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QUALITY MANAGEMENHT APPROACHES AT

AND








11/6/2011
SADAF SHAIKH
A4030388

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Table oI contents
Sr.No Topic Page No
1. Introduction 03
1.2 FedEx 03
1.3 Maruti Suzuki 03
2. TransIormation Process 04
2.1 Hub and spoke model 04
2.2 Maruti transIormational model 05
3. Approach analysis 06
3.1 By Iocusing on Limitations 06
3.2 By Deming 14 principles(1986) 07
3.3 By Juran (1998)trilogy 09
4. Total quality management 11
4.1 Process strategy 11
4.2 PerIormance management 12
4.3 Supply chain management 12
5. Innovation and sustainability 14
6. Conclusion 15
7. Appendix 16
8. ReIerences 17




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INTRODUCTION

BrieI about the two companies`
FedEx
The company incorporated in June, 1971 and publicly began operation in April, 1973.
Company rapidly expanded into largest logistics company in the world with over 2, 75,000
employees and more than 2.5 million customer base. The company Iocuses on customer
needs and building quality as their top main concern in their services. Through its vast global
transportation network it provides rapid, saIe and timely delivery oI credentials, packages and
shipments across the sphere. The FedEx has its global presence and Iunction with 652
aircraIts, 69,000 delivery trucks and vans.


Maruti Suzuki

Maruti Suzuki India ltd. is a top manuIacturer oI Iour wheelers in India. Incorporated in 1983
with the task to motorize India, Maruti was the joint venture between government oI India
and Suzuki Motor Corporation, Japan. It speedily grows into the largest compact car making
company oI India and remained so till 2004. The companies started with the Suzuki holding
the minor stakes oI the company while the government holding the major stakes. In the
present day Maruti and its partner provide work Ior more than 75,000 employees. Its
manuIacturing amenities are located at two locations Gurgaon and Manesar, together south oI
New Delhi.













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2. Transformation Process

2.1edEx`s Hub-and-Spoke Model

In straightIorward language, FedEx business is to distribute packages. The operation may
sound simple but the high scale oI process and the stress oI appropriate deliver make it more
complex. The network points comprise the sender oI the package, FedEx and the receiver.

FedEx operations uses hub-and-spoke model where all the points oI network are connected
with a central hub. The concept oI this model was Iormed by Fred Smith, who able that
FedEx could streamline operations and improve eIIiciency by using this approach.

In the Hub-and-Spoke model all the processes such as sorting according to destinations are
centralized at the hub, which assist companies to achieve economies oI scale in its operations.
Under hub-and-spoke network the packages are collected Irom their pick up points and
transported to the hub. As the packages arrives the hub, they are sorted, allocated to the
correct destinations and reloaded on the plane to their appropriate destination. When the
package is collected by FedEx, has speciIied a barcode and scan it and every stage oI the
process enable FedEx as well as customer to track the status oI their shipment. During this
system the average cost per package Iall and help FedEx to achieve economies oI scale in its
logistic operations.

Fig.1 FedEx hub and spoke model



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2.2 Maruti transformation model

The manuIacturing process oI Maruti Suzuki has three manuIacturing plants with 17
assembly lines at Gurgaon. The capacity oI the plant is 130,000 cars in 1991. In 1996 one
new plant was set up at Manesar which enhanced its capacity to 350,000 cars per year.
The process view oI Maruti Suzuki has an Inputs section which includes Workers, Managers,
Equipment, Facilities, Materials, and Land and Energy in the Plant oI this organization. An
externals supplier plays an important role in the input sections as they are the provider oI the
raw materials in well-timed manner to the Maruti Suzuki.

Once the Inputs process is completed the products depart Ior the quality testing and iI it
assures the quality in this part than it`s taken to output sales. Each department plays an vital
role in the operations oI Maruti Suzuki weather it`s an External Customers, Internal
customers or External Suppliers and Internal Suppliers.

Fig.2 TransIormation model oI maruti Suzuki









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. Approach analysis

.1 ocusing on Limitations
FedEx
The major problem Iaced by the FedEx is the increasing prices oI its services compared to its
competitors. The main reason oI increase in the service price is due to increase in prices oI
Iuels. FedEx and its core competitor UPS assist the customer to utilize the inIormation using
e-commerce in a better way through tracking and shipping packages, but UPS is ahead oI
FedEx.

The hub-and-spoke network model introduced by FedEx is now Iollowed by all the major air
cargo carriers and they have grown rapidly across the globe. This led to a weaker world
extension oI FedEx.

As the competitors entered and Iollowed FedEx`s network approach, it becomes diIIicult Ior
FedEx to have more local suppliers oI services who can counterpart up with its level oI
quality in customer service.


The core concern throughout this assignment is on the logistic service oI FedEx.


Maruti Suzuki
Innovation in cars are the worst Iear Ior Maruti Suzuki in the market as they are behind and
still preparing the basic car models which is hinder Ior their company as in India high
percentage oI age groups are between 20 40 so Maruti Suzuki should produce the cars
which will suite the young generation oI India.

Maruti Suzuki should also enter into the high end cars (aIIluent and luxurious cars) business
as there is a huge market Ior in India. So Maruti Suzuki Company should grab this
opportunity as they have all the setup available in India. Competitor like Hyundai and Ford
are also manuIacturing high end (Expensive) cars and they have been booming in capturing
the market.

Company can concentrate on customization by producing standard models and customize
according to individual customer preIerence Ior e.g. Toyota Cars.

The major consideration in this assignment is the manuIacturing process at maruti Suzuki



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.2 Using Deming 14 principles (1986) for achieving competiveness

The Deming`s 14 Points are a basis oI transIormation oI industry, both service as well as
manuIacturing. Adapt and locating these 14 points into action signiIies that the organization
is projected to stay in business Ior long term and also to hold its employees.
According to the Deming`s 14 Principles chart (see Appendix A), both FedEx and Maruti
Suzuki applies a large amount oI the principles. Also both the organizations mutually agree
on most oI these principles except a Iew, as discussed below:
1. Constancy oI purpose it means continuous improvement. As both the companies show to
stay Ior long term in the business and believe in continuous improvement. Both oI them
have continuous process oI improving their products and service. This helps them to
sustain competitive advantage in the business.
2. The new philosophy: FedEx apply this principle, as it maintain it Iocus on the earliest
possible delivery oI packages, that is, the next working day delivery promise. Maruti also
applies it, as the company concerned about providing saIe and quality cars. They achieve
this by applying quality measurement throughout its transIormation process.
3.
4. Cease dependence on mass inspection: maruti applies this principle as instead oI making
mass inspection at one stage, they inspect quality at all levels oI production, starting Irom
input oI raw materials to output, that is, Iull inspection prior to delivery to customer. But
FedEx is not applying this, as the company works with many local suppliers oI services
and is not able to control everyone.

5. End lowest tender contracts: Both the organizations do not agree on this principle. Maruti
applies this as they have to maintain a high level oI quality oI their cars and it had to
maintain a balance between price and quality while sourcing inputs, with major concern
on quality rather than price. FedEx do not apply it, as to catch up pace with its
competitors, FedEx have to take services with more local suppliers, with main concern on
price to maintain its market share.

6. Improve every process: Both organizations apply this principle. FedEx applies this in
identiIying new routes and methods to make its delivery process Iaster and maruti applies
this by improving constantly their production process by using new technology and
Iurther improving quality and productivity.

7. Institute training on the job: Both, FedEx and maruti applies this principle as they both
use training methods Ior their employees, maruti oIIers all employees the practical
support needed by them to achieve their objectives. FedEx believes that its employees are
the key to its Iuture and it provides diverse trainings where the employees have the
opportunity to grow and succeed.


8. Institute leadership: Both the organizations are pioneers in their businesses and they
achieve this by deIining responsibility oI management towards quality instead oI quantity.
Management achieves this aim by taking remedial actions towards things which erode the
quality oI its services and products.

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9. Drive out Iear: maruti applies this principle, as the company seeks employees who
possess team spirit and personal initiative as well as a desire to constantly improve their
knowledge. As FedEx has its operations in more than 200 countries, it is not possible Ior
it to have two way communications in the organization structure. However, FedEx should
apply this principle to improve quality oI its services.

10.Break down barriers: maruti applies this principle by removing barriers between
departments such R&D and production to innovate new means to improve quality in its
products. Similarly, FedEx also Iollows this principle by removing barriers between
departments at Hub to maintain simultaneous inward and outward Ilow oI packages,
without any delay.

11.Eliminate exhortations: FedEx applies this as they do not pressurize people to improve
productivity, without providing new means to achieve it. The company had its service
suppliers situated in number oI locations so that they can better serve a particular small
region instead oI Iorcing a particular branch to serve a very large area. Maruti also
applies this because the company`s target to provide quality products and they do not
applies the mass production strategies.

12.Eliminate arbitrary numerical targets: FedEx did not apply this as their aim is to cater
large number oI customers and they have to use work standards to achieve this aim.
Whereas, maruti applies this as their image in customer`s mind is oI high quality provider
and the company maintains it.

13.Remove barriers to pride: maruti apply this principle, as it provide employees a wide
range oI Ilexible work time models which help them to maintain a work-liIe balance and
also the perIormance is measure in terms oI quality rather than quantity. FedEx also apply
this in its operations as the company evaluates its employee`s perIormance on basis oI
their commitment to delivering on the values oI the company.

14.Encourage education: Both the companies place their employees Iirst and they apply this
principle by identiIying the training requirements oI its employees at each level and then
training them, so that they can achieve company`s quality objectives in more eIIicient
way.

15.Top management commitment and action: Both companies Iollow this principle, as the
top management oI each organization is totally and always committed to ever improving
quality and productivity oI their products and services respectively.







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. 1uran trilogy (1988)

Juran`s Trilogy describes three management process required by every organization to
improve quality: quality planning, quality control and quality improvement. This trilogy
shows that every organization can improve each aspect by better considerate the relationship
between processes that plan, control and improve quality. Using Juran`s trilogy assist an
organization to increase customer satisIaction (by producing ideal goods more economically)
and decrease dissatisIaction by erode deIiciencies and the cost oI poor quality) which lead to
enhanced business results.


igure 1. The 1uran Trilogy

Source. Gupta & Jalarmathi (2009)



Quality Planning it begins with determining the customer needs and then developing
processes and products preIerred to meet and exceed those needs.

As maruti is catering the automobile sector, the quality planning begins with the identiIying
the needs oI customers on the basis oI luxury, comIort and quality oI the product desired by
them. Then the company`s R&D engineers deIine those needs in terms oI product Ieatures
and then the company produces it and Iurther optimizes the Ieatures oI the product.

FedEx`s quality planning begins with determining the needs oI the customer regarding
delivery oI package. Then the customer service workers translate those needs in terms oI the
shipment plan and then providing the customer with the best suitable shipment service oI
desired quality.



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Quality Control The Iunction oI quality control is to make sure that the production or
service process is running eIIiciently and eIIectively and also to ensure that the cost oI poor
quality involved in any process does not aIIects the goods.

Maruti believes that quality is oI key signiIicance in every stage oI production process. The
company applies the principle oI consistency and complete coverage oI all requirements
throughout the production process. The same quality control principles apply to the suppliers
oI machinery and materials and all the suppliers work to the speciIications deIined by maruti.
The Company achieves quality control through quality audits at every stage oI production
process through production oI parts, components and in assembles plants.

FedEx operates with a network oI service suppliers and a high standard Ior service quality
Irom suppliers is never compromised. FedEx selects its suppliers on the basis oI their ability
to meet the high standard quality necessities and their ability to serve as a supply chain
improvement partner. To monitor quality FedEx also uses TQM system.

Quality Improvement The organizations can improve quality through by eliminating waste,
deIects and rework which Iurther helps organizations in reducing cost oI poor quality. In
order to improve quality, the processes need to be continuously improved.

II a deIect is Iound in the product, the maruti management structure allows teams to respond
quickly and employee groups Irom all levels oI the company are called to work to Iind the
solution oI the problem. The company also improves quality though permanent and
continuous technological innovations which result in developing new processes to increase
quality eIIiciently.

FedEx improves quality though programs involved in its TQM system such as Quality
Improvement Process (QIP). The QIP implies that FedEx does business with quality not part
oI the time, but all the time. In other words it means proverb do it right the Iirst time, make
sure the Iirst time you do it the only time anyone has and Quality Productivity.









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4. Total Quality Management



TQM is the process in which businesses Iocuses on improving the quality oI product or
service as well as the overall quality oI the processes requisite Ior manuIacturing and
delivering the products or services. The word Total` in TQM implies that it include
everything Irom raw material inputs, production process design, employees to Iinal delivery
to customer. The whole concept oI TQM revolves around IulIilling the Iollowing three tasks:
customer satisIaction which can be achieved through total involvement oI employees and
continuous improvement oI the overall quality oI product and processes.

The companies apply the principles oI TQM in process strategy, perIormance management
and supply chain management to accomplish its purpose in terms oI quality.

4.1 Process Strategy

The process strategy oI a company is the way through which the operations management
implements the company`s corporate decision.

FedEx`s strategy thrives on speed and reliability. However, internet changed the business is
conducted around the world, email allows instant delivery oI documents and other low cost
air carriers can track shipments via the internet. This technological advancement has cut the
demand Ior FedEx`s traditional services. However, now the corporation uses its strategy in
ground transportation services, the demand Ior which is Iuelled by virtual companies such as
Amazon.com and EBay. By doing so the company has preserve its speedy and reliable
operations and also achieved customer satisIaction through its services.

Maruti Suzuki process is Hybrid oIIice process as there is some interaction with the customer
but they have standard services with customization to customer, they have a consistent
service with high quality. As being in manuIacturing business the capital intensity is very
high as they are look Ior oI better machines, tools and Research and Development so they can
produce good and better cars in market. They have specialized resource Ilexibility as they are
only in car business, but they need to produce high tech cars and need to enter in
customization business like Toyota. Employee involvement is very high in Maruti as they are
the one which give to the production.










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4.2 Performance Management

Through perIormance management organizations IulIill the task oI employee involvement in
achieving company`s target oI productivity and providing services. This also led to the
continuous improvement oI the processes and quality oI the product and service Ior the
Iuture.



To measure its perIormance it can generates sales reports proIit margin and even it can
monitor customer`s Ieedback on their product. For manuIacturing it can generate how much
production they have done in the year what are the problems Iaced while production. Also
watch on reduction on wastage and Customer social responsibility. Maruti Suzuki can
monitor the cost oI quality like, Prevention cost, Appraisal cost, External cost and Internal
cost in the production period.

At FedEx, the company believes that its success depends on the commitment oI its
employees, as the employees completely involve in providing high quality oI service. The
company has implemented diIIerent recognition programs Ior its employees Ior their
outstanding achievements. The company has been consistently named in Fortune '100 Best
Companies to Work For. The company also makes use oI quality action teams (QAT) which
design work processes and support new products and service oIIerings to continuously
improve FedEx quality.






4. Supply Chain Management

Supply Chain Management view oI a company synchronizes a company`s support processes
(supplier relationship process, new service or product development, and order IulIillment
process and customer relationship management) in its overall operations with the company`s
external suppliers to match the Ilow oI materials, services and inIormation in terms oI its
external customer`s demand.


The FedEx`s Access makes all Iorms oI interaction and connections possible between people,
businesses and nation. The FedEx services include three ingredients oI modern supply chain
management: transportation, technology and strategy. The company oIIers customized
delivery services to customer, customs clearance as well as ocean shipping. The company`s
technology team develops tools Ior tracking packages; calculate tariIIs and handheld devices
Ior the couriers. The company`s strategy includes all the aspects oI supply chain into one
convenient package Ior satisIying the customer demands.

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Supply chain management has to be eIIectively taken in any organization as companies are
continually Iacing with the challenges to increase product development time, improving
product quality, speed delivery time and to reduce the production time and cost. II company
is having an eIIective supply chain which Ilows material in the proper way and on time
delivery hence no disruption in between manuIacturing process



Primary sector



Secondary Sector



Tertiary Sector



Customers

Primary sector- As primary sector deals with the raw materials Ior Iinished goods. Maruti
Suzuki`s raw substance is aluminum, iron, lead, brass and Iiber, glass etc.

Secondary sector- This sector deals to give a shape to the raw material as this sector is the
main manuIacturing sector in an organization.

Tertiary sector- This sector is responsible Ior selling Iinished good or item in the market as
this is known as wholesaler. This people provide their services in the market/Customers and
increase the sales revenue.

Customer- Consumer or Customer is the Iinal personality who consumes produced good on
behalI oI money.













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. Innovation and Sustainability

Innovation

Since its starting in 1973, FedEx is based on innovations when it began providing next
business day delivery service to the customers. Taking Iorward its commitment to innovation,
FedEx`s Sense Aware solution provides customers with near real-time inIormation about
their shipments and share this inIormation continuously with its supply chain partners. The
group, FedEx Innovation is solely Iocused on identiIying emerging customer needs and
technologies, to change what`s possible through innovative solutions and businesses.
Innovation is a strategic business process at FedEx, which the company continuously
enhances, develop and encourage, keeping its position as market leader.

Sustainability

FedEx is committed to sustainability, both economic and environmental. The company
applies the resources needed to meet customer`s requirement more responsibly. It is
observable in transIormation oI aircraIt and truck Ileets to new technologies that consume
less energy and also in the company`s eIIorts to build the most eIIicient inIrastructure Ior all
processes. FedEx is committed to providing overall connections while minimizing its
environmental impact. In order to IulIill its environment sustainability promises, FedEx
Iocuses on the Iollowing initiatives:
O Continuous improvement process in environmental management
O Using innovative technology to minimize atmospheric discharge.
O Reducing waste generation through eIIicient use oI natural resources and also
through using recyclable materials in its packaging and innovation.

The company is dedicated to continuously improving saIe work practices, cultural and health
saIety Ior the beneIit oI its employees, stakeholders and the public. The company`s Irontline
employees on SaIety Continuous Improvement Teams identiIy potential gaps and propose
improvements to saIety procedures.


Innovation

There are bundle oI innovation made by Maruti Suzuki, as the Iirst car which was launched
in India was Maruti 800, which was considered the golden innovation by the Maruti, because
it was targeted to middle class Iamily. Then Maruti van (Omni) was introduced which was
targeted to the doctors and business people. Then Gypsy was launched Ior paramilitary Iorces
and police. But Maruti Suzuki now has to enter the market oI modernization and preparing
aIIluent and luxurious cars and customization like Toyota this will test their manuIacturing
ability.

Sustainability

Maruti Suzuki motivates sustainability initiatives, to educate employees, and consider them
in decision-making, in evaluating their success in integrating manuIacturing concern, in to the
allocation oI resources, and in designing products to gain competitive advantage Irom
sustainable business.
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6. Conclusion

FedEx and maruti Suzuki both are recognized and reputed brand in the market.
The image is based on the high quality and the level oI satisIaction to
customers.

Maruti Suzuki produces and convey its promise oI world`s best quality cars to
its customer`s FedEx maintains its high quality in services through saIe, reliable
and IulIilling its promise oI next business day delivery oI packages.

Both the organizations are leader in their Iields, because they IulIils their
responsibilities towards environment Irom where they get their resources,
society in which they operate and towards their employee`s welIare, both
companies put their employees Iirst.

In order to sustain and satisIy their customer`s increasingly diversiIied
demands, both companies continuously innovate and invest in R&D Ior
constant improving their processes. Both the companies should integrate their
entire value chain processes with the sustainability strategies applied by them so
that it can Iurther result in adding value Ior company as well as the society and
environment.

Both the companies use most oI the Deming`s 14 principles Ior the quality
management and even juran trilogy Ior the continuous improvement in their
processes and provide better products and services.











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Appendix A

Analysing Application of Deming`s 14 Principles in edEx and maruti Suzuki


S. No. Deming`s 14 Principles edEx Maruti Suzuki
1 Constancy oI purpose Yes Yes
2 The new philosophy Yes Yes
3 Cease dependence on mass inspection No Yes
4 End lowest tender contracts No Yes
5 Improve every process Yes Yes
6 Institute training on the job Yes Yes
7 Institute leadership Yes Yes
8 Drive out Iear No Yes
9 Break down barriers Yes Yes
10 Eliminate exhortations Yes Yes
11 Eliminate arbitrary numerical targets No Yes
12 Remove barriers to pride Yes Yes
13 Encourage education Yes Yes
14 Top management commitment and
action
Yes Yes









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8. References

E Book source: http://www.sri.com/policy/csted/reports/economics/Iedex/chapter4.pdI;
Accessed on 01october, 2011
2 E Book source: http://www.sri.com/policy/csted/reports/economics/Iedex/chapter1.pdI;
Accessed on 15
th
October , 2011
FedEx online source: www.Iedex.com; Accessed on 15 october, 2011.
FedEx online source: www.about.Iedex.designcdt.com; Accessed on 18 october 2011.
Janat Shah; Supply Chain Management Text and Cases; Pearson Education; 2009.
Lee J. Krajewski & Larry P. Ritzman; Operations Management Strategy and Analysis; Sixth
Edition; Prentice Hall; 2002.
N. Srinivas Gupta & B Valarmathi; Total Quality Management; Second Edition; The
McGraw-Hill; 2009.
Vinod V. Sople; Business Process Outsourcing A Supply Chain oI Expertises; PHI
Learning Private Ltd.; 2009.
9 Stuart G.Walesh; Engineering Your Future - The Non-Technical Side oI ProIessional Practice
in Engineering and Other Technical Fields; Second Edition; Prentice Hall; 2000.

0 Maruti Suzuki Indian Limited (1986) http://www.marutisuzuki.com/maruti-cars-home.aspx
(Accessed on 27 october,2011).

Quality is Iree: the art oI making quality certain, New York : McGraw-Hill, by Crosby, P. B.
1979.

2 Out oI the crisis: quality, productivity and competitive position, Cambridge Univ. Press, by
Deming, W. E. 1988.

Out oI the crisis: quality, productivity and competitive position, Cambridge University Press,
Cambridge, by Dr W Edwards Deming, 1982 & 1986,

Dr. Deming: The American Who Taught the Japanese About Quality, NewYork: Simon and
Schuster by Aguayo, R. (1990).

By Beth Bachelor InIormation week (March 05, 2004 01:00PM).
http://www.inIormationweek.com/news/soItware/productivityapps/showArticle.jhtml?article
ID18300054&cidtabartentsoIt) (Accessed on 28october, 2011).

Cases in Operations Management by Robert Johnston, Stuart Chambers, Christine Harland,
Second Edition published by Financial times year 1997.






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