FAR EASTERN UNIVERSITY

Institute of Accounts, Business and Finance

QUALITY IMPROVEMENT PLAN

“MARASIGAN’S GARDEN”

In partial fulfillment of the requirement of the course

Total Quality Management

Members:

Balcos, Maika Pauline

Borbon, Abigail U.

Lagumbay, Janine E.

Vera, Shayna May M.

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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

I. INTRODUCTION

A. Profile of the Business

Landscaping business in the country has been booming alongside realty with the
construction of new villages and subdivisions, new shopping malls, schools, memorial
and recreation parks. Plant nurseries have been built in Southern Luzon, Rizal, and
Bulacan to supply the growing demands of the business.

Guiguinto, Bulacan, 37 kilometers north of Manila is known as the “Garden

Capital of the Philippines”. Small scale gardens in Tabang, Guiguinto have been
gradually expanding for about twenty years. From landscaping materials to decorative
house plants, Tabang and neighboring barangays boast of gardening essentials and
becoming a haven of garden enthusiasts on weekends and holidays.

Marasigan Garden started a small gardening business in Tabang with two

assistants. At first, they were only reselling plants and flowers, but eventually produced
seedlings. Their sales grew and they took the risk of renting, then buying lands as
seedlings nurseries in Batangas and other areas in Bulacan.

This study is limited to the first nursery of Marasigan’s in Guiguinto, a total of

2,000 square meters adjacent lots. The price of seeds is on average 2,000 pesos per
kilogram, the seedlings ranging from 50 pesos to 75 pesos only for Maki, Hawaiian Palm,
Talisay, and Sipirichi landscaping plants and/or trees whose prices are almost the same at
200 pesos with one to two feet height.

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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

B. Reason for Choosing the Subject

The Researchers choose the subject “Marasigan Garden” because they have
observed that there are some aspects in the business that has need for improvement,
specifically in managing the entirety of the business itself. Also, Marasigan’s garden is
starting to lay-off workers even though the business is being known and they have been
in the industry for a long time.

C. Importance of the Study

This study has the primary concern in Quality improvement initiatives that are
essential for setting priorities for areas to improve and will produce an output wherein the
problems of a particular business are being identified and being studied to be able to
gather important variables that could be a way to distinguish the proper tools and
technique to apply for the improvement of the business.

D. Benefit of the Study

This study gives benefits both to the researchers and to the business. Researchers
could gain knowledge and widens understanding particularly in Quality improvement that
could be useful for future situations and corporate involvement. More importantly, it
would benefit the business and their customers in terms of internal quality performance
(rework, reduction in defects in the products) and external quality performance (more
satisfied customers, increase in sales, reduced returned products and customer
complaints) and to increase their popularity not just in their area but also around the
country.

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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

II. PROBLEM STATEMENT

The internal factor in the current situation of the business represents a big burden
in the Marasigan’s garden. Lack of financial planning and management are one of the
causes why Marasigan’s garden is suffering from regression. Due to not being meticulous
in bookkeeping and lack of proper planning in the cash flow of the business, the funds
and the income receiving is insufficient to provide better tools, equipment and areas for
expansion. This will also affect the job trainings and the number of staff size of
Marasigan’s garden. Hence, having one major problem in their business reverts to an
aftereffect –a sequence of problems arising out from one main problem.

III. ROOT CAUSE OF THE PROBLEM

According to the data gathered, the six major causes why Marasigan’s garden
needs quality improvement are; (1) Financial planning and management (2) Facilities
enhancement (3) More or better tools (4) Equipment and areas expansion (5) Better job
trainings and (6) Increase in staff size.

There is also external factor that are present concerning to the problem –
competition. Competition is always within business industry but there is an exemption –
an unwanted competition wherein illegal businesses (absence of business permit and
other government requirements, etc.) are offering lower price than standard
price/suggested retail price which legal businesses adhering to. The counter-effect is
decreasing number of customers, since illegal businesses are offering a lower price of a
particular product or service; customers are highly engaged in transactions to which they
could save more money.

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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

IV. QUALITY IMPROVEMENT

A. Existing
1.) Management
- The business owner is hands-on and he make sure the well-being of the product
2.) Employee Relation
- Considering employee opinion and putting your trust in them because they are the
primary key of success in the business
3.) Continues run of the business
- Continuing the business operation at the stage of difficulty is learning the ability
to control and finding a solution to the problems that may occur

B. Implementation Plan

Present-day farm operations including horticulture, poultry, landscaping, etc. are

becoming more and more business oriented than yesterday farm operations. Being a good
producer is no longer good enough to remain in business. Since, the main problem of
Marasigan’s Garden is in area of financial planning and management, the key to obtain the
business’ success today is being a good financial manager.

Keeping a good and accurate records and establishing a sound record-keeping system
will elevate the Marasigan’s Garden into success. However, record keeping plays a much
larger role in business. Records can be helpful in planning improvements for the business and
making proper management decisions. Through with this, the Marasigan’s Garden’s manager
can compare data from previous and recent records for identifying variables that needs an
attention for resolution. It helps to determine what are the efficiencies and inefficiencies to
measure the progress of the business and plan for the future. Good record-keeping system is
one that will provide the necessary information and provide the information when needed. It
will furnish the necessary information for understanding the activities of Marasigan’s Garden
operations. Once satisfied, quality control is a must.
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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

Agricultural education and training also has an important role in improving the
performance of each worker in the Marasigan’s Garden. The management should provide a
range of educational activities with the primary aim of achieving knowledge, skills and
abilities enhancement. Above all, it is learning to be innovative that counts that represent the
central change which will equip the worker in problem-solving. Training such as landscaping
training program is a great opportunity for real ‘green’ hands-on learning experience. The
workers will learn in a structured, goal-oriented and professional environment to advance in
their career.

On the other hand, the owner of Marasigan’s Garden has stated that in case of failure
of operation and incurrence of loss of the business, some portions of the current business
(e.g. land, property and equipment) are held for sale. The considering cash proceeds will be
used to capitalize for additional businesses in different kind of industry such as poultry, buy
and sell, apartment and construction equipment rental. Once there is a cash flow already
coming from other sort of businesses, the considering income will offset the loss from the
original business.

Whether a business is a start-up or already well established, business implementation

becomes the responsibility of the owner, manager, workers, employees, and other individuals
within the range of the business.

V. QUALITY TOOLS AND TECHNIQUES FOR IMPROVEMENT

Tool 1: BENCHMARKING
Benchmarking is the practice of measuring the financial health and performance of your
farming business compared to the performance of your business in the past and to similar
or peer gardens. Financial benchmarks focus on how effective annual expenditures on
inputs and long term investments in assets are. There are two types of benchmarking; the
first is internal to Marasigan’s Garden is to benchmark own measurements to historical
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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

data which establishes own internal trends. The second is comparing Marasigan’s Garden
externally to peer businesses in line with the type of business and era.
Here are the key steps in proposed Marasigan’s Garden Benchmarking process:
1. Become a member of a peer group such as Farm Management Association that
provides training and financial analysis in calculating benchmarks.
2. Determine strengths and areas for improvement
3. What are the competitors achieving? Compare externally the business.
4. What caused the benchmark to decline?
5. Further investigation is required before making positive changes

Tool 2: SIX SIGMA

Six Sigma uses a systematic improvement approach known as DMAIC—Define,

Measure, Analyze, Improve and Control. With the use of Six Sigma DMAIC
Methodology in this research, we are able to identify what are the problems present in the
business, measure how those problems affect the business operations, profitability and its
stability as a whole. Through analyzation of problems, we are able to find out the
variables which cause the arising of problems, the errors in operations and inappropriate
management of the business. Thereafter, application of resolution and implementation of
proposed plan for continual improvement and quality control drives to produce efficient
and effective performance of the business.
The benefits of Six Sigma to Marasigan’s Garden are:
 Generate lasting success
 Adds value to clients
 Promotes learning
 Implements strategic change
 Accelerates improvement rate
 Sets performance goal for everybody

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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

VI. QUALITY COST

A. Cost of Materials

Based on our conducted survey, interview and research, financial planning and
management is the major why the branch does not sustain enough income and gain many
customers. Therefore, we proposed that Marasigan’s Garden should allot the following:

MATERIALS BUDGET

350/sack
1.) Fertilizer/month 350x10=
PHP 3,500.00

2.) Seedlings/month PHP 9,600.00

250/sack
3.) Dipa/month 250x10=
PHP 2,500.00

180/1000pcs
4.) Plant Bags/month 180x5 =
PHP 900.00

5.) Utilities PHP 3,300.00

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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

TOTAL =18,600.00

B. Cost of Labor
LABOR BUDGET
1.) Gardener PHP6,000.00/month
6,000.00x15
= PHP 90,000.00
2.) Landscaper PHP 9,500.00/month
9,500.00x12
= PHP 114,00.00
3.) Office Staff PHP 5,000.00/month
5,000.00x5
=PHP 25,000.00
TOTAL = PHP229,000.00

VII. IMPLEMENTATION

A. Schedule of Activities (Action Plan)

The total improvement cost is per month. The proposed comprehensive improvement cost
program is to run for twelve months, to start by, January 2018 and to end by December 2018.
The program will utilize the largest part of the allotted budget on different programs and
trainings for the growth and clamor of the business.

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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

ACTIVITIES OBJECTIVE PERSON TIME BUDGET

RESPONSIB FRAME
LE

Business Planning This program Owner/ 2-3 days P3000-P5000

for Marasigan’s provides manager Manager
Garden of Marasigan’s
Garden with
education and
assistance in
developing
effective business
plans for their
businesses.

Marasigan’s Garden It provides specific Owner/ 2-3 days P2500-P5000

Management and business tool to Manager
Program Marasigan’s
Garden manager

PRO-AGRI Helps manager Owner/ 2-3 days P5000-P10000

Financial improve record- Manager
Management and keeping and
Computer financial
Recordkeeping management skills
Program for the
enhancement of
profitability,

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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

liquidity, and
solvency of the
business.

Enterprise budgeting Manager having Owner/ 1-2 days P3000-P5000

for Marasigan’s objectives methods Manager
Garden for evaluating
alternative
enterprises that
they are
considering

Creation of It is definitive Manager 1 day No cost unless

Marasigan’s Garden internet source for there is
Web Page linking individuals requirement
interested in for license in
Marasigan’s creation of
Garden page and for
boosting
promotion

P5000

Landscaping training Prepare workers Workers 2-3 days 2000 per head
Program what it takes to run (20 workers)
a landscape and P40000
gives them
opportunity for a
real ‘green’ hands-
on learning

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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

experience.

VIII. CONCLUSION

The researchers analyzed and gathered the information needed to identify the challenges
faced by the Marasigan’s Garden through survey and with the use of that, the researchers
therefore conclude that there are 6 major issues that needs attention for quality improvement
mainly (1) Financial planning and management (2) Facilities enhancement (3) More or better
tools (4) Equipment and areas expansion (5) Better job trainings and (6) Increase in staff size.
Based on the outcome of the survey, the researchers want to focus more first on their financial
planning and management due to the fact that it is the main factor why the business is
experiencing or suffering from regression. Because of their lack of financial planning and
management, minor problems also came out and if not addressed properly, the business will
surely continue to suffer from a downfall that could possibly lead to closing of their business. As
for the tools and techniques that we used all throughout the research, for the tools we used the
Histogram for analysis and Pareto Diagram for the representation and for the techniques, we
used Benchmarking and Six Sigma using DMAIC (Define, Measure, Analyze, Improve and
Control). We therefore conclude that in order to attain a sustainable business, the business should
be able to address these problems and the corresponding solutions that will be discussed in our
recommendations.

IX. RECOMMENDATION

As we have conducted the survey and identified the factors on why the Marasigan’s
Garden is suffering from regression, we present and recommend first and most importantly, that
the business should have sound record-keeping system in order to resolve the main factor which
is their lack of financial planning and management. In using a record-keeping system, the
business should record all the cash outflows and inflows, all the funds that are allocated for a
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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

specific purpose either in physical record or computerized record but as a suggestion, it would be
better if they could produce both records in case they will encounter a problem in the computer
where they keep their transactions (e.g. reformat, virus, system breakdown) and could use the
physical record (bookkeeping) or even an online system as a backup. As they address this main
issue, they can also start promoting their business more often, knowing that they have a lot more
competitors. With the use of technology, they could promote their business in social media sites
such as Facebook, Twitter or even Instagram because it is the easiest and most convenient way to
promote the business faster especially to this day when everyone has a social media account.
They should also update their Facebook page and post their products and services and could
offer promotions and discounts in order to deal with the competitors. Lastly, as we have seen the
results of the survey, they should focus more on the improvement of employee engagement since
good relationship with your employees can also lead in having a more motivated and productive
workers. This could involve workshops, recognition in their performance, valuing their opinion
and ideas on how they could help the business to be more successful and letting them showcase
their skills and improve it.

Throughout the research, we learned and experienced on how to apply all that we learned in
Total Quality Management. With the knowledge that we have attained, we know that it could
also help the Marasigan’s Garden business on how they should run their business especially in
applying Quality Management and we could give them advices that could lead to a sustainable
business. This research could also help the students most especially in the future if ever we are
planning to have a business.

X. APPENDIX

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QUALITY IMPROVEMENT PLAN –MARASIGAN’S GARDEN