Operations Management and Productivity

Posted: September 3rd, 2013

Operations Management and Productivity

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Operations Management and Productivity

Introduction

FedEx is a company that provides its clients with transportation and business services. It is a logistics service company that operates in the line of offering courier services. It avails these services to a wide range of clients and its transactions are also carried out via the internet. Its major offices are in America and Canada, and it other offices in different parts of the world. FedEx Corporation manages the chains of companies that offer different services to its diverse clientele. Its abbreviations stand for Federal Express. Its various operating companies are FedEx Express, FedEx Ground, FedEx SmartPost, FedEx trade Networks and FedEx Office.

Discussion

FedEx is a courier service provider. It transports a wide range of goods across the globe. These goods are transported via air, road and water. Parcels from ecommerce are also consolidated by FedEx and delivered to their respective buyers. Apart from courier services, FedEx also provides advice services covering a wide range of areas. These areas are like customs, insurance and transportation. FedEx trade Networks provides such services. This arm of FedEx also provides logistics services. This is through FedEx Supply chain services.

FedEx is also able to service itself with planning, marketing and Information technology services. This is done through FedEx corporate services. FedEx provides a range of other different services through its FedEx Office Company. These services are those that are mostly computer aided like printing, web access and computer rentals. The activities of FedEx go beyond those of providing courier services.

To ensure high quality in their service delivery, FedEx replaced its outdated method of evaluating quality. The new strategy that FedEx adapted is based on how customers view them. The previous one relied on on-time deliveries. Each item in their quality indicator is measured to see its overall effect on the client in terms of standards. This data is then collected into the company’s database. Analysis of this data is then conveyed to the workers in the different arms of the corporation. This analysis assists the quality action teams in finding major problems that cause low quality of services. Each service component has a quality action team. This team evaluates the data on quality of services. These measurements are directly linked to the top management of the corporation. These are the CEO and COO. The members of the corporation are encouraged to meet their goals on quality of services by being awarded bonuses. These bonuses are given when the goals are attained.

The processes involved in the activities of FedEx are mainly those of transportation. These processes will require channels and means of transportation. These means vary depending on the mode of transportation that the client preferred. These modes can be ships when the goods need to be transported over sea. Trucks are mainly used for the goods on the road. Air is used for those goods that are delicate, perishable or that may require a level of urgency.

The location of the various companies of FedEx is largely determined by the needs of the customers. In America and Canada, FedEx has multiple drop off services offices. These offices are mostly located in neighborhoods to make it convenient for the customers. The world services mostly have their offices in large metropolitans and cities. Airports are also an important location site for the FedEx offices. This is to carter for the goods that are being transported via air. FedEx offices are also located at ports to provide proper link for the goods that are being shipped. An important location criteria for FedEx ground offices is a busy business hub. The businesses will naturally draw potential customers. Another reason for this location is that most business people use courier services to transport their merchandise.

The job design is based on the activities of the corporation. Those needed to provide labour are as diverse as the numerous processes undertaken to provide services to the customers. The labor needed is like road drivers, package handlers, customer service coordinators, warehouse operators and even postal workers. The employees need to be continuously motivated and trained to ensure that they are competent for their various job descriptions.

FedEx needs a wide range of suppliers to service it with the resources needed to carry out its services. Most of the transportation means are owned by the company. The corporation needs regular supplies of vehicles that are used in the service delivery processes. Not only does it need suppliers, but also needs maintenance services from these suppliers. Ships and aircrafts are also supplied to the company. The criterion used when picking these suppliers is usually based on cost effective measures.

FedEx has global strategies targeting the three main areas of a business. These are marketing, finance and operation management. It has formulated a layout that will boost the diversity of its clientele so as to see the a rise in the levels of sales. Apart from this, it has also put into place strategies that will see the costs of production reduce. These are like using its materials instead having suppliers avail them.

Conclusion

The aim of any company is to ensure productivity. This is done through the management. Productivity must be view in the aspects of labour and machine. FedEx has purposed to increase its output while reducing input. They intend to increase their output per labour hour. With the appropriate strategies put into place, FedEx will be able to see the realization of its global goals.

Reference List

Birla, M. (2005). FedEx delivers: How the world’s leading shipping company keeps innovating and outperforming the competition. Hoboken, N.J: John Wiley & Sons.

Mill, R. C. (2001). Resorts: Management and operation. New York: Wiley & Sons.

Singh, M. P. (2009). Operation management. New Delhi: Sonali Publications.

Wetherbe, J. C. (1996). The world on time: The 11 management principles that made FedEx an overnight sensation. Santa Monica, Calif: Knowledge Exchange.