Engineering Organization Contribution towards Costs Saving - Thesis Example

The paper "Engineering Organization Contribution towards Costs Saving" is a perfect example of a finance and accounting thesis. The world economic situation has set a tough environment for many organizations around the world. Aviation is one of those impacted markets by the global economic crises. These crises have enforced taking extreme measures budget control and management. With the current airline approach towards restructuring and saving costs, the technical organization can play a vital in cost reduction. According to Statistics, maintenance costs take a large proportion out of the operating costs by operators. Technical (maintenance and engineering) organization costs play a vital role in any airline’s budget.

Airlines can achieve cost efficiency by following two different types of methods. The first is to be airline focused. This can happen if the airline uses the latest and efficient technology and operates efficiently and thus, save its fuel. By acquiring the latest technology aircraft, the airlines can save their fuel. The second method is to have a fuel-efficient procedure and an efficient route structure, which is offered by the ANSP (Air Navigation Service Providers). The route structure and airspace is in the process to be optimized and enhanced in the Middle East countries, such as Oman, Sudan and Kuwait, by the IATA, through its dialogues with the Air Navigation Service Providers.

At the beginning of the 1990s, the automobile industries were just concerned with the lean concept and they were willing to apply this concept in their organization. It was really useful to employ its precepts in the production and assembling units of an organization. Afterwards, the manufacturing industries were interested in practising this concept, but their involvement was much smaller as compared to the interest of the car manufacturers. In the late 1990s, the lean concept was diversified and it was believed to be something more than the principles of production and assembling products. In this mode, the other relatable concepts were revealed, such as Lean Supply, Lean Management and Lean Design. The diversification of the lean concept made its way to be used outside the manufacturing and car production industries.