Thursday, May 19, 2005

Benchmarking with Moog Baguio

Business Times p.B3
Thursday, May 19, 2005

By Moje Ramos-Aquino, FPM
Benchmarking with Moog Baguio

Everything changes, nothing stays the same. Products and services evolve. Markets shift. Customer needs and preferences vary. As entrepreneur, you need to continuously change, adapt, adopt, create. You need to benchmark your product, services and processes with your competitors, industry, substitute products and services and new entrants in both local and global arena.

This will be useful in building your strategy and balanced scorecard.

One of our benchmarks is recognized for its Commitment to Quality Management by the Philippine Quality Award (PQA): The Moog Controls Corp., Philippine Branch. It is a worldwide manufacturer of precision control components and systems. It is based in Baguio City Economic Zone. It manufactures servovalves and servoactuators used in primary flight controls of large commercial airliners made by Boeing and airbus.

Prior to this PQA recognition Moog was a recipient of important awards, e.g. two Tower Awards from the Rotary Club of Manila, Personnel Management Association of the Philippines (PMAP)’s Personnel Manager of the Year and Employer of the Year Awards, and Gawad Kaligtasan at Kalusugan (GKK) Individual Award.

Its vision statement reads: Moog Baguio will drive itself, its capabilities and its resources to become recognized as the best company in the world in its business. It’s core purpose is to provide the business units of Moog a unique opportunity to capture market-share and improve margins.

To fulfill these vision and purpose, Moog’s mission is to supply its operating groups with products, components and services that are cost competitive and of the highest quality and reliability. Doing this are 560 full-time employees, 20 of whom are management staff.

Moog was founded on one original product, the electrohydraulic servovalve. Today, it designs and manufactures complete control packages, where required, and hundreds of configuration are found in aerospace systems as well as industrial applications. As such, the individual testing of every product is thorough and vigorous.

Moog Baguio considers itself a “green” company. It is proactive in monitoring and regulating the amount and type of waste produced in its operation. They practice recycling and proper disposal of waste especially the hazardous type.

Moog conscientiously maintains good ethical standards practices. It espouses a Shared Core Values under the culture of mutual trust and confidence. This starts during the Orientation and Indoctrination of new employees to the biweekly brown bag meetings and through day-to-day operations. These values are: treat each other with respect; maintain a bond of trust among all employees, communicate openly, regularly and honestly; encourage individual achievement that benefits the Moog community; encourage problem solving and the search for solutions; discourage faultfinding and the assignment of blame; empower all employees to initiate changes that lead to improvement; achieve pay levels that match the quality of our products; provide employment security for all employees; and provide all employees with health care and retirement benefits that result in genuine financial security.

These are indeed solid foundations on which Moog Baguio stands. Next column, let’s discuss how they operationalize their strategic thoughts and plans through their key value creating processes and key support processes.

Service Above Self. Congratulations to Rotary Club of Quezon City North on its 10th Charter Anniversary. This year, under the leadership of centennial president Elsa CaƱete, the club was able to strengthen membership and to assist the communities of Payatas and Purok 10, Barangay Commonwealth, help themselves build their home and basketball court.

(Moje is president of Paradigms & Paradoxes Corp. Please send your feedback at

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