Determining TQC Application within UPS Courier Company: A Case Study

This report presents a case study on the application of Total Quality Control (TQC) within the UPS courier company. It begins with an introduction to the importance of quality in business and the role of TQC, followed by an executive summary. The report analyzes UPS's current situation, including its geographical concentration, high debt, and declining service quality. It explores various methodologies for improving quality, such as Lean methods like 5S, DMAIC (Six Sigma), and Just-in-Time, and how these can be implemented within UPS. The empirical framework discusses TQC's significance and its impact on customer satisfaction and employee relations. The analysis section examines the practical application of these methods, while the conclusion summarizes the findings. The report aims to determine how TQC can be effectively applied to improve UPS's service quality and overall business performance, addressing challenges like competition and customer satisfaction. Finally, the report emphasizes the importance of employee training and continuous improvement for sustained success in the courier industry.

To determine the application of
Total Quality control within
courier company: case study UPS

ABSTRACT
There are many companies around the world that deliver their customers with similar set
of products and services. It is important for the business to understand the requirement of
customers so that the rate of performance can be raised and service users can be satisfied. Main
focus on the study is conducted in providing employees with proper training. This will enable to
improvement the performance of the employees. Further, there are different type of methods that
are applied by the business through which quality of the business can be improved.
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TABLE OF CONTENTS
ABSTRACT.....................................................................................................................................2
1. INTRODUCTION .....................................................................................................................4
2. EXECUTIVE SUMMARY ........................................................................................................4
3. Current SITUATION ..................................................................................................................5
4. METHODOLOGY......................................................................................................................6
5. EMPIRICAL FRAMEWORKS ..................................................................................................8
5.1 Description of the methodology used..................................................................................10
5.2 Sources of information.........................................................................................................11
6. Analysis......................................................................................................................................12
7. CONCLUSION .........................................................................................................................20
8. REFERENCES..........................................................................................................................21
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1. INTRODUCTION
Quality is important aspects of every organization as it helps to company for expanding
their business and ensure long term growth. There are different types of methods which can be
used by organization to improve quality of their products or services (Bon and Mustafa, 2013).
Total Quality Control is one of that method which is use by business firm to make their product
more advance and improved. United Parcel Service is USA based company which is offering the
package delivery and supply chain management solutions. The firm is global leader in logistics
and offering supply chain solution. The present report is based on the Total Quality management
and its application within Courier Company. This report make analyze of company and its
business environment (Chen and et.al, 2014). This also make analyze on different types of lean
methods such as Six Sigma, Just-In-Time approach which helps to them for making their
production capacity more improved.
Aim & Objective
Aim “ To determine the application of Total Quality control within courier company: A case
study on UPS”
Objective
 To study concept of total quality control
 To determine methods which can assist courier company to deliver quality services in
order to serve Customer satisfaction
 To analyze the aspects that need to be considered for application of total quality control
within UPS
2. EXECUTIVE SUMMARY
In modern era to retain customer and ensure long term business growth it is important to
provide quality in services. Quality is strategy which is related to organization’s customers. To
apply this approach there are various types of methods such as Just-In-Time, Six Sigma and 5S
methodology which can be use be organization. TQC is type of process which used by company
from design to delivery of services. With the help of this approach organization try to improve
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quality their services. Quality products or services need not only retain to consumers requirement
but the products or services must be acceptable by them. United Parcel service is world largest
package Delivery Company and a supply chain management solutions. The company is based in
USA and delivery more than 15 million packages per day. It business network is based in single
integrated system which handle different types of services at present. Total Quality control
process take place in organization at every level to ensure quality in its services.
3. CURRENT SITUATION
UPS is one of the largest package delivery company in USA and also conduct may
successful operations. There are many businesses opportunities which are available for the
company and they are continuous expanding their business around the world. However,
organization is facing some major problem in it business operations such as Geographical
Concentration and high debt (Wieland, and Marcus Wallenburg, 2013).
One of the biggest factor which is impacting the growth of UPS is its quality measures
because with increasing services the quality serving customers is declining. The organization is
conducting its business operation in many countries such as Africa, Asia and middle east but on
the primarily they are focused on the domestic mark which is USA. As compared to their
competitors FedEx and TNT, UPS geographical exposure is very less. They rely too much on
one region in which they operate domestically. It creates negative impact on organization's
performance and quality. For example the recession in the US had a major impact on UPS.
Another problem which UPS facing is increasing high debt due to low quality in its services,
they are not generating enough amount of money from its business and therefore decreasing the
quality of services.
(Bon and Mustafa, 2013). At present, on company there is high debt and the company is unable
to make payment to their creditors. Due to this UPS's market prices are decreasing and the
consumer demand for it services is also declining which is affecting the growth and development
of organization for a long run.
Along with this, there are some other problems which are effecting firm and its business
operations. Strikes and hindrance is another major problem which arising due to management
conflicts with employees regarding working hours, work environment etc. Due to interruption in
organizational functioning the company start losing its reputation and loyalty of its stakeholders.
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The terms of future collective bargaining agreements also may affect UPS competitive position
and results of operations. Moreover, the intense competition in the transportation industry is
making things complex for the firm in order to maintain stability. (Chen and et.al., 2014). The
rivalries of UPS are gaining competitive advantage and are involved in improving their financial
capacity and are focusing on serving better quality customer services in comparison to UPS.
In order to over come with these all problems, organization is focusing on improving its
service quality. Therefore to overcome this problem the enterprises is focusing on implementing
the Total Quality Control (TQC). TQC is process which enhances the design of delivering
products according to customer requirements. Further, with the use of this method the company
can improve working quality and its process. This process enables the firm in making its
services innovative and unique in order to gain competitive advantages and serve customer
satisfaction (Gilmour, 2013).
4. METHODOLOGY
For improving the quality of products or services there are different types of tools which
are available for the organization. Improving Quality is continuous process which is associated
with many factors such as customer's loyalty, eliminate waste and reduce time. For improving
the quality there are different types of options which are can be used by company so they can
over come with their problems. Following are the methods which helps to improve their
production capacity.
Lean methods 5s
5S is modern approach which is used by organization for improving quality of their
products and services. This method is used to describe a work space for efficiency and
effectiveness by identifying the items which are storing items used and maintaining area and
items (Goetsch and Davis, 2014). This process consists on the standardization which builds
understating among employees and their working conditions. 5S methodology has expanded
from manufacturing and is now being applied to a wide variety of industries including health
care, education, and government. UPS can make use of this 5 s approach as the method provides
the access over every operation which can assist the management in maintaining the quality of
services in its international and external factors. The process enables the quality measures at
various places like, it focuses on maintaining the quality by gathering only essential material in
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order to make optimum utilization of resources. Further, it emphasize on maintaining the clean
and hygienic work environment in order to provide healthy and safe environment to staff
members. Thus, the approach also assist the management in maintaining adequate and
appropriate sanitary facility and environment.
DMAIC method
This method is also known as Six Sigma method. It is set of technique and tools for
process improvement. It seeks to make improvement to the quality of output of process by
identifying and removing defects from the manufacturing process. This process is followed by
defined sequence of steps and target to specific value targets. In manufacturing units this process
is mainly focuses on reduces cycle time and reduce costs ad increases customers satisfaction and
increases profits ( Konieczka and Namiesnik, 2016). Apart from this, with the sue of this
approach ups can determine its actual problem behind declining quality of services and for that it
has 5 systematic step which are as follows:
Defining: At first the company will have to have to define its major problem which is the
reason the behind declining profits and growth and development of the firm.
Measure: In this the UPS will measure the impacts of declining quality which will assist
the management in making decision regarding improvements.
Analysis: Than comes the analyzing stage in which the organization will identify the
circumstances due to which the quality problem is arising.
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Illustratio
n 1: Six Sigma
Source: (Oakland, 2014)

Improving: After identifying the problem the enterprise will focus on improving
measures which can assist the company in improving its quality of services in order to serve
customer satisfaction.
Control: The last step of the process enables the company in keeping control over
changes which are made in order to establish stable functioning of business operations.
Just in time
It is another lean tool which is used by organization for improving their production
capacity. This method is primarily aimed at reducing flow time within production system as well
as response time from supplier and to customers. With the help of this method organization can
maintained their production capacity and avoid the time lack which appears in between tow
production cycle. Under this approach production of UPS can divided into two parts i.e. specific
ad general listing ( Oakland, 2014). With the help of this method they can make their production
capacity more fast and improve their delivery speed. Hence, the the method will enable the
company to have control over its waste and resources in order to make effective use of every
resource in the organization. This also assist the management to increase the efficiency and
effectiveness of business operations in order to maintain the quality of its services. It is a tool
used by organization to increase its productivity, improving quality, making cost effective
functions.
5. EMPIRICAL FRAMEWORKS
From the last few years' introduction of Total Quality Control play important role. From
practical to the theoretical level it plays important role on the growth of management practices
according (Gilmour, 2013). Total quality control is system which is related to all are of business.
From design to delivery everything comes under quality. TQC is that approach which is used by
organization to improve it' quality as according (Goetsch and Davis, 2014). With the help of this
approach organization try to gain more customer loyalty and improve quality their services. It is
also considered as strategy that associate with belief that management must process in
integrating customers- driven quality through an organization. It stresses continuous
improvement of product quality and service delivery. Under this approach employees relation is
also equally addressed to the customers so they can provide their better work.
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Apart from this, employees play vital role in determining and maintaining the quality of
products and services. This is only possible when workers have proper understanding about the
type of services that are delivered by the firm. With time, there are many changes that take place
in the expectation of customers. It is important that employees clarify all the doubts that they
have in relation with the issues that are faced by customers. With this respect, the ultimate aim of
any firm is to gain maximum profit. It can be achieved when needs and requirements of
customers are satisfied.
The philosophy of implementation of the TQC strategy is related to organizational
customers and clients the vital key to organizational success as according to (Konieczka and
Namiesnik, 2016). It is one of the best method which used by organization to improve their
quality. According to the (Oakland, 2014). Strategy should be seen as a system/ process that
should be able to engender in employees a culture of total commitment to vision and mission to
organization thus a functional strategy that embodies the collective contribution of different that
make up the organizational hierarchy should be such that complement each other.
In the modern era it is very important to make focuses on quality as it is associated with
different factors such as customer relations, consumer loyalty and shareholder relation as
according (Roller and Lavrakas, 2015). TQC practices in more than seven areas such as
leadership, strategics, human resources, customer’s focus and information analysis
Quality products or services need not only to conform to consumer’s requirement but the
products or services must be acceptable. According to (Seeram, 2015. Seuring, 2013) Effective
TQC strategy entails that product or service must go beyond acceptability for a given price
range. According ( Stadtler, 2015) quality is also associated with profit maximization in
organization. By providing better quality in its services and products they can charge higher
amount from the customers and also with more profit it helps to the for attract more investor in
their business.
To apply this approach there are various types of methods which can be used by entity.
According to (Subramanian and Ramanathan, 2012) it is continuous process which take place in
organization at each and every stage from design to delivery of products it focuses on entire
process. This approach empathizes on quality of product and services along with retain
customers.
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5.1 Description of the methodology used
UPS is facing many types of problems in its management. At present organization is
focusing only on its limited geographical area and also they are focusing on the related to their
intense competition in its business. Fed Ex is major competitor of company which is also
offering similar nature of services to their customers bu their geographical area is more expanded
and their financial position is more strong. There are some other problems which are effecting
organization and its business operations such as Strikes and work stoppage (Roller and Lavrakas,
2015). To over come with these problem's organization need to focus on improving their
customers services and speed of delivery of products.
For solving all these problems company need to improve service quality. With the help of
total quality production the management can make improve its services. This process focuses on
improving entity services from design to delivery of their products. The best method which can
be used by UPS is DMAIC method which is often know Six Sigma and 5S which can assist the
firm in maintaining its quality of services in order attain competitive advantage and to serve
customer satisfaction. Following are steps which includes in Six Sigma.
Define
The first step which is includes in the process of Six sigma is clearly defined all
objectives, problems , goal and resources . By defining goal of organization they can make their
vision more clear and accurate. In the process UPS need to present their problems more clealy so
they can achieve their business objectives more effectively (Seeram, 2015).
Measure
The second step which includes in the Six Sigma is make correct measurement of the
process. After making current baselines of the production UPS needs to make collect data from
the different department so they can understand the problems which are they facing. The
performance is measure by the organization on the term of standard set by them and outcomes
arrived. In the process courier company need to make measurement by collecting data and for
that they need to make investment in their production.
Analyze
The purpose of this step is to identify, validate and select root cause for elimination. In
this process organization need to make identify root cause of their problem. At this stage they
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make analyze of causes of their problems by using root cause analysis (Seuring, 2013). In UPS
at this stage they can use root cause analysis to identity main problem in their business
objectives.
Improve
` The purpose of this step is to identify, test and implement a solution to the problem.
Identify creative solutions to eliminate the key root causes and make production process more
smooth and prevent from future problems. UPS need to make solve this problems by using
creative idea. For this they can use brainstorming techniques so creativity idea can be occurred.
Control
The purpose of this stage is to make sustain and monitor improvement to ensure the
control plan ( Stadtler, 2015). Under this stage UPS can use control chart and make clear stage of
controlling of their activities.
5S Approach
UPS will use this approach to have easy access over every operation which will help the
production team in maintaining the quality of services according to its macro and micro factors.
Implementing this process will set the quality measures in several departments of the
organization as it focuses on maintaining the quality by gathering only essential material in
order to make optimum utilization of resources. Moreover, when the company will implement
this approach it will help the management to maintaining the healthy and safe work environment
for employee which will motivate them and will further increase their efficiency and contribution
in business operations.
5.2 Sources of information
There are two different type of methods that are can be used for collection of information,
these are primary and secondary. Primary information is collected through interview,
questionnaires, observation, etc. On the other hand, secondary information are those which are
already collected. Sources for gathering this information used secondary methods are books,
journals, online sources, etc. The source of information for total quality management project
went through secondary source in which Whereas, the secondary information was gathered
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through past data like, experience, new papers and magazines which determined the level of
quality in services of Courier company.
In the primary source the company collected the information through questionnaires in
which the company prepared the form of questions in order to analyze the point of senior
manager of company over its quality and of customer. In the questionnaire the questions were
framed like,
Consumer Questionnaire
1. How would you rate the service quality of UPS?
2. Is UPS delivering cost effective services?
3. UPS have to improve the quality of its services?
4. Do you like the services provided by UPS Company?
5. How would you rate the service and quality of UPS?
Senior Manager Questionnaires
1. How would consumer rate the service quality of UPS?
2. Is UPS delivering cost effective services to its consumers?
3. UPS have to improve the quality of its services in order to serve customer satisfaction?
4. Do consumer like the services provided by UPS Company?
5. How would consumer rate the service of UPS?
Hence, after analyzing the point of view of both the major factors which are linked with
the organization, the management identified and linked the primary data to secondary data and
measured the changes which demonstrated that yes, the company is lacking behind in delivering
quality services.
6. ANALYSIS
Business opportunity: For any firm, the ultimate aim is to gain maximum profit. This is only
possible when they are able to develop strong customer’s base. In this context, there are different
countries in which business can be operated. It will enable to develop new business opportunity
and the rate of preference and information for the customers will be raised.
Business plan: Main focus of the business is to make sure that proper analysis is done of the
countries. The most potential country is selected in which business can be operated. Further,
focus is made on safety of workers so that the rate of retention can be solved. The business plan
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