function;
2. Quality is not what an engineer or marketer says but it is that
what the customer speaks of;
3. Quality and cost are a sum, not differences;

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4. Quality must be organized to identify everybody’s job in the

organization;
5. Quality is a technique of managing an organization. Good mgt.
means continuous stress on the quality
6. The quality improvement highlighting must take place through
all activities of the organization;
7. Quality is realized through assistance and contribution of each
and every person related to the organization. It is also an ethic;
8. Continuous quality improvement needs extensive range of new
and existing quality technology of information applications;
9. Total quality program approach leads to productivity and is most
effective and less capital intensive; and
10. Quality comes, if it is clear, customer oriented, effective and
structured.
10.6 Kaoro Ishikawa. Born in July 13, 1915 and died on April 16 1989. Known
as the father of Quality circles (1960). Popularized the Cause & effect
diagram/Ishikawa diagram/Fishbone diagram. For him Quality is
“development, design, production and service of a product that is most
efficient, most helpful, and constantly acceptable to the consumer”. The
first guru to accentuate the importance of the internal customer, the next
person in the production process. He emphasizes on quality as a way of
management, development of participative, bottom-up view of quality.
10.6.1 7 basic tool that is indispensable for quality control:
1. Process flow chart
2. Check sheet
3. Histrogram
4. Pareto Chart
5. Cause & Effect diagram
6. Scatter diagram
7. Control Chart
10.6.2 Elements to Quality management
● Quality starts with education and culminates with
education;
● The 1st step in quality is to know the customer’s
requirements;
● The perfect state of quality control happens when
inspection is no longer compulsory;
● Take out the root cause, not the symptoms;
● Quality control is the duty of all workers and all divisions;
● Do not mistake means with the objectives;

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● Set quality first and set your sights on long-term profits;

● Market is the entry and way out of quality;
● Top management must not demonstrate annoyance when
facts are presented by subordinates;
● 99% of problems in a company can be resolved with easy
tools for analysis and problem-solving.
10.6.3 Six Fundamental principles
1. Quality first
2. Customer orientation
3. Your customer
4. Using facts & data to make presentations
5. Humanity (philosophy) & full participatory mgt.
6. Cross-functional mgt.
11. THE 5S. This is a method used in good housekeeping that aims to organize offices,
rooms, warehouse and other workstation to achieve efficiency in the company
workflow. Simple to talk about but in reality this is one of the hardest method in TQM
since it requires a habit of letting go of unnecessary things and keeping what is
important. For us Filipinos, this is hard since we usually practice to keep things as
memoirs. 5S promotes:
● Foolproof systems
● Standard policies, rules and regulations
● Healthy work culture at the organization
● Reduces waste and nonvalue activity
● Worker’s morale increase
● Customer perception on company products improve
● Organizational efficiency increased
● Lesser waste and better quality
● Faster lead times

11.1 Benefits of implementing 5S.

● Improved profitability

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● More efficient workforce

● Better service
● Safer workplace
11.2 SEIREI (SORT). This means the identification of items that is still valuable to the
company. Only necessary ones are kept for continued use which means that
unnecessary ones should be disposed or kept in storage out in the office. This
process lead to fewer hazards and less clutter that might interfere with productive
work. Label the items as “Necessary”, “Critical”, “Most important”, “Not needed
Now”, “Useless” and so on.
11.2.1 Consequences of Not Practicing Sorting
1. The unnecessary messes the place and the necessary are hard to find;
2. Every place can only contain so much.
3. Mess sometimes causes misidentification.
11.2.2 Steps in Sorting.
1. Do a Red tagging activity, label all unneeded items with conspicuous red
tags.
2. Store the needed items in the following storage sites:
✔ Ready-access storage (needed in 1-6 months)
✔ Remote storage (needed in more than 6 months)
3. Discard/dispose the red-tagged (unnecessary items).
4. Discard remote storage items by the box load at the end of the storage
period.

11.3 SET IN ORDER (SEITON). Refers to straightening and orderliness. After

sorting, the next step is to arrange the necessary things in an effective and

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efficient manner by using the principles of ergonomics. The focus is on efficient

and effective storage methods and the requirement for a tidy workplace. Also
known as “demarcation and labeling of place”.
11.3.1 In the case of items which have been processed as needed, they must
be stored in the appropriate position to ensure quick and rapid retrieval.
Orderliness goals may involve any of the following:
● SPACES – Floors, walkways, operation areas, walls, shelves,
warehouses;
● PRODUCTS – raw materials, procured parts for machinery, in-
process inventory, assembly parts, semi-finished products, finished
products;
● EQUIPMENT – machines, tools, jigs, gauges, carts, conveyance
tools, work tables, cabinets, chars
11.3.2 Visual Methods of Orderliness
● The Signboard Strategy – indicate where, what, and how many
necessary items go where, to make the facility more orderly.
Specific places – “where things go”. Specific items – “what things”.
Specific amounts – “how many things”;
● The Painting Strategy – That involves separating the walking
areas of the warehouse (walkways) from its job areas (operational
areas) using some of the following: dividing lines, door lines,
product markings, carts, job tables and tiger signs (yellow & black
colored lines).

11.3.3 Consequences of not Practicing Setting in Order

● Things are rarely obtainable when needed;
● Items are misplaced in stores;
● Items that are defectives and good ones get mixed up;
● Accidents or near-accidents take place due to mess;
● Visual control of the shop floor is not feasible;
● At times, production is lost because an item necessary is available
but cannot be seen; and
● In some offices, important records may not be traceable. This can
lead to loss, and embarrassment.
11.4 SHINE (SEISO). Stands for sweeping and cleanliness. At the end of each shift,
a work area is cleaned up and everything is restored to its place. Maintaining
cleanliness should be a daily work not a special activity. It is the comprehensive
cleaning of the area tools, machines and other equipment to make certain that
everything is returned to a “nearly new” status. Follow up cleaning is

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compulsory in order to maintain this improvement. A “shining” work

environment will lead to great efficiency gains.
11.4.1 Phases of Shine
● Daily Cleanliness
● Determine cleanliness targets
● Determine cleanliness assignments
● Determine cleanliness methods and tools
● Implement cleanliness
● Cleanliness inspection
● Maintenance
11.5 STANDARDIZE (Seiketsu). Translate as “standards”. Standards refers to
making all the cleaning, control and improvement processes a customary
activity in the workplace, allowing for control and consistency. Standardize can
be interpreted as continuing to work on the first three 5S continually and every
day. Work practices should be consistent and standardized.
11.5.1 Consequences of not practicing Standardizing:
● Good health and safety need the practice of standardizing;
● Harmful chemicals, dusty chemicals, fumes and the likes can
make it an unsafe place to work in;
● Washing thoroughly and cleaning a place makes the workplace
enjoyable; and
● Personal hygiene is indispensable for healthy workplace.
11.6 SUSTAIN (Shitsuke). Shitsuke, means maintaining the process to retain long-
term kaizen goals and to retaining and reviewing standards. Sustaining
requires the practice of establishing clear and systematic processes, and
implementing them. This stage is explained by illustration, because it is not the
individual worker but the manager / owner himself who is eventually liable for
any 5S backsliding.
11.6.1 Consequences of not practicing Standardizing:
● If standardizing is not practiced, then the first 4-S would
backslide;
● Lack of standards will affect all activities related to safety and
quality;
11.6.2 The manager/owner of the business may employ the following
measures:
● The CEO shall assume full accountability for the introduction and
execution of 5S.
● Discuss the 5S's before everybody understands it. Emphasize that
5S is the path to sustainability for the business because of its
realistic approach to reducing waste and creating savings.

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● Promote business-wide engagement, including but not limited to:

5S Poster making contest, 5S badge making contest, 5S logo
contest, 5S Ideas contest, 5S Day, 5S Work Client plant walk, and
5S snapshots.
● Render management tasks and orderliness as visible as
practicable. When red-tagging and creating signboards, be vigilant,
diligent, fast and ruthless.
● Manage the aversion of people to 5S: offer opportunities at any
moment. Offer diligent reviews, and accept them. Be respectful. Be
nice. Right now and slack-off on 5S parameters. Stick to hands-on
strategy, here-and-now. Eventually, improvement requires
commitment and passion.

Self-Help: You can also refer to the sources below to help you
further understand the lesson:

* Goetsch, D. L. and Davis, S. B. (2016). Quality Management for organizational

excellence: Introduction to Total Quality Management. 8th edition. Pearson
Education, Inc., River Street, Hoboken, New Jersey 07030, 1-12.
* Heizer, J. and Render, B. (2011). Principles of Operations management. 10th edition.
Upper Saddle River, NJ: Prentice Hall, pp 219-238.

Let’s Check

QUIZ EXERCISE 8. Identify the terms being described. Provide answer in the blank
spaces.
________________1. The process of taking the required items that are remaining after
the removal of clutter and arranging them in an efficient manner
through the use of ergonomic principles.
________________2. He is known as the father of Quality circles (1960). Popularized the
Cause & effect diagram/Fishbone diagram.
________________3. Refers to making all the cleaning, control and improvement
processes a customary activity in the workplace, allowing for
control and consistency.
________________4. is an approach to doing business that attempts to maximize the
competitiveness of an organization through the continual
improvement of the quality of its products, services, people,
processes, and environments.
________________5. He is known as the father of Quality Control.

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________________6. A combination of written and unwritten codes of principles that

govern decisions and actions within a company.
________________7. Consistency of actions, values, methods, measures, principles,
expectations and outcomes at workplace. TQM does not work in
an environment where employees criticize and backstab each
other.
________________8. Builds cooperative environment. Relationship based on reliance.
________________9. The costs incurred to avoid or minimize the number of defects at
first place.
________________10. A method that permits an organization to decide on the level to
which its resources are used for activities that avoid poor quality,
that assess the quality of the organization’s products or services,
and that result from internal and external failures.

Let’s Analyze

RESEARCH EXERCISE 3. Search for answers in the questions below (References is

required). You should also provide your own analysis in the blank spaces. This activity
will be rated according to the rubrics below:
Note: Answer will be rated as follows: Answer = 5 points each; References = 5 points
1. Why is a single definition of TQM not enough?

Answer:
______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________

2. How does Quality support the achievement of competitive advantage?

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 DEPARTMENT OF BUSINESS ADMINSTRATION EDUCATION /
HUMAN RESOURCE MANAGEMENT PROGRAM
Contact: 09955870420 / 09107045559

Answer________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

3. Why is service quality especially important in today’s business environment?

Answer________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

References

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 DEPARTMENT OF BUSINESS ADMINSTRATION EDUCATION /
HUMAN RESOURCE MANAGEMENT PROGRAM
Contact: 09955870420 / 09107045559

In a Nutshell

The importance of rationalizing Total Quality management is vital. In this unit, you will be
required to state your arguments or synthesis relevant to the topics presented. I will
supply the first item and you will continue the rest.

1. Unless quality is internalized at the personal level, it will never become rooted in the
culture of an organization. Thus, quality must begin at a personal level (and that means
you!).

Your Turn

2.____________________________________________________________________

______________________________________________________________________

3.____________________________________________________________________

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

4.____________________________________________________________________

______________________________________________________________________

______________________________________________________________________

Q&A LIST.
In this section, students may list down all emerging questions or issues to help you in
your review of concepts and essential knowledge. Specific discussion on questions
will be tackled on the scheduled video conferencing.
Do you have any Questions or clarifications?
Questions/Issues Answers
1.

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 DEPARTMENT OF BUSINESS ADMINSTRATION EDUCATION /
HUMAN RESOURCE MANAGEMENT PROGRAM
Contact: 09955870420 / 09107045559

2.

3.

KEYWORDS INDEX.

Quality Total Quality Costs of Quality Gurus of TQM

Management
5S W. Edwards Demming Prevention Costs Appraisal Cost

COURSE SCHEDULES

Activity Date Where to submit

Virtual Class Orientation Week 1 via google meet
Video Conference (Big Picture A) Week 2-3 via google meet
Big Picture A: ULOa Activities Week 2 via Quipper.com
Big Picture A: ULOb Activities Week 3 via Quipper.com
1st Examination Week 3 via Quipper.com
Video Conference (Big Picture B) Week 4-5 via google meet
Big Picture B: ULOa Activities Week 4 via Quipper.com
Big Picture B: ULOb Activities Week 5 via Quipper.com
2nd Examination Week 5 via Quipper.com
Video Conference (Big Picture C) Week 6-7 via google meet
Big Picture C: ULOa Activities Week 6 via Quipper.com
Big Picture C: ULOb Activities Week 7 via Quipper.com
3RD Examination Week 7 via Quipper.com
Video Conference (Big Picture D) Week 8-9 via google meet
Big Picture D: ULOa Activities Week 8 via Quipper.com
Final Examination Week 9 via Quipper.com

Online Code of Conduct

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 DEPARTMENT OF BUSINESS ADMINSTRATION EDUCATION /
HUMAN RESOURCE MANAGEMENT PROGRAM
Contact: 09955870420 / 09107045559

(1) All teachers/Course Facilitators and students are expected to abide by an honor
code of conduct, and thus everyone and all are exhorted to exercise self-
management and self-regulation.

(2) Faculty members are guided by utmost professional conduct as learning

facilitators in holding OBD and DED conduct. Any breach and violation shall be
dealt with properly under existing guidelines, specifically on social media
conduct (OPM 21.15) and personnel discipline (OPM 21.11).

(3) All students are likewise guided by professional conduct as learners in attending
OBD or DED courses. Any breach and violation shall be dealt with properly
under existing guidelines, specifically in Section 7 (Student Discipline) in the
Student Handbook.
(4) Professional conduct refers to the embodiment and exercise of the University’s
Core Values, specifically in the adherence to intellectual honesty and integrity;
academic excellence by giving due diligence in virtual class participation in all
lectures and activities, as well as fidelity in doing and submitting performance
tasks and assignments; personal discipline in complying with all deadlines; and
observance of data privacy.

(5) Plagiarism is a serious intellectual crime and shall be dealt with accordingly. The
University shall institute monitoring mechanisms online to detect and penalize
plagiarism.

(6) All borrowed materials uploaded by the teachers/Course Facilitators shall be

properly acknowledged and cited; the teachers/Course Facilitators shall be
professionally and personally responsible for all the materials uploaded in the
online classes or published in SIM/SDL manuals.

(7) Teachers/Course Facilitators shall devote time to handle OBD or DED courses
and shall honestly exercise due assessment of student performance.

(8) Teachers/Course Facilitators shall never engage in quarrels with students

online. While contentions intellectual discussions are allowed, the
teachers/Course Facilitators shall take the higher ground in facilitating and
moderating these discussions. Foul, lewd, vulgar and discriminatory languages
are absolutely prohibited.

(9) Students shall independently and honestly take examinations and do

assignments, unless collaboration is clearly required or permitted. Students

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 DEPARTMENT OF BUSINESS ADMINSTRATION EDUCATION /
HUMAN RESOURCE MANAGEMENT PROGRAM
Contact: 09955870420 / 09107045559

shall not resort to dishonesty to improve the result of their assessments (e.g.
examinations, assignments).

(10) Students shall not allow anyone else to access their personal LMS
account. Students shall not post or share their answers, assignment or
examinations to others to further academic fraudulence online.

(11) By handling OBD or DED courses, teachers/Course Facilitators agree

and abide by all the provisions of the Online Code of Conduct, as well as all the
requirements and protocols in handling online courses.

(12) By enrolling in OBD or DED courses, students agree and abide by all the
provisions of the Online Code of Conduct, as well as all the requirements and
protocols in handling online courses.

Monitoring of OBD and DED

(1) The Deans, Asst. Deans, Discipline Chairs and Program Heads shall be
responsible in monitoring the conduct of their respective OBD classes through the
Blackboard LMS. The LMS monitoring protocols shall be followed, i.e. monitoring
of the conduct of Teacher Activities (Views and Posts) with generated utilization
graphs and data. Individual faculty PDF utilization reports shall be generated and
consolidated by program and by college.

(2) The Academic Affairs and Academic Planning & Services shall monitor the conduct
of LMS sessions. The Academic Vice Presidents and the Deans shall collaborate
to conduct virtual CETA by randomly joining LMS classes to check and review
online the status and interaction of the faculty and the students.

(3) For DED, the Deans and Program Heads shall come up with monitoring
instruments, taking into consideration how the programs go about the conduct of
DED classes. Consolidated reports shall be submitted to Academic Affairs for
endorsement to the Chief Operating Officer.

Course prepared by:

RAIZA MAE C. NARCISO, PhD

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 DEPARTMENT OF BUSINESS ADMINSTRATION EDUCATION /
HUMAN RESOURCE MANAGEMENT PROGRAM
Contact: 09955870420 / 09107045559

Name of Course Facilitator/Faculty

Course reviewed by:

LUCELA B. REGIDOR, PhD

Assistant Dean

Approved by:

GINA FE G. ISRAEL, EdD

Name of Dean

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