States Postal Service quality management

Total Quality Management at United States Postal Service Most Americans utilize the United States Postal Service (USPS), a significant business that employs more civilians than any other firm in the country (Parker Gates, 2010). All of the country’s citizens can access the normal communication service that USPS offers. The requirement and expectation of an effective, dependable mail delivery is most crucial for Postal Service customers. The promptness of mail delivery in comparison to the customers’ expectations, the window service wait time, the availability of vending machines at work, and the help of window clerks who are present to assist customers are just a few examples and the assistance of window clerks who are present to serve postal clients. When discontent with the conventional mail service, prospects progressively opt for alternative means like electronic communication or other vendors. Therefore, the first section of this paper discusses the Total Quality Management (TQM) practices which USPS purposes to employ or uses to band together performance quality with the goals of the business including USSP’S measures to use customer satisfaction as well as other performance data to enhance customer satisfaction through improving customer service. The subsequent section describes the assessment of the techniques used to enhance process improvement, process control, and work design processes and the tools and methodologies that support Six Sigma ideology. In this section, process design, product design quality, and statistical process control (SPC) for monitoring USPS service processes are discussed.

Overview of USPS Crisis

For four decades now, the USPS has been a leading driver of the nation’s economy, connecting American citizens, moving culture and commerce coast-to-coast and to all areas in between (Johnson, 2017). USPS has also had also connected individual neighborhoods, with the local posting center acting as the core of civic life. In 1992, when the company monopolized the mail service, above 725000 career postal workers have handled 166 billion pieces of mail as well as a generated revenue beyond $40 billion (Johnson, 2017). USPS is one of the key establishments in America society drawing its origin to the colonial times, a symbolic example of the public service provision in a capitalist democracy. The total number of post offices are reported to be 32000 with more domestic retail outlets in comparison to McDonald’s, Starbucks, and Wal-Mart collectively (Johnson, 2017). On the downside, these imperious statistics befall a troubled company on the verge of financial crunch. USPS has lost its business to the interne amounting to 22% drop of the mail handled by the company translating to a gross revenue fall in excess of $10 billion over the last five years.

This year, USPS is projected to have a deficit of about $8 billion or more, for the second financial year in a row (Johnson, 2017). Also, the company was faced with $15 billion credit line with the United States Treasury which saw it sink further to a $15 billion default payment into the health care fund for its retirees. The underlying fact is that without any intervention, USPS’s financial well will run dry coercing it to lay off several employees. Additionally, the USPS is get confronted with additional financial crunch since young citizens, aged 25 and below, decline the use of its first-class mail bill system (Johnson, 2017, p.345). Drawing references from the current customer satisfaction levels and if the prospects could choose another service at a similar price, more than 40% of the residential client market would be vulnerable to competition (Johnson, 2017). Thus, there is a need for a paradigm shift through TQM.

USPS Total Quality Management Practices

This section of the study presents the TQM practices or methodologies which the company used to align performance excellence with its business objectives (Kiran, 2016). It traces the history of employee involvement and quality of life program from its beginning in 1992 and its end in 1996. Even though the company abandoned the TQM practices, it performed a significant role in towards achieving its objectives (Johnson, 2017). TQM describes the organization’s strategy to long-term achievement through the satisfaction of customers. It includes the effort of all organizational members to participate in enhancing services, products, processes, and the business culture.

USPS Organized for a Customer-focus

Customer-focused is one of the eight principles of TQM whereby the customer eventually determines the quality level of the product or services (Kiran, 2016). Regardless of the company’s endeavors to espouse improvement of quality (purchasing new measuring tools, upgrading software or computer, assimilating quality into process design, and training the workers), the customer is the determining factors of whether the effects are viable. Soon after taking office in 1992, the Postmaster General drew comprehensive strategic plans which included enhancing the quality of service and empowering the workers to behave responsibly when consumer satisfaction is at stake. So, the Postmaster General downsized the Postal Service and in the meantime redesigning the services to focus greater attention on serving its customers. As such, the vice president for customer position was created to oversee that the factors that are most important to customer satisfaction. Moreover, the Postmaster General established ten area customer service offices overseeing more than eighty-five customer service districts.

USPS recognizes the immense potential of its workers to come up with new and repeat positive regular interaction with the customers. Kiran (2016) observes that the more the workers have full knowledge of the organization’s services, products, and business, the higher the value they can provide to customers. A decade later, after the company hand abandoned the use of TQM, USPS focused a lot of attention on hiring and recruiting individuals for the right job. The company shifted the recruitment process to put a priority on customer focus, teamwork, and quality. Research was conducted and finished to assist in the revision of the Postal Service entry-level recruitment exam for five level entry spaces: services, Sales, and distribution associate; sales and services associate; mail processing clerk; and city carrier. The revised appraisal and along with the amended interview process nowadays aid in identifying potential workers who bring forth these essential behaviors to the industry. USPS continued to upgrade the customer-focused strategy when many customer service personnel and workers were appointed to operate as local spokespersons (Johnson, 2017). These workers were branded as Postal Ambassadors who largely focused on responding to the needs of customers. Therefore, customer-focus principle helped USPS to provide positive results and engage the workers in developing the business.

USPS Total Employee Involvement and Participation

Every company depends on the workers’ performance. Kiran (2016) contends that the workers work collectively towards a common objective hence total employee involvement is only achievable when fear has been filtered off the workplace when the workers have been empowered, and the organization has offered the most suitable environment. Most effective work systems integrate pervasive improvement attempts with normal business activities. The company has always purposed to completely engage every employee from the management to down the chain as possible, in confronting the issues that face the business. USPS uses an index created from questions in its Voice of Employee Survey (VOE) to track employee involvement and participation. The company reports an over 60% response rate to the survey which is done voluntarily the mailed to an independent contractor for data analysis and report analysis.

In 2009, the VOE survey was revised to include the latest best practices regarding employee survey research and also to make the provided information actionable (Johnson, 2017). The redesigned survey includes questions on eight dimensions of employee involvement. These dimensions are Work Quality and Effort, Personal Safety, Commitment, Diversity and Respect, Communication, Growth, Contribution to Growth, Trust, and Strategic Direction. Constructive ratings for every dimension are categorized to develop an index score. The results provide the managers and supervisors with an empirical data about how they compare with other aspects of the essential involvement drivers. The VOE survey is an essential diagnostic tool to assist USPS in engaging its workers in the company’s goals particularly in the current attempts to mitigate the increasing gap between expenses and revenues. Without a doubt 2009 was the hardest of all years for the Postal Service workers, and the dramatic fall in the volume needed exceptional workplace modifications such as reduction in workers’ rewards. Using the VOE, the company still needs to improve the measured segments particularly in the frequency and quality of communication offered to the workers concerning personal as well as unit performance and about USPS’ strategic direction.

Design of Work Processes

Management structure design measures have been identified for the company to enhance the design of work processes for USPS (Kiran, 2016). These measures are based on the company’s mission as well as strategic goals, the current evaluation of USPS management structure, and an assessment of the predominant superlative techniques which can be suitable for a company of this scale. These measures are to function as a framework for the Postal Service to attain organizational effectiveness. Recommended management structure design for the company include clear managerial responsibility, clear career paths, active knowledge sharing, optimizing operating efficiency, empowered operations personnel, and tactical and strategic flexibility. Defined managerial liability is to be affected to enhance customer service. Well-defined career paths should inspire more rotational prospects and particularly spell out paths between retail operations and processing. Active knowledge sharing involves additional deployment of cross-functional teams alongside leveraging unsurpassed internal practices. USPS will have to explore changes to some deployment and roles to boost operational efficiency. Also, the company should permit greater decision-making permits for the postmasters to empower the operations staff. Lastly, concerning tactical flexibility and flexibility, the operations manager should perform a larger role in strategic decision-making.

Process Control

For USPS to improve operational efficiency, it should expand process control and standardization which includes reduction of the cost of meeting common service requirements through concentrating on cost drivers such as delivery operations (Kiran, 2016). The company should fully grasp growth from existing technology and equipment and further target new investments to propel productivity benefits. Also, USPS ought to continue partnering with customers to reduce total cost and create low-cost means of consumer access through product simplification and technology. Lastly, the Postal Service should assess the facility dimensions to merge processes as well as conversion from overlying single-product to a joint multi-product system.

USPS Process Improvement Techniques

Outside of mail delivery, processing, and associated mail processes, many essential business operations in support sectors reap the benefits of enhanced process improvement (Kiran, 2016). To enhance process improvement, USPS should improve its business to minimize cycle times and provide higher quality efficiency. The objective is to increase the value developed by all processes with the mail consolidators, suppliers, and partners and also internally. Exclusively, the Postal Service should assess opportunities for insourcing and outsourcing, boost business financial obligation, devote teams to recognize significant process improvement process, expand supply chain management, set up single shared services business, and improve technology facilities. In light of this, USPS introduced the Breakthrough Productivity Initiative (BPI) in 2001, and initiative to drive efficiency all over the company. BPI employs reasonable monitoring and performance ranking in running business centers countrywide. Higher accomplishing units act as standard models which are examined to spot best procedures. Standard processes are founded depending on superlative practices, and also training is formulated to share performance targets. Objectives are set to push efficiency towards the optimal levels. Anytime BPI goals are realized, accountable teams and workers are acknowledged and compensated.

USPS’ Lean Six Sigma

Lean Six Sigma is an important technique mostly used in the manufacturing sector due to its business management approach, focused on enhancing the product and services quality through refining customer service as well as eliminating errors and defects (Furterer, 2016). USPS, for instance, has incorporated Six Sigma methodologies to enhance the delivery process as well as the customer service. The strategy focused primarily on the Mail Processing Centre (AMC) situated in Columbus, Ohio, a center that demanded service and product management (Johnson, 2017). The center handles letters in excess of fifty million yearly, and it is reported that prior to the implementation of Lean Six Sigma, about 8.7% of letters were shipped late. In effect, Six Sigma came in handy, overhauling the shipment process which saw the creation of a team to work on numerous projects (Furterer, 2016). The team comprised of mail and airline ground handlers, industrial engineer, USPS management, airline management, and line supervisors. The project was carried out using the DMAIC application strategy and based on the team’s findings; slow delivery was owed to customs inspections, port/terminal congestion, and incorrect documentation.

The Team’s Use of DMAIC Strategy

Lean Sigma is based on DMAIC application strategy from which it derives its power. The DMAIC phases are; define, measure, analyze, improve, and control (Gitlow, Melnyck & Levine, 2015). This technique reduces any problem to its deterministic root. Hence, it is regarded as the most effective strategy. The Postal Service used it and found out that slow shipment delivery was due to affected by customs inspections, port/terminal congestion, and incorrect documentation (Johnson, 2017).

Define Phase

The Six Sigma five-phase methodology relies on the scientific technique and assists in improving a current service, product, or process. The simplest means to comprehend the DMAIC model is to think of the model based on (Y or CTQ) (the issue or problem that needs improvement) is a function of at least one Xs (the process phases or stages which result in the Y being problematic) (Furterer, 2016). For instance, it is believed that the ship loading commercial time is affected by customs inspections, port/terminal congestion, and incorrect documentation. Therefore, the ship commercial loading time is a function of customs inspections, port or terminal congestion, and incorrect documentation at the customs- each of these factors is responsible for the long ship commercial loading time. In this case, the ship commercial loading time is the CTQ or Y, customs inspections (X1), port or terminal congestion (X2), and incorrect documentation at the customs (X3).

The Analyse phase

The main purpose is to recognize, systemize and authenticate the probable cause of problems by the USPS project team. A variety of techniques and tools which comprise brainstorming, process mapping, hypothesis testing, cause and effect diagrams, etc. are customarily employed. Pareto, losses, cause, and effect, as well as statistical analysis, were used to identify, systemize as well as authenticate the probable causes of glitches.

The Improve phase

In the improve phase, the management team, modifies the process to address the critical Xs found in the analyse phase. For instance, USPS team found that for the overseas shipment, the movement of the shipment to the suggested locations took more time so the improvement strategy suggested was reduction in the trimming process time. It leads to a reduction in commercial loading time.

Control Phase

The purpose of the control phase is to manage and sustain the improvements attained by means of various tools and techniques (Gitlow, Melnyck & Levine, 2015). This phase is significant in the DMAIC process since it guarantees the sustainability of the outcome. Concerning this project, the control techniques required to manage the improvement of the process were identified and developed via institutionalization as well as standardization of process and certification, development of control plan and use of statistical process control (SPC) charts. To improve the output efficiency, the management implemented standard operating procedures (SOPs). The control plan permitted to analytically response to any probable digression from the anticipated result of the Postal Service delayed shipment process.

Statistical Process Control (SPC) Chart

SPC refers to the application of statistical techniques to control a process (Gitlow, Melnyck & Levine, 2015). They can be used as part of six sigma processes to drove process improvement. Control charts are powerful tools used to attain process stability and control. Concerning this project, statistical process control charts enabled the workers to assess and evaluate the process and also distinguish the prevalent causes of shipment loading from special variation reasons. The figure below illustrates USPS’ process control charts.

Figure 1: Before Improvement

Figure 2: After Improvement

Conclusion

This study has comprehensively illustrated how the DMAIC methodology is a problem – solving method for service, product as well as improvement of processes. Most of organizations start by using the DMAIC and later moving to design for Six Sigma just like the United States Postal Service. For some, this DMAIC methodology may be linear and explicitly defined; however, a continual technique might be required, particularly for the TQM application of techniques and tools of Six sigma five-phase methodology. For example, the management may find himself or herself in a situation in which, on analyzing data that takes place in the analyze phase, the gathered data are not enough to find the deterministic cause of the issue. Here, it is important to make a U-Turn to the measure phase. In addition, it is important that the management to know enough tools and the statistical techniques to figure out which ones are useful for each phase, in which ones may be used for more than one phase since the effective usage of tools becomes important for correctness and effectiveness. The efficiency of the DMAIC method lies mostly in the structure, rigor, and discipline. In addition, a problem frequently encountered when implementing Six Sigma is that all activities may seem to qualify as Six Sigma projects. Therefore, USPS should develop a process to classify and prioritize projects according to their own organizational strategic goals.

References

Furterer, S. L. (Ed.). (2016). Lean Six Sigma in service: applications and case studies. CRC Press.

Gitlow, H. S., Melnyck, R. J., & Levine, D. M. (2015). A Guide to Six Sigma and Process Improvement for Practitioners and Students: Foundations, DMAIC, Tools, Cases, and Certification. FT Press.

Johnson, R. K. (2017). How the United States Postal Service (USPS) Could Encourage More Local Economic Development. Chicago-Kent Law Review, 92(2), 593.

Kiran, D. R. (2016). Total quality management: Key concepts and case studies. Butterworth-Heinemann

Parker Gates, L. (2010). Strategic planning with critical success factors and future scenarios: An integrated strategic planning framework.