Establishing the Philippine Quality Award

The State promotes industrialization and full employment through efficient and competitive industries.
Encourages all economic sectors to aim for optimum productivity and quality.
Recognizes contributions to raising quality of life, especially for the underprivileged.
Objectives include stimulating organizations to improve quality and productivity for recognition and competitive advantage.
Establishes guidelines and criteria for quality improvement evaluation.
Provides specific guidance to organizations on quality management through information sharing.

Establish and conduct a national quality improvement system awarding effective quality management.
Recognize organizations making significant improvements in goods, services, and performance.
Generate and disseminate useful information on successful quality improvement strategies.

Creation of the Philippine Quality Award, represented by a trophy bearing the Presidential Seal and PQA logo.
Design and inscriptions prescribed by the Philippine Quality Award Committee.

Appointed by the President, includes heads of key government agencies and six private sector representatives.
Key agencies: DTI, DAP, DBM, NWPC, TESDA, CIC.
Private sector representatives cover national quality movements, management practitioners, industries, higher education, labor, and technical professionals.
DTI Secretary serves as Chairperson; DAP President and national quality movement head serve as vice chairpersons.
CSC Chairman invited as Committee member.
The Committee reviews and improves the award system regularly.

Award granted periodically by the President on recommendations from the Award Manager.
Awarded to organizations benefiting the Philippines economically or socially through quality improvements.
Ceremony conducted as prescribed by rules and regulations.
Award recipients may publicize and use the award in promotions if they agree to assist other organizations.

Awarded annually to private and public organizations demonstrating highest performance excellence.
Recipients must show continuous improvement and excellent systems.
Should serve as national and global models.

Three levels annually conferred to organizations that applied but did not qualify for the main award:
- Mastery in Quality Management: Superior results linked to robust systems, role models for others.
- Proficiency in Quality Management: Significant progress and documented system-level management.
- Commitment to Quality Management: Serious commitment with initial quality improvement efforts.

Awards given to:
- Small and medium enterprises (per Magna Carta definition).
- Manufacturing companies or subsidiaries.
- Service providers.
- Agricultural producers.
- National government offices, agencies, government-owned corporations, local government units.
The Committee may modify categories with prior detailed public description.
Philippine Quality Award for Performance Excellence given only to qualifying applicants annually.
No awards if no qualifying organizations.
Winners barred from reapplying at the same level for three years, except for recognition levels.

Organizations must submit applications to Award Administrators.
Must permit rigorous evaluation of operations contributing to quality improvements.
Evaluation includes thorough document review and site visits by competent assessors.
Must demonstrate outstanding quality improvements and effective management with personnel involvement.

The Secretary of the DTI is the Award Manager.
Center for Industrial Competitiveness acts as implementing agency.
Two Administrators (public and private sector) appointed by the President for three-year terms from nominees.

Implementation funds included in DTI annual budget.
Committee may establish a foundation for managing endowment funds.
The foundation solicits grants, donations, and contributions locally and abroad.
Cash receipts from donations automatically appropriated for specified purposes.

Committee Chairperson must submit annual reports to the President and Congress on award activities and implementation progress.

The Committee responsible for promulgating rules necessary for effective implementation.

Laws, executive orders, rules inconsistent with this Act are repealed, amended, or modified accordingly.

The Act takes effect 15 days after publication in at least two newspapers of general circulation.