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 1 ETIHAD AIRWAYS AND THE LOST LUGGAGE 2 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! 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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 ETIHAD AIRWAYS AND THE LOST LUGGAGE 3 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 ETIHAD AIRWAYS AND THE LOST LUGGAGE 4 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 ETIHAD AIRWAYS AND THE LOST LUGGAGE 5 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 • 6 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 ETIHAD AIRWAYS AND THE LOST LUGGAGE 7 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. ETIHAD AIRWAYS AND THE LOST LUGGAGE 8 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.) ETIHAD AIRWAYS AND THE LOST LUGGAGE 9 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. ETIHAD AIRWAYS AND THE LOST LUGGAGE 10 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.) ETIHAD AIRWAYS AND THE LOST LUGGAGE 11 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 ETIHAD AIRWAYS AND THE LOST LUGGAGE 12 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. ETIHAD AIRWAYS AND THE LOST LUGGAGE 13 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. ETIHAD AIRWAYS AND THE LOST LUGGAGE 14 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. ETIHAD AIRWAYS AND THE LOST LUGGAGE 15 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 16
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