TQM OFService Industry

JET AIRWAYS

AVIATION INDUSTRY SCENARIOIN INDIA

• The Indian aviation is one of the fastest growing aviation industry in the world

• With the liberalization of the indian aviation sector, aviation industry in india has undergone a rapid transformation

• Private airline accounts for almost 75% share of the domestic aviation market

• India has 454 airports of these 16 are designated international airports

PLAYERS IN THE INDIAN MARKETPLAYERS IN THE INDIAN MARKET

• Airlines at International Routes• AIR INDIA

• KINGFISHER

• JET AIRWAYS

• INDIAN AIRLINES

Airlines at Domestic Routes

• INDIGO

• GO AIR

• SPICE JET

• AIR DECCAN

INDIAN MARKET SHARE

30%

29%

20%

8%8% 5%

Sales

JET AIRWAYSKINGFISHER AIRLINESAIR INDIA+INDIANINDIGOSPICEJETOTHERS

Welcome Aboard

India’s Most Preferred Airline

FORMATION OF JET AIRWAYS

• Mr.Naresh Goyal founded Jetair (ltd) in May 1974

• In 1991 Diversification Programme

• Commenced commercial operations in May

MISSION

• Jet Airways will be the most preferred domestic airline in India.

• Jet Airways will achieve this pre-eminentposition by offering a high quality of serviceand reliable, comfortable and efficientoperations.

CODE OF CONDUCT

• Confidential information• Fair dealing• Compliance with laws and regulations• Prevention of insider trading• Encouraging reporting of unethical or illegal

behavior• Record keeping

JET AIRWAYS PARTNERSHIPS

• Air Canada• American Airways• Brussels Airways• All Nippon Airways• Jetlite• QANTAS

• Car rental partners

• Co-Brand card

• Conversion

• Hotel partners

SERVICES

• Check In Options :• Airport Check in

Tele Check inWeb Check inKiosks Check in

• • Airport Lounges• Bus Services•Cuisi nes•Entert ainment

SPECIAL SERVICES

• Infant and Child Care• Wheel Chair Assistance• Unaccompanied Minors• Medical Emergencies• Traveling with Animals• Jet Mobile

TQM TECHNIQUES

• Jet Airways formulated a Quality ManagementSystem for In-flight Services in February 2001 as partof a comprehensive exercise to implement ISO inselective operational areas.

• They also implement KAIZEN techniques to improvethe services of their employees through continuous training programs.

SERVQUAL MODEL

• Is a model to assess the gap of an organizationsservice quality performance against customer qualityneeds.

• Introduced by Zeithaml, Parasuraman and Berry in 1985.

• It is widely used within service industries to understand the perception of target customersregarding their service needs

• SERVQUAL was originally measured on 10 aspects of service quality : reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding the customer and tangibles

Servqual Data - What can we do

• We can use data on customer priorities to feed into the House of Quality (QFD)

• Quality function deployment (QFD) is a “method to transform user demands into design quality, todeploy the functions forming quality, and to deploy methods for achieving the design quality into subsystems and component parts, and ultimately to specific elements of the manufacturing process.

DIMENSIONS OF SERVQUAL MODEL

• Reliability: Ability to perform the promised service dependably and accurately.

•Assurance:Knowledge and courtesy of employees and their ability to inspire trust and confidence.

•Tangibles:Appearance of physical facilities, equipment, personnel and communication materials.

•Empathy:Caring, individualized attention the firm provides to its customers.

•Responsiveness:Willingness to help customers and provide prompt service

An empirical study was conducted in 2007on the

Indian airline industry (FSC) using ServQualmodel

JET AIRWAYS KINGFISHER AIRLINES

INDIAN AIRLINES+AIR INDIA

RELIABILITY 1 2 3

ASSURANCE 1 2 3

TANGIBLES 2 1 3

EMPATHY 1 2 3

RESPONSIVENESS 1 2 3

AREAS OF QUALITYMANAGEMENT

1 On time 2 Delay information

3 Announce delay4 Good in-flight service5 Good in-flight food6 Waiting time for baggage7 Baggage lossOn time8 Delay information9 Announce delay

10 Good in-flight service 11 Good in-flight food 12 Waiting time for baggage 13 Baggage loss

14 Compensate baggage loss 15 Good ground service 16 Refreshments on delay 17 Accommodation on delay 18 Online booking 19 Discounted fare 20 Real benefits for frequent fliers 21 Maintenance of Aircraft & other Equipments

YIELD MANAGEMENTOR

REVENUE MANAGEMENT

Process of understanding, anticipating and

influencing consumer behavior in order to maximize yield or profitsfrom a fixed, perishable resource (such as airline seats or hotel room reservations).

• Yield Management involves strategic control of inventory to sell it to the right customer at the right time for the right price. This process can result in price discrimination, where a firm charges customers consuming otherwise identical goods or services a different price for doing so

EXAMPLE

• In the passenger airline case, capacity is regarded fixed because changing what aircraft flies a certain service based on the demand is the exception rather than the rule. When the aircraft departs, the unsold seats cannot generate any revenue and thus can be said to have perished. Airlines use special software to monitor how seats are being reserved and react accordingly, for example by offering discounts when it appears that seats will remain unsold & vice versa

QUALITY CERTIFICATION

• In flight Services, ISO 9001 : 2000 certified Certification for the product and service ranges includes Design, Development and Delivery of Customer Services that meet world-class standards

• IATA Operational Safety Audit (IOSA) Registration

COST CONTROL MEASURES

• Jet Airways and Kingfisher Airlines, have put asidetheir differences and joined hands to cut costs throughcode-sharing and combining ticketing and groundservices.

• The airline leased two of its Boeing 737s to aJapanese company, and implemented a number ofworkforce productivity measures.

• Salary cut of employees

AWARDS

• ‘airline with best first-class service in the world’ award at Business Traveler’s 20thannual ‘best in business travel’ awards gala in the USA

• ‘best domestic full service airline’ awardfor the sixth year in a row

• “Most innovative product launch” award

Customer Response through Surveys(word of mouth)

Positive Aspects :• Jet travelers found its flights to be on time.• Jet usually informed their customers about delay in advance

through SMS or telephone call.• In the case of a delay Jet usually provides travelers with

refreshments• Jet was found to be providing good in-flight food &

entertainment• Baggage loss was found to be almost never a problem with

Jet Airways• Staff friendly and helpful

Negative Aspects:• The main problem with Jet however is their

staff. Although they are polite and try to be helpful, they seem to be untrained and get overwhelmed easily.

•Sometime there is a delay for baggage•Their catering is poor in variety and quantity

THANK YOU