Federal Express has developed a measure called its service quality indicator (SQI). The SQI is based on what Federal Express believes are nine key customer requirements. Each of these nine requirements is given a weight indicating the perceived importance of a failure of this requirement to the customer. The nine requirements and their respective weights are:
|
SERVICE FAILURE |
PENALTY AMOUNT |
|
Lost package |
50 |
|
Damaged package |
30 |
|
Complaint unresolved |
10 |
|
Wrong day, late |
10 |
|
Invoice adjustment required |
3 |
|
Traces |
3 |
|
Late pickup stop |
3 |
|
Missing proof of delivery |
1 |
|
Right day, late delivery |
1 |
Federal Express tabulates these scores weekly and distributes them throughout the organization. Rewards to senior managers are based on these scores.