Effective Operations Management At Ryanair

potent Operations Management At RyanairTo be sure-fire in an change magnitudely warlike environment, fundamental laws must(prenominal) be more reconciling and advanced than ever before in providing a supreme step service. This authorship testament consider the post of operations concern with the organisation and shipway in which winnerful operations concern can contribute to run into organisational objectives.It is essential the organisations address issues of spirit and imagination utilization to reduce cost and show captain node service with the aspiration of increasing sales and creating a competitive advantage. This paper pass on discuss how organisations can seduce a character civilization with TQM, and diagnose conundrums and beas for amendment victimization feature tools such as tumble and six Sigma.The final shargon of this paper entrust discuss how organisations can be after for the triple-crown murder of TQM, highlighting the need for a tincture worry team up, adequate anxiety and mental imagery availability, and consultation and communion with its workforce.Task 1 The strategicalal objectives of operating(a) oversightThe role play by effective operations centersing at RyanairThis partitioning impart discuss the role played by effective operations management at Ryanair Europes largest low cost airline. Effective operations management is the validationatic direction and control of five functions (management, procurement, faulting, guest services and distribution) that transform input resourcefulnesss into finished goods or services oblation superior guest gratification (Slack, 1999). Within this transformation process ( foretell 1), the role of effective operations management is to improve resource utilisation, thus reduction costs, whilst likewise providing improved select and guest service which extends revenue (Slack and Lewis, 2002).Figure 1 Transformation processOperations managem ent at Ryanair aims to hone resource utilisation by the careful management of employees, technology, raw materials and currency in piece to outgrowth productivity. For example, flight staff at Ryanair are trained to improve their productivity and keep aircraft turnaround multiplication to a minimum (Slack et al, 2007). This increase in productivity part withs Ryanair aircrafts to make more flights separately day, significantly increasing turnover.In growth to this, an other(a) role of operations management at Ryanair is to escort superior guest satisfaction. This is get hold ofd through with(predicate) ameliorate the flexibility, prime(prenominal) and consistency of its service and continu all in all(a)(a)y driving peck costs. For example, through providing a no-frills basic service on-board its aircrafts, Ryanair can date superior satisfaction through driving down costs (Slack et al, 2007).The role played by effective operations management at Ryanair is to maximise resource utilisation and master superior customer service. Although operations management at Ryanair is extremely successful at these devil roles, it could be recommended that they continue to ensure effective operation management through maintaining a precise brain of customer requirements and monitoring environmental change that may affect these requirements.Ryanairs strategic objectivesRyanairs strategic objectives set turn out its mission and aims as well as defining how it is going to compete within its market (Slack and Lewis, 2002). Ryanairs strategic objectives will be categorised in terms of its goal (market pinchers), channelize customers and quip (classifi fitting lineing), operating trunk (to sustain its low cost position), respects and classifiable competence.Ryanairs fundamental goal is to name itself as Europes leading low-fares schedule rider airline through continued improvements and expanded offerings of its low-fares service (Ryanair, 2009). Gaining an d maintaining market leadership is advantageous in allowing Ryanair to increase its publicity due to leadership status, increase its economies of scale and further reduce costs.Another main strategic objective of Ryanair is to enlightenly identify its target market segments in order to position its strategy to satisfy fact customer requirements. Ryanair identifies its target customers as fare-conscious waste and business travellers (Ryanair, 2009). In addition this, Ryanairs strategy is to create a superior offer tailed to its target customer requirements. Ryanair aims to offer low fares that hand over increased passenger traffic while maintaining a invariable counseling on cost-containment and operating efficiencies (Ryanair, 2009).Ryanairs strategy is in like manner to clearly define its family determine of low price, value for money and efficiency and to further engage its distinctive competence of beingness creative at driving down cost. This distinctive competence is effective beca habit it can be transferrable to other services it provides a benefit to the customer and is unique to Ryanair.In summary, Ryanairs strategic objectives are to become Europes largest airline operator through offering low-cost, unquestionable service to both business and leisure users. Ryanair aims to achieve this through clear family determine of low price, value for money and efficiency and its distinctive competence of being creative at driving down costs. In order to fill these strategic objectives, Ryanair must ensure that its operational objectives are focussed on ensuring superior customer satisfaction and effective resource utilisation.The success of Ryanairs operations objectives in meeting strategic objectivesThis part of the denomination channelizes how Ryanairs operations objectives contribute effectively to achieving its strategic objectives. Operations objectives are decisions which invent the capabilities of an operation and their long-term contr ibution to strategic objectives, through the reconciliation of market requirements with resource utilisation (Slack and Lewis, 2002). The success of Ryanairs operations objectives in meeting strategic objectives is achieved through its focus on ensuring superior customer satisfaction and through rigorous redesigning of systems and processes to enhance resource utilisation.Superior customer service is achieved by Ryanairs operations management through obtaining a clear understanding of the characteristics and requirements of their target customers. Ryanair understands the immensity of a low-cost, reliable and safe airline service to its customers. Ryanair sells tickets outright to customers through its internet site keeping prices low and providing customers with the flexibility to demoralise tickets whenever and wherever they choose (Ryanair, 2010). In addition to this, Ryanair to a fault keeps aircraft turnaround times to a minimum allowing more flights to take off per day and i ncreasing the availability of flights to customers (Slack et al, 2007).Operations management at Ryanair also aims to improve resource utilisation and to continuously drive down cost. Ryanair, for example, uses standardised aircrafts and parts to allow for large orders from a single aircraft supplier increasing their economies of scale. In addition to this, Ryanair schedules flights to subalterner secondary dromes allowing money to be saved in airport fees (Slack et al, 2007).These twin operational objectives are so well balanced that they modify Ryanair to successfully achieve its strategic objectives. Through ensuring superior customer satisfaction, Ryanair is able to maintain a clear definition of its offer and also fulfil its goal to become Europes largest budget airline through increasing its customer demand. In addition to this, continuous improvement to resource utilisation allows Ryanair to unclutter and maintain competitive advantage through its distinctive competence of being creative at driving down costs and values of providing a low price and efficient service.Ryanairs operations objectives are extremely successful in meeting strategic objectives through its clear focus on ensuring superior customer satisfaction and rigorous redesigning of systems and processes. It could be recommended that Ryanair further builds upon this success through the instruction execution of a Total tonus Management (TQM) system aimed at integrating practical attribute control techniques with organisational assimilations conductive to the continuous improvement of spirit (RDI, 2008). TQM systems at Ryanair will be further discussed in the next section.Task 2 Appropriate Systems2.1 Systems to ensure the timberland of productsThis section will discuss the use of two fundamental fictitious character systems, Six Sigma and skimpy. These two processes implement different methodology to achieve a homogeneous goal an offer of superior quality through the careful pre condition of customer requirements and removal of defects and waste.Six SigmaSix Sigma is a data-driven discipline aimed to improve the quality of operational processes by listening to customer requirements and identifying and removing the causes of defects and variability (General galvanic Company, 2009). Organisations that implement Six Sigma correctly achieve significant benefits that contribute to competitive advantage and to changing the ending in an organisation from reactive problem solving to proactive problem prevention (Six Sigma Group, 2010).An organisation such as Ryanair could use Six Sigma to ensure quality through the instruction execution of the Define, Measure, Analyse, correct and Control method end-to-end the organisation. Customer requirements must be be and measures should be made a winst core business processes to determine possible shortfalls. potence gaps amid current performance and goals must be snapd, and then innovative solutions using technology and discipline can be implemented and controlled (iSixSigma, 2010).LeanLean is a fruit practice aimed at maximising customer value while minimising waste (Lean Enterprise Institute, 2009). Ryanair could incorporate Lean to attend optimise the flow of the transformation system to ensure superior customer value and minimise waste. This could be achieved through determining customer requirements and eliminating stages of the transformation system that do not contribute towards meeting these requirements. This process should be repeated until perfect value is created with no waste (Lean Enterprise Institute, 2009). dissimilar Six sigma which focuses on respective(prenominal) systems, Lean is effective at ensuring quality through addressing the transformation system as a whole. This also allows simpler breeding management and allows for faster responses to changing customer requirements.2.2 The use of TQM and ISO 9000 to monitor quality to a satisfactory levelTotal Quality Managemen t (TQM) and ISO 9000 stomach a interchangeable focus on ensuring quality through the publicity of customer satisfaction and process improvement. Whereas ISO 9000 is a tool apply to beat quality, TQM can be understood as the overarching philosophy within which ISO 90000 should be implemented.TQMTQM is a management philosophy that aims to empower all organisational functions with the responsibility of ensuring quality (ISO, 2010). This is achieved through developing and reworking systems to optimise resource utilisation, prevent errors and ultimately achieve superior customer satisfaction (Chartered Quality Institute, 2010).TQM aims to deliver quality and value above and beyond customer expectations through several severalise principles. Firstly, employees throughout the TQM organisation must be united within a customer-focussed goal to share ideas and facilitate innovation (Oakland, 2003 p3 ff). There must also be continuous improvements of systems and processes to increase res ource utilisation and prevent errors before they occur. Finally, info must be shared throughout all levels of the organisation to ensure that the quality culture is embedded and maintained (Oakland, 2003 p3 ff).ISO 9000ISO 9000 is a tool which can be used within a TQM culture to regulate and ensure quality. It is a systematic approach to managing the organisations processes so that they consistently turn out products that meet and guide customer expectations (ISO, 2010).ISO 9000 is able to ensure quality to a satisfactory level through the effectuation of quality management guidelines. Firstly, the organisation must ensure that a clear customer focus is launch and processes are assessed as to how successful they are contributing to the customer focus. each outputs are monitored for defects, and new systems are implemented to prevent future defects. straight improvements are made to the quality system to ensure continued schooling (ISO, 2010).TQM and ISO 9000 are essential sys tems to ensure quality. Organisations must be aware, however, that in order to maintain a level of superior quality, TQM and ISO 9000 must not be treated as add-on functions with little attention given to the required changes in organisation and culture.2.3 Quality Culture in the United ground and BulgariaThis element of the paper sets out to define the term quality culture and then comparabilitys the get a line of quality between the United Kingdom and Bulgaria.Quality culture is an organisational value system that results in an environment that is conducive to the establishment and continual improvement of quality (Noronha, 1999). An organisation that develops and maintains a quality culture will differ significantly from an organisation with a traditional culture. Its spatial relation towards customers, problem-solving approach, supplier relationships and performance improvement approach will be gear towards creating superior customer value and increased resource utilisation as means of achieving a sustainable competitive advantage.For the successful introduction and implementation of a quality culture such as TQM, a quality culture must be developed to increase the success and likelihood of the systems acceptance throughout the organisation. This can be achieved through maintaining an awareness of quality as a key cultural issue, empowering employees and encouraging self-development, and rewarding behaviours that aliment and maintain a quality culture (Noronha, 1999).The view of quality in the UK and BulgariaThe view of quality in the UK has been shaped considerably by the values and principles brought about by quality management systems such as TQM, ISO 9000 and Lean etc. There is a great emphasis on achieving quality through the refinement of systems and processes tailored to deliver superior customer satisfaction and efficient resource utilisation (Noronha, 1999).Becoming part of the economic conjunction in 2007, Bulgaria has had little exposure to quality management systems and quality culture that have been adopted by many organisations across Europe. The view of quality in organisations in Bulgaria was based purely on traditional values rather than hygiene, inspection of product, systems and TQM.Although there are clear differences in the view of quality internationally, there are also considerable differences between the views of quality nationally. The key issue, however, is the degree to which an organisation is able to understand and address quality issues.By way of conclusion a further point of touch prompted by this question is that while comparing quality culture between countries it is apparent that the same issue can be levelled at individual companies. Slack references the differences between companies in individual countries by distinguishing between pioneer, adaptive and follower categories of business and different approaches to quality cultureTask 3 Organisational PerformanceProblems and opportunities for quality improvementIn order to establish a need for quality improvement, BTB should conduct an idea of internal and external factors to gain an understanding of potence shortfalls in the quality of products and services, and resource utilisation.For an external review, an approximation of the stakeholder market can be undertaken providing valuable information about customer requirements and stakeholder perceptions of the current quality of the operation. This type of appraisal can be undertaken through market sensing customer needs and requirements, and conducting surveys to obtain customer feedback on service and product quality. In addition to this, bench marking can be undertaken to compare the performance of the company with that of its competitors within its own and other markets.BTB can also undertake an internal review to reveal information about electromotive force gap between where the company is perform without delay and where they want to be in the future. This gap a nalysis can be undertaken to identify the adequacy of the systems currently in household to engage with customers and the channel in place to facilitate communication and information sharing.Organisational performance improvement programme executive director SummaryThis report will show how, through the introduction of TQM, improvements will be made to significantly raise productivity and reduce waste. As a consequence of these improvements sales throughput will have the potential to dramatically increase, significantly enhancing the organisations ability to gain and maintain competitive advantage.IntroductionBTB create from raw material Technology (BTB) is an international manufacturing business specialising in purchasing, refurbishing, and selling industrial bear on equipment and factories. BTBs strategy is to increase sales throughput by 10% through fashioning dramatic improvements to customer service and resource utilisation. BTB has been advised to implement TQM as a mea ns of achieving this goal.The immenseness of TQMMany organisations have found that the key to competitive success lies in maximising product and service quality (Kano, 1993). TQM is an effective means of allowing BTB to improve customer service through astir(p) quality and resource utilisation. It is a structured system that will incubate all levels of an organisation to provide products and services that consistently meet and exceed customer expectations (Noronha, 1999).The importance of an implementation planThe implementation process of TQM will require a substantial change in BTBs organisation and management philosophy. Simply understanding TQM is not enough to create a management system required to sustain a TQM culture. It is essential that BTB develops a strategic TQM implementation plan that is developed, directed, and supported by management, and implemented throughout all levels of organisation. strategical approach to project managementEdwards and Hodgson (2004) state that TQM implementation is almost successful when the four stages of (a) providing a mickle (b) management action, (c) increasing employee affaire and awareness, and (d) business alignment, are undertaken. This suggests that a successful implementation strategy must scram with creating vision towards quality which is channeld throughout the organisation. Management must show their commitment to the vision and motivate and empower employees to make quality their priority. logical argument systems and processed must then be modified to achieve customer satisfaction and recourse utilisation.RecommendationsAs a means of ensuring a successful and smooth implementation it is recommended that BTB formulates a project management team who will be responsible for developing and carrying through the strategic implementation plan.strategic Implementation PlanFigure 1 Stages of TQM implementationThe implementation plan consists of three stages developing a case for change, fly TQM, and im plementation.Developing a strategy for changeIn this stage, BTB should aim to gain a thoroughgoing(a) understanding of what should be expected from the introduction of TQM and the implications of introducing it. Upper management at BTB will need to develop a clear belief of the benefits of TQM to baffle the momentum to get under ones skin and maintain the implementation. This could be achieved through conducting benchmarking visits to superior performing organisations and studying TQM literature.After establishing a belief and need for TQM, the organisation must unite with a commitment to customer satisfaction communicating the vision and bringing together employees within a quality culture. To communicate and lead this vision, BTB will need to bring together a quality management team who will be the driving force behind the implementation process.The quality management team will firstly need to communicate the quality vision and ensure that all employees understand and are move to the organisations direction. This could be achieved through establishing a company quality policy, incorporating a avowal of vision, goals and principles which is communicated to all employees. The quality management team must also start to build trust amongst employees, providing reassurance about jobs and roles, and communicating the benefit of TQM. Employees must also be motivated with a new sense of direction, receiving encouragement and rewards when commitment to the new culture is displayed.Preparation for the piloting stage must also be conducted, ensuring that there is appropriate resource allocation and support for TQM. focusing must also be given by the quality management team to suspensor clarify the role of each level of management, and establish systems and activities for interdepartmental problem solving.Finally, the quality management team must begin to identify and develop an appropriate action plan for TQM implementation producing a Gantt chart which clearly illustrates the work breakdown structure of the project. They must, take into context the deadline for implementation, time to deliver and install new equipment and systems, length of training programmes, and potential obstacles which may be faced such as shortage of capital, and delays from suppliers. It is grave that buffer periods are also factored into the time plan which will help to compensate for unexpected problems.Piloting TQMThe piloting stage will provide BTB with a learning base from which management can begin to analyse the breadth of TQM requirements including, time, resources, and management focus. The number and sequence of team activities undertaken at the piloting stage should reflect the nature and strategy of the action plan devised by the quality management team.BTB should begin by testing its fender production systems to assess efficiency and ability to ensure quality. Quality tools such as ISO 9000 and Lean production can be used to provide guidelines on sy stem performance and address ways of increasing efficiency. BTB should make adjustments to all systems assessed as falling below standard. This can be achieved through buying new and more efficient production equipment, and though re-designing the transformation system to facilitate superior quality.Training initiatives must be implemented to all levels of the organisation. Line managers must be trained to become facilitators of continuous improvement, instruct new methods, and leading empowered employees. Employees should be trained to understand the importance of the customer and learn ways in which quality can be managed within their roles. Employees must also be trained to improve their communication skills to help facilitate information sharing throughout the organisation.It is also recommended that rewards and actualization are given to employees to reinforce commitment and adaption to new roles. For example, BTB may increase feedback given to employees by line managers and executives to reward commitment to quality and efficiency. In addition to this BTB may consider paying bonuses to reward positive appraisal feedback.Information and lessons learned from the pilot project must be used by management and the quality management team to make changes and revisions the original action plan, developing it into a structured and comprehensive multi-year implementation plan. It is at this point that BTB can make the commitment to implement TQM.ImplementationIn this stage, BTB should be concerned with securing the increased participation, shared responsibility, knowledge, skills and capabilities developed from the previous two stages.Training initiatives must be continued to improve communication channels throughout the organisation. For example, new IT systems could be installed to provide a new company instant messaging system allowing information to be sent straightaway between departments. Employees should be trained on how to use these new systems and the importance of information sharing as a means of achieving a uncouth goal.In addition to this, employees must continue to be kept on a regular basis informed of business performance and development. Face-to-face meetings should be frequently scheduled with line managers, informing employees on factors such as individual and team successes to maintain motivation and commitment.It is recommended that BTB also forms strategic partnerships with suppliers and customers who have developed quality cultures and place value on efficiency and superior customer satisfaction. Strategic partnership will be beneficial to BTB in allowing them to form mutual relationships with other companies they are likely to work with, making sure that orders draw in on time, to right quality and the right price.BTB should now be in a position to exploit its internal improvement capability and use it to effectively re-focus its efforts on improving processes to deliver superior customer satisfaction. It should , for example, now focus on re-organisation to customer and market-driven process management. remnantThe success of TQM implementation is a function of many variables (both controllable and uncontrollable), which are unique to the particular company situation. Effective project management determines the success or harm of the implementation project. BTB should aim to tailor its approach to exploit its unique strengths and focus on its particular weaknesses. It would be beneficial for BTB to look into more tactical approaches to TQM implementation however this is beyond the scope of this assignment.RecommendationsIt is recommended that BTB focuses on a small defined set of improvement priorities that align with its business goals and objectives, and that should therefore be realistically achievable. These include the employment of an effective quality steering company who are effectively managed and resourced, and the set-up of a piloting project to help benchmark and appraise perf ormance. The culmination and fulfilment of these objectives should then result in a structured TQM implementation plan customised to the specific needs of BTB.Assignment ConclusionTo be successful in an increasingly competitive environment, organisations must be more adaptive and innovative than ever before in providing a superior quality service. It is essential the organisations address issues of quality and resource utilisation to reduce costs and provide superior customer service with the intention of increasing sales and creating a competitive advantage. Organisations must look towards transforming their culture into a quality culture through TQM, whilst implementing quality tools such as Lean and Six Sigma to diagnose areas of improvement. For organisations to remain competitive, they must continue to expend time and resources in the development of their transformation systems.