This includes using less human effort, less manufacturing space, and less investment tools to develop a new product. Lean Manufacturing Pros Lean manufacturing aims to eliminate most if not all forms of waste. Many experts claim that by implementing lean manufacturing techniques and strategies reduce the manufacturing time. As manufacturing lead time is lowered, it is the hope that the operational costs incurred from the use of energy will also be significantly reduced. Lean manufacturing helps companies maintain and increase their profits and earning.
On average, its employees receive a lower pay than other airlines like Continental and USAir. By offering a lower rate and not offering extra benefits, it could save cost. However, profit sharing scheme and discounted stock purchase program were introduced to motivate staff to provide quality services. In short, the system supports the cost-leadership strategy by nurturing a positive corporate culture and demonstrating cost consciousness, at the same time, without sacrificing the quality of the customer services. 3.
The commitment of the employees and the positive cooperation of the employees help the underlying company in order to easily achieve all of it targets. If the employees of the company cooperate with the company positively so that the company can get a competitive advantage. The techniques and principles of the human resource management help the Easy Jet Airline in order to achieve all the objectives of the underlying company. In order to manage the individuals of the underlying company, the human resource management of the company is very helpful in managing the individuals of the company. The working environment of every company must be the high-quality working environment so that the individuals will become motivated in performing the tasks of the company.
What sets competitors apart in the airline industry is how they get their customers to their destination. When coming out ahead of their competitor’s airline companies must focus on three areas; competitive differentiation, service quality and productivity. When an airline company focuses on improving in these three fields they can increase their outreach and customer preference. The airline industry is also known for its nonlinear pricing because they sell economy, first class, business class etc. tickets and at different prices before a flight.
Companies use lean operations which combine a set of tools, principles, practices and techniques in order to improve their performance (Bayat, 2016). The aim of lean is to improve the delivery, the cost, the quality and the consumers’ needs by reducing the variability, the waste and the inflexibility of a business (Drew, 2004). In fact, it is not easy for a company to adopt a lean strategy and most of them have troubles or fail in the implementation part (Hoyte, 2007). The reason of this failure is explained as an inability to understand the lean principles and essential organizational changes (Robinson, 2009). Principles of lean operations The lean principles consist the key for a succeed project of a business and they are used in order to eliminate the waste (Thurston, 2016).There are seven complications which affect the process of waste (Credit Union National Association, 2010).
Aviation is a critical part of our national economy, providing for the movement of people and goods throughout the world, enabling our economic growth. It 's a sector which is very vulnerable and affected by the global economic crisis and it 's facing several challenges during the recent years, which are presented below. TOP 5 Challenges in the Airline Industry. 1) The challenge of the Low-Cost Companies (LCCs): The ability to deliver cost efficiencies and productivity improvements is central to an airline 's competitiveness and success. The emergence of the no-frills, low-cost airlines (LCCs) has increased competition within the airline industry and ensured that existing airlines must improve their cost performance or face the risk of
Keeping service quality high enables a service firm to achieve customer loyalty and thus retain the existing customers as well as attract new customers to it. Advantages of customer retention is a crucial factor in a service’s growth and development for which reason the firm maintain understanding, meeting and delivering customer expectations as its primary goal. These are strategized as reference points. The customer’s perception about performance is based on these references by which he evaluates the service quality. A thorough understanding of customer expectations is indispensable to marketers.
They provide assistance to guest, fulfill their needs and meet their demands. As mentioned above, service quality is determined as the comparison that the customers make between the expectations about a service and the perception of the way that service has been delivered. Parsuraman et al. (1985) stated service quality as the function of difference between performance and service quality along with ten major dimension. In later research, Parasuraman et al.
However, when one airline serving a particular route cut its prices, its competitors, desperate to cover their fixed costs, quickly followed. This “price competition war” among the aviation industry enable consumers can switching to any airline companies whose offer the cheapest price. This is because consumers at that period is more concern about cost driven rather than the quality and services after the September 11 attacks. This shows low profitability as US airlines is compete more for business due to downfall of economy, by cutting down fare to attract customers and add services at lower costs to lure people into using their
Airline industry is one of the fastest modes of transportation for the passengers and also cargo (goods carried) services. Jet fuel price is the price charged for the amount of jet fuel, which is used to operate an airline. Among various cost factors jet fuel is one of the main operating cost factor with 40% of its overall operating costs, which are again responsible for finalizing the airline ticket prices and fares. Prices of jet fuel fluctuate from day to day. 2.1 Supply and demand When the supply and demand are at equilibrium levels, the prices are constant and the airline makes profits.