Case Study #3 FedEx 1. What is the FedEx philosophy toward quality? “Customer satisfaction begins with employee satisfaction. Putting people first in every action, every planning decision, every business decision requires a tremendous commitment from every manager and employees in the company. ” James L. Barksdale, Chief Operating Officer “He even stated that his employees have been acting on their own to keep customers satisfied even before empowerment became a buzzword (pg 475). ” FedEx employees try their best to keep the customer’s satisfaction at heart.
They go above and beyond the call of duty to make sure the quality and satisfaction remain at a high standard. The CEO Frederick W. Smith said it best,” The first time you tolerate anything other than a movement toward 100 percent customer satisfaction, you’re on the road to mediocrity. ” 2. What specific elements/actions has FedEx implemented in its quality improvement history? Quality Improvement Process(QIP)- help to establish two important ideas to support the P-S-P philosophy.It recognized the correlation between doing things right the first time and productivity: the Q=P paradigm. It also defined quality service not in statistical terms, but as performance to the standards of the customer:”100 percent” satisfaction became the uncompromising goal. The meaning of quality-includes the concept of customer focus, total involvement, quality measurement, systems support, and continuous improvement as everyone’s job.
The cost of quality-emphasized rework and waste as the cost of not doing quality workYou and your customer- helped show that everyone at FedEx was both a supplier and a customer. Continuous improvement- developed the themes of Module 1 and showed how to meet customer needs in innovative ways. Making quality happen- encouraged people to take a leadership role in implementing quality programs. Quality action teams (QAT)- used a problem-solving process known as the FADE framework: focus on a particular problem or opportunity, analyze the data, develop solutions and action plans, and execute the plans for solutions. (pg 476)Customer/Supplier Alignment (CSA)- good relationships between customers and suppliers increase productivity.
(pg478) Leadership Evaluation Awareness Process (LEAP)- the four step process an employee has to complete before being eligible for a management position. 3. Discuss the pros and cons of each element/action from question2.
The pros are that they help the company strive towards their 100% customer satisfaction goal, improve the quality of care, increase production, increase the chance for employee growth, and increase employee loyalty.The cons are that although these procedures are worthwhile, they are time consuming to create, train, and implement, and expensive to maintain. The more money spent equals less revenue. This is the cost for quality. 4.
What quality actions should FedEx consider for the future? FedEx should consider using and improving the FADE framework. They also need to stay on top of technology. They can upgrade their current COSMOS (Customer, Operations, Service, Master On-Line System)(pg482) central computer system to fit the era in which they operate.