CARDIFF METROPOLITAN UNIVERSITY

UNIVERSAL BUSINESS SCHOOL

Name: DHRUVILKUMAR HIRENKUMAR SHAH

Course: CMBA2Y2
Student ID: ST20150304
Subject: OPERATION MANAGEMENT
Module Leader: Prof. SHRIRAM RAMSHANKAR
 TABLE OF CONTENT

Sr No. Particular Page No.

1. INTRODUCTION 1

2. TIMELINE 1

3. OPERATION STRATEGY 3

4. CAPACITY UTILIZATION 8

5. CAPACITY PLANNING 8

6. BOTTLENECK 9

7. OPERATION PARAMETERS 10

FACTORS TO BE IN DESIGN
8. 14
SERVICE INDUSTRY

QUALITY TOOLS AND

9. 17
TECHNIQUES

10. BIBLIOGRAPHY 24
INTRODUCTION

The CEO of the company FedEx Crop, Frederick Smith has learned a lesson for survival from a
Marine Sargent during a fighting tour in Vietnam. He has told him that there are only three things
you should remember that- “shoot, move and communicate”.

From this learning, Frederick Smith has used the same tactic in the business world of shipping
Industry. – “Aggressive, shooting and strategy”

(Fabregas, 2019)
Innovate its products and develop with the needs of its customers of communication has emerged
as one of the company’s greatest core-competencies. FedEx international Express with this
network there are 11.5 million pounds of packages are delivered per day with the help of 15
international Hub airport and the local airport. (About FedEx, 2019)
TIMELINE

Frederick Smith has founded Express Corporation in Little Rock, Arkansas.

1971 • Air fright and one to two days delivery were better than the current
distribution system and a turning point for the company.
The express delivery is tested in 12 countries of East and Midwest by using
Dassault Falcon Aircraft.
1973
• Dassault Falcon airship was accommodated for the goods shipments
with a one more payload door.
Government passes law 95-163. It helps FedEx and other cargo airlines to use
1977
larger aircraft to transport goods without any geographical restriction.

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 Gelco Express has acquired by FedEx and launches an operation in the Asia
1984 Pacific region.
• Very first Shipping system was- FedEx PowerShip
The super tracker, a handheld bar code system is introduced by FedEx Express
1986
• Catch detail Information
1989 The flying tiger is purchased by FedEx to expand its business globally.
Now, Federal Express officially called as “FedEx”, the fastest and most reliable
1994
courier service.
To serve in China, FedEx bought air routes from Evergreen International with
1995 full authority.
FedEx opens the hub, FedEx One @Network in Subic Bay, Philippines.
2001 FedEx made an alliance with U.S Portal Service Forge.
FedEx Corp. has merged two of its LTL companies, American Freightways, and
2002
Viking Freightways, and together as FedEx Freight.
FedEx Corp. gets Kinko's and extends FedEx retail access to each of the 1,200
2004 or more Kinko's stores — which are re-marked FedEx Kinko's Office and Print
Centers.
The fuel-efficient Boeing 757 has introduced by FedEx to fulfill the company’s
2008
environmentally conscious growth commitment.
FedEx has launched the service which provides U.S. customers a wide range of
2013 flexibility of dates, location and time of delivery under the name of FedEx
Delivery Manager.
FedEx has done the largest acquisition in its history by acquiring TNT Express
2016
to expand its business in Europe, Middle East, Asia Pacific, and Americas.
(About FedEx, 2019)

By seeing the history of FedEx Corp, it applies the browlfield strategy and expand its business and
using technologies. So, to get right in the detail of operation strategy and its parameters I will begin
the analysis.

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The aim of FedEx Logistics

“Logistics is the time-related positioning of resources or the strategic management of the total
supply-chain” and beyond this definition, we can lay the emphasis on the supply-chain which
describe a sequence of events intended to satisfy a customer. Besides in the case of FedEx, we will
see a strong company with important logistics capacities to respond to any demands.

CONNECTION BETWEEN BUSINESS STRATEGY AND OPERATION

STRATEGY

I've watched commonly that top administration feels unmistakably more constrained to
concentrate on – and undeniably progressively OK with – issues including showcasing, deals and
fund than it does activities. Regardless of whether an organization has really created targets and
activities gets ready for tasks, it only from time to time has explicit vital effect results as a top
priority. Operational objectives are, rather, framed in customary execution estimates that may have
no relating association with the correct objectives, destinations and activity designs. In the present
assembling condition, where inventory network the executives and lean assembling can contribute
such a great amount to consumer loyalty, working capital execution, lead times and benefits,
activities can never again be let well enough alone for the vital arranging circle. So, let's understand
some Operation strategies which FedEx Using is to grow its market and increase its profits.
(Reliableplant.com, 2019)

OPERATION STRATEGIES

An arrangement determining how a company will assign resources to help framework and creation.
An Operation strategy is ordinarily determined by the general business technique of the company
and is intended to boost the adequacy of production and bolster components while minimizing
cost. (BusinessDictionary.com, 2019)

1. Lean Transportation

Lean Transportation is an official white paper that talks about how Lean Principles coordinate
into the transportation work. Written in a reasonable and instructive way, this white paper
surveys key lean standards and how they apply deliberately and operationally to transportation

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the board. What's more, the peruse will be acquainted with the Four Critical Laws of Lean
Transportation.

(Goleansixsigma.com, 2019)

Powerful execution of these Lean Transportation laws will enable the expert to recognize and
dispose of waste in transportation. The paper will likewise talk about how to oversee
transportation costs while actualizing the key Lean Logistics standards of Lot Size Reduction,
Increased Delivery Frequency, and Level Flow. This white paper is an unquestionable
requirement perused for all Transportation, Logistics and Supply Chain supervisors who are
endeavoring to comprehend and apply Lean standards to the transportation work.

Lean transportation in FedEx

Lean Manufacturing keeps on expanding in key ubiquity as associations endeavor to build a

stream of material and lessen waste at all dimensions in the inventory network.

Here are a few Wastes as per FedEx Lean Thinking,

Over-processing

The waste that is made when we accomplish more than is required to address client's issues.

Motion

All motion that does not add value to the product or process. Walking around, searching for
material or tools.

Waiting

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All waste that exists since we are hanging tight for material, people, upstream process, requests
and every other power that bring about holding up time before we can play out our work.
(Leancor.com, 2019)

Transportation

Transportation in an overabundance of what is required if stock and stream exist in the system.
This incorporates underutilized hardware, between plant transports, trailer demurrage, and
other transportation waste.

Laws of Lean Transportation

1. The law of transportation waste

2. The law of transportation strategy
3. The law of daily event management
4. The law of transportation performance

In view of an ongoing study, "Transportation Best practices for Manufacturing" directed by

FedEx Corporation, unwavering quality is the most noteworthy factor for manufacture when
they chose a transportation transporter.

2. Just in Time

JIT implies requires the conveyance of inbound and outbound material in right amounts at right
time. It is also called a “Right” concept. There are different rights in Just in Time, which are
following,

o Right Materials
o Right Quantity
o Right Time
o Right Place
o Right Source
o Right Price
o Right Quality
o Right Service

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3. Network System
FedEx has a current service region which defines the areas eligible for international express
shipments. An aggregate of 11.5 million lbs/day is conveyed through the international express
package network. FedEx conveys international packages through 15 universal center points
which are circulated all through the world.
• Dubai, United Arab Emirates
• Frankfurt, Germany
• Hong Kong, China
• Indianapolis, Indiana, USA
• London, England
• Memphis, Tennessee, USA
• Miami, Florida, USA
• Oakland, CA, USA
• Paris, France
• Seoul, Korea
• Subic Bay, Philippines

These worldwide zones are non-covering and depict the whole administration zone served by
that global center point. FedEx has expanded its network in three regions that includes South
America, Africa, and India and with that, it becomes 18 international hubs of FedEx. The
supply volume for the existing network remained the same and for the extended network, it
increases from 11.5 million lbs/day to 14.5 million lbs/day. Using these expanded networks
and an increase in revenue from FedEx international packages, the earning from international
packages has increased to 12 million $/day.

(Fedex.com, 2019)

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 Hub & Spoke network Model
This example drives the organizations to unite shipments on the extensive scale at significant
terminals. Now, there are two types of hub and spoke network model uses by FedEx.
• COSMOS
COSMOS- Customers, Operation, Service Master Online System which was
introduced by FedEx in 1979 which is first centralized computer system in the
industry. It helps to track all the courier packages handled. This system helps FedEx
employees to provide exact location and real-time information about the packages.
It also helps the customer to give information who called to FedEx toll- free
number.
• GOC
The Global Operations Control focus houses immense electronic showcases that
track climate designs and the ongoing position and development of FedEx airplane
and trucks. New frameworks have likewise been acquainted with anticipating with
incredible exactness the measure of inbound traffic, permitting FedEx to organize
the several factors associated with the effective pickup, arranging and conveyance
of shipments. (About FedEx, 2019)
ALIGNMENT OF OPERATIONAL STRATEGY WITH SERVICE AND
INFRASTRUCTURE
INFRASTRUCTURE - Using the different software technologies in Packages shipment like ERP
system, Atomization in FedEx warehouse helps to grow and become smooth its business. Lean
transportation and with the best network model FedEx have reached almost in each country with
very less delivery adherence percentage.
SERVICE – Customer Satisfaction and the fastest delivery concept are used by FedEx. It
understands its consumers in a fined manner that helps them to be a leader and dominant of the
market. It gives a various option in delivery Ex- 1-day delivery, 2-3 days delivery, 7-8 days
delivery etc. Brand equity, customer loyalty and boosting up of profits acquired by the service that
is offered by FedEx.

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CAPACITY UTILIZATION
Capacity utilization is the amount of service delivery capability of the company is using at any
time. If the company can work on three shifts in a day and if working only in two shifts in a day,
that is only two third of the total resources and man hour. This rate is can also be calculated by
delivering packages. So, the company like FedEx can deliver 14.5 million packages but it delivers
only 9.66 packages. That means only 66.66 percent FedEx is delivering.

The Package delivery capacity considers of fixed costs, such as machinery, and another IT
equipment. It does not include variable cost such as manpower and number of packages to be
delivered. Once a courier service reached its full capacity, it will be increased its fixed costs by
buying more equipment or building a new warehouse or develop a new route to deliver the
package.

Capacity utilization is expressed mathematically as actual result minus potential result

and divided by the potential result. The capacity utilization rate is expressed as a
percentage. Generally, most of the companies do not use its 100 percent resources and
installed machinery. Mostly they use 85 percent of the total capacity.

CAPACITY PLANNING

The production system configuration arranging considers input necessities, change process and
yield. In the wake of considering the conjecture and long-haul arranging association ought to
attempt capacity arranging.

Capacity is characterized as the capacity to accomplish, store or deliver. For an association,

capacity would be the capacity of an offered framework to create yield inside the timeframe. In
activities, the board capacity alludes as a measure of the info assets accessible to deliver relative
yield over the period.

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CLASSIFICATION OF CAPACITY PLANNING

▪ Long range Capacity planning

Long range capacity of an association is subject to different limits like plan capacity, generation
capacity, reasonable capacity, and successful capacity. Plan capacity is the greatest yield
conceivable as demonstrated by hardware maker under perfect working condition.

Generation capacity is the most extreme yield conceivable from hardware under typical working
condition or day.

Economical capacity is the most extreme creation level attainable in practical work condition and
thinking about typical machine breakdown, support, and so forth.

Powerful capacity is the ideal creation level under pre-characterized employment and work-
routines, typical machine breakdown, support, and so on.

▪ Medium Term Capacity

The strategic capacity planning, the company takes for 2-3 years of a time frame, that is
referred to the Medium-Term Capacity.
▪ Short Term Capacity
The strategic capacity planning, the company takes, on daily, weekly or quarterly basis that
is referred to as short-term capacity.

BOTTLENECK

A bottleneck is a point of a clog in a production and service industry, that happens when remaining
tasks at hand arrive too rapidly for the creation procedure to deal with. The wasteful aspects
achieved by the bottleneck frequently make delays and higher generation costs. The expression
"bottleneck" alludes to the run of the mill state of a jug, and the way that the container's neck is
the narrowest point, which is the likely put for blockage to happen, backing off the stream of fluid
from the bottle.

As the bottle referred, in the service industry, courier company like FedEx, DHL has so many
processes from picking up the package to deliver packages. So, one of the processes may slow
down the whole process of delivery. That leads to more cost and expenditure to the company.

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RECOMMENDATION TO REDUCE BOTTLENECK

In today's fast changing world, it is crucial to motivate the employees and address the
dissatisfaction among the employees if any. If the dissatisfaction among employees is not
addressed, then it can lead to employees resorting into stealing the valuable consignment and
reporting them as stolen or lost. Or even the employees can further go down the line and ma collude
with criminals which will be detrimental for the company. Such acts can even lead to failure of the
company or even collapse of the firm.

To improve upon this, the company can adopt the method of conducting customer satisfaction
surveys as well as employee satisfaction surveys. It is very important for the courier company to
keep on innovating and bringing something new to the table in order to survive as well as thrive.
Courier company has to see whether the use of technology is helping them with the expansion
strategies or is just a waste of time.

OPERATIONAL PARAMETERS
Operational parameter means any factor that defines a system and determines its performance in
operation of any company. There are different parameters of operation parameters used by FedEx.
Some of them are explained below,
1. Transit Time
The Transit Time (TT) is the arranged venturing out time from port to port. This voyaging
time depends on figures gathered, however it can't be viewed as reality. It might be
digressed from in unanticipated conditions. The transit time may change, especially when
the goal isn't come to specifically however by means of (a few) centers.
The average transit time of FedEx by the ocean is 10-15 days internationally, Average
transit time of FedEx by Air is 3-4 days and by road, it is 7-8 days. (Logistics Glossary, 2019)

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 (Smbp.uwaterloo.ca, 2019)
2. Turn Around Time
It means the total time taken to complete the whole process and to reach the original point.
That is called turn-around time. It includes all the time required for preparation time,
operating time and downtime.
The objective in the assembling ought to dependably be it the expenses of a generation
arrange as conceivable to keep as little. This can be accomplished by a decrease of the turn-
around time, whereby amid the decrease the quality of the product may not progress toward
becoming leg pregnant.
• There is the probability the limit of a vocation to increment from one viewpoint.
By the higher limit can turn out to be even more creating in the same time.
• The second probability for the decrease of the turn-around time is to be spared it
for planning time. Around this to oversee should homogeneous requests, which are
to be fabricated time close into a request are consolidated. In this way, not the
planning time grows, but rather just for one for each request.
• As the third probability is to reduce shut-down time in the service industry as well
as manufacturing plant.
3. Lead Time
The lead time definition is managing the time it takes from requesting materials to
conveying materials. The challenge is discourteous among FedEx and the others
overwhelming contenders since one of the definitive points is obviously the lead time.

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More the time is diminished between the shipper and the recipient and more the
organization is aggressive henceforth an intriguing technique where clients can influence
the associate with a responsive organization as we to can see it in the under referenced
plans. (kader and Mohammad, 2019)
Factors affecting on lead time
• Shipping delays
Sometimes it is delayed getting the package ready in the origin point. Sometimes it
is overloaded by the packages which need to ship from a point. Finding a provider
found near your production line isn't achievable. This is the reason for working with
a provider who keeps stock close by in its stockroom and on request while
ceaselessly checking your utilization is a best practice. Utilizing fewer providers is
likewise beneficial when you're stressed over postponements. The fewer shipments
you have coming in, the more outlandish a mishap or other detour will expand the
conveyance date.
• Too many Process
Factors affecting scanning the courier packages at every warehouse takes so much
time to deliver packages to customers and pick up from the customers. That is why
it is best practice to keep continues watch on the packages in the warehouse.
Sometimes using single rout rather than using multiple routes is the best way from
stop delaying.
• Disorganized Industry
When the packages of the different regions are kept in the same section and not
organized by the region wise or pin code wise then it is very difficult to deliver
packages on time. So, it is the best practice to keep all the courier packages of the
same region to be kept at one place by scanning process or the ERP system of the
company. So, that it will be very easy to ship those packages, that makes your
delivery faster. (Falcon Fastening Solutions, 2019)

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4. Inventory Caring cost
The expense of holding packages in stock. Communicated for the most part as a level of
the stock esteem and incorporates cost of capital, warehousing, devaluation, protection, tax
collection, outdated nature, and shrinkage.
The expense of inventory can rapidly include, abandoning you with little benefit and
exaggerated costs. We can reduce inventory carrying cost by using some strategies.
Some of the strategies are,
• Avoid Minimum order quantities
Minimum number of packages that FedEx will supply
• Know your reorder point
When you need to reorder your shipment, that is calculated by reorder formula
• Use accurate Forecast
• Reduce lead time
5. Inventory Turnover Ratio
Inventory turnover is the times an organization moves and replaces its load of products
amid a period. Stock turnover gives understanding concerning how the organization
overseeing costs and how effective their business efforts have been. (My Accounting Course,
2019) (Gurufocus.com, 2019)

(Investopedia, 2019)
FedEx
Total cost of packages Quarter 3 (Nov 2018) = 14073
Total Inventory cost (Aug-2018) = 523
Total Inventory cost (Nov-2018) = 522
So, Inventory turnover ratio = 26.93
Factors affecting inventory turnover ratio
• Product Life Cycle
Stock turns change as things travel through the four phases of the item life cycle.
Turnover rates regularly increment amid a product introduction and development

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 stage, achieving a crest as the product reaches the maturity stage. Market
immersion, upgrades to existing advancements and changing client inclinations in
the end cause deals and stock turnover to decay. Now, estimating and item
advancements might be compelling in reestablishing stock turnover to more
beneficial dimensions.
• Pricing Strategy
To generate profit and parallelly provide good quality are difficult to provide to the
customers. At the point when profit augmentation destinations require setting
higher item value focuses, inventory turnover rates might be slower if customers
can show signs of improvement esteem somewhere else. While bring down cost
focuses may expand inventory turnover rates, the impact can be invalidated if the
expansion of demand after mismatch profit objective.
6. Delivery Adherence percentage
It means how many packages a logistic company deliver on or before time out of total
packages. FedEx had delivery adherence percentage was 98% and its competitive
company, UPS courier delivery service had 99.1% and another courier delivery service
DHL had 91.7% in 2018 according to report of Bloomberg. (Bloomberg.com, 2019)
IMPORTANT FACTORS TO BE CONSIDERED IN DESIGNING THE
SERVICE DELIVERY
Planning an administration procedure framework includes a careful thought of components
identified with administrations. Different issues, for example, area, office structure, and format for
effective work process methods and employment definitions for the service provider, customer
inclusion, choosing equipment, and so forth., ought to be chosen while planning administration
process. Aside from these, the accompanying variables ought to be considered in the process plan
and execution. So, there are different factors that would go while designing the service delivery
process Which is following, (Robinson, 2019)
1. Service itself
2. Customer Participation in the process
3. Location of service delivery
4. Level of customer contact
5. Degree of Standardization

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6. The complexity of the service
1. Self Service
The significance of the genuine procedure in service delivery is being perceived recently.
By utilizing a few standards, the service and delivery process can be structured, executed
and checked. The service itself is needy upon its procedure. Indeed, even intangible
services, for example, legitimate representation, hardware-based (services through candy
machines, ATM) and so forth., are reliant upon their procedure. While structuring a service,
it is important for the service supplier to painstakingly comprehend the procedure on which
the service is needy.
2. Customer Participation in the process
When some services have performed the presence of the customer is a must. The presence
of the customers is an unquestionable requirement when a few services are being
performed. The production process includes customers and there is a close association
between the service supplier and the consumer.
Now and again, the customer as ought to be a detached observer goes about as profitable
work if necessary. Customer involvement improves the level of customization. For
instance, the training administration rendered by a school would rely on the nature of
understudy investment in the projects offered by the school. Through customer
cooperation, the specialist co-op recognizes the effect the collector of the advantage has on
the administration.
3. Location of service delivery
The issues identified with openness and accessibility of administrations are essential. Need
must be given in choices about the area of premises and administrations dispersion. The
arrangement of administration may occur at the specialist organization's premises or at the
customer's home.
In Instance, the plumbing and air- conditioning services are to be available at the doorstep
on one call. In addition, the courier delivery services are also needing to be available at
door step.

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4. Level of customer contact
The physical existence of the customer in the framework is called customer contact. The
dimension of customer contact can be determined from the measure of time a customer
spends in the framework contrasted with the all-out framework.
The dimension of contact with customers to a great extent relies on the kind of
administration got. Starting here of view, an administration might be high-contact
administration or low-contact benefit. Where execution of an administration is completely
founded on gear (programmed gauging machines, ATM, open phone), the dimension of
contact between the customer and service provider is nil. Even though in the package
delivery service like FedEx, UPS and DHL are also has lease customer contact.
In the event of professional and medicinal administrations, the dimension of contact is high.
The service system ought to be arranged by high contact and low contact tasks to
accomplish in general administration quality.
5. Degree of Standardization
The service might be institutionalized service or altered service. If there should be an
occurrence of institutionalized services, services are conveyed in an exceptionally standard
arrangement. A standardized service is, by and large, intended for high volumes with a
focused service.
The undertakings associated with standardized services require staff with generally fewer
dimensions of specialized ability. Service suppliers digress from the standard to address
the issues of various clients. That is called uniqueness. Tweaked services include high
dissimilarity where adaptability and judgment are called for with respect to the service
supplier. He cooperates with the clients to distinguish the necessities of last mentioned.
The collaboration between the service supplier and customers might be as far as assets
office, for example, aptitude, ability, consideration, attitudes, personnel, space, tidiness and
so on. As such, the association is more between the consumer and the representatives of
the service supplier. The arrangement of modified services requires abnormal amounts of
specialized aptitude. For the most part, altered services are unprogrammed and not very
much characterized before they are given.

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6. The complexity of the services
Complexity alludes to the number of steps associated with delivering services to clients.
Along these lines, the level of complexity can be estimated based on the number of
exercises which contribute towards the service conveyance. A few services are high in
complexity just as high in divergence.
7. Adopt Automation
In the trend of automation, innovation assumes a noteworthy job in expanding the
proficiency of a company. Automation has an essential job in business procedure
advancement. There is a helpful application that can be conveyed in the logistic process.
For instance, business process Application can be coordinated that gives convenient
updates regarding the movement of packages. The administrator and the customer will get
insights about:
• The supplier has dispatched the goods
• Goods to be procured in the warehouse
• Goods delivery at the destination
The manual work of this is too lengthy and hectic. So, it saves a lot of time and improves
overall process fast and accurate trackable.
8. Warehouse management
Proper warehouse management is an important part of Effective logistics management
program.

For example dairy products which are perishable products need refrigeration in order to
survive. Similarly, warehouse inventory is crucial for a logistics firm so as ensure minimum
wastage of resources.

Also, it is important to maximize the storage capacity of the warehouse. Warehouse staff
should be properly trained, and each person should know his/her job perfectly so that there
is no confusion or last-minute explanation of the required task.

9. Measure and Improvise

Logistics network advancement is fragmented without incorporating estimation,
examination, and criticism. When you convey new methodologies in the framework, you

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 must gauge the yield. This is imperative as it hints the achievement or disappointment of
the system.
Measurement tools and software ought to be incorporated that effectively decides and
groups the data according to the prerequisite. Your future planning is intensely subject to
the deliberate data. Break down the measurements identified with various tasks. This
incorporates:
• Cycle Time Metrics
• Cost Metrics
• Service Metrics
(Money Matters | All Management Articles, 2019)

QUALITY TOOLS AND TECHNIQUES

Quality control (QC) is a technique or set of methods planned to guarantee that a made item or
performed benefit holds fast to a characterized set of quality criteria or meets the necessities of the
customer or client. Quality control tools (QC) are to check quality after the manufacture or service
is done. Nowadays, Companies are using Quality Assurance Tools (QA). QA tools check the
quality while production. Second thing QA tools are also called quality preventive tools. It helps
to remove the defective part at the time of input so that when we get the output, the rejection will
be very less at company hand as well as customer's hand.
Escalated rivalry, quick technological change, and abbreviated item life cycles are only a couple
of the repetitive difficulties looked by numerous organizations in the presently focused markets.
In a decade ago, numerous western assembling firms have expanded redistributing of segment
parts and administrations to autonomous, outer providers, while concentrating on center capacities
to confront these difficulties. Such firms may then wind up dependent on a supply chain execution
comprising of providers of fluctuating dimensions of execution to give aggressive service or
product. Subsequently, their providers' execution is progressively basic to the long-haul
accomplishment for the firms supply chain. (WhatIs.com, 2019)

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Why Quality control tools are important
• The need to exhibit the capacity to reliably give services that meet client, giver, and
material statutory and administrative necessities.
• The objective of enhancing customers fulfillment through the powerful use of the
framework, including forms for persistent enhancement of the framework and the
affirmation of adjustment to the client and pertinent statutory and administrative
necessities.
• To support success and growth in the industry. Apart from that in increase market share
and profit of the company.
There are so many quality control tools are available, but every company is using different quality
control tools. In the FedEx, they have their unique quality philosophy and methodology which is
built by FedEx and for FedEx that is called Quality Driven Point (QDM) The quality control tools
are mentioned following
▪ Check Sheet
▪ Six Sigma
▪ Stratification

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 ▪ Pareto Chart
▪ Histogram
▪ Cause and Effect diagram
▪ Total Quality Management
So, out of these quality tools, there are four quality control tools which are used in FedEx which
are explained below
▪ Six Sigma
It is a quality tool is used by many companies. FedEx is one of that company which uses
Six Sigma to reduce defectiveness at the time of arriving packages in the warehouse. In the
case of the manufacturing industry, it eliminates defective parts at the time of production.
Application of six sigma in the FedEx is, the company wants to run and take all the decision
on facts and figure.

(Creativesafetysupply.com, 2019)
Meaning of that is how many actual rejections happen in the company while the continuous
delivery process is going on. So, they have software which directly takes all the data about
rejection and defectiveness and delays of packages. After getting all the data, they analyze
in which area they have maximum delays of packages and try to reduce it. If it can reduce
by 1%, that helps to increase their revenue by millions. So, it is a very important quality
tool in each industry to reduce rejection and defectiveness. (Benchmark Six Sigma, 2019)
▪ Pareto Chart
Pareto chart is utilized to plot the general recurrence of variable measure classes
under investigation in a slipping request utilizing structured presentation.

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 Such requesting aides the leader to concentrate on those issues which need most
noteworthy potential enhancement. It helps in recognizing the predominant components
among all variables which lessens the quality execution.
We can see from the figure that most of most of the problem are faced are due to delivery
arrives after 3 p.m. in the shipping center. So, the company needs to focus on the process
of arriving packages to the warehouse or shipping center before 3 p.m. (Uniassignment.com,
2019)
▪ Cause and Effect diagram
A cause-and-effect diagram is also called the Ishikawa diagram or fishbone diagram. The
causes are ordered into different classes, called the primary driver. These classifications
are associated with an inside line of circumstances and logical results graph, called spine.
The case at the correct hand side shows the impact because of the causes, which
should be analyzed. The causes are conceptualized by utilizing 'Whys' systems. The
classifications are drawn like stems which can have further branches or optional
causes.

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 For an instance, as shown in the figure, the main cause for the delay in the process is at end
customer. This delay occurs because of order entity, environment, downtown, wrong
network model used etc. (Ssoar.info, 2019)
▪ Total Quality Control
Total Quality Management (TQM) is the persistent procedure of distinguishing and
diminishing or taking out blunders in assembling, streamlining inventory management,
enhancing the customer experience, and guaranteeing that workers are up to speed with
their preparation. Total quality management means to hold all gatherings engaged with the
creation procedure responsible for the general quality of the last item or administration.
(Investopedia, 2019).
The TQM has already included the whole service industry. Certain courier companies, for
example, FedEx, DHL, UPS have already used the concept TQM within the quality
assurance tool. (Paperdue, 2019)

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In today's fast changing VUCA world, FedEx has changed its focus from competence and high effectiveness
to striving for quality so as to ensure that they manage to stay competitive in the altering atmosphere and
not only survive but thrive and dominate.
But it should be noted that the implementation of TQM is not as easy as saying one two three. Its application
and implementation need a tremendous amount of input from each and every worker from top
administration to low administration. In order to accomplish it, it needs a clear and precise definition of
objectives to each worker in the organization.
(Quality Electronics Ireland, 2019)

(Quality Electronics Ireland, 2019)

There is no such factor which leads to non-satisfaction for the customer. FedEx is the rank
first in customer satisfaction. Their main air is to fulfill customer needs and customer
satisfaction. Even the process for quality check and control is one of the best because FedEx
spends million dollars on quality tools. Currently, FedEx uses Six Signa and Total Quality
Control (TQM) for quality assurance which helps them to reduce rejection and elimination
at a very high rate.

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