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    Assessing Service Issues

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    Assess the service issues present in Going, Inc.'s low statistical rate of on-time service and propose quality and control measures for improvement. Use the following information for your assessment.

    Service Division
    Mission Statement: Become the most successful provider of airline transport for the business
    Marketing Slogan: "High society in the air"
    Going, Inc.'s airline service has been losing business in regular service operations for 20
    months now and is saddled with low performance in on-time delivery, baggage handling, and
    overall customer service. Several outside consultants have viewed these three areas for
    short-term fixes that could quickly improve the bottom line, but perhaps even more drastic
    steps are needed.
    Going, Inc.
    On Time 83.91% 71.6%
    Air Carrier
    Delay 3.71% 9.82%
    Delay 0.55% 2.62%
    5.01% 5.00%
    Delay 0.07% 1.2%
    3.50% 3.75%
    Cancelled 3.07% 6%
    Diverted 0.18% .10%
    Operations 100.00% 100%
    Going's competitive strategy is now questioned by company executives because many
    previous business traveling customers are now seeking a less expensive air travel solution.
    Ten areas of operations strategy have been identified for study to gain a competitive
    1. Service Design Strategy
    a. Going, Inc. mainly serves long routes across the United States and international
    routes into Europe and Asia. It is also seeking new South America routes.
    b. The company emphasizes in-flight service to its business and first-class
    c. The company has been slow to adapt to the Internet, offering only general
    information about its airline on the company homepage.
    2. Quality Management Strategy
    a. The company has been content with average customer satisfaction rankings until
    the recent downturn in business.
    b. The company concentrates its efforts toward the big budget frequent flyer and
    seeks to ensure top quality over other airlines in first and business class service.
    Numerous frequent flyer programs and marketing materials are sent to target
    3. Process and Capacity Strategy
    a. The company owns many different commercial airplanes in its fleet?presently
    seven different models from two manufacturers (AirDyno and Cosnot).
    b. Full meals are offered on all flights, and in-flight meal customization, designed to
    give the meal service a "Going, Inc. flair," is performed on each flight at the flight
    attendant stations. This includes folding napkins into the trademark Going, Inc.
    symbol, adding a Going, Inc. pen to the tray, and inserting a small Going, Inc.
    flag to the flower vase on each tray.
    4. Location Strategy
    a. Going, Inc. flies to all major cities and every state but rarely more than once per
    day (other than hub cities).
    b. The company has a major hub in the East (JFK, New York), Central (O'Hare,
    Chicago), Mid-West (Denver) and West (LA) regions.
    5. Layout Strategy
    a. Going, Inc. gates are located at the best locations (closest to the terminal).
    b. Going, Inc. boards its planes with first-class passengers and then by first-come,
    6. Human Resources, Job Design Strategy
    a. The company does not have the best relationship with its unions. Minimal pay
    increases and hiring over the last 3 years has created a chasm between the two
    parties. Pilots frequently fly right up to their legal limit.
    b. Employees have complained about lack of a voice and lack of up-to-date training
    c. After each flight, cleaning crews must go through each aisle, flight attendant
    station, and lavatory. Due to the number of models in the fleet, the cleaning cycle
    time is comparatively slow and contributes heavily to the poor air carrier delay
    7. Supply Chain Management
    a. Going, Inc. has a very elongated supply chain, serving four major hubs in the US.
    b. Going, Inc. has what can be termed has a lukewarm relationship with AirDyno,
    one of the company airplane suppliers, due to some past financial issues and a
    lack of support on AirDyno's part in supplying replacement parts.
    c. The company maintains 4 models from AirDyno and 3 models from Cosnot,
    relying on each to supply replacement parts.
    8. Inventory Management
    a. The company's maintenance department must be exceptionally managed due to
    the number of models of planes in its fleet. Maintenance stations are located at
    each hub location, with a central larger facility at the airline's Denver hub.
    9. Scheduling Strategy
    a. Going, Inc. has 225 inland destinations and flies to every state in the US on its
    schedule on top of its Europe and Asia routes. For comparison, Southwest
    Airlines serves 53 airports in 27 US states.
    b. Data demonstrates that Going, Inc. is higher than the industry standard in air
    carrier delay and connecting aircraft late arrival.
    10. Maintenance and Reliability Strategy
    a. Going, Inc. has experienced higher costs in maintenance, repair, and training in
    the last 2 years.
    b. Going, Inc. airplanes are grounded or in repair and maintenance 18% more than
    the industry average.

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    Solution Preview

    Create a proposal to save the company's airline service business.

    They have to reduce the gaps in:
    - Weather delay, cancellations
    - Overall diversions and other quality levels
    - Customer satisfaction levels
    - Using ecommerce
    - Costs ( As they are suffering from higher costs)
    - Human resources

    For this I will recommend:
    Application of TQM in service industry
    Services can not be in an inventory. Services are often unique in everyway. Every person for example may receive a different haircut from the barber shop. In addition, every person may receive different legal advices. These types of services are usually not the same as the rest of the people. This is the reason why it is difficult to standardize. Most services have a high customer interaction. Each interaction will vary depending on the needs and wants of the consumer. Services have inconsistent product definition Moreover; services are knowledge based such as education, medical and legal services. Lastly, services are dispersed because the types of service are brought to the customer such as the home, office or store.
    One of the most important elements in creating a successful business is having happy, satisfied customers
    that keep coming back. Satisfied customers recommend your product or service to family, friends, and associates. This ca be achieved by the customer driven quality. "Quality" is continually evolving, an emerging consensus includes Continuous Improvement and Learning: Continuous improvement and learning refers to both incremental and "breakthrough" improvement, and applies to both the individual and organizational levels. Improvement and learning can be directed toward better products and services, to better processes, and to being more responsive, adaptive, and efficient. The key Components according to the Juran are:

    # Quality Planning: from customer needs to product/service to meet needs.
    # Quality Improvement: developing and improving capable processes.
    # Quality Control: making the process work in normal operating conditions with minimal ...

    Solution Summary

    This solution explains how to assess service issues.