quality management in aviation industry

8/13/2019 Quality Management in Aviation Industry

1/52

2

Quality

Management inAviation Industry[Yusra Anwar-4592736]

[Noor Ul Huda S Hussein-4601695][Khulood Moosa-4559216]

[Fatima Faris-4575271]


2/52

QualityManagementinAviationIndustry

Abstract

In this paper, we try to explore the concept of Quality Management in aholistic context.Quality is one of the sources of competitive advantage in todays business.Quality in aviation is linked to wide range of security issues and no otherproduction industry raises such big interest of spectators, as the aviationindustry does.The most important quality improvement factors are seen as top managementcommitment, customer satisfaction, common vision, corporates culturechanges. Most important reasons for setting up quality programs are strategicissues, cost control or reduction, customer retention and quality initiatives ofcompetitors.


3/52


2

Introduction

In todays competitive environment, airlines and airport realizes theimportance of customer experiences and their satisfaction. Airlines ownersand stakeholders have over the year shifted their focus from lager andfaster equipments to awareness in addressing customer wants.Airlines have realized that quality in passenger experience co-relates directlywith aerodrome security and emergence response capabilities in expandingrevenues.

This chapter reviews the concept of quality by accessing the variousdefinitions and views of the different authors. A general frame-work of whatquality is all about and is discussed under the various elements of quality.The literature looks at the concepts of service quality and how its beenaccessed by organization and customers. It will also talks about the variousquality awards that are awarded to airlines achieving the highest Qualityperformance.


4/52


2.1 Literature Review

2.1.1 Quality Philosophies

To fully understand the Quality Management movement we need to studyabout the philosophies that shaped the evolution of quality management andthe teachings that have contributed to our knowledge and understandingtoday.

Table1: Timeline showing the differences between old and new concepts ofquality.


5/52


4

Quality Management has numerous definitions, various theorists of the totalquality management discipline like Walter, Deming, Juran, Genichi Taguchi,Crosby, Ishikawa and Feigenbaum defined the concept in different wayswhich are discussed below in detail:

Table2: Quality Gurus and their contributions.


6/52


Walter A. Shewhart

Was a statistician at Bell Labs during the 1920s and 1930s. Shewhart studiedrandomness and recognized that variability existed in all manufacturingprocesses. He developed quality control charts that are used to identifywhether the variability in the process is random or due to an assignablecause, such as poor workers or miscalibrated machinery. He stressed that

eliminating variability improves quality. His work created the foundation fortodays statistical process control, and he is often referred to as thegrandfather of quality control.

W. Edwards Deming

W.

Edwards


7/52


6

Deming offered 14 key principles for management to follow for significantlyimproving the effectiveness of a business or organization.

1. Create constancy of purpose toward improvement of product andservice, with the aim to become competitive and to stay in business,and to provide jobs.

2. Adopt the new philosophy. We are in a new economic age. Westernmanagement must awaken to the challenge, must learn theirresponsibilities, and take on leadership for change.

3. Cease dependence on inspection to achieve quality. Eliminate the needfor inspection on a mass basis by building quality into the product inthe first place.

4. End the practice of awarding business on the basis of price tag.Instead, minimize total cost. Move toward a single supplier for anyone item, on a long-term relationship of loyalty and trust.

5. Improve constantly and forever the system of production and service,to improve quality and productivity, and thus constantly decrease

costs.

6. Institute training on the job.7. Institute leadership. The aim of supervision should be to help people

and machines and gadgets to do a better job. Supervision ofmanagement is in need of overhaul, as well as supervision ofproduction workers.

8. Drive out fear, so that everyone may work effectively for the company.9. Break down barriers between departments. People in research, design,

sales, and production must work as a team, to foresee problems ofproduction and in use that may be encountered with the product orservice.


8/52


10.Eliminate slogans, exhortations, and targets for the work force askingfor zero defects and new levels of productivity. Such exhortations onlycreate adversarial relationships, as the bulk of the causes of low qualityand low productivity belong to the system and thus lie beyond thepower of the work force.

Eliminate work standards (quotas) on the factory floor.Substitute leadership.

Eliminate management by objective. Eliminate management bynumbers, numerical goals. Substitute leadership.

11.Remove barriers that rob the hourly worker of his right to pride ofworkmanship. The responsibility of supervisors must be changed fromsheer numbers to quality.

12.Remove barriers that rob people in management and in engineering oftheir right to pride of workmanship. This means, inter alia,abolishment of the annual or merit rating and of management byobjective.

13.Institute a vigorous program of education and self-improvement.14.Put everybody in the company to work to accomplish the

transformation. The transformation is everybody's job.


9/52


8

Joseph M. Juran

Dr. Juran has left us with many important methods and tools during his years

as was the leading expert in the field of Quality Management.

In his contribution included principles like the Pareto Principle and toolslike the Pareto Analysis.

Dr. Juran highlighted that we must balance the attention and give importanceto the tools we use in order to manage Quality.

The Juran trilogy is made up of three important tools and they work togetherto help organization to realize the full benefits of Quality Management.

Dr. Juran trilogy represents the concepts ofQuality Planning, Quality Control andQuality Improvement. In the language ofSix Sigma the concept of Quality Planning,Quality Control and Quality Improvementare called as DMADV and DMAIC.


10/52


Juran have referred to these processes as universal. These processesrepresent the sequences ofevents to effectively Plan,Control and ImproveQuality and theseprocesses have been usedwidely in all industriesaround the globe.The useof the trilogy processeswithin an organization

typically begins withQuality Improvement.This is because theeconomic cost of poorquality have a significantnegative financial impact onan organization when expressed in bottom line terms. Quality improvementnecessitates that we identify projects for process improvements. We need todefine the process problem, then follow the diagnostic route to determine theroot causes, complete the remedial journey to discover the root causes,complete the remedial journey to apply remedies and use the Quality Controlprocess to hold the improvements. The Quality Control process is the laststep and identifies mandatory process control measures that relate to meetingcustomer and process requirement. The Control Plan defines how thesemeasures are scrutinized and managed.

In the Trilogy the journey towards quality leadership is not concluded untilthe trilogy of process is completely integrated within the organization, thereare many organization which fails in their pursuit of quality leadership and itnecessitates the organization to learn and simultaneously use the QualityPlanning process.

Quality Planning is applied to the products, service design and development,as well as process design. This process is initiated with a project design, todesign something new. It further flows from identifying customers and theirneeds, followed by defining the product/service design features, thencreating the process designs, and the process control plans. Poor qualityplanning is the source of costs of poor quality. If the sources of poor planning


11/52


10

are not addressed, the organization will continue to produce qualityproblems in the future and the goal of quality leadership cannot berecognized.So whether the organization is at the initial stage of its quality journey or hasonly moderately integrated the Juran Trilogy of quality processes, learnabout the importance of how these processes work together so that thebenefits of quality leadership can be comprehended.

Armand. V. Feigenbaum

Dr. Armand V. Feigenbaum devised the concept of Total Quality Control,he outline the principles in 40steps and adopted a total system approach toquality, the idea of a work environment where quality developments areassimilated in the entire organization, where the management and employeeshave a total commitment to enhance quality and people learn from eachothers success and this philosophy was adapted by Japanese and termed asCompany Wide Quality Control.


12/52


Phillip B. Corsby

Phillip B. Corsby was a legend in the discipline of quality who contributed tomanagement theory and quality management practices.

Zero Defects, pioneered by Philip Crosby, is a business practice which aims

to reduce and minimize the number of defects and errors in a process and todo things right in the first time.The ultimate aim will be to reducethe level of defect to zero,however this may not be possibleall the time as it means thateverything possible will be doneto eliminate the probability oferrors or defects occurring. Theoverall effect of achieving zero

defect in the maximization ofprofitability.The concept of zero defects can be used in any situation to improve qualityand reduce cost, however the right conditions have to be established to allowthis to take place. A process, system or method of working has to beestablished which allows for the achievement of zero defects.


13/52


12

Kaoru Ishikawa

Kaoru Ishikawa was an organizational theorist and was noted for his qualitymanagement innovation, he was best known for his diagram which lookedlike the bones of a fish and it was a widely used tool for a group to organizeits understanding of the causes of variation in the outcome of their work.Common uses of the Ishikawa diagrams are product design and qualitydefect prevention which is torecognize the potentialfactors causing an overalleffect. Each cause or reasonfor faultiness is a source ofvariation. Causes areusually categorized toidentify the sources ofvariation. The categorycomprises of the below:

People: Anyoneinvolved with theprocess

Methods: How the process is performed and the specific requirementsfor doing it, such as policies, procedures, rules, regulations and laws

Machines: Any equipment, computers, tools, etc. required toaccomplish the job

Materials: Raw materials, parts, pens, paper, etc. used to produce thefinal product

Measurements: Data generated from the process that are used toevaluate its quality

Environment: The conditions, such as location, time, temperature, andculture in which the process operates

Causes and effect diagram reveals a key relationship among various variablesand the possible causes to provide additional insight into process behavior.Causes are derived from brainstorming sessions. These groups are then


14/52


labeled as per the categories of fishbone. Causes can be traced back to rootscauses with the 5 Whys technique.Typical categories are:The 6 Ms (used in manufacturing industry)

Machine (technology) Method (process) Material (Includes Raw Material, Consumables and Information.) Man Power (physical work)/Mind Power (brain work): Kaizens,

Suggestions Measurement (Inspection) Milieu/Mother Nature (Environment)The 7 Ps (used in marketing industry) Product/Service Price Place Promotion People/personnel Positioning Packaging

The 5 Ss (used in service industry)

Samples Scheme Synchronous Skin. Search


15/52


14

Genichi Taguchi

Taguchi developed an approach for applying statistic to enhance the qualityand reduce the cost of the manufactured goods. Taguchi stressed thatcompanies must emphasize on their quality efforts on the design stage thanlater during the production process.

The five important highlights of the Taguchi quality philosophies are asbelow:

In a competitive market environment, continual quality improvementsand cost reductions are essential for the survival of business.

A vital measurement of the quality of a manufactured product is thetotal loss generated by that product to the society.

Change the pre-production experimental technique from varying onefactor at a time to varying many factors concurrently (SDE), so thatquality can be built into the product and the process.

The customer's loss due to poor quality is approximately proportionalto the square of the deviation of the performance characteristic from itstarget or nominal value. Taguchi changes the objectives of theexperiments and the definition of quality from "achieving conformanceto specifications" to "achieving the target and minimising thevariability.

A product (or service) performance variation can be reduced byexamining the non-linear effects of factors (parameters) on theperformance characteristics. Any deviation from a target leads to poorquality.


16/52


2.1.2 Framework and Methodology

A theoretical framework can be defined as a theoretical model of how onemakes logical sense of the relationship among the several factors that havebeen considered vital to the issue (Sekeran, 2003). Causes and variables areessential part of elements used in the research.Methodology discusses anything that has to do with procedures or

techniques of analysis. Methodology is essential in gathering relevantinformation thereby giving effective and reliable representation.

Lean Six Sigma

Lean Six Sigma is aconventional managerialapproach to achievingoperational excellence and it

does more than simplyimprove processes. It helpsleaders to discoveropportunities far beyondoperations, improve financialperformance, identify the root cause of obstacle to successful operations andcreate organization that has inherent inclination towards innovation.

Lean Six Sigma is an amalgamation of Lean approaches and Six Sigmamethodologies.

Lean is a systematic approach to eradicating waste from processes to addvalue to the service from the customer point of view, while Six Sigma mainlyfocusses on improving service quality through eliminating the causes ofdefects and reducing the process variation. Over the years Lean and SixSigma have evolved and is commonly referred as Lean Six Sigma at its core


17/52


16

it focuses on the Voice of the Customer- understanding and satisfying theirneeds and expectations to achieve competitive benefits over competitors.

The Lean Six Sigma approach focuses on the important matters i.e. thepassenger experience. It enables the stakeholder to establish a shared visionof enhancing the passenger experience leading to systematic reviews ofprocesses such as queue times, baggage claim waiting and provision of flightinformation.

DMAIC

Lean Six Sigma uses theDefine, Measure, Analyze,Improve, Control (DMAIC)problem solving framework.

Define:To state problemin the eyes of thecustomer

Measure:To understandand baseline the currentperformance.

Analyze:To find the rootof the problem togetherwith statistical analysis,understand and quantifytheir effects on currentperformance.

Improve: To implement the changes required to enhance performance. Control:To ensure that the benefits obtained from enhancement

initiatives are sustained.


18/52


Lean Six Sigma Tools

Using Lean Sigma tools and techniques new measures can be implemented atimmigration control, security screening and baggage handling resulting ingreater efficiency an improved passenger experience. Some of the widelytools are as below:

Process Mapping:It produces an end to end illustration about all the part of the process anddepicts how a process actually works not how it should work and bringclarity to what is happening and discloses the non-value adding activities.

Cause and Effect Diagrams:They resemble the shape of a fishbone where the head represents the effectand the bone shows the possible causes.

Statistical Analysis:There are number of statistical analysis tool and techniques that can be usedfrom creating performance base-line to quantifying the benefits of changeinitiative.


19/52


18

The European framework the EFQM Excellence Model

European Foundation for Quality Managements Excellence Modelwaspromoted in U.K as the Business Excellence by the British Quality Foundation(BQF) for the organizations to improve their business performances andmeasure themselves against the world class standards and emphasize on thecustomers.

The below model can be used as business-wide framework in holistic andpractical way (Porter and Tanner, 1996). It recognizes the processes which arethe means by which an organization harnesses and releases the talents theyare the enablers that produces the results.

Therefore customer results, people results and society results are achievedthrough leadership driving policy-strategy, people, partnerships- resourcesand processes, which lead to excellence in key performance results

Table 3: Relationship between Enablers and Results


20/52


The enabler are concerned with the organizational approaches towardsExcellence:

Leadership:The driver which gives directions to the business objectives and it isconcerned of how top management inspire and drive total qualitymanagement and support a culture of Excellence

Policy and Strategy:The firms policy reflects the concept of Total Quality and this principle isused to determine improvement strategy.

People:This involves how the company harnesses the potential of employees toimprove the business.

Partnership and ResourcesIt involves how the company resources are disbursed to support quality.

Processes:The efficient managing of processes to ensure that business objectives ofvalue creation are achieved.

The result criteria of the model concentrates that if organizations haveachieved and is achieving for all its stakeholders:

Customer Results:This is the external perception of the services of the organization. Theevaluation is done via the surveys and interviews. Loyalty and market shareare the measures.

People Results:The employees perception of the organization and the employees should beadequately surveyed with ideas such as team briefing and incorporation ofthe suggestion schemes.

Society Results:The society and the local community perception and result that have beenachieved relating to community and environmental concern.

Key Performance Results:What is organization achieving in relation to its planned performance?


21/52


20

DemingsPDCA

PDCA (Plan-Do-Check-Act) also known asDeming circle/cycle/wheel or the Shewhart cycleis a four step management tool for carryingout change, as the circle has no end thePDCA cycle should be repeated forcontinuous improvement.

W. Edward Deming in 1950 suggestedthat business processes should beanalyzed and measured to identify sourcesof variation that causes the product todeviate from customer requirements. Herecommended that business process should be placed in a continuousfeedback loop so that managers can identify and change the part of processthat needs improvement.

Demings PDCA can be

demonstrated as below:

Step1-Plan: Firstly we need toidentify the problem, uponidentification of the problem itsappropriate to map the process i.e.at the root of the problem. Next,draw any other information thatwill assist us to sketch out thesolutions.Step2-DO: This phase involve a list of activities:

Generate possible resolutions. Select the best of these resolutions. Implement project on a small scale basis, with a small group, or in a

limited area, or using some other trial design appropriate to the natureof your problem, product or initiative.

Step3-Check:In this phase the effectiveness of the pilot solution is measured.Depending on the success of the pilot, the number of areas for improvement


22/52


have been identified, the scope of the initiative, you may decide to repeat the"Do" and "Check" phases, incorporating the additional improvements.Step4-Act: Now its time to implement the solution. The use of PDCA cycledoesnt necessarily stop. He PDCA wheel is a part of continuousimprovement initiative and one needs to loop back to the Phase-1 and seekout the further areas of improvement.

RADAR Matrix

The Radar Matrix is used for analysisof organizational performance andits applied in the EFQM model.

The RADAR (Results, Approach,Deploy, Assess and Refine) logicprovides a structured approach to theperformance of and organization. Italso supports the scoring mechanismbehind the European Excellence

Award and other recognition orassessment schemes that can help to lead change and manage improvementof the projects in an organization

RADAR is an acronym for five interrelated phases: results, approach, deploy,assess and refine. Below are the simplified definitions of each phase:

Determine the Resultsit is aiming to achieve as part of its strategy. Plan and develop an integrated set of sound Approachesto deliver the

required results both now and in the future. Deploythe approaches in a systematic way to ensure implementation.

Assess and Refinethe deployed approaches based on monitoring andanalysis of the results achieved and ongoing learning activities.


23/52


22

Total Quality Management (TQM)

It stressed upon using multi-functional teams in order to solve the problems.The teams are trained to use the statistical tools to collect and analyze data.

Pareto diagramsA Pareto chart is a bar graph. The lengths

of the bars depicts the frequency or cost,

it is arranged with longest bars on theleft and the shortest to the right. Thechart therefore depicts the situationwhich are more significant.

HistogramsIt is defined as frequency distribution that shows how

often different value in a set of data occurs. Ahistogram is widely used graph t show frequencydistributions. It looks like a bar chart however thereare important differences between them.


24/52


Flow chartsA flow chart is a pictorial

representation of the differentsteps of a process in sequentialorder. This is a generic toolthat can be adapted forvarious purposes for example:a manufacturing process, anadministrative or serviceprocess, or project plan.

Cause and effect diagramsThe fishbone diagram identifies

many possible causes for aneffect or problem. This can beused to structure abrainstorming session as itinstantly sorts ideas into usefulcategories.


25/52


24

Force field analysisForce field analysis is a simple

tool which is used tounderstand both positive andnegative drivers that caninfluence change. Throughthis understanding, you canleverage the positive driversand reduce the negativedrivers, which results in the

creation of the desired changeor outcome.

Scatter diagramsThe scatter diagram graphs depicts the pairsof numerical data, with one variable on eachaxis, to look for a relationship between them.If the variables are correlated, the points willfall along a line or curve. The better thecorrelation, the tighter the points will hugthe line.


26/52


2.1.3 Standards

A standard can be defined as a document that highlights the requirements,specifications, guidelines and characteristic which is used to ensure that we:

Achieve, maintain and continuously improve the service quality. Improve the quality of the operations in order to meet customers and

stakeholders needs. Provide assurance to internal management, employees, customers and

stakeholder that quality requirements are satisfied.Below are the various quality standards on the basis of which quality

management systems are built in the aviation industry.

ISO (International Standard Organization)

The ISO 9000 series helps the company to satisfy itscustomer, meet the regulatory requirements andachieve continual improvement.The ISO 9000:2008 series of standards are based oneight quality management principles that seniormanagement can apply for organizational

improvements.1. Customer focus2. Leadership3. Involvement of people4. Process Approach5. System approach to management6. Continual Improvement7. Factual approach to decision-making8. Mutually beneficial supplier relationship

The international quality management standard for aerospace industry(AS9100) was released in November 1999.

AS9100 in the International Aerospace Industry Quality ManagementStandard. It is specifically designed for the aerospace industry in aconcentrated effort to improve quality and assure the integrity of supplies tothe industry.


27/52


26

The American National Standards Institute (ANSI)

The ANSI is a private non-profitorganization that oversees thedevelopment of voluntary consensusstandards for products, services,processes, system and personnel in theUnited States.

This organization also co-ordinates US standards with internationalstandards so that American products can be used worldwide.

The ANSI has represented the needs and views of US stakeholders instandardization forum around the globe.

ANSI does not write standards rather it accredits them as it establishesconsensus among qualified groups. Itsa guiding principle that are followedby the 220 distinct entities currently accredited to develop and maintain10,000 American National Standards.

The Institutes comprises of a broad range of business and industrialorganization standards setting and conformity assessment bodies, tradeorganization, trade associations, labor unions, professional societies,consumer groups, academia, and government organizations for the purposeof improving global business competitiveness and improving the quality oflife for the world's citizens.

The interests of more than 125,000 companies and 3.5 million professionalsare represented through ANSI's headquarters in Washington, DC, and itsoperations office in New York City.


28/52


International Air Transport Association

IATA is an international industry tradegroup of airlines headquartered inMontreal, Quebec, Canada. Theexecutive office are at the GenevaAirport in Switzerland.

The International Air TransportAssociations is the trade association for

the worlds airlines representing around240 airlines which computes around 84% of the total air traffic.

IATA supports many areas of aviation and assist the industry to formulateindustry policy on critical airline issues.

The statement:Our Mission Is to Represent, Lead and Serve the AirlineIndustryserves as the key mission of IATA.

IATA has formulated the below set of policy which enables a safe, secure andsustainable air transport industry that connects around the globe:

Airport Slots Benefits of Aviation Cargo Charges & Economic Regulation Commercial Fuel Policy Environmental Policy Infrastructure Issues International Treaties Liberalization New Distribution Capability Passenger Rights Security Taxation


29/52


28

General Civil Aviation Authority

The General Civil Aviation Authority(GCAA) was established in 1996 byfederal cabinet decree to regulate CivilAviation and provide emphasis onsafety and security to strengthen theaviation industry within UAE.

The GCAA is the sole authority for the control and regulation of civil aviation

in UAE, its responsible for the provision of en-route air navigation servicesand all aspects of flight safety.

GCAA also adopted an Overall Transformation Program (OTP), the programaims at making quantum leap on terms of work efficiency and effectivenessby developing a strategic plan and restructuring the corporate andgovernmental body of the Authority, in a way that enables it to work in linewith the UAE's strategic purposes and cope with the ongoing development inthe aviation sector in accordance with international standards.


30/52


2.1.4 Excellence Awards

Deming Prize

The Deming Prize is one of thehighest award in TQM in theworld.Its an annual award presented tothe organization that has

implemented TQM which issuitable for its managementphilosophy, scope, type, scale ofbusiness and managerialenvironment.

Below are the major conditions for the organization to receive the prize:

1. Receive TQM diagnosis consultation prior applying for the prize2. Submit TQM practices and pass the document examination3. Receive an on-site examination and pass the examination

There are also a set of major duties that organization should adhere to afterreceiving the prize:

1. To present their practices at the winners presentation meetings2. Ensure to make availability of the TQM know-how to the public as it is

a benchmark that is obtained via the Deming Prize challenge andexamination process.

3. To receive the on-site review three years after receiving the Prize.


31/52


30

Table 4: Overall flow from the application process to awarding

Malcolm


32/52


Baldrige National Quality Award

The Malcolm Baldridge National Award (MBNQA) is presented annually bythe president of the United States to the organization that demonstratequality and performance excellence.

The main awards given annually ineach of six categories are as below:

Manufacturing Service company Small business Education Healthcare Nonprofit

Organizations that apply for the award are judged by an independent boardof examiners, recipients are selected based on achievement in seven majorareas which is known as the Baldrige Criteria for Performance Excellence.

Leadership: How upper management leads the organization, and howthe organization leads within the community.

Strategic planning:How the organization establishes and plans toimplement strategic directions.

Customer and market focus:How the organization builds andmaintains strong, lasting relationships with customers.

Measurement, analysis, and knowledge management:How theorganization uses data to support key processes and manageperformance.

Human resource focus:How the organization empowers and involvesits workforce.

Process management:How the organization designs, manages andimproves key processes.

Business/organizational performance results:How the organizationperforms in terms of customer satisfaction, finances, human resources,supplier and partner performance, operations, governance and socialresponsibility, and how the organization compares to its competitors.


33/52


32

The EFQM Excellence Award

The EFQM Excellence Award wascreated by organization EFQM.

EFQM Excellence Award providesa holistic overview of howefficiently the organizationdevelops and deploy theirstrategy and in line with the needs

and expectation of theirstakeholders.

The EFQM is to recognize the Europes best performing organizationwhether private, public or non-profit.

The EFQM Excellence Awards is Like Playing in the ChampionsLeague as it is supported by one of the most rigorous assessmentprocesses.

To win the EFQM Excellence Award, an applicant must be able toexhibit that their performance not only exceeds that of their peers, butalso that they will maintain this advantage into the future. A prizewinner is an organization which demonstrates role model behavior inone of the following 8 criterias:

Adding Value for Customers Creating a Sustainable Future Developing Organizational Capability Harnessing Creativy & Innovation Leading with Vision, Inspiration & Integrity Managing with Agility Succeeding through the Talent of People Sustaining Outstanding Results


34/52


Skytrax

Skytrax is a United Kingdom based consultancy which runs an airline andairport review and ranking site.

Skytrax provides aprofessional and exclusiveexpertise to the worldairline and airport industrythrough Audit and Service

Benchmarking programmes of Product and Service Quality. It also conductsresearch for commercial airlines and carries out international traveler surveysto find the best cabin staff, airport, airline, airline lounge, in-flightentertainment system, on-board catering and several other elements of airtravel.

Skytrax also has an airline forum where passengers give other potentialpassengers the feel of an airline before choosing to fly with them. The websitealso has flight reviews, flight checks, and satisfaction surveys.

Skytrax holds an annual World Airline Awards and World Airport Awardsas well as the ranking for airlines and airports.

Below are the symbols that are proudly displayed by airlines and airportsaround the globe.

Airline


35/52


34

Quality Rating System

The Airline Quality RatingSystem was developed andannounced in 1991 as anobjective method of comparingairline quality on combinedmultiple performance criteria.

The AQR is a summary of monthly quality rating for the US airlines that have

at least 1% domestic passenger value.

The Airline Quality Rating provides both consumers and industry watchers ameans for looking at comparative quality for each airline on a timely basis,using objective, performance-based data, the Airline Quality Rating has beencited as an industry standard for comparing airline performance.

The majority of quality ratings available usually rely on subjective surveys ofconsumer opinion that are infrequently done. This subjective approach yieldsa quality rating that is non-comparable from survey or any specific airlines.

The Airline Quality Rating is a weighted average of multiple elements thatare important to consumers while judging the quality of airlines.

Elements are screened to meet the two basic criteria1. Element must be obtainable from published data sources for each

airline;2. Element must have relevance to consumer concerns regarding airline

quality.

Data used in calculating the ratings represents performance aspects of thefollowing:

on-time arrival mishandled baggage involuntary denied boardings Customer complaint areas of airlines that are important to consumers.


36/52


The Airline Quality Rating criteria and the weighted average methodologyallow a focused comparison of airline domestic performance.

With the continued global trend in airline operations alliances, it becomesmandatory for the Airline Quality Rating to be used as a standard method forcomparing the quality of airline performance for international operations aswell.


37/52


36

2.2 Description and Analysis of AirlineSector

Aviation Industry Profile

Airlines industry is important to global world as it facilitates economicgrowth, world trade, international investment and tourism and is thereforecentral to globalization (Tiernan et al., 2008/1).

In the past decade air travel has grown by 7% per annum. Travel for bothbusiness and leisure have grown strongly worldwide. Business travel has alsogrown as companies become increasingly international in terms of investment(Datamonitor, 2011). The airline industry generates about $640billion inrevenue annually (IATA, 2011).

The airline industry can be separated into four major category: International:130+ seats planes that have the ability to take passenger

anywhere in the world. National- Usually these airlines seat 100-150 people and have

revenues between $100 million and $1 billion. Regional - Companies with revenues less than $100 million that focus

on short-haul flights. Cargo- These are airlines generally transport goods.

Airport capacity, route structures, technology and cost to lease or buy thephysical aircraft are significant in the airline industry.

Weather- Weather is variable and unpredictable. Extreme heat, cold,fog and snow can shut down airports and cancel flights, which costs anairline money.

Fuel Cost- According to the Air Transportation Association (ATA),fuel is an airline's second largest expense. Short haul airlines typicallyget lower fuel efficiency because take-offs and landings consume highamounts of jet fuel.


38/52


Labor- According to the ATA, labor is the an airline's No.1 cost;airlines must pay pilots, flight attendants, baggage handlers,dispatchers, customer service and others.

The Global carriers are focusing their attention on the growing MiddleEastern market, with Qatar Airways joining with American Airlines, BritishAirways, One world alliance, Air France-KLM partnering with EtihadAirways from United Arab Emirates. The partnership of Western and Gulfregions exhibit the advantages of the combined service in 2013 and it couldfind themselves leading the race to grab share in this affluent region.

Figure1: Illustration Representing the Airline Operating Expense

The two major issue that currently affect the profitability of airlines (Kostama

& Toivonen, 2012). Firstlythe demand have been stable for the last decadehowever the terrorism threat and financial crisis has slackened the industrialgrowth (Datamonitor, 2011). The anticipated recovery is slow, withdevelopment anticipated to reach only 7.4% in 2015 (Datamonitor, 2011).Secondly, deregulation of airline industry in 1990s allowed low cost carriersto enter the market with new innovative business model thus driving thecustomer from regular full service airlines. Deregulation also enabled


39/52


38

introduction of new service and more competition within the industry andsimultaneously gave customer more power over inflight service.

The current economic crisis highlighted the strength of the industry as itsurvived without major government support (Airline Trends and AncillaryRevenue Report, 2010) which was due to the ability of the airline industry toreact to low demand and its inclination towards challenging the old businessmodel and implement the new ones. Although industry as whole failed tomanage fuel costs and was unable to meet the expectation of its customer


40/52


Airlines and Service Classification

Various efforts have been made to categorize airline services (AirlineBusiness Model, 2008) which is divided into two groups based on theirprimary activity: passenger airlines and freight airlines.

Table 5: Passenger Airline Classification


41/52


40

While the operation of each specific airlines may differ, however there is acertain amount of similarity among each airlines sector.

An airlines important asset are the best planes and its people. Airlines aremost often characterized in public by the employees who have direct contactwith the travelers such as pilots and flight attendants, but there are manymore airlines employees working behind the scenes that play a vital role inoperation of the airline. Below are the various types of employees in anairlines industry.

Line Personnel: Line personnel includes the pilots, flight attendant,reservation agents, and airport check-in and gate security guards. Theyconstitute almost 85% of an airlines labor force and this is the group ofpeople that are often seen during a flight.

Operations: If the line personnel forms the heart of an airline industry,operations keeps its blood pumping. Operations personnel areresponsible to maintain guidelines to meet FAA standards. FlightDispatchers are included in the operations category as they keep atrack of all airlines flight.

Maintenance: Airlines are multi-dollar vehicles that must bemaintained in order to prevent the airlines from losing money andmaintain the safety of the customer, around 10 percent of theworkforce is entirely dedicated to aircraft maintenance.

Sales and Marketing: These personnel are the one who set the pricesand they are tasked with advertising, cargo sales, reservations,customer service and food service.

In addition to the personnel listed above, the airlines also employeesspecialist and sub-contractors that performs various duties. These specializedstaff includes lawyers, accountants and employee-public relation specialist,they are usually based at the airlines headquarters.


42/52


Hubs and Spokes

Most of the airlines inoperation use the Huband Spokenetwork toroute their plane traffic.It involves a range ofgeographicallydispersed location

through a central hub

The Hub and Spokesystem was developedas the result of USderegulation. Thedevelopment of thissystem had enabletraveler a moreintegrated travelling system and experience where passenger originatingfrom smaller region were able to transits at a major hub where they couldboard a connecting flight to any other possible destination. It also increasedthe possibility of city pair that they can enter into. It is comprehensively usedin commercial aviation, the model has also adopted in the technology sectoras well. Delta Airlines initiated the method in 1955, but wasnt used until1970s when FedEx took advantage of the concept, thereforerevolutionizingthe way airlines were operated.

Many airlines supplement their hub and spoke model with code-shares,partner flights or a small commuter airline.

The purpose of the hub-and-spoke system is to save airlines money and givepassengers better routes to destinations.

Airplanes are an airline's most valued commodity, and every flight hasdefinite set costs. Each seat on the plane signifies a portion of the total flightcost. For each seat that is filled by a passenger, an airline drops its break-even


43/52


42

price, which is the seat price at which an airline ceases on losing money andbegins to show a profit on the flight.Additional to the general explanation of the hub and spoke operation we willfurther discuss the advantages the hub-and-spoke system had initiallybrought to the airline business; however there were some disadvantages thathad been developed later due to changes in external environmental factors.

Advantages hub-and-spoke: Encouraged the rapid growth in the airline business: The hub-and-

spoke system since developed after deregulation, has allowed a rapid

growth in size, competition strategy and traffic demand in the airlinebusiness. However, as suggested byWells and Younger (2004 4)thishad lead to operational incompetence at periods of slow economy;with airlines resulting in very poor financial performances.

Efficient use of scarce transportation resources: The system has lessnumber of routes connecting all spokes enabling a more efficient use ofrare transportation resources. This however had small airports andeconomies of smaller regions suffering as per the reduced capacity. Asa result this encouraged airports to agree with low cost carriers to offerlow airport fees and commissions from local businesses to bring in

traffic and passenger flow.

Disadvantages of hub-and-spoke Congestion and delays at hub airports: To limit waiting times and

provide a large variety of possible connections for passengers at thehub airport, it is essential for the hub airline to schedule as manyincoming and outgoing flights as possible during a short time frame.This results in high traffic peaks during these times and often causesdelays due to scarce airside facilities such as taxi- or runways.

Discontinuous use of airport facilities:The merging of traffic in ahub-and-spoke-system implies a traffic structure consisting of highpeaks at certain times a day when airport facilities are highly in use. Atsome airports, costly additional capacity and infrastructure (e.g.runways) are required to cater for the demands at these peaks.(JanicM., 2008)

Airport dependency:Hub airlines and the corresponding alliancesselected a limited number of airports on each continent through whichthey route their traffic. For these few hub airports in turn, they


44/52


represent a high share of their business. As airport capacity is limitedand usually not sufficient for other extensive networks, and thenecessary slots at attractive times are not available, other airlines tendto choose alternative options.

Thats The Ticket

Once the destination is determined the next step is to contact the reservation

center. Airlines hires individuals who specializes in the reservation process.They are placed at the dedicated reservation desk and at the check-in counterat the airport.

There are two different types of ticket

Paper tickets- This is theconventional ticket thatpassengers have beenusing for decades. There

are airlines in the world,although not many thatstill issue paper tickets fortheir flights, mainlybecause updating theiroutdated ticketing systemwould not provide anysavings over leaving it asit is. Airlines still usingpaper-only ticketing systems are generally smaller operations and/or are

low-cost local carriers. It has nothing to do with the airlines quality or safetyrecord.


45/52


44

Electronic tickets- Many travelers arestarting to use electronic tickets, or e-tickets, instead of paper tickets, accordingto Delta Airlines's document "The PlaneTruth." Electronic tickets are typicallypurchased over theInternet.At the airport,passengers with e-tickets need only obtaintheir boarding pass by providing the gateagent with a confirmation number andproof of payment (sometimes, they only

need to show a photo I.D.).

For most people, ticket pricing can be themost confusing part of air travel. Fares areconstantly changing. What your friendpaid yesterday for a flight from New Yorkto Chicago is probably not what you aregoing to pay today for the exact sameflight. Even the people sitting in the samesection of a flight likely paid very differentprices for their tickets. Believe it or not,fares are cheaper today than in 1978, whichis why more people are flying than ever before. Fares are tracked according towhat a passenger pays (in cents) per mile. In 1978, passengers paidapproximately 19 cents per mile. In 1997, passengers paid about 14 cents permile.

Many travelers are choosing to buy electronic tickets. In some cases,passengers with e-tickets can check themselves in using a self-servicecheck-in machine.

There are several factors that contribute to the cost of a fare: Purchase date- The earlier you buy a ticket, the cheaper it will be (most

likely). For instance, Delta loads a flight into its reservation system about 332days from the actual flight date. Someone who buys a ticket on the day theflight is entered is going to get a cheaper fare than someone who buys a seaton the day of the flight.

Class- Put simply, first class is more expensive than coach.
http://science.howstuffworks.com/category-internet.htmhttp://science.howstuffworks.com/category-internet.htmhttp://science.howstuffworks.com/category-internet.htmhttp://science.howstuffworks.com/category-internet.htm


46/52


Destination- There are certain destinations that cost more, either because ofthe distance to the destination or the popularity of the destination. This issimple supply-and-demand economics.

Flight date and time- Flights that depart earlier in the day tend to have lowerfares because fewer people are flying then. Also, fares go up in the summervacation season.

Fuel costs- Fuel is an airline's second largest expense. Only labor costs morethan fuel. In 2000, airlines paid about $5.4-billion in fuel costs, according tothe Air Transport Association(ATA). Any increase in fuel costs is usuallypassed onto passengers in the ticket price.

Competitors' fares- An airline has to be careful not to price their fares toomuch higher than their competitors. Sophisticated computer software is usedto track the fares of competing airlines.

Special factors- There are certain specialty fares given to senior citizens,government and military employees and corporate customers.

Another factor that can affect ticket pricing is the hub system itself. If a largeairline controls a lot of the gates at a particular airport, it may charge higherticket prices. That large airline has the most flights coming into that airport,so consumers have to pay the higher fares if they want to fly into or out ofthat airport.

Airlines often overbookflights, according to the ATA. Overbooking is thepractice of selling more tickets for a flight than there are seats available.Airlines justify this practice by using historical analysis of traveller behavior.Often, travelers don't show up for a flight that they have a reservation for, orthey don't make it to the gate in time. There are also travelers who reserveseats on multiple airlines and flights to ensure their travel plans. The ATAreports that airlines take great care in selecting which flights to overbook.They look at a flight's history of no-shows and try to match the overbook

number to that.

Obviously, overbooking can sometimes cause problems, such as when morepeople show up for a flight than there are seats available. When that happens,airlines give special incentives to travelers who are willing to give up theirseats. Usually, these volunteers are given free fare on another flight. If anairline is forced to bump a passenger involuntarily, the airline mustcompensate that person.


47/52


46

When you board an airplane, you might not be aware of all of the gears thatare turning behind the scenes. There are many people performing manyfunctions to get you to your destination.


48/52


Overview of Emirates Airlines

Emirates is a government owned Dubai-based airlines which was launched in1985 with two leased aircraft a Boeing 737-300 and Airbus 300 operating itsflight to Karachi, Mumbai and Later Delhi.

Its main vision stated that it intends: to be a medium-sized airline with aglobal network by the turn of the centurywhich Emirates now havemanaged to accomplish as it has transformed itself from an unknown airline

with a feet consisting of only two aircraft into a global player in todaysaviation market.

Emirates has an extensive range of competitors in terms of service superiorityand flying destination. Major competitors identified includes SingaporeAirlines, Etihad Airlines, British Airways, Lufthansa Airlines, and CathayPacific Airways.

Emirates was ranked among the first airline to introduce an in-flight mobileservice and also received its first A380 in 2008 which had set new standardthrough their state-of-the-art facility which was the introduction of the spashower and onboard lounge facility in the Airbus.

Emirates also opened its new Terminal 3 at Dubai International Airport andhired the 10,000thcabin crew member and relocated into a new headquarter.The delivery of the 78th Boeing 777 in 2009 made Emirates the largestoperator of this aircraft.

Emirates Hotels & Resorts expanded and opened its first property outside theUnited Arab Emirates.

Skywards celebrated its tenth anniversary by enhancing the program for itsover 5 million members.

The Emirates Groupsworkforce currently counts over 55,000 employeesworking for 50 different business units which are listed below: (The historicinformation was retrieved from www.theemiratesgroup.com (10thJan.2012).


49/52


48

Air Transport Air Cargo Services Airport Aviation Services: Handling and Cargo Airport Aviation Services: Catering Call Centre Freight Forwarding & Logistics Airport Meet & Greet Engineering Services Hotels & Resorts Ground handling, Cargo Services and Travel

Loyalty & Reward Programs IT Solutions

Retail, Food & Beverage Retail Sports & Club Facilities Risk Management & Security Training Tour Operator & Events Management & Travel


50/52


Emirates Service Process Analysis

Emirates Airlines, constantly statuses among the upper echelon of itscompetitors in customer service and experience. The airline operates in highlycompetitive multi-cultural environment with rapid change and everincreasing demands on resources, costs and time.

Emirates has set great standards in all its service process, it has always beenin the forefront of aviation technology as a sign of innovation, provide valueadded service with elasticity and are customer focused.


51/52


50

Emirates Airlines is known for its Ground service which allows the passengerto check-in between two to 48 hours. It can be done over the counter at theairport or at the lounge. Self-check-in kiosks are also available at DubaiInternational Airport. Passenger may also check-in via the Internet or by shortmessage service.

Emirates Airlines also provides lounge and complimentary chauffer drivenairport transfers facilities to its First and Business Class passengers. Theairline operates 27 lounge in 23 cities.

Emirates also uses Skywards as their Frequent Flyer Program, which is usedby over 5.72 million members around the globe

Emirates is the pioneer with regards to IFEC (In-Flight Entertainment andCommunication).

Economy class can take benefit of their own 10.6 inch digital monitor, andpassenger can choose among 12,000 different channel which includes 200movies, more than 100tv channels, 500 audio channel and around 100 videogames.

Business class passengers enjoy the newest product which is installed on theAirbus 380, it comprises of seats that can be converted in a full flat bed andthe seat pitch ranges from 79 to 87 inch. It also provides an additional spacefor personal belonging and a min-bar. Each seat has a 17inch widescreen TV.

The First class passengers enjoy their privacy in their own suites. All suiteshave sliding door, a mini bar, vanity table, mirror, wardrobe and a 23 inchdigital screen. In first class the seat pitch is 82 inches. On the Airbus 380 Firstclass passenger can also use a spa-shower, however to ensure that allpassenger can experience the spa facility the passenger are requested to

contact the onboard staff to make an appointment.


52/52


2.3 Quality Management Framework inAirline Sector

quality management in aviation industry

Documents