Running head: ETIHAD AIRWAYS AND THE LOST LUGGAGE
Etihad Airways And the lost luggage
Quality Management Tools
Amna Ahmed H00255030
Afeya Al kindi H00281050
Hamda Rashed H00269914
ETIHAD AIRWAYS AND THE LOST LUGGAGE
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ETIHAD AIRWAYS AND THE LOST LUGGAGE
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Contents
Cover page ...................................................................................................................................... 0
Introduction ..................................................................................................................................... 3
Objective of the Study .................................................................................................................... 3
Problems of an Organization’s Workflow ...................................................................................... 4
Overview of Work Flow from Customer, System and Administration ...................................... 5
Figure 1 ...................................................................................Error! Bookmark not defined.
Quality Management Tools used by Etihad Airlines ...................................................................... 7
Pareto Chart ................................................................................................................................. 7
Table 1 ..................................................................................................................................... 8
Pareto chart .............................................................................................................................. 9
Figure 2 .................................................................................................................................... 9
Scatter Diagrams ....................................................................................................................... 10
Figure 3 .................................................................................................................................. 10
Control Chart ............................................................................................................................. 11
Figure 4 .................................................................................................................................. 11
Quality Management Implementation Plan .................................................................................. 11
Conclusion .................................................................................................................................... 12
Appendixes ................................................................................................................................... 15
References ..................................................................................................................................... 15
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Introduction (This section should have a reference – Minimum 2)
An Etihad airway is the national airline of the United Arab Emirate. It was established in
2003 by the royal decree and began its operations in November the same year (Etihad Airways,
2016). Over the years, the airline has growing to be one of the fastest growing in the world.
Etihad has received more than 30 awards since it started its operations since it was launched in
2003 and has been rated four stars by Skytrax (Reference?). The airline won the World’s
Leading Airline award in 2009, thus becoming the first Middle East airline to win the prestigious
award (Reference?). It later retained the award for five consecutive years. Etihad Airlines signed
a partnership with Virgin Australia for a period of ten years. The company has also acquired
stake in several airlines such as Airberlin which is the second largest air carrier and Germany and
six across the world as well as 40% stake in Air Seychelles. Etihad airways have its hub in Abu
Dhabi and flies to six continents across the world flying to 109 destinations (Reference?). It has a
fleet of 102 aircrafts and ordered more aircrafts in order to improve its operation. Notably, the
company has not been involved in any deadly aircraft accident since it was launched in
2003(Reference?). The company’s mission is to control, plan and develop an efficient and well
integrated transport system that serves a public interest by enhancing mobility, safety and
secure environment.
Objective of the Study
Lost luggage is an issue that has affects most airlines across the world. An Etihad airline
is not an exception and has received several cases of lost luggage from its customers flying
across various destinations cross the world. According to the airline policy, the airline is
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responsible for the lost luggage and therefore has to compensate its valued customers. This
makes the company to allocate some amount of money for some miscellaneous costs. However,
development of well-organized and efficient strategies may greatly help the company
significantly minimize the costs associate with lost luggage compensation. The objective of this
research was to determine the number of cases involving delayed and lost luggage in Etihad
Airways. The research used secondary data by observing cases of delayed and lost luggage in
the company’s luggage department record. Etihad Airways have faced the issue of delayed and
sometimes lost luggage.
Problems of an Organization’s Workflow
There are various problems with Etihad Airways workflow. Firstly, there is the human
factor issue as many employees view workflow management as a strategy to block their
decision-making powers or as a downsizing instrument. Other employees oppose being
monitored by their seniors since they feel that the organization has overstepped on their privacy.
Etihad Airways have significantly attempted to improve its workers satisfaction. However, it has
been blamed of over-management. Most customers indict the company of trying to monitor and
dictate all process details. This may be a very tricky issue since it can result in worker conflict.
Etihad Airways workflows may also result in loss of flexibility among employees. Some of the
processes in the organization require employees to apply personal judgment and remain flexible.
Workflow implementation at Etihad Airways may contribute to technical implementation costs.
Especially, work flow management may be very complex requiring numerous resources for
correct implementation and management. Some of the cost considerations consist of creation and
maintenance of the network, costs of purchasing workflow software and customization of
various services offered by the airline. Etihad Airways workflow has created new work. The
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management of the business systems and technical aspects has created additional work which has
to be addressed by anticipated benefits and savings. Here is how Etihad airline workflow looks
like.
Overview of Work Flow from Customer through the relevant channels in case
of luggage lost
In the below diagram, it shows customer complaint about a lost luggage in Etihad airport. These
are the necessary channels they have to follow.
•
From the start you enter A- this shows the customer complaint of which should be
identified in B
•
B is the enquiry desk and security check desks.
•
C is where they identify whether it’s true or false. If they find is false, the process is
•
ended but if they find the customers claim is justified the process continues
•
The system is counter checked through the observation. This process identifies whether
the customer left the luggage carelessly or it was stolen without his or her knowledge.
•
If they find that the luggage lost was not due to the customer fault he or she is referred to
the Operation manager at D
•
At D the operation manager tries to identify if the luggage can be located. If it’s
•
Impossible to relocate the luggage then the company agrees the terms and conditions to
repay that customer’s bag.
•
If the customer agrees to be repaid, the Operation sends them to the Procurement office at
E. They come to a written agreement for the company repayment.
ETIHAD AIRWAYS AND THE LOST LUGGAGE
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If the customer is satisfied the process is terminated but if the customer is not satisfied the
process is repeated from the start.
Figure 1
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Quality Management Tools used by Etihad Airlines
➢ How we collected Data..
o Interviews … (Emails exchanged with Etihad staff (See Appendix 1))
The airline uses several quality management tools. Notably, the company’s quality
practices involve a management philosophy that aims at ensuring its valuable customers receive
high quality services. An Etihad airway is committed to address its customers’ expectations and
needs. The management is dedicated to reflect an image of generosity and hospitality and attract
customers’ loyalty and satisfaction (Hassan, 2014). In addition, Etihad also aims at reducing
defects and errors. The airline has developed a website where it communicates with its customers
from various geographical locations in order to determine customer satisfaction and complaints.
It has increased its innovation and competitiveness in the flying industry by adopting new
technologies. It has also significantly increased its quality management practices by empowering
its employees and promoting teamwork. Employees’ satisfaction has been greatly increased by
empowering them through training and making critical decisions aimed at ensuring the
company’s development. Its commitment to attain of high standards evidenced by its ISO
certification as well as quality dimensions for services such as service reliability, tangibles,
assurance, responsiveness, and empathy. Tangibles refer to the physical features such as personal
and equipment. The tangibles at the airport consist of Airplane comfort, condition, quality of
food among many others. The airline also uses various quality management tools to monitor
customer lagguages such as the Pareto chart and scatter diagrams.
Pareto Chart
Notably Pareto chart refers to quality improvement tool that utilizes the Pareto
principle. Basically, it includes a bar chart that indicates how each cause contributes to an effect.
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It is used for several different ways such as analyzing the occurrence of problems in a particular
process, analyzes causes of the problem by analyzing individual components and helps to
indicate the significance of problems or sources to others. It states that most of the problems are
caused by a few causes. As a result, organizations should focus on minimizing major causes in
order to improve quality. Etihad Airways has extensively used the Pareto chart to separate minor
aspects of a problem to the significant ones.
The table below shows the number of luggage lost in five serial days.
Table 1: Baggage Lost in different sections of Baggage handling in 5 days
Luggage lost
Day 1
Day 2
Day 3
Day 4
Day 5
Departure
3
1
2
0
4
3
3
2
4
7
7
9
3
2
1
Airport Dock
6
0
5
1
0
Totals
19
13
12
7
12
Lounge
Baggage
Collection
Transit
Airport
(This information will be used to plot Pareto chart, scatter diagram and a control chart.)
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Pareto chart
It highlights the most important among set of factors.
Figure 2
Pareto Chart for Lost Luggage
25
100%
90%
20
80%
70%
15
60%
50%
10
40%
30%
5
20%
10%
0
0%
Departure Launge
Baggage Collection
Transit Airport
Totals:
Cumulative %
Airport Dock
,it shows the distribution in percentage form, it's a bar graph and is drawn from the totals of all
the consecutive days the luggage have been lost. It's explained using a bar graph and a
percentage curve.
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Scatter Diagrams
Scatter diagrams refer to visualization of the link between two variables that are
determined on the same set of individuals. Data points that are close together indicate a higher
correlation between two variables. Etihad Airways have used these to determine the main causes
of lost baggage.
Scatter diagram of lost luggage
10
9
8
7
6
5
4
3
2
1
0
0
1
Departure Lounge
2
3
Baggage Collection
4
Transit Airport
5
6
Airport Dock
Figure 3
(Here it shows how the management is able to deal with those cases from the highest to the
lowest points.)
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Control Chart
This control charts shows how Etihad airline tried to identify problems and also solve them.
Control charts for available data are used in pairs. This shows how luggage got lost and how the
problem was addressed. The upper control limit was 9 while the lowest control limit was 1. From
this control chart you can draw a conclusion whether the luggage problem can be contained or
it’s unpredictable.
Figure 4
(Control chart shows how well is the organization able to deal with the problem of lost luggage.)
Our Proposal….
➢ Pareto Chart Introduction, Chart itself and Explanation.
➢ Show how Pareto chart helped you find the real location where baggage is lost and how to
tackle that issue (increase staff in that area, increase monitoring and surveillance of that area or
add RFID tracking to baggage)
Quality Management Implementation Plan
In order to make sure that the quality management of the organization is, much improved
a number of activities need to be carried. These act as a pull factor so that the overall operation
and activities in the organization can run smoothly and in a right manner.
In making sure that there is improvement in the quality management of the organization.
Through this we get that there are a number of activities which are followed and also which need
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to be enacted in the organization. The organization need to make sure that they conduct
campaigns which will help in proving on the important of good quality and the need for a quality
management in the organization. The organization will also need to make sure that they motivate
their workers through the act of giving gifts and rewards. Through this we get that the worker
will be working very hard to achieve their best and also to benefit as much as possible from the
rewards and also the gifts given by the organization (Eshna, 2012). The organization also need to
have an improved technology which will help in fully delivering the best to the quality managers.
Through this get that activities such as competition is minimized in the organization and the
organization able to carry out its activities in a good and proper way.
Conclusion and Summary
➢
➢
➢
➢
➢
Introduction (3 Lines)
Current Tools they use (Scatter and Control: Advantages, Disadvantages)
Your solutions (Pareto, CAD…..) – Explain each section and how it relates to Baggage.
Continual Improvement… Methods and Explanation on how to implement it.
Output (What happens if your solutions are implemented?)… Reduce percentage of lost
baggage, improve customer satisfaction, public image, brand development……
➢ Summary… (We looked at ….., This was the problem we identified, We offered ______
solutions…)
Etihad airway is an airline company located in Abu Dhabi, United Arab Emirates. Since
its establishment in 2003, the company has significantly grown to be one of the fastest
developing companies. The airline vision seeks to reflect the best of Arabian hospitality cultured, considerate, warm and generous - as well as enhance the prestige of Abu Dhabi as a
Centre of hospitality between East and West. Our goal is to be a truly 21st century, global airline,
challenging and changing the established contracts of airline hospitality.
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Since Etihad is committed to a strategy of collaborative growth in order to gain the scale,
this airline requires being competitive in the global air transport market. Beyond our organic
growth, this is being achieved through the development of a strong partnerships and sponsoring
the community around us by promoting talents on individuals and youth groups. Etihad has made
it possible access to hundreds of destinations all over the world.
Despite its impressive growth, the company has faced several challenges in its operation
such as delay and loss of customer luggage. The current Etihad Airways workflow has several
problems such as excessive supervision of the employees by the company management. These
challenges includes the workflow management, resistance to its employees, downsized decision
making, lack of flexibility among junior staff, many of the employees doesn’t like being
monitored, and also most of the customers accuse the management of being too strict and being
authoritative.
Etihad airline has come up with some rules and strategies to improve its quality
management that can be friendly to everyone being attached to it. The company used some
methods to come with valuable conclusion so that it can maximize its operations in a free and
fair way. Some of the company used some tools like Pareto chart, Scatter diagrams and control
charts to enable their problems are stable. Pareto chart was used to indicate how each cause
contributes to an effect in the overall system. It is used for several different ways such as
analyzing the occurrence of problems in a particular process, analyzes causes of the problem by
analyzing individual components and helps to indicate the significance of problems or sources to
others. Scatter diagrams analyzed data points that are close together indicate a higher correlation
between two variables while the control chart tried to identify problems and also solve them.
Control charts for available data are used in pairs.
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In general Etihad Airways is an Airline applies its unique vision of air travel to
accommodate everyone and offer quality services to both its employees and customers with a
great future to be the best Airline in the world.
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Appendix 1:
➢ Label the tables and charts directly.
References
1. CQE Academy. (2017).The Scatter Plot & Linear Regression. Retrieved from
http://www.cqeacademy.com/cqe-body-of-knowledge/continuous-improvement/qualitycontrol-tools/the-scatter-plot-linear-regression/
2. Eshna. (2012). How to Improve Quality Management Consistently? Retrieved from
https://www.simplilearn.com/improving-quality-management-consistently-article
3. Etihad Airways. (cover story). (2016). Air Transport World, 53(2), 22-25.
ETIHAD AIRWAYS AND THE LOST LUGGAGE
4. Hassan, M. (2014). Term Paper on Etihad Airways. Retrieved from
http://jeenerbadsha8895.blogspot.co.ke/
5. Mubarak, A. (2011). Total Quality Management Principles. Retrieved from
https://www.slideshare.net/AmmarMubarak/total-quality-management-principles
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