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Operations & Supply Management
Sec-C; Group-1 Page 1
Project Report On
AIR INDIA
Prepared by:
Mohit Sarda (15)
Shruti Pipalia (32)
Iram Ilyas (46)
Kiran Kumar (49)
Shaurya Singh (51)
Faculty Guide:
Prof. Sashi Sekhar Paramanik
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BACKGROUND
Birth of Air India 29 July 1946 1948 49%-Govt. of India Extra 2% Flag Carrier StatusAir India International First International Flight
8 June 1948 Lockheed Constellation L-749A Malabar Princess Bombay Cairo Geneva London.
Air Corporations Act 1953, 1stAugust Majority stake of Govt. of India Domestic ServicesIndian Airlines International ServicesAir India International Limited
CORPORATE VISION
Vision:
To be among top five Asian airlines in terms of Yield, Profitability,Productivity, Size and Quality
Mission:
Focus on customer satisfaction Grow with emphasis on sustained profitability Provide exciting and satisfying work environment to retain and develop
employees committed to Corporate Vision
Focus on social responsibilityenvironment & communityObjectives:
Achieve unit revenue, unit cost, profitability, productivity and servicelevel targets, based on benchmarked parameters.
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AIRCRAFT OF AIR INDIA
Air India has always been miss-utilizing the available fleet. They need to optimize the
available resources. The air crafts being used on a particular sector should be selected
seeing the traffic, which unfortunately is not being done by Air India. The Maharaja
carrier has a lot of diversification in the type of aircrafts, which can be avoided. Keeping
lesser variety of aero planes in larger numbers significantly reduces the operations cost.
Also, Air India bought a large number of new air crafts instead of going for wet or dry
lease, which increased the fixed cost of the airline. As a remedy, Air India has finally
decided to sell five of its Airbus 747 planes.
The late delivery of purchased aircrafts also added to the mounting losses of the airliner.
Name Owned Leased Seats
Airbus 319 19 5 144
Airbus 319(Mixed confi) 9 10 114+8
Airbus 320-231 8 6 168
Airbus 320-214 4 120+20
Airbus 321 8 12 152+20
Airbus 330-200 2 225+24
Boeing 747-400 3 3(Dry) 385+26+12
Boeing 777-200LR 8 195+35+8
Boeing 777-300ER 9 303+35+4
Boeing 787 Dreamliner 9 238+18
ATR 42-320 7 48 (eco)
CRJ 700 4 70 (Eco)
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AIRLINES AND LEAN MANAGEMENT
Airline operations present a striking dichotomy. Each day, the airlines achieve the
remarkable by safely moving nearly five million people more than 40 million air miles
around the world. Often, however, they fail to deliver on the ordinary. Once the aircraftland, all too many of them taxi to a jet way and waitperhaps for a ground crew to arrive
and open a door or for the end of the traffic caused by another planes maintenance delay.
Even standout, low-cost performers lose bags, keep valuable employees idle, depart late,
and have billions of dollars in chronically underutilized aircraft and other hugely
expensive assets.
These extremes coexist because airlines have historically focused on safety, aircraft
technology, speed, geographic reach, and in-flight service attributes; on distinctive
regulatory constraints and labor issues; and on the unpredictability imposed by weather
and rapidly shifting demand. At the same time, issues such as route structures, excess
capacity, pricing, and yield management compete with operations for the airlines
attention.1As a result, the airlines havent given their operations factors like, industrial-
engineering scrutiny. Great operators in other heavy industries have worked through
these challenges to deliver low costs, high quality, and satisfied customers.
Yet up to 45 percent of an airlines cost structure consists of maintenance, ground
handling, in-flight services, call centers, and aircraft acquisitions (which are influenced
by operational variables like aircraft downtime). One hundred years after the first
powered flight, its time to start looking at the airlines as mature industrial companies andto apply proven manufacturing practices that can streamline their process-intensive
activities. At stake is an opportunity to reduce overall costs dramatically by using labor,
materials, and assets more efficiently, to enhance the reliability of service, and to
strengthen flight safety.
Lean approaches, adopted by numerous industrial and service companies (including
many that are heavily unionized and some, like hospitals and medical-device
manufacturers, that are highly regulated), are well suited to the airlines challenges. As
lean techniques eliminate waste, they also root out the non-standardized work times,
variable team structures, and highly asynchronous work flows that many airlineexecutives now view as unavoidable.
The lean approaches of pioneering airlines have begun with the maintenance shop, which
functions very much as a disassembly-assembly factory and displays a striking degree of
waste and variability. Impressive maintenance results30 to 50 percent improvements in
aircraft and component turnaround times and 25 to 50 percent improvements in
productivity (Figure 1)are encouraging signs for the airlines other operational choke
http://www.mckinsey.com/insights/travel_transportation/the_hidden_value_in_airline_operationshttp://www.mckinsey.com/insights/travel_transportation/the_hidden_value_in_airline_operationshttp://www.mckinsey.com/insights/travel_transportation/the_hidden_value_in_airline_operationshttp://www.mckinsey.com/insights/travel_transportation/the_hidden_value_in_airline_operations -
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points, such as baggage handling, passenger loading, and customer service. Applying the
philosophy and methods of the lean approach also creates new opportunities for
outsourcing and insourcing.
In any industry, companies that adopt lean techniques face difficulties, such as getting
senior management committed to the effort, developing the talent pool to lead it, and
avoiding the "pick-and-choose" lean-tool-kit approach, which in the end fails to address
the root causes of problems. Yet precisely because the lean journey is difficult, the gains
won by airlines that persevere with it are more likely to be truly differentiating and
sustainable than those resulting from more imitable tactics, such as extracting wage
concessions or cutting service. As the industry struggles through the most severe
downturn in its history, now is the time to begin.
Figure 1
When airline executives talk operations, more often than not they focus on the features
that distinguish their industry from others. Yet an airline orders materials just as a factory
does, and it sequences work, deploys workers to specialized tasks, commits itself to
quality levels, and at regular intervals turns out the equivalent of productsserviced and
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airworthy aircraft. Conversely, like airlines, factories face variability when large orders
roll in unexpectedly, equipment breaks down, or snowstorms interrupt supplies.
Underlying lean techniques are four principles: the elimination of waste, the control of
variability, flexibility, and the full utilization of human talent. These principles have
enormous relevance for organizations concerned with safety, customer service, and
unpredictable events such as weather. Companies that embrace lean really begin to see
things differently. Our work with several international carriers and with a European third-
party maintenance provider has provided a glimpse into this tremendous opportunity.
In spite of the strong cost-cutting efforts of the airlines, they still harbor large amounts of
what lean practitioners define as waste: anything that doesnt add value for end
customers. Waste starts with the utilization of aircraft and other kinds of infrastructure,
which often falls below 50 percent. Passengers see a part of this problem in the form of
empty gates, avoidable tarmac delays, and idle planes. Valuable and highly skilled
employees routinely spend a large part of their time on low-value activities or just plain
waiting (Figure 2). The arriving traveler watches in frustration as a baggage carousel
remains empty for 30 minutes because of a lack of handlers. Dozens of stranded travelers
fume while a single clerk processes them. In maintenance hangars, mechanics spend far
more time chasing parts than repairing aircraft. Moreover, airlines struggle to tailor the
level of staffing or the pace of work to their service demands efficientlydespite the
predictability of many tasks, such as the removal of wheels. In some maintenance shops,
20 to 30 percent of the mechanics time is spent in the break area; in others, actual
clocked person-hours are 30 percent lower than scheduled hours.
Standard operating procedures exist, but the airlines generally focus on what regulators
such as the US Federal Aviation Administration (FAA) require them to do, not on how to
do it efficiently. Thick manuals outline tasks but without standardizing sequences,
processing times, or best practices. Passengers experience this problem firsthand in the
form of check-in and loading procedures that vary from airport to airport or even gate to
gate. The absence of operating standards often breeds inefficiency in spite of workers
best efforts to carry out required tasks and meet regulatory standards. Weve seen two
mechanics using different toolsone half as effective as the otherto remove a panel
from the underside of a fuselage.
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Figure 2
The suitability of lean techniques to meet these and other challenges presents the airlineswith a ray of hope. What exactly would a lean airline operation look like and deliver?
To illustrate the application of lean techniques, well look closely at a single operation
the A-check, analogous in role (but not complexity) to servicing a car. Picture the scene:
an aircraft pulls into a hangar late at night. Schedulers "job-card" the list of tasks to be
performed and coordinate tooling, spare parts, and staffing. Engineers define the person-
hour workloads. Supporting departments and workshops, such as materials management
and avionics, provide parts. As if the number of parties involved didnt generate enough
complexity, many non-routine issues are created by cracks, leaks, system faults, and
extraneous damage (for instance, engine damage from bird strikes). The goal is to wadethrough the surprises and get the plane on the flight line by morning.
A new operating system.
Adopting a lean operating system first requires an organization to search for order in the
demand patterns of its "customer" (in these case, flight operations). When this discipline
is applied to the maintenance shop, only a third of all A-check activities turn out to be
non-routine. Of the non-routine work, nearly a quarter is accounted for by wing
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maintenance, which overwhelmingly involves just four areas (Exhibit 3). Standard
preparations for them transform nearly 20 percent of all non-routine A-check tasks into
routine ones. A better system for replacing light bulbs makes almost 5 percent of all
currently unpredictable A-check operations routine. Most maintenance organizations
already know that non routine work is clustered, but few have reliable records or analysesto make sense of the patterns.
Such knowledge helps an operator create standard tasks and workplace designs. Drawing
on the collective expertise of its mechanics, it could develop standard work routines,
making use of enhanced tools and fixtures, that would substantially increase the
efficiency of their wrench time. During A-checks, for instance, they sometimes lubricate
parts using a two-person, hand-pumped grease gun while a hydraulic model that allows
one person to do the job sits idly in a corner. Arraying such tools at the ready in a highly
organized work space can yield large efficiencies. Pre-staging parts such as replacement
filters eliminates a source of error by ensuring that they wont be overlooked. Mechanics
become surgeons, with all their equipment and tooling arranged carefully ahead of time
and reliable procedures in place to deal with surprises. Simply by eliminating ongoing
searches for parts, tools, and paperwork, a carrier may improve the productivity of its
repair operations by more than 30 percent.
Standardization progresses as operators determine the actual time needed for each task,
along with the sources of variation. Rather than stepping away to find a tool, mechanics
stay by the aircraft and visually signal their tool and part requirements. As they work,
they note any flaw in the process and perfect it for the future.
Well-defined, standard work practices make more rigorous scheduling possible. Standard
completion times and best-quality sequences help operators divide and balance their
workloads so that they can choreograph aircraft movements during nightly A-checks. (In
a carefully scheduled lean system, everyone knows that a 767 will come through the door
Figure 3
at a certain time and will exit, say, two hours and 40 minutes later.) That level of
scheduling rigor helps companies match their staffing levels with work sequences moreaccurately. Meanwhile, demand-based materials replenishmentmade possible by
kanbansignals that directly link upstream activities to actual usagelocks in
replacement parts and minimizes surprises.
Improved information flows and standard job practices combine to make schedules more
stable and introduce an operating pace, formerly a novelty for repair operations. Keeping
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the front line informed is vital, particularly in maintenance shops where aircraft move
slowly and no formal assembly line provides rhythm and discipline. In a lean A-check,
marks on the hangar floor inform the tug operator and the mechanics where a plane will
stop, equipment will be kept, and workers will be deployed. Performance-management
boards close to the aircraft convey the status of each task and thus help the team utilizeresources efficiently and in real time. Workers use these boards, a visual form of
communication involving the whole team, to transfer information on progress rapidly.
Through visual card displays, mechanics can see the pace of a job and learn the job
sequence of the turnaround. The team counts its time-to-completion visually. When the
check is done, the team draws on the boards performance data to see how it could
improve.
ONLINE TICKET
Figure 4
Customized offerings and vast selections are now expected as the norm in consumer-
focused industries. As the percentage of leisure travellers continues to grow, airlines
need to find innovative ways to increase the effective yield from these lower-margin
travellers. Clearly, there is one size fits-all approach to reaching customers, as
Generation Y passengers under 30 years old will have markedly different criteria for an
enjoyable travel experience than parents with toddlers. The online ticketing portal starts
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when a customer logs into a website of ticket booking. He requests the destination and
the date of journey and is then provided with the travel information he is been looking
for. He selects the applicable and the required flights and routes that is displayed. The
usual process stops here but according to our research and project we feel we have
something to add on here. The website can then further display the add ons for anyspecial requirement by the passenger. The special requirements majorly contain A wheel
chair for the old people, a pram for the baby, etc. As the screen opens up, it will be
basically show up the food section that the customer can choose what it wants to have at
the flight and the special requirements. Now the basic motive to do this would be To
charge the customers with only the Travel fee. Example: Many of us dont prefer to eat
anything on the flight but the charges of it are included in our ticket. So the basic motive
of this system will be to reduce the cost of travel as to attract more customers and
customize their travel so that they revert back again and thus end up becoming a loyal
customer for the Air India. This also helps us creating a central database which can
further be used to deliver the services efficiently at the time of arrival.
CUSTOMER ARRIVAL
Figure 5
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As the customer arrives in the airport, with the help of the central database that is already
been created during the online ticket booking, all the resources with any special
requirements are been kept ready at the time of arrival. There will a small counter at the
arrival with all equipments ready and as the customer approaches the Air India personnel
verifies the ticket information and provide them with the requirements that is on theticket. If there are any special requirements, the customer gets the resources opted for and
then he further moves inside the airport. The benefit of doing this would be it saves a lot
of time of the passenger and makes their travel journey easy. The passengers need not to
go and find out at the time of arrival at the airport with any requirements and then waiting
for things to get cleared; instead with the help of the central database system, everything
is kept ready and the customer just need to show their ticket and get all the requirements
on the spot, without wasting their time searching for the resources at airport. Just in time
process helps us to reduce the wastage and keep things up to the mark and that everything
is working efficiently.
BAGGAGE
Figure 6
As the customer enters the airport after the ticket checking and the verification of their
identity, there will be a separate weighing belt of Air India in which the customers needto weigh the weight of their luggage. The Air India personnel appointed for this verifies
the belt of the customer, if the weight is in the limits, the personnel put a tag and let the
person take the baggage to the check in counter. In case if the weight is more, the
customer is taken separately to adjust the weight and is been provided with the adjust
baggage in which he need to shifts his stuff and take it as a handbag on the flight. This
process helps Air India and the customer too saves a lot of time. The time when the
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person stands on a Que with the bag adjusting his luggage eats away his time as well as
of the other customers too. This process helps us standardizing the process reduce the
Que time.
HAND BAG
Figure 7
There has been times when our hand baggage is usually bigger then what we should carry
with us. The problems that occurs in this as we dont get enough space to put of baggage
on the hand baggage space provided in flight due to the size of the handbag. This process
will help us cut down that problem and makes the journey smooth. In this the customer
stands in the weighing Que and the Air India personnel verify the size of the baggage. If
the size is in limit, the customer continues to check in, and if not the customer is provided
with the separate bag to place the necessities. Example: A mother carrying a baby with
her needs the stuffs like milk, bottles, etc, so she will be given a separate bag to carry
those things as a hand baggage in the flight and the rest stuff will be sent as a main
luggage. This helps us standardizing our services and the difficulties faced by thepassengers are been taken care of in this matter.
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inventories and providing passengers with hot food. As displayed in the figure different
food items are displayed with time remaining to make an order for the item. As time goes
by the items in the list decreases based on the time for preparation and in the last half
hour before boarding only those items which can be made fast such as a sandwich remain
on the list and 20 minutes prior to boarding the kiosk is closed for that particular flight
Kiosks are placed after security check and also inside the waiting areas so that passengers
can order food that they require before they board the flight based on the time
restrictions.
Caterers usually produce alternative meals for passengers with restrictive diets. These
must usually be ordered in advance, sometimes when buying the ticket if not based on
time restrictions these can be chosen at the kiosk. But this would require passengers to
access the kiosks much earlier in order to have the full menu available to them. Some of
the alternative meals are:
Cultural diets, such asFrench,Italian,Chinese,Japanese orIndian style. Infant and baby meals. Some airlines also offerchildren's meals, containing foods
that children will enjoy such asbaked beans,mini-hamburgers andhot dogs.
Medical diets, including low/highfiber, lowfat/cholesterol,diabetic,peanutfree,non-lactose, lowsalt/sodium, low-purine,low-calorie,low-protein, bland (non-
spicy) andgluten-free meals.
Religious diets, includingkosher,halal, andHindu,Buddhist andJain vegetarian(sometimes termed Asian vegetarian) meals.
Vegetarian andvegan meals. Some airlines do not offer a specific meal forvegetarians; instead, they are given a vegan meal.
BAGGAGE COLOR CODE
PROBLEM:
Generally bag handling is a challenge for airlines and a problem for customers.
They have to wait for their bags for hours even when they have reached on time to
conveyer belt.
RECOMMENDATION:
We suggest instead of placing bags in a random order if bags are kept in an
organized manner we can smoothen the process. This will happen by color coding the
bags after check in the ground staff can stick color tags to bags. To explain , lets say the
bags are codedredif they are of passengers sitting at last seats (last section).These bags
are loaded first on the carriage of aircraft and placed first. Secondly bags of second last
http://en.wikipedia.org/wiki/French_cuisinehttp://en.wikipedia.org/wiki/Italian_cuisinehttp://en.wikipedia.org/wiki/Chinese_cuisinehttp://en.wikipedia.org/wiki/Japanese_cuisinehttp://en.wikipedia.org/wiki/Indian_cuisinehttp://en.wikipedia.org/wiki/Baby_foodhttp://en.wikipedia.org/wiki/Kids%27_mealhttp://en.wikipedia.org/wiki/Baked_beanshttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Hot_doghttp://en.wikipedia.org/wiki/Dietary_fiberhttp://en.wikipedia.org/wiki/Fathttp://en.wikipedia.org/wiki/Cholesterolhttp://en.wikipedia.org/wiki/Diabetic_diethttp://en.wikipedia.org/wiki/Peanut_allergyhttp://en.wikipedia.org/wiki/Peanut_allergyhttp://en.wikipedia.org/wiki/Lactose_intolerance#Avoiding_lactose-containing_productshttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Low_sodium_diethttp://en.wikipedia.org/wiki/Gout#Reduce_intake_of_purineshttp://en.wikipedia.org/wiki/Calorie_restrictionhttp://en.wikipedia.org/wiki/Low-protein_diethttp://en.wikipedia.org/wiki/Gluten-free_diethttp://en.wikipedia.org/wiki/Kosherhttp://en.wikipedia.org/wiki/Halalhttp://en.wikipedia.org/wiki/Vegetarianism_in_Hinduismhttp://en.wikipedia.org/wiki/Buddhist_vegetarianismhttp://en.wikipedia.org/wiki/Jain_vegetarianismhttp://en.wikipedia.org/wiki/Ovo-lacto_vegetarianhttp://en.wikipedia.org/wiki/Veganhttp://en.wikipedia.org/wiki/Veganhttp://en.wikipedia.org/wiki/Ovo-lacto_vegetarianhttp://en.wikipedia.org/wiki/Jain_vegetarianismhttp://en.wikipedia.org/wiki/Buddhist_vegetarianismhttp://en.wikipedia.org/wiki/Vegetarianism_in_Hinduismhttp://en.wikipedia.org/wiki/Halalhttp://en.wikipedia.org/wiki/Kosherhttp://en.wikipedia.org/wiki/Gluten-free_diethttp://en.wikipedia.org/wiki/Low-protein_diethttp://en.wikipedia.org/wiki/Calorie_restrictionhttp://en.wikipedia.org/wiki/Gout#Reduce_intake_of_purineshttp://en.wikipedia.org/wiki/Low_sodium_diethttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Lactose_intolerance#Avoiding_lactose-containing_productshttp://en.wikipedia.org/wiki/Peanut_allergyhttp://en.wikipedia.org/wiki/Peanut_allergyhttp://en.wikipedia.org/wiki/Diabetic_diethttp://en.wikipedia.org/wiki/Cholesterolhttp://en.wikipedia.org/wiki/Fathttp://en.wikipedia.org/wiki/Dietary_fiberhttp://en.wikipedia.org/wiki/Hot_doghttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Baked_beanshttp://en.wikipedia.org/wiki/Kids%27_mealhttp://en.wikipedia.org/wiki/Baby_foodhttp://en.wikipedia.org/wiki/Indian_cuisinehttp://en.wikipedia.org/wiki/Japanese_cuisinehttp://en.wikipedia.org/wiki/Chinese_cuisinehttp://en.wikipedia.org/wiki/Italian_cuisinehttp://en.wikipedia.org/wiki/French_cuisine -
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section are attached agreentag and kept in front of the red color bags in order of seats.
Similarly for other sections bags are kept in order such that bags of people in the back
section of plane (who are last one to disembark and reach conveyer belt) arrive in the
end.
Figure 9
BLUE REDGREE
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QUALITY METHODS
We have build our service blueprint on ZERO DEFECTS MODEL. By analyzing the
stages and the problems that arise at the grass root level like the waiting for baggage,
people blocking way in queue, etc we have created a model where errors on being
detracted are prevented to reoccur.
This is done by standardizing the process from the check in to boarding the flight. The
role of standardizing is that the number of variations are prevented leading to consistent
flow in the process
ZERO DEFECT MODEL
Figure 10
SIX SIGMA APPROACH
Six-Sigma engage each employee of the organization from top executives to the
employee on the manufacturing or service floor. It focuses on quality improvement, cost-
reduction, cycle time reduction and improved delivery performance. This results in
higher profits and customer satisfaction .It also improves the relationship between themanagement & employees.
In order to implement the principles of this approach we propose the following:
By reducing the blockage at the time of check in (due to excess baggage) we notonly reduce the variation caused but also reduce the impact on cycle time and
make the process flow smoothly.
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By introducing RFID tags and we can effectively improve the the flow ofpassengers.
Also by putting baggage on flight according to the order so that passengers whodisembark first and on reaching conveyer belt find their bags already arrived and
who arrive late are aware that arrival of their bags will take time. It will led to less
hassle and disappointment which will directly improve satisfaction level of
customers.