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Answer 1)

Quality management at FedEx encompasses all of its operations and it is one of the most critical
attributes for the success of the Company. FedEx’s “common language” of quality is Quality
Improvement Process (QIP) which plays an integral role in all the activities of the Company. As a result of
QIP, themes such as “Do it right the first time,” “Make the first time you do it the only time anyone has
to,” and “Q = P” (quality = productivity) are important parts of the FedEx culture. To reinforce these
themes, the company teaches its employees the 1–10–100 rule. According to the rule, if a problem is
caught and fixed as soon as it occurs, it costs a certain amount of time and money to correct. But if a
mistake is not caught when it has occurred but caught at a later stage in different departments or at
different location, than it may costs 10 times that much to repair. However, if a mistake is not caught at
this stage but is caught by end user who is customer than it may costs 100 times more to fix. It could
also have reputational damage to the brand of the company in this age of social media where
information flows very quickly.

In 2008, the Company created Quality Driven Management (QDM) to make customers’ lives easier and
simplify the FedEx experience. Through QDM, FedEx is pioneering innovations in quality thinking and
driving quality to new heights for customers. To monitor progress, QDM includes an enterprise wide
system of metrics called the FedEx Service Quality Index that keeps the company focused on the things
that matter most to customers.

Another quality efforts strategies implemented by FedEx are Quality action teams (QATs) to design work
processes to support new product and service offerings.

FedEx’s approach to quality also involves strengthening the bonds between its internal customers, or
employees. The company asks all its employees to ask the following three questions when they interface
with a co-worker: What do you need from me?, What do you do with what I give you?, and Are there
any gaps between what I give you and what you need?

Employees are one of the critical components in delivering the quality service to the customers. W.
Edwards Deming has said “Poor quality was not the fault of labor. Poor quality resulted from poor
management of the systems for continual performance…”. Hence, the company has adopted its People–
Service–Profit (PSP) philosophy, which articulates the view that when people are placed first, service
and profit follow.

Yes, it is important for a company to establish a “common language” of quality as employees and all
other people involved in delivering the services will know exactly what level of services to deliver.
Common language will ensure everybody will have same meaning for the services to be delivered. In the
absence of common language or theme everybody will deliver services as per their own understanding
of the services. To have time driven standardized services to all the customers across the world, a
common language of quality is necessary for the company otherwise quality of services delivered will be
different for every customer and will be different in different geography.
References: Quality Driven Management [Online]. Available at: https://about.van.fedex.com/our-
people/quality-driven-management/ (Accessed 12 December 2018)

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