The Grey Chronicles


1995-1999 NSC Product Quality

Product Quality and customer after-sales service were paramount to the privatized NSC. In 1995 (NSC News, 3 Aug 1995), it adopted a slogan: “New NSC: A Partner You Can Rely On”, later known by its acronym: PYCRO and incorporated this in its NSC’s Corporate Vision, which specifically state:

“to survive we must produce and market our products which are world-class in quality, cost efficient, reliability, timely delivery and price in partnership with our customers for the advancement of our stockholders, our fellow employees, our dependents and ourselves and in the process to enjoy our endeavours.”

A Partner You Can Rely On.” (Italics in the original)

From the start of that year, CSM Quality Assurance closely monitored five quality parameters—thickness (dimensional measurement and sheetage for galvanized iron applications), shape (flatness), formability for pre-painted application, hardness and edge quality (NSC, 1996q).

A management conference on “Challenges Facing NSC” (Andersen and SGV Consulting, 1995) highlighted customer’s comments on NSC product quality, product pricing, technical assistance and after sales service. Among the customers interviewed were from Philsteel Coating Corporation, Bacnotan Steel, Oriental Tin Can, Philippine Can Industrial Corporation, Italit, and Phoenix Iron & Steel Corporation. Most of these interviewed customers claimed problems with late deliveries, noted the competitive yet reasonable pricing and high prime yields, but criticized some quality problems like waviness, flatness, and tensile strength. William J.K. Leong, Wing Tiek’s NSC Executive Vice President & COO, urged NSC to take active steps and make others in the organization change.


Figure 35: Yearly Trend of NSC Customer Complaints, 1988-1999 (Data: NSC CSM-QA)

Data shows that there is a moderate correlation between the monthly NSC production versus Quality, or % Customer Acceptance Rate.

Historically, Figure 35, prior to its privatization, NSC’s customer complaints amounted to about 1.3% of the total Finished Goods (the bulk of which was cold-rolled coils) sold. This yearly average peaked to 2.0% between 1995 and 1999. On a monthly basis, customer complaints peaked at 2.75% of Finished Goods sold in April 1995.

A former Quality Assurance supervisor explained that the uptrend of customer complaints between 1993 and 1996, see Figure 35, could possibly be explained by the trade import liberalization pursued by the Philippines starting in 1993. The fluctuating drop of complaints from 1997 until 1999 was in reaction to lesser goods sold to customers.


NSC News (1995), Organizing Ourselves for Customers, NSC News Special Bulletin. Makati: Corporate Communications, NSC, 03 August 1995. back to text

National Steel Corporation (1996q). Quality Assurance Performance Report for the month of December, 1995. Iligan City: Cold Strip Mill Quality Assurance, NSC, 03 January 1996. back to text

Arthur Andersen and SGV Consulting (1995), Challenges Facing NSC, Proceedings of the Challenges Facing NSC Conference, Makati: National Steel Corporation, 21 July 1995. back to text

Interviews with persons who wished to remain anonymous (refer to Appendix FF), various dates. back to text


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