NATIONAL QUALITY CONFERENCE

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NATIONAL QUALITY CONFERENCE

• Ned OHara
• SDS
• 8th November 2001

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SDS

• Parcel and courier division of An Post - set up
  1990
• Range of national and international distribution
  services
• Turnover 68 m
• Directly employs 500 people
• Market leader in Domestic Market No. 2 in
  International Market

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DISTRIBUTION INDUSTRY IRELAND

• Observations
• Intense Competition
• Increasing Buyer Power
• No Barrier to Entry
• Over Emphasis on Price
• Declining Margins

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SALES REVENUE
m
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Distribution Network
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Vision for the business..
SDS will be the leading, customer centred
supplier of innovative high quality distribution
services, providing a rewarding environment for
its people and financial returns for its owner
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NATIONAL SERVICE- QUALITY TARGET
EMS Guaranteed Pre Noon
NEXT DAY SPECIAL 24 Hour Delivery POD
Base Rate
NEXT DAY Trackable No Signature
93
98
100
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SDS - SERVICE QUALITY

• Since 1995 our quality systems have been
  accredited with . . .
• ISO 9002
• - Headquarters
• - Depots
• - National Network
• - Fleet
• - Systems
• Q -Mark

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SDS - OPS SNAPSHOT 1999

• Growth rates - Automation
• Inflation
• Costs v Quality ?
• Transformational Change
• Partnership approach

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MANAGEMENT OF CHANGE

• Organisations must change
• Internal External Forces
• People
• Paradox
• Stability/Continuity
• Flexibility/Innovation
• Reactive v Planned

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AUTOMATION

• Implementation
• 40 Technical projects fail
• 80 either late or over budget
• 90 People related 10 Technology related
• Strategic relevance
• Economic forecasts 1995/96
• Plant facilitates further cost efficiencies

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INITIAL THOUGHTS

• Radical change
• Simple task
• Throughout SDS not floor operation only
• Result must be flexible ( no one perfect
  solution)
• Need for investment (including time patience)

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TEAM WORKING IN SDS

• Process
• Partnership approach
• Joint communications to staff
• Open discussion on proposals
• Ballot on final proposals

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Shift Mgr
Supt 2 Supervisor Work Unit
Work Organisation by Team Leaders
Team Working

• Planning and scheduling work
• Assigning work tasks
• Training staff
• Performance evaluation and quality control

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STAGE 1 - START UP

• All team members received 6 days training as part
  of the cultural change process
• Training was conducted off site
• Training concentrated on development of team
  skills including communications skills and
  meeting skills
• Focus studies carried out as follow up to training

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STAGE 2 - DEVELOPMENT

• Team members
• More than just a new role
• Role dynamic
• Managers/Team Leaders
• Transition more work/worry than old way
• Learn new roles do old job until teams can
  manage themselves
• Immediate response once a team is in trouble

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OLD STRUCTURE

• Staff reliant on overtime to boost earnings
• Longer working/attendance hours
• Not inclined to accept responsibility
• No choice in the way work was conducted
• Lack of communication between management and staff

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NEW STRUCTURE

• Performance related bonus
• Motivated to complete task
• Team approach to decision making
• Opinions from all team members heard
• Regular communication meetings between management
  and staff
• Joint problem solving

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RESULTS

• Greater satisfaction amongst staff (UCD
  diagnostic study)
• Increased quality reduced hours
• Increase in volumes processed per hour
• Staff solving operational problems as they arise
• Better communication channels between staff and
  management
• Ongoing process