Operation Management about EasyJet - Essay Example

? Operation Management about EasyJet OPERATION MANAGEMENT ABOUT EASYJET The success and productivity of a company is attributed tothe company’s operation management. EasyJet is a company in the airline industry, which is based in the United Kingdom and was founded in the year 1995. The department of operation management has been charged with tasks such as planning the management of an organization’s products, processes, supply chains and services. Most importantly, operation management involves inventory management, equipment maintenance, telecommunication and technology structuring, and quality control. The objective of EasyJet’s operation management is directed towards ensuring that its customers have a smooth, travelling experience. However, EasyJet as an organization has faced various challenges during the process of managing its operations. The first challenge EasyJet has come across during its operations is the issue of volcano eruptions, which at one time made EasyJet’s management cancel flights. EasyJet was forced to cancel its flights after UK Air Traffic Control (NATS) closed the airspace since it was full of ash clouds. Cancelling flights had negative impacts on the organization and customers. EasyJet lost out on generating revenue, while at the same time; customers were unable to reach their destinations. In this case, unfortunately, operation management has no plan B since it is impossible to avoid a natural calamity (Peters, 2011, p4). This once again forced the operation management at EasyJet to refund the full amount, which had been paid by passengers. Operations management will counter the problem of unavoidable cancellation of flights as a result of volcanic ashes, by fitting ash cloud detectors in planes (Lewis & Slack, 2003, p280). The second challenge affecting operations at EasyJet Company is the government’s plan of making changes on the Air Passenger Duty (APD). This change on tax duty will have a negative impact on EasyJet and the airline industry as a whole. This is through reducing by 3 million the number of passengers travelling by air on a yearly basis. Additionally, this tax move is a challenge to operations management because it goes further to affect the human resource department and employees. EasyJet will be forced to layoff some of its employees after the tremendous drop of passengers seeking its services. The management prefers the government to impose a tax on planes rather than tax passengers. Operation management is caught between maintenance of customers and generation of revenue on one hand, and government taxation on the other (Lewis & Slack, 2003, p64). The third challenge experienced by operation management is the incapability of EasyJet to provide adequate customer satisfaction. This issue is evident when the customer wants to present a complaint to the airline’s management. At EasyJet operation management does not have enough staffs to handle customer complaints, even though; they have enough staffs to handle booking and payment services. Hiring more staffs mean allocating more resources to pay these staffs, which EasyJet cannot afford (Peters, 2011, p12). A number of customers have expressed the criticism that booking and paying for services are easier than issuing out a complaint. This fact is detrimental to the organization’s success in that it can lose out on its customers, who are important for its survival and success (Lewis & Slack, 2003, p321). The fourth factor that is commonly experienced as a challenge in operating management at EasyJet is the dynamic airline industry. The industry is dynamic in that there are numerous technological advancements and regular fluctuation of flight prices. It is advantageous for organizations to be advanced technologically. Swift adaptation to technological changes taking place in the airline industry at times is a problem to EasyJet (Peters, 2011, p6). This is as a result of a lot of resources needed in acquiring a more recent technology, which can be in terms of acquiring the latest airbus model that provides more customer satisfaction. For instance, passengers would prefer an airbus with the latest technology in terms of entertainment. At other times, EasyJet’s operation management comes across a dilemma whereby its main competitor, Ryan Air, introduces lower flight prices, which it has to adapt to. This occurrence usually interferes with EastJet’s market strategy (Lewis & Slack, 2003, p65). The fifth challenge that EastJet faces when managing its operation is the criticism that, the company lacks market diversification since it has flight schedules in Europe only. There are no EastJet flights going out of Europe to continents such as the Americas, Asia or Africa. As a result of this fact, it becomes harder for organizations to achieve the goal of flying out passengers to destinations of their choices, which include areas outside Europe. Passengers are forced to make extra arrangements for connection flights whenever they want to travel outside Europe, even though; they had boarded EasyJet as the primary flight (Lewis & Slack, 2003, p156). The final challenge faced by EasyJet in managing its operations is the gradual change in its initial strategy. EasyJet as a company was established with the objective of providing cheap airline transportation to passengers, contrary to what other airline companies were offering. Over the years, the company has grown forcing it to expand its operations to major airports. This is a challenge to its operation management, in that it has forced EasyJet to restructure its earlier strategy in order for it to operate efficiently in the major airports. The change of strategy, in turn, has led to EasyJet losing passengers who are unable to pay more for air transport (Lewis & Slack, 2003, p104). Conclusion Operation management is essential to a company’s success or survival in the industry. However, this aspect is bound to come across various challenges, which inhibit its capabilities. EasyJet, an airline company, is not an exception; it has succumbed to a number of challenges that have inhibited its normal operation management. The challenges involve; cancellation of flights due to volcanic eruptions, a new government tax policy, complaints from customers, a dynamic airline industry, lack of market diversification, and change of strategy. The challenges have had negative impacts on EasyJet’s performance and reputation in the airline industry. Although, EasyJet experiences these negative challenges on its operation management, it has proved to be one of the most thriving airline companies in Europe. Its success is attributed to its operation management, which is highly focused towards its primary strategy of providing cheaper air transport. Reference Lewis M, Slack N. Operations Management: Critical Perspectives on Business and Management. London: Routledge, 2003. Peters N. Operational Exellence - Identifying Qualifying and Order Winning Factors: Examining Dell, McDonalds, Zare and EasyJet. New York: GRIN Verlag, 2011. Read More