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TQM OF
Service Industry
 JET AIRWAYS
AVIATION INDUSTRY SCENARIO
              IN INDIA
• The Indian aviation is one of the fastest
  growing aviation industry in the world
• With the liberalization of the indian aviation
  sector, aviation industry in india has
  undergone a rapid transformation
• Private airline accounts for almost 75% share
  of the domestic aviation market
• India has 454 airports of these 16 are
  designated international airports
PLAYERS IN THE INDIAN
   MARKETPLAYERS IN THE INDIAN
            MARKET
• Airlines at International Routes
• AIR INDIA

• KINGFISHER

• JET AIRWAYS

• INDIAN AIRLINES
Airlines at Domestic Routes
• INDIGO

• GO AIR

• SPICE JET

• AIR DECCAN
INDIAN MARKET SHARE
                       Sales


           8%   5%
      8%                   30%   JET AIRWAYS
                                 KINGFISHER AIRLINES
20%                              AIR INDIA+INDIAN
                                 INDIGO
                     29%         SPICEJET
                                 OTHERS
Welcome Aboard



India’s Most Preferred Airline
FORMATION OF JET AIRWAYS
• Mr.Naresh Goyal founded Jetair (ltd) in May
  1974

• In 1991 Diversification Programme

• Commenced commercial operations in May
MISSION
• Jet Airways will be the most preferred
  domestic airline in India.

• Jet Airways will achieve this pre-eminent
  position by offering a high quality of service
  and reliable, comfortable and efficient
  operations.
CODE OF CONDUCT
• Confidential information
• Fair dealing
• Compliance with laws and regulations
• Prevention of insider trading
• Encouraging reporting of unethical or illegal
  behavior
• Record keeping
JET AIRWAYS PARTNERSHIPS
•   Air Canada
•   American Airways
•   Brussels Airways
•   All Nippon Airways
•   Jetlite
•   QANTAS
• Car rental partners

• Co-Brand card

• Conversion

• Hotel partners
SERVICES
• Check In Options :
• Airport Check in
  Tele Check in
  Web Check in
  Kiosks Check in
• • Airport Lounges
  • Bus Services
  •Cuisi nes
  •Entert ainment
SPECIAL SERVICES
•    Infant and Child Care
•   Wheel Chair Assistance
•   Unaccompanied Minors
•   Medical Emergencies
•   Traveling with Animals
•   Jet Mobile
TQM TECHNIQUES
• Jet 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 MODEL
• Is a model to assess the gap of an organizations
  service quality performance against customer
  quality
  needs.

• Introduced by Zeithaml, Parasuraman and Berry
  in 1985.
• It is widely used within service industries to
  understand the perception of target customers
  regarding their service needs
• SERVQUAL was originally measured on 10
  aspects of service quality :
 reliability, responsiveness, competence,
 access, courtesy, communication, credibi
 lity, security, understanding
 the customer and tangibles
Servqual Data - What can we do
• We 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, to
  deploy 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 MODEL
• Reliability: 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 the
   Indian airline industry (FSC) using
                ServQual
                  model
                 JET AIRWAYS   KINGFISHER   INDIAN
                               AIRLINES     AIRLINES+AIR
                                            INDIA
RELIABILITY      1             2            3

ASSURANCE        1             2            3

TANGIBLES        2             1            3
EMPATHY          1             2            3
RESPONSIVENESS   1             2            3
AREAS OF QUALITY
              MANAGEMENT
 1 On time
 2 Delay information
 3 Announce delay
 4 Good in-flight service
 5 Good in-flight food
 6 Waiting time for baggage
 7 Baggage lossOn time
 8 Delay information
 9 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 Equipments
YIELD MANAGEMENT
                 OR
       REVENUE MANAGEMENT

Process of understanding, anticipating and
influencing consumer behavior in order to
maximize yield or profitsfrom 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 in price discrimination, where a firm
  charges customers consuming otherwise identical
  goods or services a different price for doing so
EXAMPLE
• In the passenger airline case, 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 versa
QUALITY CERTIFICATION
• In 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 standards
• IATA Operational Safety Audit (IOSA)
  Registration
COST CONTROL MEASURES
• Jet Airways and Kingfisher Airlines, have put aside
  their differences and joined hands to cut costs through
  code-sharing and combining ticketing and ground
  services.

• The airline leased two of its Boeing 737s to a
  Japanese company, and implemented a number of
  workforce productivity measures.

• Salary cut of employees
AWARDS
• ‘airline with best first-class service in the
  world’ award at Business Traveler’s 20th
  annual ‘best in business travel’ awards gala in
  the USA
• ‘best domestic full service airline’ award
  for the sixth year in a row
• “Most innovative product launch” award
Customer 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
  refreshments
• Jet was found to be providing good in-flight food &
  entertainment
• Baggage loss was found to be almost never a problem
  with Jet Airways
• Staff 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 baggage
•Their catering is poor in variety and quantity
THANK YOU

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52325852 total-quality-management-in-jet-airways

  • 2. AVIATION INDUSTRY SCENARIO IN INDIA • The Indian aviation is one of the fastest growing aviation industry in the world • With the liberalization of the indian aviation sector, aviation industry in india has undergone a rapid transformation • Private airline accounts for almost 75% share of the domestic aviation market • India has 454 airports of these 16 are designated international airports
  • 3. PLAYERS IN THE INDIAN MARKETPLAYERS IN THE INDIAN MARKET • Airlines at International Routes • AIR INDIA • KINGFISHER • JET AIRWAYS • INDIAN AIRLINES
  • 4. Airlines at Domestic Routes • INDIGO • GO AIR • SPICE JET • AIR DECCAN
  • 5. INDIAN MARKET SHARE Sales 8% 5% 8% 30% JET AIRWAYS KINGFISHER AIRLINES 20% AIR INDIA+INDIAN INDIGO 29% SPICEJET OTHERS
  • 6. Welcome Aboard India’s Most Preferred Airline
  • 7. FORMATION OF JET AIRWAYS • Mr.Naresh Goyal founded Jetair (ltd) in May 1974 • In 1991 Diversification Programme • Commenced commercial operations in May
  • 8. MISSION • Jet Airways will be the most preferred domestic airline in India. • Jet Airways will achieve this pre-eminent position by offering a high quality of service and reliable, comfortable and efficient operations.
  • 9. CODE OF CONDUCT • Confidential information • Fair dealing • Compliance with laws and regulations • Prevention of insider trading • Encouraging reporting of unethical or illegal behavior • Record keeping
  • 10. JET AIRWAYS PARTNERSHIPS • Air Canada • American Airways • Brussels Airways • All Nippon Airways • Jetlite • QANTAS
  • 11. • Car rental partners • Co-Brand card • Conversion • Hotel partners
  • 12. SERVICES • Check In Options : • Airport Check in Tele Check in Web Check in Kiosks Check in • • Airport Lounges • Bus Services •Cuisi nes •Entert ainment
  • 13. SPECIAL SERVICES • Infant and Child Care • Wheel Chair Assistance • Unaccompanied Minors • Medical Emergencies • Traveling with Animals • Jet Mobile
  • 14. TQM TECHNIQUES • Jet 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.
  • 15. SERVQUAL MODEL • Is a model to assess the gap of an organizations service quality performance against customer quality needs. • Introduced by Zeithaml, Parasuraman and Berry in 1985. • It is widely used within service industries to understand the perception of target customers regarding their service needs
  • 16. • SERVQUAL was originally measured on 10 aspects of service quality : reliability, responsiveness, competence, access, courtesy, communication, credibi lity, security, understanding the customer and tangibles
  • 17. Servqual Data - What can we do • We 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, to deploy 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.
  • 18. DIMENSIONS OF SERVQUAL MODEL • Reliability: 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
  • 19. An empirical study was conducted in 2007on the Indian airline industry (FSC) using ServQual model JET AIRWAYS KINGFISHER INDIAN AIRLINES AIRLINES+AIR INDIA RELIABILITY 1 2 3 ASSURANCE 1 2 3 TANGIBLES 2 1 3 EMPATHY 1 2 3 RESPONSIVENESS 1 2 3
  • 20. AREAS OF QUALITY MANAGEMENT 1 On time 2 Delay information 3 Announce delay 4 Good in-flight service 5 Good in-flight food 6 Waiting time for baggage 7 Baggage lossOn time 8 Delay information 9 Announce delay 10 Good in-flight service 11 Good in-flight food 12 Waiting time for baggage 13 Baggage loss
  • 21. 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 Equipments
  • 22. YIELD MANAGEMENT OR REVENUE MANAGEMENT Process of understanding, anticipating and influencing consumer behavior in order to maximize yield or profitsfrom a fixed, perishable resource (such as airline seats or hotel room reservations).
  • 23. • 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 in price discrimination, where a firm charges customers consuming otherwise identical goods or services a different price for doing so
  • 24. EXAMPLE • In the passenger airline case, 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 versa
  • 25. QUALITY CERTIFICATION • In 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 standards • IATA Operational Safety Audit (IOSA) Registration
  • 26. COST CONTROL MEASURES • Jet Airways and Kingfisher Airlines, have put aside their differences and joined hands to cut costs through code-sharing and combining ticketing and ground services. • The airline leased two of its Boeing 737s to a Japanese company, and implemented a number of workforce productivity measures. • Salary cut of employees
  • 27. AWARDS • ‘airline with best first-class service in the world’ award at Business Traveler’s 20th annual ‘best in business travel’ awards gala in the USA • ‘best domestic full service airline’ award for the sixth year in a row • “Most innovative product launch” award
  • 28. Customer 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 refreshments • Jet was found to be providing good in-flight food & entertainment • Baggage loss was found to be almost never a problem with Jet Airways • Staff friendly and helpful
  • 29. 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 baggage •Their catering is poor in variety and quantity