Garuda Indonesia Airline

Essay by aasaaqUniversity, Master's August 2004

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Executive Summary

This report presents findings on the operational aspect of Garuda Indonesia Airline in Brisbane. It aims to evaluate the effectiveness of Brisbane operations in relation to the fulfilment of the organisational objectives. Aspects of operation were identified and analysed, and contrasted to the organisation strategy as a whole. Interviews with the General Manager and visit to the airport were conducted to collect primary information, and to gain knowledge about the nature of the operation

Operational issues were identified, and classified in accordance to its impact to the organisational objective (i.e. Revenue growth and cost reduction). Upon the analysis, the underlying operational issues evolve around the quality of the outsourced activities and the level of customers' satisfaction. Pertaining to the issue, recommendations were given as to improve the performance of the outsourced activities, by means of identifying the cause of the problems. These include the implementation of Total Quality Control, internal service quality measures, effective communication, quality control for continuous improvement, and benchmarking.

This report concludes that although most of Garuda's customers contact operation activities are outsourced to qualified companies, it has to put sufficient control to ensure they are performing at the expected level of quality. It is vital because the front-line contact employees are important elements in the service delivery process that are capable of building customers' perception about the service.

Table of Contents

Executive Summary 1

Table of Contents 2

1. Introduction 3

1.1 COMPANY BACKGROUND 3

1.2 OPERATIONAL STRATEGY AND COMPETITIVE ADVANTAGES 4

1.3 GARUDA OPERATIONS IN BRISBANE 5

2. Analysis of Garuda Operational activities 6

2.1 PROCESS AND OPERATIONS 6

2.1.1 The Airline General Operation 6

2.1.2 Fleet Assignment 9

2.1.3 Outsourcing activities 9

2.1.4 Scheduling 12

2.1.5 Scheduling limitation 13

2.2 QUALITY MANAGEMENT 14

2.2.1 Defining Quality and Quality Management 14

2.2.2 Quality...