TQM OF Service Industry

TQM OFService IndustryJET AIRWAYS

AVIATION INDUSTRY SCENARIOIN INDIAThe Indian aviation is one of the fastest growing aviation industry in the worldWith the liberalization of the indian aviation sector, aviation industry in india has undergone a rapid transformationPrivate airline accounts for almost 75% share of the domestic aviation marketIndia has 454 airports of these 16 are designated international airportsPLAYERS IN THE INDIAN MARKETPLAYERS IN THE INDIAN MARKETAirlines at International RoutesAIR INDIAJET AIRWAYSINDIAN AIRLINESINDIGOSPICEJETAirlines at Domestic RoutesINDIGO

GO AIR

SPICE JET

AIR DECCANWelcome AboardIndias Most Preferred Airline

FORMATION OF JET AIRWAYSMr.Naresh Goyal founded Jetair (ltd) in May 1974

In 1991 Diversification Programme

Commenced commercial operations in May

MISSIONJet 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.JET AIRWAYS PARTNERSHIPSAir CanadaAmerican AirwaysBrussels AirwaysAll Nippon AirwaysJetliteQANTASCar rental partners

Co-Brand card

Conversion

Hotel partnersSERVICESCheck In Options :Airport Check inTele Check inWeb Check inKiosks Check inAirport LoungesBus ServicesCuisinesEntertainmentSPECIAL SERVICES Infant and Child CareWheel Chair AssistanceUnaccompanied MinorsMedical EmergenciesTravelling with AnimalsJet MobileTQM TECHNIQUESJet 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 MODELIs 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 ofservice quality : reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding thecustomer and tangiblesServqual Data - What can we doWe 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 MODELReliability: 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 theIndian airline industry (FSC) using ServQualmodel JET AIRWAYSKINGFISHER AIRLINESINDIAN AIRLINES+AIR INDIARELIABILITY123ASSURANCE123TANGIBLES213EMPATHY123RESPONSIVENESS123AREAS OF QUALITYMANAGEMENT 1 On time 2 Delay information3 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 EquipmentsYIELD MANAGEMENTORREVENUE MANAGEMENT

Process of understanding, anticipating and influencingconsumerbehaviorin order to maximizeyieldorprofitsfrom 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 inprice discrimination, where a firm charges customers consuming otherwise identical goods or services a different price for doing soEXAMPLEIn the passengerairlinecase, 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 versaQUALITY CERTIFICATIONIn 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 standardsIATA Operational Safety Audit (IOSA) Registration

COST CONTROL MEASURESJet 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

AWARDSairline with best first-class service in the world award at Business Travelers 20thannual best in business travel awards gala in the USAbestdomestic full service airline awardfor the sixth year in a rowMost innovative product launch awardCustomer 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 refreshmentsJet was found to be providing good in-flight food & entertainmentBaggage loss was found to be almost never a problem with Jet AirwaysStaff 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 baggageTheir catering is poor in variety and quantity

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