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Case Study

TNT Express

In Partial Fulfillment of the Requirements


In the Subject
Total Quality Management

To be Submitted to:
Mrs. Jolongabayan

Submitted By:
Punongbayan Juliet S.

January 16, 2021

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I. BACKGROUND

TNT Express is an international courier delivery services company. It delivers


every week to over 200 countries worldwide. The growth of the company continues to
arise in the year 1987 when TNT Express purchased Country Express. TNT UK became
one of the most contributing business to the overall performance of the company. But,
despite all the success of the company, in the year 2004, TNT Express experienced a
major downfall. Wherein, the reason for it is the appointment of the new CEO, with its
new strategy the result of the implemented change initiative does not reflect the goal.
The problems arise because of the change initiative that the new CEO desire to achieve.
Negative feedback from the customers stating that the shipments of items were delayed
because of the changes in the service. Also, the employees are the most affected by this
change because according to the workers, they are not prepared for the changes that
the CEO wants. Even the IT systems are not prepared because of the sudden change in
the system. Due to these problems, the company generated a huge cost and issues.

II. STATEMENT OF THE PROBLEM

A. To prepare the employees of the TNT Express, there are 10 - step model that will
help the workers to a more complex work environment. The first step is to make
them understand the quality culture and their role in establishing and
maintaining such a culture. Next is to have a comprehensive assessment of the
new corporate culture of quality. Then, based on the assessment, develop a plan
for establishing a quality culture. A quality-positive attitude and behavior are
expected throughout the preparation. Also, the executives, managers, and
supervisors must be positive role models for the employees to be inspired by
them. It is also important to orient new employees to have a comprehensive
quality component. Mentoring helps to the development of employees; they will
serve as a guide for the workers. Expanding the quality of the employees helps

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by implementing training for them. During the preparation, it is also important to
monitor and have control of the attitudes and behavior of the employees. And
most importantly, to strengthen the quality-related issues and to maintain quality
in the organization.

B. A total quality tool that will help TNT Express to create a graphical representation
of the different inflows and outflows of their logistic processes, is to use the Flow
Charts. As a business owner, you should always be striving to improve the
efficiency of your workplace. That's why it's necessary to welcome any tool or
resource that helps you accomplish that task. One tool to consider is a flowchart,
which is a pictorial or graphical representation of a process. The purpose of
flowcharts is to communicate how a process works or should work without any
confusing technical jargon. Understanding the major uses of flowcharts can help
your business run at peak levels.

C. The ISO 9000 group of standards is about quality management systems and
created to help organizations make sure that they meet the requirements of
clients and other stakeholders. The contribution of it is to give the TNT Express
useful, globally recognized models for operating a quality management system.
Also, to achieve, maintain, and aim to regularly enhance product quality. The
primary objective of getting these standards is to boost the goodwill of the
organization. Customers can compare the quality of two companies, one is with
ISO standard and the other is without ISO standard. Goodwill could be in form of
a rise in the sale or more promotion of the product of the company. It also offers
confidence to internal management as well as other workers that requirements
for quality are being fulfilled and maintained, and that quality improvement is
taking place.

III. AREAS OF CONSIDERATION

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Due to the change initiative occur because of the new CEO with its new set of goals,
it arises problems from the customers, the employees, and the system of the company.
According to the customers, the new goal of the new CEO did not serve its purpose, the
causes the shipments to be delayed. And also, most of the employees complain that
they did not have much time to prepare for the change that will happen to their
company, as well as the IT Systems. This problem causes the company to have a huge
maintenance cost and issues. This may also result that customers might find another
courier delivery services that will meet their expectations and will deliver their
shipments on time.

IV. ALTERNATIVE COURSES OF ACTION

Negative Customers Feedback


 Admit and Apologize
 Respond quickly to issues
Advantages
 Admitting the mistake that the company made, and apologizing to it, may result in good
publicity and can make the disappointments of the customers lesser. Also, provide a
discount or a voucher as a way of apologizing too.
 Responding to the issues quickly can avoid it to be bigger. And also, to resolve it
immediately before it goes bad as it seems.

Disadvantages
Admitting your fault and apologizing may result in humiliation due to, customer refuses
to accept the apology.
Responding to the customers may take all the time of the employees, that's why some of
them can't keep up with the demand and can cause pressure to the workers.
Unprepared Employees
 Determine training needs

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 Share the vision

Advantages
 To determine what kind of training will help them better cope with change and approach
it successfully.
 Sharing a vision can be a source of inspiration to the team because it helps them
visualize how things will look after the change has taken place.
Disadvantages
 To carry out training, it will need funds to have a speaker that is known for that kind of
training
 Sharing your vision to employees with different views in life may offend them with your
perception that can lead to misunderstandings.

V. RECOMMENDATION

Among all the courses of action stated, the best resolution in it is all the action. For
this reason, these courses of action will resolve all the problems that are visible in the
company. It may have a disadvantage but, there is still a possibility that it will be successful.
There is still a high chance that the actions stated to be profitable for the customers,
employees, and especially the company. A satisfied customer is the best source of
advertisement and also, happy employees’ equal happy customers and happy customers
will result in a happy and successful company.

VI. MANAGEMENT LESSONS LEARNED


In this research, I learned that if you want to make your company successful, you
shouldn't just focus on your company. You should always consider all the people involved in
the organization. Because, you can't make the company fully successful if your employees
are left behind, and the customers are unhappy about the services that the company makes.
That's why providing better service for your customers, they’ll be more inclined to come to

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you the next time they need something instead of going to your competition. In addition to
this, Consistency is a key component to making money in business. You have to keep doing
what is necessary to be successful day in and day out. This will create long-term positive
habits that will help you make money in the long run.

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