comprehensive final project

1 Comprehensive Final Project Case Study: Can an Airline Cut "Turn Times" Without Adding Staff? Nateisha Clement Peirce College MGT 210 Professor Carl Place September 2023

2 I. Consider the following questions when identifying and diagnosing the problem: 1. Is there a difference between what is actually happening and what should be happening? The existing state at RSA Ground differs significantly from what should occur there. For the previous year, the actual turnaround times for inspecting, cleaning, fueling, and stocking aircrafts have climbed from an average of 12 minutes to 20 minutes. This departure from the desired turnaround time has a detrimental impact on flight scheduling, client’s satisfaction, and profitability. The desired outcome is a quick and effective turnaround process that satisfies the airline's 10-12 minute target, guaranteeing seamless operations and satisfied customers at a reasonable cost. 2. How can you describe the deviation, as specifically as possible? The primary issue is the noticeably longer turnaround times for aircraft maintenance at Rising Sun Airlines' subsidiary, RSA Ground. Over the past year, there has been a noticeable extension in turnaround times, increasing from an average of 12 minutes to 20.. This departure from the anticipated turnaround times is a serious problem, as it causes expensive flight schedule delays. Singamneni et al. (2019) assert that quick turnaround times are critical for aircraft manufacturing and maintenance processes. 3. What is/are the cause(s) of the deviation? One possible cause is insufficient staffing. Longer turnaround times result from RSA Ground's attempt to manage higher demand and more frequent flights with the same number of staff. Another reason is the high attrition rates. Due to significant turnover rates, temporary and

4 7. Develop a diagram or flowchart to graphically illustrate the problem Increased demand for air travel High Attrition Rates Delays in Flight Schedules Inefficient Cleaning and Servicing Processes Insufficient Staffing Fuller flights Decreased Customer Satisfaction and Profitability

5 Extended Turn Times 8. Identify all of the stakeholders this problem impacts Rising Sun Airlines, RSA Ground staff, passengers, investors, stockholders, and the human resources and recruitment departments are among the parties affected by this issue. II. Generate Alternative Solutions 1. Consider ready-made solutions or innovative solutions. When tackling the issue of prolonged turnaround times at RSA Ground, it is critical to consider both pre-made and creative solutions. The comprehensive turnaround recovery solutions encompass stand reallocation, swift de/boarding initiatives (such as remote stand assignment for expediting passenger movement), and rapid turnaround strategies. This entails bolstering staffing levels to enhance cleaning, catering, and loading processes while facilitating parallel fueling and boarding, and fortified by fire brigade fuel protection measures. An inventive strategy similar to Nobuo's, is actively encouraging staff members to share their concepts and "tricks" to increase productivity. According to Opland et al. (2020), employee-driven innovation is a novel type of direct involvement wherein staff members take the initiative to produce, develop, and put their ideas into action. This encourages a culture of ongoing development and empowerment, by giving staff members the authority to take responsibility for their work procedures . 1. Identify 3 possible alternatives to address the problem. The problems with RSA turnaround times can be addressed in a few ways.. According to Hiemstra-Van Mastrigt et al. (2019), disruptions during the boarding process significantly

7 efficient use of time and enhanced operational efficiency (IATA, 2021). Innovation is frequently only the application of clever ideas or novel approaches to problems rather than developing high- tech products. Instead of using a hub and spoke system, which requires passengers to change modes of transportation in order to reach their destination, Southwest Airlines employs an efficient point- to-point travel system that seamlessly transports passengers to their final destinations, bypassing congestion and optimizing travel convenience (Dias, 2020). By lowering delays and turnaround times and lowering the cost of hangar spots at large hubs, this method enabled the firm to operate short-haul flights profitably. It is stated by Pickering (2018) that Emirates' operational team in Dubai relies on Hub Monitor, which is an in-house tool crafted by the airline, to seamlessly exchange and meticulously track real-time data concerning the myriad tasks involved in preparing aircraft for takeoff. This innovative technology serves as a stalwart guardian against delays, bolstering punctuality through its proactive alerting system and vigilant monitoring, ultimately contributing to an elevated passenger experience. III. Evaluate the Alternatives 1. Identifying the Impact on Operational, Personnel, and Physical Plant Costs Alternative 1 (Employee-driven innovation): 1) Operational Costs : Initial investment in platforms or tools to capture employee ideas might be needed. As employees identify inefficiencies and suggest improvements, operational costs may decrease in the long run (Sullivan, 2017). 2) Personnel Costs : While there may be a short-term increase due to training or incentive programs for innovative ideas, increased efficiency can lead to better resource allocation, potentially balancing out costs in the long term. 3) Physical Plant Costs : Minimal impact is expected, but costs might be associated with any physical changes employees suggest to improve operations. Cost Type Initial Cost Ongoing Cost Operational Platforms or tools to capture employee ideas Maintenance of platforms or tools, employee training on how to use them, and

8 implementation of employee- suggested improvements Personnel Training and incentives for innovative ideas Ongoing employee training on innovation and problem- solving Physical Plant Any physical changes suggested by employees to improve operations Maintenance of any new physical changes Table 1: Initial and Ongoing Costs of Employee-Driven Innovation Alternative 2 (Optimized aircraft turnaround process like Delta Airlines): 1) Operational Costs : There will be an initial outlay for retraining staff and potentially for any new equipment. However, planes can make more trips if turnaround time is reduced, improving revenue. 2) Personnel Costs : Staff might require training to adapt to the new processes, adding to short-term personnel costs. 3) Physical Plant Costs : Implementing a new push angle system might require changes to the airport docking infrastructure, incurring additional costs. Alternative 3 (Point-to-point travel system like Southwest Airlines): 1) Operational Costs : Rerouting flights and modifying ticketing systems could be significant initially. Over time, operational costs might be reduced due to increased efficiency. 2) Personnel Costs : Significant training would be required to familiarize staff with the new system. 3) Physical Plant Costs : This change might need alterations in gate assignments and flight pathways, leading to higher costs. 2. Impact on Organizational Structure, Culture, Morale, and Other Areas 1) Alternative 1 : By emphasizing the value of each employee's input, the organizational culture shifts towards collaboration and innovation. Morale may improve as employees feel their contributions are valued. 2) Alternative 2 : The culture might shift towards one that values efficiency and precision. The new process can also provide a more transparent structure for ground staff, potentially boosting morale. 3) Alternative 3 : This could represent a significant shift, possibly requiring restructuring. While there might be initial resistance, if the system proves efficient, it can lead to improved morale and a culture of adaptability. 3. Departments Needed for Evaluation For all alternatives, it would be crucial to involve: 1) Finance : To assess cost implications and potential ROI. 2) Operations : To evaluate feasibility and operational impact. 3) Human Resources : To gauge employee morale, potential training needs, and feedback mechanisms. 4) Strategic Planning : To ensure the alternative aligns with the company's long-term goals. 4. Organizing for Success To successfully implement any of the alternatives, it is crucial to: 1) Engage Stakeholders : Keep all relevant departments and employees informed and involved (Watt, 2014).

10 alignment and smooth implementation. 3) Monitoring and Feedback : Set up mechanisms to monitor the progress of implemented solutions and gather feedback for continuous improvement (Sopact, 2021). 4) Review and Iteration : Periodically review the effectiveness of implemented solutions. Make necessary adjustments based on feedback and changing circumstances.

11 References Adrienne, N., Budd, L., & Ison, S. (2020). Grounded aircraft: An airfield operations perspective of the challenges of resuming flights post COVID. Journal of Air Transport Management , 89 , 101921. Bernstein, E., & Buell, R. (2016). Case Study: Can an Airline Cut “Turn Times” Without Adding Staff? Harvard Business Review Digital Articles , 2–8. Bhutada, N., & Sanmath, S. (2018). Analysis of employee retention strategies and factors: a case study of IT sector. Journal of Emerging Technologies and Innovative Research . Bright, D. S., Cortes, A.H., Hartmann, E., Praveen Parboteeah, K. … & O’Rourke, J. (2019). Principles of management . OpenStax College. Dias, R. S. (2020). Southwest airlines Co.: consistency for the future (Doctoral dissertation). Evler, J., Lindner, M., Fricke, H., & Schultz, M. (2022). Integration of turnaround and aircraft recovery to mitigate delay propagation in airline networks. Computers & Operations Research , 138 , 105602. Hiemstra-Van Mastrigt, S., Ottens, R., & Vink, P. (2019). Identifying bottlenecks and designing ideas and solutions for improving aircraft passengers’ experience during boarding and disembarking. Applied Ergonomics , 77 , 16-21. IATA. (2021). Top ways to safely improve the efficiency of aircraft turnaround with standardized procedures. https://www.iata.org/en/publications/newsletters/iata-knowledge- hub/improve-efficiency-aircraft-turnaround/ Opland, L. E., Pappas, I. O., Engesmo, J., & Jaccheri, L. (2022). Employee-driven digital