Operation Management - Assignment Example

1(a). Select any major item from either the categories in the bulleted list above and Imagine that you have been appointed as Director of Aircraft Maintenance at the new airport, responsible for all the aircraft maintenance facilities. You will not need detailed technical knowledge, as you will have a very well qualified staff of engineers and specialists, covering engines, avionics, instrumentation, heating and air conditioning, electrical and mechanical aspects and even specialists in cabin layout alterations. 1(a). The item chosen is a fully equipped maintenance engineering workshop complex to serve all aspects of airport maintenance (excluding equipment belonging to private firms (e.g. airlines, caterers, retailers, banks, etc). A good maintenance shop is a necessity for all major airports. Below is my diagram of what is needed for a fully equipped maintenance shop, from beginning to end. 1) Local suppliers a. Raw materials-iron, lumber, oil and other raw materials will be necessary to run a fully functioning engineering shop. Local suppliers will be cheaper and better for the economy. b. Prefabricated materials-these materials would include everything from light bulbs to mops. Bolts, screws, compressors, saws, hammers, nails, everything that is needed to fix things around the airport. Once again local suppliers need to be used whenever possible. 2) Imported materials- Craftsman tools, saws, drills, and other such items need to be imported from the United States. Trucks, bulldozers, and other vehicles need to be imported from Japan and the United States. 3) Finally a building, floor, or shop needs to be designated at the airport. All of the raw materials and imported materials need to able to fit in this area. This area also must consist of a concrete floor for easy maintenance. The area must consist of a large enough area to service airport vehicles, hold replacement parts, and work stations for the employees. 4) Customers Benefit-The customer will benefit from this service in numerous ways. From keeping the plumbing working, lights going, heat, air conditioning, to fixing anything that comes up, the customer benefits from a well working facility. 1(b). Imagine that you have been appointed as Director of Aircraft Maintenance at the new airport, responsible for all the aircraft maintenance facilities. You will not need detailed technical knowledge, as you will have a very well qualified staff of engineers and specialists, covering engines, avionics, instrumentation, heating and air conditioning, electrical and mechanical aspects and even specialists in cabin layout alterations. What you will need though, are excellent skills in supply chain management in order to provide immediate and very rapid availability of aircraft components and spare parts. For about a dozen of the most popular aircraft types using the airport, the manufacturers of each aircraft type will recommend a standard stockholding of such spares, tailored to suit the size of your particular airport’s operations. Not all these parts need be purchased from the aircraft manufacturer: there are numerous firms specialising in the supply of aircraft parts, with 24/7 service. Many items will be common to more than one aircraft (e.g. tyres, navigation equipment, microwave ovens, seat belts, overhead projectors) though, of course, some items will be specific to one aircraft model. Your problems will tend to arise when other spares are required that are not commonly used items OR because they are required for one of the less common aircraft types. Because of the plane’s very high capital value and also because of the lost revenue and compensation costs incurred when flights are cancelled, the cost per hour to keep an aircraft on the ground is enormous. Hence you must provide a top class, very rapid service to all the airlines using Nostovia’s new airport in repairing aircraft with faults. Please... (i) Explain, giving reasons, the kind/s of supplier strategy you would adopt in relation to the two different categories of parts described in the question. For the first type of parts, the standard parts, I would use the cheapest and most reliable local supplier. Standard parts usually cost twice as much from the manufacturer, when an ordinary supplier can deliver the same quality with half the price. If quality would not suffer, a local supplier would suffice. It would also depend on the most reliable. The second category would have to be purchased through the supplier, but shipped through an overnight carrier due to expediency. (ii) Describe how you would go about ensuring rapid delivery when there was an urgent need for components and spares that are not normal stock items. An overnight express service, like Royal Express Air or UPS, would be necessary. Some instances might require personal pick up by airport staff, either by charter plane or truck. (iii) Describe the key communications and logistical services and systems that would be important in helping you to achieve the required service levels. Computers, email, Internet access, and phones (cell and land lines) will be key to receiving supplies and parts. Computers can track invoices and shipments on the Internet. To communicate, computers and phones are also required. An employee that can speak fluently in several languages can also be helpful. The parts will be coming from around the world, having someone to communicate fluently will be a must. 2 Service Quality. The Novobenzo company is a major private company in Novostia. Owned by the king’s brother, His Highness Prince Loei Mak Chang, it provides refuelling services for aircraft at nearly all Novostia’s commercial airports. Mr Niran Keekiat, the divisional manager of Novobenzo who will be responsible for all supplies at the new airport is concerned about the levels of service he must provide to all the airlines operating into and out of the new airport. Already some smaller firms have begun competing at the old airport and the Novostia parliament has ruled that, notwithstanding its utmost respect and obeisance to the His Highness Prince Loei Mak Chang, at the new airport free competition must be allowed in regard to aircraft refuelling. Of course, the prince, while putting on a show of loyalty to his brother, the King, and publicly expressing his support for free trade and parliamentary democracy, is hopping mad. He has vowed to ‘sacrifice’ any manager who loses any significant volume of business to competition and given that all suppliers will be charging the same prices Niran is worried about how he can provide superior service to his airline customers and so retain their business. The new airport will have aviation spirit delivered by pipelines to central holding tanks connected direct to ‘hydrant type’ refuelling points on the ramp near the loading gates. There special pumping trucks will connect hoses to the aircraft and will pump in the requisite amount of fuel. There are four key aspects to the refuelling service: safety, accuracy (in supplying the correct fuel in the correct amount), timeliness and billing systems and it is in these areas that Niran will need to differentiate his service from competitors. 1) Explain what measures you would recommend Niran to adopt in order to monitor the quality of the services Novobenzo provides to its customer airlines, and identify what you feel would be the THREE most appropriate quality tools you that would propose to produce regular reports to Niran as divisional manager. Accuracy, timeliness, and a good billing system would be three of the key ways to produce accurate accounts to Niran. Accuracy makes accounting simpler. Numbers of fuel and price can be easily computed on reports. Timeliness is important to calculate accuracy. Good billing helps Niran get paid quicker, or be able to collect late bills in a timely fashion. 2) Identify and describe TWO quality management techniques that the company could adopt in seeking to achieve ‘best in class’ performance in its services to customers. In describing your recommended techniques your answer should include appropriate references to quality management theory, explaining the reasons for your choice. The two quality management techniques that the company should adopt in seeking to achieve best in class performance in service to customers are timeliness and safety. Safety helps customers feel safe to use the airport. High accident rates can scare customers from coming to the airport, especially when on vacation. Timeliness helps process planes faster, making customers happier. Read More