Company Background Air New Zealand was incorporated in April 1940 under the name Tasman Empire Airways Limited (TEAL). It was later in 1965 when TEAL was renamed Air New Zealand Limited. It still operated solely in international services. It was way later in 1978 when Air New Zealand started providing domestic services along with the international services. (History, n.d.) The company has been engaged in the business of operating domestic and international flights for passenger and cargo. The company is committed towards being number one in the industry by serving its customers uniquely and distinctively. (Company Profile, n.d.) In the year 2010 the company came up with the revolutionary Skycouch seats for its passengers for the very first time in New Zealand. The company again created history in the year 2014 when it debuted the first 787-9 Dreamliner in Seattle; which is a stretch version of the Boeing s new aircraft. The company has always been committed to provide the best and premium services to Kiwis and will continue to do so in the future. (History, n.d.) The company has been recognised by the industry for its great performance and service. It has been awarded Airline of the Year by AirlineRatings.com in 2016, World s Best Premium Economy Class by SkyTrax World Airline Awards in 2016, Eco Airline of the Year by Air Transport World in 2016 and many more such awards have been bagged by the company. (Awards, n.d.) Process Hierarchy ANSWER 1 Air New Zealand is an airline company. The company has defined various process hierarchies for departure, arrival, transfer and cargo. The process hierarchy for departure of passengers and luggage is described as follows a) Check In This is the first step in the process. Here the passenger is asked to show his ticket and other personal information which is verified by an airline employee. If the passenger has luggage; the luggage is assigned a bar code so that it is sorted according to the flights. b) After Check In The passengers can spend time at the shops and restaurants at the airport after the check in is complete. c) Luggage Handling System In this step the luggage from check in is forwarded to the luggage handling system for security check. Once the security check is complete the luggage is sorted as per the respective flights by scanning the bar code attached to it at the check-in stage.
d) Security Control At this step the airline company checks the passenger and hand luggage with the help of metal detectors. If something unusual is found the airline employee may have to resort to manual search of the passenger. The hand luggage and the passenger s belongings are checked alongside him via a conveyor belt. The passenger is asked to place his belongings on the conveyor belt before going through the metal detectors. e) After Security Control The passengers can spend time at the shops and restaurants at the airport after the security control is completed. f) Passport Control The passengers who are travelling internationally are required to get this check done as well. The passport of the passenger is checked to see whether the person is travelling on a valid passport. g) After Passport Control The passengers can spend time at the shops and restaurants at the airport after the passport control is completed. h) Luggage Transport to Aircraft and Loading In this step the luggage of the passengers i.e. given to the airline at the time of check in is transported to the plane. i) Boarding This is the last step in the departure process. An airline employee verifies the passenger s documents and the boarding pass. Once the check is done the employee registers that the passenger has boarded the flight. The luggage of the passenger who checked in but did not board the flight must be removed from the plane. This is known as luggage reconciliation. Input - Output Transformation Model - Following diagram illustrates the input output transformation model of Air New Zealand. (Mike Pycraft, 2007) Transformed Resources Passengers Luggage / Cargo Transforming Resources Aircraft Pilots, Air Crew Ground Crew Transformation Process Moving passengers and freight around the world Output Transported passengers and freight
Inputs - The inputs are divided into two parts namely; transformed resources and transforming resources. Transformed Resources These are transformed in some ways to produce the output. In case of an airline industry these are Passengers Luggage (Understanding Operations Management, n.d.) Transforming Resources These are the inputs that are used to perform the transformation process. In case of an airline industry these are Aircraft Pilot Air Crew Ground Crew (Understanding Operations Management, n.d.) Transformation Process Moving passengers and freight around the world. Process Level The diagram below will explain the process of Air New Zealand. Passengers and Cargo. Moving Passengers and Cargo Around the World. Passengers and Cargo reach the desired destination. Supplier Network Level Supplier Air New Zealand is truly a global company with its worldwide presence. Thus the company procures food, wine, toiletries, linens and other essentials from the local manufacturers of the region where it operates. Air New Zealand has issued a supplier code of conduct for all its suppliers which is mandatory for them to follow and is part of CSR initiative on behalf of Air New Zealand. Customer There are two types of customers for an airline company; namely Passengers and Cargo.
Company Hierarchy Process Illustration Supply Network Air New Zealand procures food, wine, toiletries, linens and other essentials from local manufacturers in the region it operates. Operations Air New Zealand s main operation is to move passengers and cargo from one place to another. Process Air New Zealand s process is to check in a passenger or cargo where it performs various steps and on the final step the passenger or the cargo boards the air craft.
ANSWER 2 Current Operational Performance Strategies Air New Zealand is global company which provides transport services to more than 15 million passengers in a year. The company believes that its competitive advantage and strategic focus lies within the Pacific Rim. Some of its operational performance strategies are listed below The company is persistent on increasing its total capacity. Strategic focus on increasing presence in the Pacific Rim region. Apart from that continuously looking for new markets to expand. The company also aims to invest in modern technology that will reduce the cost which in turn will help us achieve economies of scale. Operational performance strategy of the company also aims at investing in fuel efficient aircraft and simplifying the fleet. Strategy aims at reducing the overall CASK (excluding the fuel price). The company also aims at improving its digital platform in Australasia. The company also aims to improve and personalise customer experience. The strategy also aims at building the winning team for the organization. The company also aims at building a strong brand name and corporate reputation. (Data Book 2015, 2016) Contribution on Various Levels Social and Environmental Level CSR The operational performance strategies contribution to achieve organizational objective on the social level are It must include the social bottom line along with the economic bottom line. The strategy should identify that the business accepts that its operations have an impact on the environment. Like in the case of Palm Oil Air New Zealand has a position statement which aims at procuring sustainable palm oil from the RSPO certified source. (Palm Oil Position Statement, n.d.) The company bears responsibility of the actions and the consequences on the environment. Like in the case of Palm Oil the company understands that unsustainable cultivation of palm oil leads to weather change and depletion of the rain forest. Thus the organization aims at sustainable cultivation of the palm oil. (Palm Oil Position Statement, n.d.) Strategic Level The operational performance strategies contribution to achieve organizational objective on the strategic level are Revenue By increasing its reach in the Pacific Rim and constantly finding new markers the company increases its revenue globally.
Learning The company aims at revolutionise the digital aspect in the airline industry. This will increase the learning aspect for the company. Capital / Risk / Cost The aim to invest in the new technology and fuel efficient aircrafts will reduce the cost of company and help achieve economies of scale. Investment in the new digital platform will increase customer satisfaction and personalise the experience for the customer. Investment in fuel efficient aircrafts will pave way for innovation and capital investment. Operational Level The operational performance strategies contribution to achieve organizational objective on the operational level are Cost Important Air New Zealand aims at investing in fuel efficient air craft. This will reduce the cost and give the company the advantage of economies of scale. This will help reduce the overall cost thus increasing profits marginally. The company also aims at reducing the CASK. Speed Important Air New Zealand s objective is to provide a smooth check in process which is fast and at the same time reliable. The organization understands the importance of speed in the industry; but at the same time it understands the importance of security thus the ultimate goal is to create the balance between the two. Quality Important Air New Zealand aims at increasing its digital presence in Australasia and also optimally use the digital resources available to increase customer satisfaction. The other aim of the digital platform is to customize and personalise the journey for the customers thus leading to overall customer satisfaction. The company is continuously dedicated towards customer innovation which improves the overall quality of the service provided to the customer. Dependability Important The Company s strategies aim at investing in the best of human resources to create a strong team that enables it to hold on to the corporate reputation. Internal dependability improves the operation thereby reducing the cost and time. Flexibility Important The Company is committed towards innovation in the industry. The introduction of the Skycouch in 2010 is evidence supporting the above statement. Till date the company is committed towards improving its service and products there by facilitating flexibility.
ANSWER 3 Facility Layout is the arrangement of all the departments, aisles and workstations of your work place. The importance of facility layout increases tremendously for airline companies. A right layout will facilitate in saving time and cost to the organization and a wrong layout may cause millions of dollars to the airline company in the name of operational cost. The aim of the layout is to facilitate efficient and effective working. (Facility Layout, n.d.) Importance of Facility Layout a) Factory Building The figure below represents the facility layout of the Boeing 787-9 Dreamliner. The aircraft consists of four types of seats namely; business premier, premium economy, economy and economy skycouch. The very first seats in the aircraft are the business premier and then come the premium economy seats. After that an aisle and an exit gate is located. The rest of the aircraft consists of the economy seats amongst them few are economy skycouch. The layout also includes rest bunkers for the aircraft crew and the pilots. The aircraft also has basinets attached to certain seats to facilitate passengers with new born children. (Boeing 787-9, n.d.) b) Lighting The Dreamliner uses dynamic LED lights in the aircraft. Light is an important aspect of the layout because 80% the process is done visually. Once the passenger enter the aircraft it is with the help of its vision passenger can find the seat and arrange the hand luggage. All the seats in the aircrafts have reading lights which facilitate the passengers to read or work even after the mail lights are switched off. (787 Dreamliner By Design, n.d.) c) Ventilation Ventilation is an important aspect when it comes to aircrafts. The smaller the space the better the ventilation system. The relation between the two is converse. Ventilation is nothing but removal of contaminated air and replacing it with the fresh air. The Boeing 787-9 uses the same technology as used in operating theatres to clean and purify the air. The process is called gaseous filtration which cleans the air and removes odour from it. (787 Dreamliner By Design, n.d.) d) Work-Related Welfare Facilities The Boeing 787-9 has other great features such as bigger windows and adjustable tint, larger bins for hand luggage which are easy to use, lower cabin altitude, calmer cabin i.e. low noise inside the plane and the aircraft ensures smoother ride as compared to other aircrafts by reducing the motion sickness eight times. (787 Dreamliner By Design, n.d.)
ANSWER 4 Recommendations Air New Zealand believes in putting the customer at heart of everything they do. They believe an impeccable customer service and satisfaction is the key to grow the business and improve the reputation in the market. To achieve this goal of ultimate customer satisfaction the operations of the company must also be impeccable. Thus we recommend the following changes on the basis of our analysis a) Delay in aircrafts landing and departure cost money and time to the airline company. The most thought after flight plan also gets disrupted due to these delays. Thus the company should concentrate on utilizing the data to optimize the operations cost. It is easier said than done. The company needs to find and finalise the sources of the data and find the right tool for data analysis. This way the operations will run smoothly as compared to total disruption. This way Air New Zealand will be able to achieve its goal of ultimate customer satisfaction. (Moreno, 2017) b) The company must revolutionise its check in process by automating it. This way the company saves cost on employees working on check in process and the passengers save time by not standing in the queue.
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