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Achieving Quality Excellence in Shipment Delivery Case Study

Introduction

Gati Company is a leading logistics company located in India specializing in the supply

and distribution of goods both domestically and commercially, serving local as well as

international markets. Gati Company has their strongholds spreading also to unpopular parts of

India. The company has a mission of providing efficient and seamless logistics solutions. Gati

Company has built a reputation for its exceptional customer service, reliability, and vast network

of partners. In the domestic market, Gati Company offers comprehensive logistics services to

businesses of all sizes. The team ensures timely and secure transportation, handling, and

distribution of raw materials from transporting to delivering finished products. The organization

understands the unique requirements of each industry, be it the automotive sector,

pharmaceuticals, retail, or fast-moving consumer goods. By leveraging its expertise and state-of-

the-art technology, the company optimizes supply chain processes to streamline operations and

improve overall efficiency.

Additionally, commercial logistics services extend beyond the national borders of India.

Gati Company has developed a strong presence in the international market, providing various

seamless solutions for importers and exporters. The company has focused on facilitating the

smooth transportation of goods across different countries. The company for instance has 391

gateways for delivery and about 622 set destinations with optimal hub choice. The transportation

includes handling all the necessary documentation, customs procedures, and regulatory

compliance. Air network services are necessitated for expensive cargo through the company’s

Gati Art Express. With a vast network of trusted partners and agents worldwide, they ensure the

safe and timely arrival of goods, eliminating any barriers to trade. At Gati Company, they
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understand the importance of sustainable practices in the logistics industry. They actively

promote environmentally-friendly solutions, such as using hybrid or electric vehicles for

transportation and vehicles with low carbon emissions. By taking steps to reduce our carbon

footprint, we are committed to contributing to a greener future.

A renowned general manager Sudhir Murarka for Process and Quality was appointed by

Gati Company to streamline their supply chain and improve overall efficiency. Murarka

henceforth has received 231 complaints from Customer Care based on the reliability of delivery

of goods through shipping. Murarka is working on understanding whether the raised complaints

were a factor of statistical control. He is further developing quality excellence in shipment

delivery.

Background Information

In an increasingly interconnected global economy, logistics companies play a critical role

in ensuring the timely and efficient delivery of goods. One of the key factors for success in this

industry is achieving quality excellence in shipment delivery. However, Murarka received 231

complaints sourced from operational bottlenecks, management issues, human resources, and

inefficient reporting practices pose significant obstacles. The primary goal is to ensure that

products are delivered in the right quantity, to the right location, at the right time, and in the right

condition. Achieving quality excellence in shipment delivery requires a comprehensive approach

encompassing various aspects from operations to management.

Operational bottlenecks due to limited warehouse capacity, inefficient transportation

routes, and delays in customs clearance (Luo et al., 2020). The company's ability to meet

delivery deadlines is unachievable. The complaints negate the CEO’s statement who said that
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they have checked the processes and system of shipments products. Therefore, they expect them

to arrive at the customers about 33.5 hours after picking them up. Gati Company also faces

management issues concerning the use of traditional decision-making models and the use of

orthodoxia tenets. The scenario was reflected during the commissioning of the express scheme,

which received many complaints in shipment. These management issues hinder the general

manager’s ability to streamline operations and offer quality excellence in shipment delivery. The

company requires a motivated and skilled workforce to handle various tasks such as order

processing and customer service. The presence of skilled labour slows down processes of quality

excellence of shipment delivery (Newhart et al., 2019). Gati Company relies on accurate and

timely reporting to make informed business decisions and track key performance indicators.

However, the company faces challenges with inefficient reporting practices. The existing

reporting system lacks automation, leading to manual data entry and fraudulent practices. The

inefficiencies call for Murarka to give solutions for complaints from the Customer Service

department about the shipment delivery process.

Research Questions

1. How can Murarka find out if the process is involved in the premium express scheme?

2. How can Murarka identify the major causes for the delay in the delivery of the shipments

booked under the premium express scheme?

3. What approach Murarka could take to identify the potential causes for the delay in the

shipment?

4. How can Murarka determine if the new processes met the target defect proportion?

5. How is the process performance after adding the sample size to 260 from Week 5?
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6. What does Murarka need to work on since the sample on week 21 was below the lower

control limit?

Methodology

The methodology used in Achieving Quality Excellence in Shipment Delivery case study

is studying Gati’s company flow chart and cause and effect diagrams among others. The outputs

of the flow chart displayed a potential problem leading to customer service at Gati Company.

The challenging issues of quality excellence in shipment delivery, Murarka had to map ten

significant causes. The causes were linked to the customer’s complaints about shipment delivery.

The data on complaints are analyzed using SPC procedures like Pareto analysis. The branches

attached to the cause-effect diagram represent the causes of complaints as shown below in the

diagram.

The control chart or the p-chart was a methodology used to assess the causes. It was

tested among the quality testers and process engineers for the solutions to be developed.

Additionally, the 5 why the method was used in the p-chart model by Murarka.

Chart 1 Cause and Effect Diagram for Gati Company

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Chart 2 Flow Chart for Gazi Company

Equipment Process People

Training and development

programs for small and
medium businesses

Performance of
the employees

Knowledge
Reduced
Distribution of
products

Management
Environment
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Chart 3 Flow Chart for Gazi Company

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Data Analysis
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Data analysis involved the examination of potential problems relating to the complaints

for the Gati Company from the Customer Service department. The analysis was from a Pareto

chart, process capability and capability index, statistical control process, and causes-effects by a

fishbone diagram. The data from the Gati Company case study was analyzed through different

criteria according to the research questions. The flow chart was one of the key aspects that would

offer Murarka with different quality problems. The problems were associated with the Customer

Service Department complaints. The flow chart offers an entire outline of the shipment delivery

points and the transportation information (see charts 2 and 3). The entire process from the case

study shows inputs and outputs. The outputs being the end products dispatch information on the

possibility of quality problems to be pointed out by Murarka. For the cause-effect charts, the

causes are well illustrated as the branches and Murarka will use them to adjust to the complaints

(see chart 1). The team pointed out ten challenges that resulted to the client’s negative feedback.

Therefore, the main branches give more challenges to be resolved for quality shipment delivery

at Gati Company.

Chart 4 Control Chart for Complaints

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The results herein in Chart 4 illustrate the process is well maintained using the lower and

upper control limits. The results further show that it is around the mean the complaints remain

significant. Therefore, Murarka should assess these particular problems based on the P-chart so

that he may develop solutions based on the control chart variations from one complaint to

another. The results above are analysis from Microsoft Excel analysis to set up a control state for

the organization. The statistical process control model, therefore, has identified the potential

causes and solutions to strike a balance for quality shipment.

Chart 5 illustrates the Pareto Chart. The complaints herein were readily available after a

duration of almost half a year. The results of the analysis varied widely among delays in loading

and offloading and improper data entry for instance by approximately 22% (Luo et al., 2020).

The highest values were from ‘rely on vendors’ and a ‘lack of Sops’. The Pareto Principle is built

in 20% causes, as factors of the 80%results. Our results from the analysis show deviation from

the 80/20 rule, in the case of the above results. Murarka has to omit the larger part of complaints

in Gati, approximately 67%.(see chart 5)

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The products from any process may have their quality measured externally to befit

market demands. It may be commonly through the designs related to the firm’s mission and

objectives as well as the client’s demands.

The chart below demonstrates Gati company’s process capability (Cp=1) based on the

design and its potential of the company to make products (Cpk=1). Hence the process has

reached the set specifications externally and internally.

Chart 5 Process Capability and Process Capability Index

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Table 1 Proposals for enhancing process capability.

Situation Recommended minimum Recommended minimum

process capability for two- process capability for one-

sided specifications sided specifications

Existing 1.33 1.25

New process 1.50 1.45

Safety or critical parameter 1.50 1.45

for existing process

Safety or critical parameter 1.67 1.60

for the new process

Six Sigma quality process 2.00 2.00

Chart 6 Process Capability

Discussion and Interpretation

1. How can Murarka find out if the process is involved in the premium express scheme?
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Interpretation of the process to be used by Murarka requires a five-level approach. All

these milestones help Murarka develop viable solutions to quality shipment. The results from

the control charts indicate that the complaints are consistently significant around the mean. The

company is experiencing a notable number of complaints regularly which indicate potential

problems in their shipment delivery process. the chart helps to identify when the complaints

exceed acceptable levels and when corrective measures need to be taken.

The results have indicated that the process capability has reached the set specifications

externally and internally. The logistics company has achieved quality excellence in shipment

delivery as seen in chart 6. The results imply that the shipments are delivered on time with the

correct quality and without any issues. This is a crucial aspect of logistics operations as timely

and accurate deliveries are vital for customer satisfaction and retention. The internal processes

and controls of the logistics company are efficient and effective. It implies that Murarka has

established standard operating procedures and quality control systems to ensure smooth

operations. Montgomery & Friedman (2020) The processes may include effective route planning

quality checks. Gati company has built a positive reputation and maintains long-term

relationships with its customers.

The team's identification of ten challenges that led to the client's negative feedback. Gati

company's shipment delivery is an important starting point for understanding the underlying

issues. The results are linked to challenges like reliance on vendors and lack of SOP. Enhancing

communication channels, enabling real-time updates, and ensuring prompt responses to customer

inquiries will be key to addressing this challenge. The Customer service department’s feedback

may suggest that their goods arrived in an unsatisfactory condition hence poor quality control.
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Addressing this challenge would require conducting quality checks before shipping. The client's

dissatisfaction is due to a lack of assistance during critical situations of loading and unloading.

2. How can Murarka identify the major causes for the delay in the delivery of the shipments

booked under the premium express scheme?

The major causes have been identified through the 5 why method. Which equipment?

What process? How the management handles everything? Where do the logistics happen? When

do the goods get to the clients? Therefore, when such questions are discussed through a team,

they discover loopholes. Quality shipment delivery will be achieved once the root problems are

discussed.

3. What approach Murarka could take to identify the potential causes for the delay in the

shipment?

The outputs of the flow chart were used to assess activities that implicate quality

shipment delivery. The flow chart illustrated potential problems relating to customer service at

Gati Company. Use of the cause and effect was another approach used to identify the sources of

delays (Luo et al., 2020). They pointed out ten challenges associated with quality shipment

delivery. The third approach used herein was the Pareto analysis indicated a high level of ‘rely of

vendors’ and ‘a lack of SOPs’ as major challenges. The challenges were associated with the

shipment delay hence the customer complaints.

4. How can Murarka determine if the new processes met the target defect proportion?

By use of process capability, the process called for some changes to avoid variations.

Therefore, changing. The outputs of the flow chart displayed a potential problem leading to

customer service at Gati Company. The goal of the model is to advance process capability by
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getting to 1 or beyond for ensuring the complaints are resolved (Newhart et al., 2019). Table 1

would be recommended to Murarka by Douglas Montgomery for values of capability.

5. How is the process performance after adding the sample size to 260 from Week 5?

The control chart indicated more complaints since around the mean. Therefore, Murarka

needed to work on the complaints to enhance the shipment delivery that attains quality

excellence (Newhart et al., 2019).

Chart 7 Pareto Chart for Complaints

P-Chart for Complaints

40 35.409592468
7953
30

20
11.75
10

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
-10 -
11.909592468
-20 7953

6. What does Murarka need to work on to since the sample on week 21 was below lower

control limit?

The process performance indicates improvement since the complaints are few. The

services delivery in the shipment delivery is advancing on being quality. To maintain the

momentum, research needs to be done to avoid future reoccurrence. Montgomery & Friedman

(2020) Additionally, it will be essential to set a framework that will ensure the numbers are

reducing day by day for quality. Therefore, at this stage, the company is in alignment with the

external and internal client demands.

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Conclusion

Overall, the results show that the process capability has reached the set specifications

externally and internally. The scenario confirms that the logistics company is successfully

achieving quality excellence in shipment delivery. To maintain and further enhance this level of

quality excellence, the company should continue monitoring its processes. Additionally, it should

implement corrective actions when necessary and explore opportunities for continuous

improvement.

To achieve quality excellence in shipment delivery, it becomes crucial to analyze and

understand the reasons behind the complaints. The company can take appropriate corrective

actions to improve its overall delivery process. The company should use the control chart as a

continuous monitoring tool to track whether its corrective actions are effective in reducing

complaints over time. Regularly analyzing the chart can provide insights into the impact of

implemented changes and allow for improvements in shipment delivery quality.

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References

Luo, L., Jin, X., Shen, G. Q., Wang, Y., Liang, X., Li, X., & Li, C. Z. (2020). Supply chain

management for prefabricated building projects in Hong Kong. Journal of management

in engineering, 36(2), 05020001.

Montgomery, D. C., & Friedman, D. J. (2020). Statistical process control in a computer-

integrated manufacturing environment. In Statistical process control in automated

manufacturing (pp. 67-87). CRC Press.

Newhart, K. B., Holloway, R. W., Hering, A. S., & Cath, T. Y. (2019). Data-driven performance

analyses of wastewater treatment plants: A review. Water research, 157, 498-513.