STATUS OF QUALITY MANAGEMENT SYSTEM

Objective: The purpose of this report is to provide the Top Management with a grasp of
the status of Quality Management System in the organization; check and verify the
implementation and effectiveness of QMS; and identify if there are lapses or momentary
failure on its maintenance.
This report focuses on the major activities that have to be done to maintain the
effectiveness of the established Quality Management System.
A. Management Review
Management review must be conducted at least twice a year in order to check the
organizations performance, as well as the execution of action plans and improvements in
the organization. For Year 2004, only 1 Management Review was conducted and it was
on July 23, 2004. Another Management Review must have been held on December 2004
or January 2005 in order to assess the organizations performance for the second half of
2004 but it was not done. Non-performance of Management Review may cause the
company to loose track on the monitoring of how the organization is performing. In this
regard, the following observations were established:
1). There were action plans left unverified from the last Management Review and
there were pertinent data such as Sales Status, Financial Status, and Department
Goals that were not presented but should be given emphasis due its great effect in
the operation of the company.
2). The effect of the sudden closure of one of its production lines, ElectroMagnetic Interference Line, cannot be established as of this time.
3). The effect of voluntary resignation of some 60 employees including key
personnel such as QMR, DCC Officer, Training Supervisor, Logistic Supervisor,
Purchasing Officer was not yet established and properly addressed.
4). The effectiveness of revising the company policy for a stricter discipline to all
the employees was not yet measured.
5). The effectiveness of the actions and improvements done in production to
continuously decrease the rejection rate was not yet measured.
B. Internal Quality Audit
The companys Quality Management System needs to be audited at least twice a year to
check its maintenance and effectiveness. The second Internal Quality Audit that was
supposed to be conducted last October 2004 was not accomplished until now. Thus, the
effectiveness and functionality of QMS cannot be measured as of this time. The reason
for this non-performance of IQA is the non-existence of QM staff who initiates and lead
the IQA. Also, the unavailability of Internal Quality Auditor due to resignation of some
qualified ones and time constraints of the existing auditors due to the busy schedule in the
production resulted to its non-performance.

C. Business Planning
The Business Planning conducted last February 2004 only contains Improvement Plans
proposed by each section / department. No data and inputs related to Business Planning &
Strategies were presented. There were 37 approved improvement plans but only 26 were
accomplished and 11 were still unaccomplished. Among the unaccomplished
improvement plans were for EMI Line that was closed last July 2004 while the others set
aside based on priority.
D. CAR / PAR