Philippine Quality Award Act

Case Overview and Summary

Summary of Republic Act No. 9013 (Philippine Quality Award Act)

Declaration of Policy (Section 2):
- Promote industrialization and full employment through efficient use of resources
- Encourage all sectors to aim for optimum productivity and improved quality
- Recognize contributions to raising quality of life
- Stimulate organizations to improve quality and productivity
- Recognize achievements in improving quality of processes, goods, and services
- Establish guidelines and criteria for evaluating quality improvement efforts
- Provide guidance on managing quality to other organizations

Purpose (Section 3):
- Establish a national quality improvement system with awards for effective quality management
- Generate and disseminate information on successful quality improvement strategies

Establishment of the Philippine Quality Award System (Section 4):
- Establishes the Philippine Quality Award, evidenced by a trophy bearing the Presidential Seal, PQA logo, and inscriptions

Philippine Quality Award Committee (Section 5):
- Appointed by the President, consisting of heads of government agencies and private sector representatives
- Chaired by the Secretary of Trade and Industry, with vice-chairs from public and private sectors
- Meets to review and improve the award system

Making and Presentation of Award (Section 6):
- The President grants the award based on recommendations from the Award Manager
- Awarded to organizations that benefited economic or social well-being through quality improvements
- Award recipients can publicize and use the award in promotional activities

Philippine Quality Award for Performance Excellence (Section 7):
- Conferred annually to qualified organizations in private and public sectors
- Recognizes the highest level of performance excellence and management excellence

Recognition Levels (Section 8):
- Three levels of recognition for organizations that did not qualify for the main award:
1. Recognition for Mastery in Quality Management
2. Recognition for Proficiency in Quality Management
3. Recognition for Commitment to Quality Management
- Criteria for each level are specified
- Previous winners of Recognition Levels are eligible to apply again

Eligibility Categories (Section 9):
- Small and Medium Scale Enterprises
- Manufacturing companies or subsidiaries
- Service companies
- Agricultural producers
- Government offices, agencies, bureaus, and local government units
- The Committee may modify or expand the categories

Criteria for Qualification (Section 10):
- Organizations must:
- Prepare and submit an application
- Permit a rigorous evaluation of their operations and quality improvements
- Meet requirements and specifications set by the Committee
- Evaluation by a pool of assessors through site visits
- Award given to organizations with outstanding quality improvements and effective quality management

Award Manager and Award Administrators (Section 11):
- The Secretary of Trade and Industry is the Award Manager
- The Center for Industrial Competitiveness is the implementing agency
- Two administrators (public and private sectors) appointed by the President

Information and Technology Transfer Program (Section 12):
- Applicants receive evaluation results and suggestions for improvements
- Successful quality improvement strategies of award winners are disseminated

Funding (Section 13):
- Funds included in the budget of the Department of Trade and Industry
- The Committee may recognize or create a foundation to manage an endowment fund
- Donations and contributions from private entities are allowed

Fees and Charges (Section 14):
- The Committee may impose fees and charges on applicants to cover examination costs
- Fees and charges accrue to the Committee to subsidize operational expenses

Report (Section 15):
- The Chairman prepares an annual report on award activities and progress

Implementing Rules and Regulations (Section 16):
- The Committee shall promulgate necessary rules and regulations for implementation

Repealing Clause (Section 17):
- Inconsistent laws, executive orders, rules, and regulations are repealed or modified

Effectivity (Section 18):
- The Act takes effect 15 days after publication in at least two newspapers of general circulation