Chapter 2, Problem 4PA

Summary Introduction

Interpretation: Effect of schedule change of airlines

Concept Introduction: Operation management is a part of business administration in which goods and services are produced or redesigned with the highest level of efficiency to earn maximum profit.

Answer to Problem 4PA

Productivity is increased by 14% due to the frequency and convenient timings of flight.

Explanation of Solution

Consider the following data:

	Number of flights	Number of Passengers
Month prior to schedule change	16	8795
Month after schedule change	25	15653

Effect of the schedule change can be determined by the following:

1. $\text{Month}\text{prior}\text{to}\text{schedule}\text{change}\text{=}\frac{\text{No}\text{.}\text{of}\text{passengers}}{\text{No}\text{.}\text{of}\text{flights}}$

  $\text{Month}\text{prior}\text{to}\text{schedule}\text{change}\text{=}\frac{\text{8795}}{\text{16}}$

$\text{=}\text{549}\text{.6}\text{or}\text{550}$

2. $\text{Month}\text{after}\text{schedule}\text{change}\text{=}\frac{\text{15653}}{\text{25}}$

  $\text{=}\text{626}\text{.12}\text{or}\text{627}$

  $\begin{array}{l}\text{Increment in no}\text{. of}\hfill \\ \text{passengers per flight}\hfill \end{array}\text{=}\left(\begin{array}{l}\text{No}\text{. of passenger per }\\ \text{flight after schedule change}\end{array}\right)\text{-}\left(\begin{array}{l}\text{No}\text{. of passenger per flight month }\\ \text{prior to schedule change}\end{array}\right)$

Increment in no. of passengers per flight $=627-550$

Increment in no. of passengers per flight $=77$

  $\left[\left(\frac{\text{Increment}\text{in}\text{no}\text{.}\text{of}\text{passengers}\text{per}\text{flight}}{\text{No}\text{.}\text{of}\text{passengers}\text{per}\text{flight}\text{Month}\text{prior}}\right)\text{×}\text{100}\right]$

  $\begin{array}{l}=\left[\left(\frac{77}{550}\right)\text{×}\text{100}\right]\\ =14\%\end{array}$

Hence, productivity is increased by 14% due to the frequency and convenient timings of flight.