INTRODUCTION

Total Quality Management plays a pivotal role in such companies. It is

indeed the lifeblood of an entity and, therefore, should be managed well for
sustainable and profitable growth. ASQ defines total quality management as
a system of management based on the principle that every staff member
must be committed to maintaining high standards of work in every aspect of
a company's operations or describes a management approach to long-term
success through customer satisfaction. Total quality management is relevant
because it aims to provide effort to all members of an organization
participate in improving processes, products, services, the culture in which
they work and It uses strategy, data, and effective communications to
integrate the quality discipline into the culture and activities of the
organization.

In order to expand and broaden the researcher's knowledge and

information regarding this matter, a research was conducted. The main
objective of this study is to assess current developments and practices with
regards to total quality management of such company. Apple Inc. is one of
the world's leading American multinational technology company that
designs, develops, and sells consumer electronics, computer software, and
online services and other variety of product line.

With this, the researcher seeks to analyze and discuss the company's
total quality management. As such, this study will help to understand total
quality management to the outmost.
 PRESENTATION OF THE COMPANY

By creating innovative products that continue to define the world of

computer design. Other computer manufacturers have attempted for
decades to replicate the iconoclastic appeal of the Apple design. None have
succeeded in the manner of Apple. When Steve Jobs assumed the post of
CEO in 1998, he re-revolutionized the entire company. Apple introduced the
iMac and iBook product lines for the more basic computer buyers and the
PowerBook and G series computers for the advanced purchasers. Apple
continues to forge ahead in design with the introduction of the iPod digital
music player and the iTunes Web site for the sale and download of music.
Among giant rival firms, such as IBM, Apple is on the forefront of a revolution
of technology, integrating music, images, and animation.

NATURE OF THE COMPANY

 Apple Inc. is the worlds leading American multinational technology
company. They manufacture, designs, develops and sells consumers
technology or electronic devices, operating software, application software
and providing online services.

MOTTO

Think Differently

VISION

Apple ignited the personal computer revolution in the 1970s with the
Apple II and reinvented the personal computer in the 1980s with the
Macintosh. Apple is committed to bringing the best personal computing
experience to students, educators, creative professionals, and consumers
around the world through its innovative hardware, software, and Internet
offerings.

MISSION

Apple Computer is committed to protecting the environment, health

and safety of our employees, customers and the global communities where
we operate. We recognize that by integrating sound environmental, health
and safety management practices into all aspects of our business, we can
offer technologically innovative products and services while conserving and
enhancing resources for future generations. Apple strives for continuous
improvement in our environmental, health and safety management systems
and in the environmental quality of our products, processes and services.

OWNER
 Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to
develop and sell personal computers. It was incorporated as Apple Computer, Inc. in January 1977,
and was renamed as Apple Inc. in January 2007 to reflect its shifted focus toward consumer
electronics.

ORGANIZATIONAL STRUCTURE

Apple's organizational structure is shown below. Steve Jobs is the CEO

and is in direct control of the company. The nine senior vice presidents and
their portfolio of responsibilities are specified. Apple manages its business
primarily on a geographic basis, with offices in the Americas, Europe, Japan,
and Asia-Pacific. In addition, Apple operates and separately tracks sales in
86retail stores with the majority located in the United States. Apple's
products are primarily assembled in Sacramento, California; Cork, Ireland;
and by external vendors in Fullerton, California; Taiwan, Korea; the People's
Republic of China; and the Czech Republic.
HISTORY

It was founded in 1976 in a garage in Santa Clara, California, Apple is

the brainchild of Steve Wozniak and Steve Jobs, two college dropouts who
sought to provide a user-friendly computer to a new and distinct market of
small computer users. Between 1978 and 1980, sales increased from $7.8
million to $117 million, and in 1980 the company underwent its initial public
stock offering. In 1983, Steve Wozinak left Apple. That same year Steve Jobs
hired away John Sculley from Pepsi to be the company's president. After
experiencing several product failures, Apple unveiled the Macintosh
computer in 1984 to overwhelming success, setting the stage for Apple's rise
and its recognition as a household name. By 1985, relations between Sculley
and Jobs became contentious. Finally, the board of directors sided with
Sculley, and Steve Jobs was forced from the company he helped found.
Additionally, while CEO of Apple, John Sculley ignored Microsoft founder Bill
Gates appeal for Apple to license the Macintosh operating system to
Microsoft. Gates had hoped to make the Macintosh platform an industry
standard. However, with Sculley refusing to license the operating system,
Gates purchased and developed the DOS operating system, which has
become the international operating standard for more than 90 percent of all
personal computers in the world. By the late 1980s, competition from
Microsoft's Windows operating system and the abject failure of Apple's
Newton handheld computer caused the earnings of Apple to plunge, forcing
reduction in the Apple workforce and the resignation of John Sculley. In 1997,
Gilbert Amelio, Apple's current CEO, orchestrated the purchase of the
company Next Step from Apple founder Steve Jobs. The NeXT operating
system was a vast improvement over the then outdated Macintosh operating
system. At the time of the purchase, it was hoped that the NeXT operating
system could be used to upgrade and overhaul the Macintosh operating
system. However, sales in the corporate and education sectors continued to
fall, and Apple was forced to trim its, workforce by30 percent, canceling
projects and trimming research costs.

PRODUCTS

iPhone - is a line of smartphones designed and marketed by Apple

Inc. They run Apple's iOS mobile operating system. The first generation
iPhone was released on June 29, 2007; the most recent iPhone model is
the iPhone 7, which was unveiled at a special event on September 7,
2016.

iPad - is a line of tablet computers designed, developed and marketed

by Apple Inc., which run the iOS mobile operating system. The first iPad
was released on April 3, 2010; the most recent iPad models are the 9.7-
inch iPad pro released on March 31, 2016 and the iPad Mini 4, released
on September 9, 2015. The user interface is built around the
device's multi-touch screen, including a virtual keyboard. The iPad
includes built-in Wi-Fi and cellular connectivity on select models. As of
 January 2015, there have been over 250 million iPads sold. iPad tablets
are second most popular, by sales, against Android-based ones, since
2013.

Mac - the Macintosh (branded as Mac since 1998) is a series

of personal computers
(PCs)designed, developed, and marketed by Apple Inc. Steve
Jobs introduced the
original Macintosh computer on January 24, 1984. This was the
company's first mass-market personal computer featuring an
integral graphical user interface and mouse. This first model was later
renamed to "Macintosh 128k" for uniqueness amongst a populous
family of subsequently updated models which are also based on
Apple's same proprietary architecture. Since 1998, Apple has largely
phased out the Macintosh name in favor of "Mac", and the product
family has been nicknamed "Mac" or "the Mac" since the development
of the first model.

Apple Watch - is a line of smart watches developed by Apple Inc. It

incorporates fitness tracking and health-oriented capabilities with
 integration with iOS and other Apple products and services. The
original generation of the device was available in four variants: Apple
Watch Sport, Apple Watch, Apple Watch Herms, and Apple Watch
Edition; each distinguished by different combinations of cases and first-
or third-party interchangeable bands. Apple Watch relies on a
wirelessly connected iPhone to perform many of its default functions
such as calling and texting. It is compatible with the iPhone 5 or later
models running iOS 8.2 or later, through the use of Wi-Fi or Bluetooth.
Announced by Apple CEO Tim Cook in September 2014, the device was
released in April 2015. The Apple Watch quickly became the best-
selling wearable device with the supply of 4.2 million smart watches in
the second quarter of the 2015 fiscal year. The second generation of
Apple Watch, released in September 2016, includes two tiers: Apple
Watch Series 2 and Apple Watch Series 1, which includes the S1P chip,
but is otherwise identical to the original.

macOS - (pronounced previously Mac OS X, then OS X) is the current

series of Unix-based graphical operating systems developed and
marketed by Apple Inc. designed to run on
Apple's Macintosh computers ("Macs"), having been preinstalled on all
Macs since 2002. Within the market of desktop, laptop and home
computers, and by web usage, it is the second most widely used
desktop OS after Microsoft Windows.
 iOS - (formerly iPhone OS) is a mobile operating system created and
developed by Apple Inc. exclusively for its hardware. It is the operating
system that presently powers many of the company's mobile devices,
including the iPhone, iPad, and iPod Touch. It is the second most
popular mobile operating system globally after Android. iPad tablets
are also the second most popular, by sales, against Android since
2013.
 macOS Sierra macOS Sierra (version 10.12) is the thirteenth major
release of macOS

(previously OS X), Apple Inc.'s desktop and server operating system

For Macintosh

computers. The successor to OS X El Capitan, it is the first version of

the operating system issued under the June 2016 rebranding as
macOS. Sierra is named after California's Sierra Nevada mountain
range. The mountain in the default desktop picture is Lone Pine Peak.
Its major new features concern Continuity, iCloud, and windowing, as
well as support for Apple Pay and Siri.

Keynote - is a presentation software application developed as a part

of the iWork
productivity suite by Apple Inc. Keynote 7.0 was released on
September 20, 2016 and is the most recent version for the Mac. On
January 27, 2010, Apple announced a new version of Keynote
for iPad with an all-new touch interface.
 Pages - is a word processor developed by Apple Inc. It is part of
the iWork productivity suite and runs on the macOS and iOS operating
systems.

Final Cut Pro - is a series of non-linear video editing

software programs first developed by Macromedia Inc. and later Apple
Inc. The most recent version, Final Cut Pro X 10.3, runs on Intel-
based Mac computers powered by OS X El Capitan or later. The
software allows users to log and transfer video onto a hard drive
(internal or external), where it can be edited, processed, and output to
a wide variety of formats. The fully rewritten Final Cut Pro X was
introduced by Apple in 2011, with the last version of the legacy Final
Cut Pro being version 7.0.3.

Ipod Touch, nano and shuffle

CURRENT INDUSTRIES STATUS

The chart below reflects the Apples net sales from the year 2000 to present.
The charts have been adjusted to reflect the non-GAAP accounting rules.
 PRESENTATION OF TOTAL QUALITY MANAGEMENT

Total Quality Management involves all the internal and external

members to the supply chain to meet all the customer requirements at the
lowest achievable cost. Apple Inc. implements Total Quality Management
with commitment and support by maintaining a customer centric focus in all
of its services, products and processes.

APPLE SUPPLY CHAIN

The supply chain is also having a big part at Total Quality Management
of a company. Apple is famous for innovation and design. But few people
know that the way Apple handles inventory is also a factor that led to
success. The research firm Gartner ranks Apples Supply Chain as the best
supply chain in the world every year from 2010 to present.

Delivery of
Dispatch of
Source of Raw Raw and
Production of apple Finished
and Packaging Packaging
Warehousing Appls Finished products to Return
Materials for Materials to
products Distribution
Apple Factory
Centers
Warehouse

Apple starts from the sourcing of raw materials and packaging

materials for the main product. Followed by the delivery of raw materials and
packaging materials to the factory located at China. The factory warehouse
is located at Elk Grove California. Then, warehousing follows. The production
of Apple will be done and will be considered as finished products. The next
process is the dispatching of Apple finished products to distribution centers.
Lastly, distribution of Apple finished products to end users or return if there is
a product errors.

APPLE HUMAN RESOURCES

HR policies
The policies should reflect the mission, values, and culture of a
company. They have a direct impact on the external perceptions about the
company by the apparent treatment of and attitude towards its staff and
therefore shape the corporate image and identity. A positive image then can
reinforce a competitive advantage increasing customer value, as people
associate positive values with the company. Apple meets this need of
creating a favorable image of a company by implementing equality of
employment and promotion opportunities through partnership arrangements
around the world.

Human Resource performance

In pursuing the above mentioned objectives of getting the best

employees to work for Apple, the company has installed several measures to
increase productivity as well as effectiveness. A cornerstone in the
employment relationship is the regional partnership program with different
originations like skill net in Ireland (A body comprising both employer and
employee organizations) aiming at facilitating mutual involvement of
management and employees/unions in organizational development.

INDUSTRY STRATEGY

Expansion through concentration

The apple concentrates to the one segment to make digital devices.
Focus customer
The apple focuses only the high-middle class customer.
Differentiation
The apple adopts differentiation in their products like as Iphone, IPod, IPad,
and IMac and customize products according to region.
Expansion through internationalization
The company adopt expansion not only the country rather than Beyond the
country.
APPLE MEASUREMENT SYSTEM

Product Quality
Apple Certified Refurbished Products are pre-owned Apple products
that undergo Apple's stringent refurbishment process prior to being offered
for sale. While only some units are returned due to technical issues, all units
undergo Apple's stringent quality refurbishment process.
Each Apple Certified Refurbished Product:
is fully tested (including full burn-in testing).
is refurbished with replacement parts for any defective modules
identified in testing.
is put through a thorough cleaning process and inspection.
is repackaged (including appropriate manuals, cables, new boxes, etc.).
Includes the operating software originally shipped with the unit and the
custom software offered with that system. See each product "Learn More" for
more details.
is given a new refurbished part number and serial number.
is placed into a Final QA inspection prior to being added to sellable
refurbished stock.
Refurbishment procedures follow the same basic technical guidelines as
Apple's Finished Goods testing procedures.

APPLES SWOT (Strengths, Weakness, Opportunity Threats)

Strengths of apple
The strengths of apple they made digital innovative quality products they
always focus to come with new technologies.

Weakness of Apple
The weakness of the apple they never to reduce their price of products.

Opportunity
Apple have opportunity to capture the global market through customize their
product according to low price therefore the cay capture the maximum
market share.

Threats
Apple is the only company which makes world class product and having a
strong brand image but apple have a small market share so they can
increase the market share.

APPLE SUPPLIERS PROCUREMENT

Apple has a procurement website over the years. Their main goal is to
develop an entire ecosystem of suppliers who support business operations.
And in a nutshell, is to obtain stellar products and services within tight
timeframes, at a cost that represents the best possible value to our
customers and shareholders.
Apple Inc. is proud to the strong relationships they have built with their
suppliers, many of whom have been working with them for many years. And
there are always looking to expand the supplier base to accommodate the
rapidly growing customer base. At that end, they periodically review the
relationships and add new suppliers as needed.
Suppliers at Apple

Apple requires each of its suppliers to meet the highest standards for
all goods and services. There requirements include a commitment to rigorous
quality assurance. In addition, suppliers must be committed, as they are, to
ensuring the highest standards of social responsibility.
The ideal suppliers are those who understand our culture and
expectations. They value suppliers who take the time to learn about and
understand the business and who look for ways to add value. These suppliers
know the importance of making and meeting commitments and delivering
the highest quality goods and services.
The business environment is competitive and fast-paced. The suppliers
must understand this dynamic and be agile and flexible in responding to
changing business conditions. Above all, Apple values innovation. Apple
appreciates suppliers who truly understand and share in our challenges, and
who help them find the best possible solutions.

Supplier Diversity Program

Apple takes social and environmental responsibilities seriously. A good

example of it is strong and longstanding commitment to a diverse supplier
base.
Apples Supplier Diversity Program was formally established in 1993;
since that time the company has continued growing and supporting the long
list of suppliers that participate. Apple actively participates in the program
through the National Minority Supplier Development Council (NMSDC), the
Womens Business Enterprise National Council (WBENC), and VeteranOwned
Business Expositions, as well as Supplier Diversity Business Opportunity
Trade Fairs around the country.
The businesses they categorize as diverse suppliers are Minority-
Owned, Women-Owned, Veteran-Owned, and Service-Disabled Veteran-
Owned Small Businesses, as well as businesses located in Historically
Underutilized Business regions (HUBZone) and Small Disadvantaged
Businesses (SDB).
So how does a business join Apples Supplier Diversity Program? Thats
simple: You start by registering as a prospective supplier. Following a swift
verification and screening process to ensure a good fit between supplier
strengths and capabilities and Apples current and future requirements,
Apple reviews the supplier information. The business then becomes a
potential supplier who may be used in the procurement process as business
needs dictate. In the interest of encouraging the success of our diverse
supplier base, to work with the Supplier Diversity Program participants help
they develop their businesses. This often involves working with a number of
organizations that offer training and feedback.
Suppliers who wish to participate in Apples Supplier Diversity Program
should register as a Prospective Supplier so their information is available in
Apples prospective supplier database. They have included special areas
within the database to alert our supplier diversity team and relevant
procurement professionals about the availability of qualified participants in
Apples Supplier Diversity Program. This helps increase the visibility of these
suppliers and can improve their potential for engagement.

Sourcing Process

Apples sourcing process is designed to ensure equal and fair

treatment of suppliers so that they can fully participate in a competitive
procurement process. They ask suppliers wishing to participate in the
process to register in Supplier Connect, a secure online database that Apple
maintains with regularly updated information on current and potential
suppliers. Supplier Connect enables Apple procurement professionals to
access key information about potential and current suppliers, including
capabilities, Supplier Diversity certifications, product/service descriptions,
Universal Standard Products and Services Classification (UNSPSC) codes,
contact information, and so on.

The First Step

The first step any supplier should take in seeking opportunities to do

business with Apple is to register in Supplier Connect. If your company
registers in Supplier Connect and theres a need for the type of products or
services you provide, an Apple procurement professional can then contact
you to explore potential opportunities. If theres no immediate opportunity
for engagement (as sometimes happens), the information will remain in
Apples confidential Supplier Information Database for six months or for as
long as you continue visiting Apples procurement website to keep your
companys information up to date. Apple always informs the prospective
supplier that all purchases are made in the competitive marketplace.
Registering; the company in Supplier Connect does not automatically place
the company on a bidders list, nor does it constitute approval of your firm
as an Apple supplier or obligate Apple to solicit requests for quotations.
APPLE GREEN LEAN SIX SIGMA

In this case, the Apple Company discussed the application of

greenhouse gas emissions to the methodology of Six Sigma. A few Six Sigma
concepts were outlined, including fishbone diagrams, design for Six Sigma
(DFSS), voice of the customer (VOC), and design for x (DfX). The fishbone
diagram that the group produced shows the DFSS process and ways that the
processes can be improved to reduce greenhouse gas emissions. This also
takes into account the voice of the customer because the customer will want
a product that is environmentally friendly. Apple uses DfX by designing their
manufacturing processes to focus on environmental awareness and
greenhouse gas reduction. The fishbone diagram, shown in sections below,
outlines how each department will format their procedures to reduce
emissions.

Manufacturing

Manufacturing contributed to 61% of carbon emissions, of which

polyvinyl chlorides (PVCs) is the biggest factor. Therefore, eliminating PVCs
will reduce Apples carbon footprint. On the other hand, Apple successfully
banned harmful chemicals like benzene and Nhexane which are harmful to
humans.

Product Use

Product Use is an external one but is very important as it ranks second

after manufacturing in terms of carbon emissions. The way a device is used
determines its energy usage. By identifying the causes for product use, this
can be used to lower emissions in the long run.
Transportation

Apple has done a great job in terms of reducing transportation as this

is seen in Apples new strategy to reduce emissions. The company only uses
air travel to ship products which is economical and reduces effect on the
environment. Apple does not account for damage while transport which can
be a factor to reduce emissions as energy used to fix damages is wasted and
can be avoided if the right precautions are taken

Facilities

Using the fishbone diagram, it was mapped out the defects with the
facilities which resulted in the causes. Using coal fired plants is definitely
among the high contributors to greenhouse gases and should be powered by
renewable energy sources. In Apples favor, the company built its data
centers which are running on 100% renewable energy. Also something the
team overlooked had it not been for the fishbone diagram is the amount of
energy consumed by retail stores and offices. This should also be renovated
to use renewable energy sources like geothermal, wind, and hydroelectric
energy.
Recycling

Apple uses recycling to their advantage, and has started taking more
measures to improve the efficiency of their recycling processes. They are
trying to make their proprietary screws recyclable. This will result in more
efficient recycling of all Apple products. Apple is also looking into alternative
types of glue base which would be recycled. The company is trying to make
all of their products EPEAT Gold certified, which means that the product falls
under the category of green electronics .

Employees

In addition to the five topics above, the employees also contribute to

the carbon footprint of the company. The employee section of the fishbone
diagram is shown below. Most of the impact that an employee can have
depends on how they are educated in the subject. Before they start working
for Apple, they are taught the correct ways to handle machinery and the
safest ways to handle harmful chemicals in the manufacturing plants. Apple
also encourages employees to be environmentally responsible in their
personal lives. They can do this by carpooling to work, recycling, and using
more fuel efficient cars.

APPLE SIX SIGMA

ANALYSIS OF CURRENT TOTAL QUALITY MANAGMENT

Without a doubt, Apple Inc. manages its Total Quality Management

very well and superb. Apple has remarkable production facilities and they

have also enjoyed the healthy market share for the last years. One of the

reasons of the success of the organization is their vendor management and

the intelligent distribution system. For me one of the standout TQM of Apple
Inc. is the Supply chain, because it was managed by the organization by

having excellent relationship with their channel members and logistics. Their

distribution network makes sure that every product is distributed in the

required areas at the required time and the demand and supply does not

have any gap. Their distribution setup is synced with their production system

therefore they do not have to manage the inventory of the product for the

longer period of time.

Aside from that, their procurement department has selected the

reliable and a quality vendor that includes provides the best quality of raw

materials/products to the company. In line with this, Apples promotes

activities which help establish awareness on the importance of

environmental protection, transforming this awareness to conviction and

sustainable actions among its employees, business partners and other

stakeholders not only in business but even on personal level. And so, it is

expected that Apple Inc. would continue their Green Lean Six Sigma or

improve this environmental concern for it is one of the top companies in the

world.

Also, Apple did a great job in implementing the Value Chain and

Measurement System in product quality so that Apple can re-assess its

material issues and maintain sustainability.

RECOMMENDATIONS
 I have no any doubts why Apple Inc. is one of the leading companies

in terms of quality technology and consumer services. Because I see that

how they are stable in providing world class products. My initial total quality

management analysis involved establishing the supply chain especially the

flows of product of the remaining business streams and modeling the costs of

alternative warehousing and transport options. Having established the right

supply chain strategy for change, it is recommended for them to have

Logistics consultants to undertake a more detailed and the operational

implications of providing an improved service to Apples customers and

stakeholders.

Apple Inc. should take advantage to improve the active logistics

strategy. Apple Inc. can adopt Quick Response approach too. The distribution

process between the organization and the suppliers is focused in Quick

Response. By using this approach Apple Inc. can improve the speed of

inventory replacement through closely understanding and monitoring the

customer buying patterns. To implement the QR Apple Inc. has to share its

sales details with suppliers for specific products across its supply chain to

assist the availability of the right level inventory when and where it is

required.
 Apple Inc. also sees the Lean thinking, because it emphasizes on

operating with minimum wastes in the supply chain. Lean identifies seven

wastes namely

the waste of overproduction; producing too much

the waste of waiting; not utilizing and resources properly

the waste of transporting; moving goods between processes

the waste of inappropriate processing; incapable of meeting quality

standards

the waste of unnecessary inventory; not keeping too much of inventory

the waste of unnecessary motion; unnecessary movements within the

warehouse

the waste of defects; producing defective products

By improving lean management process Apple Inc. has, it can be more

efficient in terms of cost effective and better quality to the customer.

 Apple Inc. should also have a close monitoring to all

its supply chain partners. With this, they will be able to

evaluate the conditions of each participant and improve

their business relationship.

And last is Apple Inc. should have a close monitoring and fast customer

service so that all the concerns of the consumers will be assists and solve as

soon as possible.

UNIVERSITY OF THE EAST MANILA

COLLEGE OF BUSINESS ADMINISTRATION

FINAL REQUIREMENT IN

TOTAL QUALITY MANAGEMENT

 Submitted to:

PROF. MARISSA L. LANUZA

Submitted by:

PULANCO, JAMES EDLYN P.

Feb, 17, 2017