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Managing Quality

Case 1-1 FedEx : Managing Quality Day and Night

Rizky Haryogi Septiansyah

Wijawiyata Manajemen angkatan 71
PPM School of Management

Question :
1. What is FedExs common language of quality? Is it important for a company to
establish a common language of quality? If so, why?
2. There are several different perspectives of quality, including the operations perspective,
the strategic perspective, the marketing perspective, the financial perspective, the HR
perspective and the system perspective. Which of these perspectives are being
emphasized by FedEx? Why?
3. Is FedExs level of emphasis on quality appropriate? Why or why not?
Answer :
1. FedEx common language of quality is People Service-Profit (PSP). It articulates that
when people are placed firs, service and profit follow. Another would be its QIP program,
which also articulates that quality must be a part of the way that FedEx does Business,
not part of the time, but all the time. Thus themes such as Do it right the first time,
Make the first time you do it only time anyone has to. Another theme is 1-10-100 rule
which articulates that if a problem is caught and fixed as soon as it occurs; it cost a
certain amount of time and money to correct. If a mistake is caught later in a different
department or location, t may cost 10 times that much to repair, and if a mistake is caught
by a customer it may cost 100 times as much to fix it. Yes, its important for a company to
establish Common Language of quality. Since quality is a result of a comparison
between that was required and what was provided. It is judged not by the producer but by
the receiver. Awareness of new technology, legislation, problem, competitor product and
services creates new wants for customer.
2. FedEx emphasized in all the aspect of quality including operations perspective, the
strategic perspective, the marketing perspective, the Financial Perspective, the HR
perspective and the system perspective.
In case of operation: Quality =Productivity
In case of Finance: 1-10-100 rule
In case of HR: Profit-Service-Profit
In case of strategy: Quality action teams, Service quality Indicator
In case of systems perspectives: (Application of new systems for labeling, launch of an
airline to carry packages etc.)

3. Yes, Fedex Level of emphasis on quality is appropriate since its only through
high Quality that Fedex has been able to overpower various other carriers like
DHL, UPS etc. The FedEx brand name is synonymous with express package
delivery. When a company or individual needs to send a package in a quick
and timely manner, they say FedEx it. FedEx has positioned itself in the
minds of its customers that they (FedEx) are the company you turn too when
you need it there fast. FedEx is a great brand. Great brands provide a source
of identification. These brands differentiate great brands and cement their
leadership credentials1 assurance of quality. FedEx owns a large fleet of
aircraft and has an enormous infrastructure to back it up, for anyone to viably
compete with them would take lots of capital and a whole lot of advertising.
FedEx does not so much possess distinctive competencies, as it has strong
existing competencies. FedExs existing competencies include brand equity,
strong infrastructure and a fierce commitment to innovation and technology.
These competencies enabled FedEx to become the premier express delivery
company in the world.