...Abstract Theory of constraints (TOC) is about thinking in logical, systematic, or structured processes similar to the PDCA learning loop and also about analyzing cause and effect, verifying basic assumptions, exploring alternatives and process improvement. The goal of TOC is to maximize the efficiency of a process selectively at the most critical points (constraints) and thereby maximize profitability. The purpose of this paper is to provide a comprehensive descriptive study on applying “Theory of Constraint” principles in improving the effectiveness of the service process that was limiting the entire service system. We have studied based on Schmenner’s classification of service organizations into four quadrants of service process matrix. Clear explanations supplemented by examples for each quadrant define how the theory works, why it works and what issues are resolved and what benefits are accrued. Introduction Operations management of services talks about how to plan, execute and improve service delivery so that more services are delivered faster and reliably with same/similar resources without compromising on quality. Services, in general, can be any of – Public Services, Professional Services, IT Services, Healthcare services, Banking/Insurance etc. Theory of Constraints, as proposed by Eli Goldratt, works well in a Manufacturing setup, but to replicate in a Service model requires adaption more than adoption. It should be accepted that trying to force a service organization...
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...Tale of Two Airlines in the Network Age This appears to be a case where wit was very shy on the scholar’s end. Professor Roger McPherson’s assumed that the information systems at the London based airport were far better than what they actually were. It appears that he was making a pure assumption that each and every time he would fly first class, that all of his worries would be lost because of the reliability and experience he has had in the past with the very same airlines. I do believe that his assumptions were realistic for this time period only because back then the power of the internet would have not prevented the Professor from boarding the plane because most airlines in this day and age, check and see digitally if all passengers have boarded the plane before taking off. Thus his investment would have paid off as he anticipated. The reality of this situation is that in the game of connection flights, one should never schedule a flight so close together from transfer times. In this situation assuming that the flights are going to land on time and not taking into consideration that the weather or an issue with the plane can delay the time can seriously hurt your chances of making a meeting the very next day in a country across the Atlantic. Given that the year was 1995 and portable technology is almost non-existent (except for the function of making a phone call) he could not receive a text message or email stating what procedures to follow, he purely used his instinct...
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...JET AIRWAYS TAKES OFF WITH CITRIX CASE STUDY QUESTIONS Q1.What problem does Jet Airways hopes that Citrix technologies will solve? Ans. Jet Airways hopes that Citrix technologies will solve there problem are as follows:-1. As Jet Airways technicians worked on planes, they used several different legacy software packagesinstalled over years. The system weren’t able to interact with one another or with finance or inventory. 2. The inefficiencies of the system were costing Jet Airways the time of its engineers and money thatcould have been used on maintain its planes, instead of needlessly maintaining excess costs. Q 2.How does Citrix Systems’ improve operational efficiency and decision -making? Ans 2. The benefits of Citrix Presentation Server that interested Jet Airways were enhanced and fasterdelivery of business-critical application to local and international users, timelier decision making andincreased operational efficiencies, superior service levels and significantly lower IT administration costs.2. PresentationServer with its inherent centralization capabilities facilities application delivery andinformation available in a timely manner.3. Instant access to business critical application helps management to take faster decision on criticalbusiness aspect of running the airline.4. By providing relevant authenticated user IDs, users are able to access application as and whenrequired. Q3.Give examples of three decision supported by the Citrix system. What information...
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...SOUTHWEST AIRLINES CASE STUDY COMPANY OVERVIEW Southwest Airlines Co. (“Southwest”) is a major U.S. airline that primarily provides short haul, high frequency, point-to-point, low-fare service. Southwest was incorporated in Texas and commenced operations on June 18, 1971 with three Boeing 737 aircraft serving three Texas cities-Dallas, Houston, and San Antonio. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. It also has one of the best overall customer service records. LUV is Southwest’s New york Stock Exchange symbol, selected to represent the company’s home at Dallas Love Field, as well as the theme of Southwest’s employee and customer relationships (Southwest Airlines Investors Relations statement at www.southwest.com10/10/04). Vision: To have a conservative increase growth, capitalize and cutback schedules of other airlines. To continue expanding conservatively in long-haul success. The company’s mission is clearly stated and communicates its information throughout the organization and to its customers. The Mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and company Spirit. To our employees we are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness...
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...Factors influencing customer preferences while choosing between budget airlines Applied Research Project Report On Factors Influencing Consumer Preferences while choosing between Budget Airlines Submitted in partial fulfilment of the requirement of Global Masters in Business Administration(GMBA) Information Technology Specialization Submitted by Zarine Susan George GNOV10IT066 Under the guidance of: Mr. Thanneermalai Lakshmanan 1 Factors influencing customer preferences while choosing between budget airlines DECLARATION I hereby declare that the contents of this report titled “ Factors Influencing customer preferences while choosing between budget airlines” is the result of the study carried out by me. I declare that this is my original work and has not been published anywhere before. This Project Work has been carried out for the sole purpose of submission in partial fulfilment of Global Masters in Business Administration (GMBA) in Information Technology Management at S P Jain Center of Management, Dubai-Singapore. The above is true to the best of my knowledge and information. Name : Zarine Susan George(GNOV10IT066) Signature: GMBA Batch 10, Hyderabad road Singapore 2 Factors influencing customer preferences while choosing between budget airlines Acknowledgement I would like to express my sincere thanks and gratitude to all those who helped make this project a reality. This project has been an extremely enriching experience both in terms...
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...Refuelling Schedule for Airports By Kiran R K Jitha Babu Shyam S Sreeraj S CHAPTER 1 INTRODUCTION 1.1 REFUELLING Refuelling is an important aspect with respect to the airports since it determines the ground time of an aero plane. Aircraft fuelling can take up to 90 minutes of ground time. Hence, precise planning and allocation is absolutely essential. Once a flight lands in an airport it has to be refueled for the next flight. The quantity of fuel required depends on the distance it has to travel to reach the next station and type of flight. Aviation fuel is a specialized type of petroleum-based fuel used to power aircraft. It is generally of a higher quality than fuels used in less critical applications such as heating or road transport, and often contains additives to reduce the risk of icing or explosion due to high temperatures, amongst other properties. Aviation fuels consist of blends of over a thousand chemicals, primarily Hydrocarbons (paraffins, olefins, naphthenes, and aromatics) as well as additives such as antioxidants and metal deactivators, and impurities. Principal components include n-octane and isooctane. Like other fuels, blends of Aviation fuel are often described by their...
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...luggage). Jet Blue prided itseft on its "paperless processes." JetBlue's investment in information technology enabled the airline to turn a profit by running its business at 70 percent of the cost of larger competitors. At the same time, JetBlue filled a higher percentage of its seats, employed non-union workers, and established enough good will to score an impressive customer retention rate of fifty percent. Initially, JetBlue flew only one type of plane from one vendor: the Airbus A320. This approach enabled the airline to standardize flight operations and maintenance procedures to a degree that resulted in considerable savings. Chief information officer Jeff Cohen used the same simple-is-better strategy for JetBlue's information systems. Cohen depended a1most exclusively on Microsoft software products to design JetBlue's extensive network of information systems. (JetBlue's reservation system and systems for managing planes, crews, and scheduling are run by an outside contractor.) Using a single vendor provided a technology framework where Cohen could keep a small staff and favor in-house development of systems over outsourcing and relying on consultants. The benefit was stable and focused technology spending. JetBlue spent on1y 1.5 percent of its revenue on information technology, as opposed to the 5 percent spent by...
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...Business Model and Strategic Framework – IndiGo Airlines Business Model and Strategic Framework – IndiGo Airlines 2013 7/24/2013 2013 7/24/2013 Introduction IndiGo began its operation in 2006 and after being into business for six years, it has become India’s largest airline services overtaking Jet Airways in November 2012. Through this project report, we aim to understand the business model that is used by IndiGo and their marketing strategic framework which would help us to understand the enormous growth shown by IndiGo. Porter’s 5-Force Analysis for Airline Industry and GoIndigo in particular 1. Threat of New Entrants New entrants in the aviation industry face intense competition from the existing players and these new entrants themselves act as a huge competition to the settled players in the market. Barriers for new entrants: 1. High initial setup cost- The initial setup costs for the entrants include the airbus costs, setup costs, licensing costs, costs to airports, inventory costs, and many other costs including taxes. This increases the entry barrier to the new entrants who are willing to enter the market. 2. Existing player’s defence of market share- The existing settled players have a loyal set of customers, an established brand name and an extensive value chain. With the entry of a new entrant, the existing companies can easily defend their market share from the former. Additionally, the existing companies have an advantage of the economies...
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...Table of Contents Executive Summary ………………………………………………... 1.0 Introduction ……………………………………………………… 1.1 Objectives of Sales Promotion Campaign …………………. 1.2 Customers to be Targeted ……………………………………. 1.3 Series of Consumer-Oriented Promotions ………………... 1.4 Trade-Oriented Promotions ………………………………….. 1.5 Communication Consideration………………………………. 1.6 Budgetary Considerations …………………………………… 1.7 Scheduling Considerations ………………………………... 1.8Legal and Logistics Considerations ………………………… 2.0 Appendices ………………………………………….................. 3.0 References ………………………………………………………. Introduction The main aim of this report is to create a 12-month London based sales promotion plan. This will be done by using different amount of factors to determine the best strategy for Virgin Atlantic. These factors will be including the objectives of the company as well as to what type of consumers to target while taking a deep look to budgeting and scheduling details. Since it was established in 1984, Virgin Atlantic Airways has turned into Britain's second biggest bearer serving the world's real urban communities. Presently based at both London's Gatwick and Heathrow air terminals, it works whole deal administrations to thirty destinations worldwide as far separated as Las Vegas and Shanghai. Virgin Atlantic has delighted in tremendous prevalence, winning top business, shopper and exchange grants from around the globe. The aircraft...
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...Question I 1. Types of information system used [4] In this study case, JetBlue uses the Transaction Processing system, which is a computerized system that performs and records the daily routine transactions necessary to conduct the business. 2. Business function of information system [8] JetBlue has the ability to provide a luxurious flying experience with leather seats, each equipped with personal TV screens, while at a budget price. Some airlines have to invest heavily in the quality of service that they offer, both on the ground and in the air. Ticket-less travel, new interactive entertainment systems, and more comfortable seating are just some of the product enhancements being introduced to attract and retain customers. JetBlue is now ahead of the game due to the initiative that it took and by using the information systems to automate key processes, such as ticket sales, and baggage handling. By using the Transaction Processing system, JetBlue was able to create “paperless processes”. Question II 1. Description of JetBlue’s business model [4] JetBlue airline is lauded for its lean operating structure. The company lived up to “paperless processing” by directing its customers to do most of their transaction online, and only dealing with employees when there is an issue. They offer low fares and point-to-point rather than a network service, and are focused on second-tier airports rather than going head to head against established hub. 2. Uses of information systems...
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...Case Study – Dogfight over Europe: Ryanair Business Landscape Item | Description | Impact | Government Intervention | Market Deregulation: * Free to set fares * European airlines to fly any route between EU countries * Any intra-country route between two European cities | Open for new competition | | European Union eliminated duty free sales on intra-EU flights | Has to pay duties | Ryanair Challenges & Strategy Description | Cashflow problem, Funded by Ryan Family | Strategy | Low cost carriersCost side: * Cut loss-making routes * Eliminate in-flight amenities (such as: free coffee and snacks) * Renegotiate labor contract (e.g: flight attendants pay is a function of duty-free sales and the number of flights they flew, “Luv” – pay based on productivity) * Stop distribution of meal vouchers to travelers whose flights delayed by bad weather * Stop using “air bridges” that linked parked planes to airport terminals * Reduce travel agents commission from 9% to 7.5% * Serve at secondary airports * Use other parties to handle ground operations * Not allow check baggage throughRevenue side: * Ticket, in-flight sales, car rentals, charter sales * In-flight duty-free sales, beverage, and snacks * Lease space behind seat-back trays and headrest to advertisers, exterior of plane with a corporate logi, in-flight magazine published with full advertisement | Routes | * 150 flights per day, 13 locations in UK, 4 locations in Ireland, 16...
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...Case Study 1 1. What is Proctor & Gamble’s business strategy? What is the relationship of collaboration and innovation to that business strategy? Proctor & Gamble’s business strategy seems to be to find creative ways to maintain the popularity and marketability of their current products as well as to continue to progress and cater to the needs of the “Facebook Generation” by creating newer, more modern brands. Collaboration and innovation play an integral part in that business strategy. As stated in the case study, Proctor & Gamble is a huge company with over 100,000 employees. This means that there are over 100,000 ideas for how to maintain and improve the marketability of the current product line and just as many ideas for new products. This seems that it would present an issue in sharing ideas quickly and efficiently. According to the text, Proctor & Gamble employees were using email to communicate and essentially share these ideas. That means over 100,000 emails were being sent at any given moment, multiple times a day. Email is the way most companies prefer to communicate but when you have thousands of them coming every day, it becomes a very ineffective communication method because I’m quite sure that most of those emails don’t get read. So finding better ways for employees to communicate and collaborate to share those hundreds of thousands of ideas and be able to provide feedback. Eventually those 100,000 ok ideas will become 20 or 30 great ideas that Proctor & Gamble...
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...Tjitrahardja Ramaratnam Narayanaswamy Faculty of Economics and Commerce University of Melbourne 2005 306-669 Strategic Enterprise Systems Group Project Executive Summary IT is one of the major enablers of AirAsia’s successful low cost business model. Based on the environmental scanning performed, the demand for Low Cost Carrier (LCC) is expected to expand rapidly attracting more players to join the market thus increasing the degree of rivalry within the industry. In responding to this condition, it is imperative for AirAsia to continuously identify new sources of cost advantage so that it can provide the lowest possible price to the price sensitive customer and improve its market position. In this project, Advanced Planning and Scheduling (APS) system is recommended as the new source of AirAsia’s cost advantages. Using Venkatraman and Henderson’s model APS fits smoothly to the Technology Transformation Perspective where business strategy acts as a driver. The functionalities provided by APS system to improve AirAsia’s performance include event management technology, supplier portals, inventory planning, demand forecasting, maintenance management, and route profitability analysis. As a result of implementing APS system, AirAsia can obtain both strategic and operational benefits. AirAsia is strongly recommended to outsource the development of APS system. As project management plays critical role in ensuring successful implementation, it is suggested that AirAsia follows the...
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...Tjitrahardja Ramaratnam Narayanaswamy Faculty of Economics and Commerce University of Melbourne 2005 306-669 Strategic Enterprise Systems Group Project Executive Summary IT is one of the major enablers of AirAsia’s successful low cost business model. Based on the environmental scanning performed, the demand for Low Cost Carrier (LCC) is expected to expand rapidly attracting more players to join the market thus increasing the degree of rivalry within the industry. In responding to this condition, it is imperative for AirAsia to continuously identify new sources of cost advantage so that it can provide the lowest possible price to the price sensitive customer and improve its market position. In this project, Advanced Planning and Scheduling (APS) system is recommended as the new source of AirAsia’s cost advantages. Using Venkatraman and Henderson’s model APS fits smoothly to the Technology Transformation Perspective where business strategy acts as a driver. The functionalities provided by APS system to improve AirAsia’s performance include event management technology, supplier portals, inventory planning, demand forecasting, maintenance management, and route profitability analysis. As a result of implementing APS system, AirAsia can obtain both strategic and operational benefits. AirAsia is strongly recommended to outsource the development of APS system. As project management plays critical role in ensuring successful implementation, it is suggested that AirAsia follows the...
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...Case #20 – Southwest Airlines Marisa Melchiorre Amber Harrison Emeka Onyia Company History 1966 Rollin King approached Herb Kelleher’s law office with plan to start low-cost/lowfare airline Ran into legal problems, rival airlines in Texas did everything they could to block new airline Herb Kelleher was determined to start up airline 1971 – Lamar Muse Southwest CEO, background in industry to get it up and starting Raised $7 million in capital and private investors to purchase planes and equipment Flights started between Dallas, San Antonio, and Houston known as the “Golden Triangle” First ever annual profit in 1973 2010 – market share leader in domestic air travel in US, consistently profitable even during down turning economy, profit every year since 1973 Number of passengers increased by more than 28 million 1. Is there anything that you find particularly impressive about Southwest Airlines? One of the most impressive characteristics about Southwest Airlines is their fun, loving, determined company culture that believes first in making employees happy which then results in happy customers. Herb Kelleher was adamant about listening and allowing employees to think and to most importantly be heard. The strong value of the happiness of their spunky employees is their competitive advantage against other rival airlines in the industry. Southwest is able to create a competitive advantage not only with their low prices but also offering a fun and humorous experience...
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