Law Summary
Objectives of the Philippine Quality Award
- Promote organizational performance standards comparable internationally.
- Establish a national assessment system for quality and productivity.
- Recognize organizations achieving high levels of quality and business excellence to serve as benchmarks.
Creation and Composition of the Philippine Quality Award Committee
- Committee created under the Philippine Council for Productivity to oversee the PQA system.
- Chaired by the Secretary of the Department of Trade and Industry.
- Vice-Chairs include the President of the Development Academy of the Philippines and the President of the Philippine Quality and Productivity Movement.
- Members include leaders from key agencies: Philippine Society for Quality Control, Department of Budget and Management, Industry Development Council, Management Association of the Philippines, National Wages and Productivity Commission, Philippine Association for Technological Education.
- Labor sector represented by a designated recognized labor leader.
- Civil Service Commission Chairman invited as member.
Functions of the Philippine Quality Award Committee
- Steering and policy-making body for PQA.
- Set and review award administration and operational structure.
- Establish funding mechanisms and endowment fund.
- Advocate for legislative support including appropriations.
- Oversee implementation activities and award selection guidelines.
- Organize awarding ceremonies and report regularly to the President.
Scope and Eligibility for the Award
- Awards conferred annually to qualified organizations.
- Private sector categories: Manufacturing, Services, Agricultural Producers, Small and Medium Enterprises.
- Public sector categories: National Line Agencies, Government-Owned and Controlled Corporations, Local Government Units.
Criteria for Award Selection
- Leadership
- Information and Analysis
- Strategic Planning
- Human Resource Development and Management
- Process Management
- Business Results
- Customer Focus and Satisfaction
Implementing Agencies and Their Roles
- Department of Trade and Industry as Award Manager: conduct of awards process and endorsement of awardees.
- Philippine Society for Quality Control (Private Sector) and Development Academy of the Philippines (Public Sector) as Award Administrators: manage applications and provide secretarial support.
- Team of Assessors and Board of Judges: specially trained practitioners to evaluate applications and recommend awardees.
Management Committee and Technical Support
- PQA Committee to organize a Management Committee for implementation and administration.
- Invitation of other organizations for technical work and mobilization of support.
Funding and Financial Management
- Initial seed money of P1 million from the Department of Trade and Industry.
- Additional contributions from member organizations.
- Solicitation of government and private sector assistance for an Endowment Fund.
- Creation of a Foundation to manage the Endowment Fund.
Trophy and Award Conferment
- PQA trophy to bear the Presidential Seal and PQA logo.
- Design specifications to be prescribed by the PQA Committee.
- Awards to be conferred by the President during official ceremonies.
Implementing Guidelines and Effectivity
- Department of Trade and Industry to issue necessary guidelines for implementation.
- The Executive Order takes effect immediately upon issuance.