STI College San Pablo

Lim Chok Bldg., Lopez Jeana St. San Pablo City, Laguna

Case study TNT Express

In partial fulfillment of the Requirements

in the subject

Total Quality Management

Submitted by:

May Ann B. Dela Cruz

Raven Alessandra I. De Mesa

Submitted to:

Mr. Joseph Natal Luna

I. Background

TNT Express is a company that offer’s international courier services. It delivers of an

average of 4.4 million parcels, documents, and pieces of freight every week and it ships
200countries worldwide. The TNT express goal was to commit a customer standard for
distribution all the parcels, documents around that 200countries. but TNT suffered a major
pitfall in 2004.Because of the new appointment of their New CEO and does not meet the
objective of its new strategy. Suddenly, Negatives feedback arise from their organization the
shipments of 4.4average of parcels of goods are delayed because of changing the operation.
Especially the staff, IT System Is one of the most affected for this because they are not
prepared to face a more complex process of the shipments, and by because of all over
change. Their company has caused a big impact for their organization.

II. Statement of the problem

a. How can TNT express prepare their employees to a more complex work environment
using 10 step model that lays the foundation for a quality culture?

In order to prepare the most effective and reliable for their employees is by
using the step models that lays the foundation for a quality culture. One of the steps
that the TNT express should consider is the Identification of organizational strength and
weaknesses, because in any issue or problems that the company is facing they have to
know or identify the main cause of the problems so it will be easy for the organization to
create ideas and solution to the problem and by these more positive outcome will
follow in the company.

b. What type of total quality tool/ continuous improvement method should TNT express
employ in order to create a graphical representation of the different inflows and
outflows of their logistical processes?

One of the total quality tool that the TNT express should employ is the Baseline
customer satisfaction, where in the objectives of this approach is to determine the
 effectiveness of the total quality efforts in the point of view of the customer, knowing
that the TNT express is one of the growing company in UK and they been running for a
long time. And now that the company is having issue due to the delay delivery of parcels
of goods, this tool will help the company to overcome the issues and problem, that even
they have this kind of problems in the company they will show the power of team work
and the company will exert more effort and will work on, from organization, employee
and the other department.

c. How can ISO 9000 contribute in the overall improvement of TNT express organizational
performance?

The ISO 9000 will help the TNT Express in improving its organizational
performance since it aims to improve customer satisfaction by fulfilling customer
requirements, achieve continual improvement of organizational performance and
competitiveness, continually improve organization processes, products, and services and
comply with regulatory standards.

III. Areas of Consideration

a. It must include details and facts from case that contribute to the organizational problem
of the company?

The company had insufficient control over inputs because of inadequate process management.
the improvement teams had tremendous short term success, however in the long run TNT could
not sustain the positive processes at the lowest level. TNT express needs to invest in research
and development and implement the latest technology advance practices this is to help foreach
the customer’s needs and support continues changes.

IV. Alternative Courses Action Alternative

1: TNT needs to identify the company’s strength and weakness.

The advantages are it can gain the customers loyalty. When it comes to deliveries, customers
don’t like to experiment or explore much. Sticking with the same brand gives them a sense of
assurance. As a result, as an executive of a delivery company, TNT must almost always make
 sure to provide a great service and avoid any mistakes. The disadvantages are accepting any
future unnecessary mistakes that might take place through the delivery process. Alternative

2: Maintaining and developing effective competition through outsourcing. The advantages are it
focus on core business activities as outsourcing can free up your business to focus on its
strengths, allowing your staff to concentrate on their main tasks and on the future strategy.
Disadvantages are service delivery may fall behind time or below expectation.

V. Recommendation

The identified problems can be addressed in the following recommendations:

1. The company must invest in R&D (research and development) and use the most
technologically sophisticated procedures. Technology, according to EFQM, is a critical
component in enabling performance and change. It will also aid in the research of customers'
demands and the support of continual transformation.

2. EFQM should be combined with the Total Quality Management (TQM) model, which makes
significant changes to the EFQM approach. Customer-centricity, total staff participation,
process-centered method, integrated system, strategic and methodical approach, ongoing
improvement, fact-based decision-making, and communications are the eight basic pillars of
TQM. While the EFQM model incorporates the majority of the principles, effective
communication is not emphasized. At all levels, effective communication is critical in preserving
morale and inspiring staff. Furthermore, TQM emphasizes fact-based decision-making, which is
essential for efficient operations.

3. The company's social responsibility should be prioritized more heavily in the future. Trucks
and aviation are connected with substantial environmental concerns, hence TNT operates in the
delivery market. The key to positive consumer connections is being mindful about
environmental issues.

VI. Management Lessons Learned

A successful company needs to find a perfect balance between driving performance, or

management of current events, and driving transformation, or the encouragement of change.
Driving for transformation is usually measured in the implementation of new technologies to
accumulate and utilize up-to-date knowledge and data. TNT’s initial intention was to unify all the
technological bases and deal with legacy systems left after acquisitions and since the company
operates globally, the strategies should focus on global marketing. It is very important that the
company understands its objectives concerning the business it is dealing with and the market
where the company operates. For TNT express to use its resources on the available
opportunities to improve and increase service delivery, and become competitive in the market,
it needs to have a strategy that will help it realize the objective.

• Create a market strategy • Focus on the strength and weakness of the company • Keep up
with the changes • Technology investments • Customer reliability and loyalty