Union Pacific 2002 Annual Report Download - page 16

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14
UNION PACIFIC
rework and failure costs and
improve customer service.
The company’s Total Quality
Management System provides an
unrelenting focus on customers.
The 15-year relationship between
managing quality and improving
customer service is proven – as
costs linked to failures and rework
go down, customer satisfaction
goes up.
Total Quality Management
incorporates Six Sigma tools to
reduce failures. A recent Six
Sigma project resolved a rail car
ride problem affecting auto parts.
Working through the customer
satisfaction issue won Union Pacific
additional business.
Union Pacific continues to
maintain its full certification to
the ISO (International
Organization for Standardization)
9001:2000 standard. First certified
in 1998, ISO examiners regularly
check UP’s processes to ensure
accreditation.
The railroad has qualified as a
finalist for the Malcolm Baldrige
National Quality Award, the
country’s premier honor for
organizations demonstrating
excellence in quality and results.
Customers have taken notice.
In 2002, the top automotive
companies in North America
honored Union Pacific for its
performance.
DaimlerChrysler, General
Motors, Toyota and UPS
Autogistics (network manager for
Ford) all named UP as their top
carrier. It was the third year in a
row Union Pacific earned both the
DaimlerChrysler and the Toyota
honors.
Other customers, including
Frito Lay, ExxonMobil and
General Electric, all recognized
UP’s superior service in 2002.
n
Union Pacific’s
excellent service earned
top awards from automakers
DaimlerChrysler, General Motors,
Toyota and UPS Autogistics, network
manager for Ford.
% OF REVENUE
Failure Costs
Union Pacific Railroad
99
15.3%
00
13.9%
01
12.5%
02
11.3%
Union Pacific is Building Reputation for reliable transportation and
attention to quality, winning numerous customer service awards for
its efforts. Union Pacific follows rigorous quality standards to eliminate
BUILDING REPUTATION