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Operational Analysis and Effectiveness - Case Study Example
The operation under analysis that is being selected is the air transportation industry or the airline industry. The operations management has had tremendous impact on all the industries, be it manufacturing, hotel, airline, restaurant or any other service related operations also including consultancy businesses etc.
Operations as defined by Heizer is the management of production of goods and services that add value to the firm. Thus, operations cannot be ignored any wherelets first analyze briefly what actually is the function of an airline industry. Airline industry provides services to its customers by transporting them from one destination to another be it international, national, regional or simply for cargo purposes.
The operations issues that are important and critical include airport capacity, route structures, technology and costs to lease or buy the physical aircrafts1. Some of the larger issues that organizations face every time are the weather conditions, fuel costs and labor. Since weather effects flight schedules and is quite variable and naturally unpredictable; weather extremes such as snow, fog, and extreme temperatures can halt the operations of the air transport and hence add to costs both in terms of opportunity cost and the physical cost already incurred. Without fuel, no aero plane could fly, fuel costs comprise around 17-18% of the total cost of the airline company. ...