1. Quality Management at the United Parcel Service (UPS)
2. United Parcel Service (UPS)
3. Background/overview of organization
Size of company: 435,000 Worldwide
Founded in 1907, UPS is the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services. Using advanced technology, access to global resources, and an integrated network of physical, technological, and human assets, UPS provides a powerful competitive advantage that can help you earn repeat customers and grow your business.
UPS’s primary business is the time-definite delivery of packages and documents worldwide. In recent years, UPS has extended its service portfolio to include less than truckload transportation (primarily in the U.S.) and supply chain services. UPS reports its operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations.
The quality of design that UPS uses is to provide different services to meet the customers’ needs. UPS offers customers different choices prices to send their packages. For example, they have the overnight packages and of course that would cost more than the regular delivery
4. Introduction to the problem
Identify the quality issues that need to be addressed: The United Parcel Service is the world’s largest package delivery company. Clearly the FAA does not think UPS is doing such a great job in that department. In thinking about the reasons why they may not be maintaining their aircraft, a few ideas come to mind. First, aircraft repairs take time and money. With profits of 5.8 billion dollars last year, it is safe to assume cost was not the issue. Time is the single biggest thing UPS has to deal with.
When providing their service, shipping, they are guaranteeing that package will arrive its destination at a particular time. If an aircraft is being repaired, it cannot fly. If it is not flying, packages are not being delivered. Packages, those are not delivered or not delivered on time is simply bad for business. It is easy to see the domino effect that ensues thereafter. Perhaps there has been a cutback in mechanics and/or inspectors and so there were many oversights. It is also possible that they did make repairs but failed to keep adequate records, which is also alleged by the FAA.
A spokesperson for UPS states they will defend themselves for this “unreasonable and unwarranted fine.” He says, “UPS has a long history of operating a safe, compliant airline, there was never a safety issue.” Apparently, this fine is stemming from only 9 repairs out of the thousands of repairs they make. Overall UPS has a pretty good safety record. According to the Safety and Fitness Electronic Records System (SAFER), for the last 24 months UPS has had 0 air accidents and 0 fatalities
UPS believe in continuous improvement. Total quality management is an intervention process that focuses on continuous improvement. It is a cross-functional, management led philosophy which results in improved customer satisfaction. Top management must actively support it. Every department in the organization must be involved. Total quality management must be a part of the company culture. Suppliers and customers must be a part of the process. Products and services need to be done faster, and they need to be right the first time. It helps to analyze and improve their work methods in order to better serve their internal and external customers.
Keeping morale high throughout the organization as well as correcting any major issues is a huge area of opportunity for UPS or for any country for that matter. These issues have multiple causes that are related to an autocratic management style, adversarial employee and union attitudes, and inappropriate and inadequate performance management systems. These issues can be reversed and are opportunities for improvement
6. A possible quality management initiative would be the Six Sigma. Six Sigma
Six Sigma is a business discipline that combines a structured process-improvement methodology with an array of tools that help manage the achievement of objectives. The objectives of most Six Sigma projects are specific and measurable, such as “improving the preferred customer order cycle time to 99.99% on-time performance level.” Other objectives might be expressed in “mean time between failure (MTBF)” or other process-centric terms.
Six Sigma can help companies achieve performance levels that externally are invaluable to customers and internally can reduce costs. These projects can now be found in very diverse industries and can span far-reaching …these two initiatives can be complementary, especially for “Greenfield” process improvements… UPS Supply Chain Solutions 2 business processes and geographies
7. TCO B-Quality principles not only drive this organizations, but UPS depends on measuring analyzing and gathering results to improve as well as implement change within the company if necessary; internally, externally, or both. Nowadays, companies do businesses under high pressures of competition (such as UPS’s competitors such as USPS and FedEx0 to survive and meet tomorrow’s challenges. It can be difficult for managers to make right decisions and this requires the development of good business strategies and efficient operations to deliver excellent the products and services required to implement the strategies.
(n.d.). Retrieved May 17, 2015, from http://www.ups.com/content/us/en/about/facts/worldwide.html
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(n.d.). Retrieved May 17, 2015, from http://shazadcatarina.blogspot.com/2006/06/total-quality-management.html
(n.d.). Retrieved May 17, 2015, from http://shazadcatarina.blogspot.com/2006/06/quality-of-design-quality-of-design.html
(n.d.) Retrived May 17, 2015, from https://www.ups-scs.com/solutions/white_papers/wp_six_sigma_RFID.pdf
UPS: The Industry Leader in Quality? (2013, April 27). Retrieved May 17, 2015 from https://opsmgt.edublogs.org/2013/04/27/ups-the-industry-leader-in-quality/