Strategic Quality and Systems Management Report Operations Management Operations management is now the most essential part in maintaining organizational systems. Actually operations management means all the necessary activities of an organization like finance, human resource management, research, marketing etc (Elnathan, 1995). Whether it is planning, leading, organizing or controlling, they all are part of an organization’s operations management. Because of the speedy change of the business environment, internal and external factors like market position, market value, possibility etc. (Stanton, 2001). it is necessary to have a dynamic system of conducting organizational management to compensate or to make changes in the organization in response …show more content…
JetBlue’s operations strategy is evident from its choice of location from which they operate since location setup is one of the most important strategic decisions in operations management. They placed their main operations headquarter in the New York City, a city with the population of almost 19 million people (jetBlue, 2013). This fact alone helps them to fly their airlines in their full capacity almost all the time which ensures their business profitability. Their choice of locations fulfills the first and foremost part of the operations management, demand and competition location. It is easily understandable that it is a good practice to choose location of an organization where the product or service they are giving will have demand and will have enough population to maintain the level of demand. For example, if an airline company establishes its base in a place where population is low and economic activities are slow and almost non-existent. It will face two-fold problems in achieving its business objective. One is that there will not be enough passengers at any given time to fly their airlines in full capacity, and another one is that poor economic activities will render most of that meager population unable to bear the minimum …show more content…
The material management process can help jetBlue Airlines to provide the same services as before but at a lower cost level. As their objective is to hold on to their previous service quality but introduce new elements which will enable them to provide services to the middle income population, they have to employ new sets of strategic decisions to achieve the desired goal. The method jetBlue must use is to find a way to reduce the maintenance cost they bear for the airplane’s maintenance, crew training and salary, fuel consumption by the aircrafts. The objectives jetBlue Airlines give in their 2013 annual reports to make the implementation of cost control, improving revenue and reducing their debt and thus lowering their financial risks. So the cost control objective can be easily achieved by careful implementation of material management process of the organization. And to achieve the cost control objective they must have a new quality and systems management which will retain their service quality and in return will make a significant increment in their profitability (Micheal, 2001). So the strategic plans regarding the cost control objective will be to find ways where jetBlue can decrease the amount of money invested in their maintenance and operational activities without having any
Case in point would be the layoff situation. In order to determine who should/would be laid off when there was a downsize in workforce, there needed to be information regarding all the employees put together to cross reference with what other files contain. This way, when the time comes to unfortunately let some of the valued employees go, those who are spared are the ones with the correct seniority and status within the department. This check and balance system would have to be continually refined and evaluated to ensure the proper measures are being
From this, other problems branch out such as economic disorganization and the lack
Task A - National Equal Employment Laws Three EEO laws that impact JetBlue’s hiring practices are as follows: Equal Pay Act of 1963, Amended in 1972, which states you can’t pay a woman less than a man if they are doing the same work under the same conditions, and are equally qualified. They passed the bill to rectify the inequity in pay due to the belief man should be paid more than women, even if the woman is equally, or more, qualified than the man. Discrimination Laws Americans with Disabilities Act (ADA) 1990 and Amendments Act of 2008, prohibits discrimination and guarantees that people with disabilities have the same opportunities as everyone else. Age Discrimination in Employment Act of 1967, Amended in 1978 and 1986, says you can’t discriminate against anyone age 40 or older and you
Market failure is a scenario whereby a country allocates inefficient resources to the public, rendering the final products worthless. For example, Countries like USA waste $1 trillion per year on health care. Market failure originates from several factors: Merit goods, demerit goods, monopolies, externalities, imperfect information, and so on. Government intervention is an act made by the government to allocate goods efficiently to correct market failure.
For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
Managers and employees will be more effective in doing their jobs when they appreciate, and adjust with the character of the firm. The decisions that a management
Now and then the issue is identified with limit, as there are just insufficient individuals to complete an occupation. Different times, the issue is identified with capacity, which can be insufficient of the right individuals to finish an undertaking. Ecological components can influence access to individuals to finish ventures also. Certain sorts of talented laborers or experts may be hard to find, for case. On the other hand they may not be accessible in the geographic range where the venture is being overseen.
9. Environments Like any other Industry, the airline industry is also affected by changes in its external environment. King III (2009) highlights that leaders are not supposed to compromise the natural environment and the livelihood of future generations. Environmental Factors can also have a significant role to play in an airline industry; like in the case of Prof. McPherson we observe the bad weather reducing his time by 1 hour and thirty minutes. In light of the environmental factors that affect the airline industry this Study will focus on the traditional Political, Economic, Social, Technological, Environmental, and Legal Analysis, often referred to as the PESTEL Analysis.
Delta airline was expanding its business into low-cost airline segment by launching new independent subsidiary by the name of Song. Song’s primary business model was to target women and the segment of business class people. In effect to reduce the cost, Song management decided to fly high load factor on the drag of 900 miles. Moreover, the company increased the number of
One of the fundamental points of interest of the balanced scorecard is capacity for representatives and supervisors to see the relationship between their own execution assessment and money related measures identified with the authoritative objectives. Activity based costing system: To be fruitful in business operations, each organization needs to synchronize its exercises and forms with the corporate statement of purpose, being steady in conveying the item. Southwest Airlines advances itself as an on-time, ease supplier of air travel, conveying the guaranteed essential services to the clients. Organization successfully adjusts its authoritative structure and every single related operation on giving these purchaser services on the reported mission and objectives. Therefore, Southwest Airlines is the best minimal effort supplier of air travel in the United States.
The purpose of Operations management within an organization is to control the production process and business operations as efficient as possible to achieving overall organizational goal (investopedia.com, 2017). Therefore operation management creates policies, processes and procedures and also use various methods and techniques to maximize profits thus achieving organizational goal. Approaches or Techniques of operation management To improve the operational performance, operation management use various techniques to improve the operational performance. Some of these approaches are: Six Sigma Lean production Queuing theory TQM In this section below some of these techniques or theory has been explained: Six Sigma: Six sigma an effective and significant process improvement theory
BODY This Case clearly point out the change of in mind set of technology with cost saved with the use of computers in the workplace. With the increasing number of fresher minds that are highly technically skilled, the idea of incorporating Organizational Development should be plan as the different levels of management that are all working together for a common goal, implementation of OD would bring them together to be cost and time effective. What is Organizational Development?
AirportAirports are of significant economic importance to regional businesses and to the quality of life of residents by providing access to safe, secure, rapid, affordable air transportation services. With the airport operating as a public utility, an inventory of airport stakeholders and their objectives is required to form the basis for evaluating the airport’s performance. To examine the role of the airport stakeholders a precise definition of stakeholders and their goals for the airport is necessary. With the airport operating as a public utility, an inventory of airport stakeholders and their objectives is required to form the basis for evaluating the airport’s performance. To examine the role of the airport stakeholders a precise definition of stakeholders and their goals for the airport is necessary.
For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive
TASK 1.1 Importance of operation management Operations management (OM) is the business function responsible for managing the process of creation of goods and services. It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company’s goods and services. Because operations management is a management function, it involves managing people, equipment, technology, information, and all the other resources needed in the production of goods and services. Operations management is the central core function of every company. This is true regardless of the size of the company, the industry it is in, whether it is manufacturing or service, or is for-profit or not-for-profit.