Quality management frameworks’ contribution to Emirates Airlines’ success
With the intensified level of competition among organizations, quality has become a key management issue; and as a result, Total Quality Management (TQM) has become essential for many organizations that are pursuing sustainable competitive goals. Though introduced in the 1980s, the term had acquired a wide application by organizations by the end of 20th century. Even though the definition of this term is not easy, as there are multiple views as to what it means, there are some commonalities that result from various definitions. These include terms such as a customer and supplier relationships, top management support, and employee involvement (Ang et al., 2000).
Emirates Airlines apply Total Quality Management (TQM) to pursue its organizational growth and success in both national and international markets. Observance of top quality performance through TQM has recently helped Emirates airline achieve an ISO 9001 certification. This is because the company follows processes and procedures that are strictly examined and it does not entertain mistakes in the implementation of its functions. The company has endeavored to expand its business with the aim of becoming a leader the Airline industry (Ame info.com 2007).
To achieve such an accolade, Emirates airlines had espoused the tools of Quality Control Circle (QCC) and total quality management (TQM) as the foundation of its drive. Also, the company was driven by the consideration that people are the forces behind quality processes. Another exceptional strategy that Emirates has adopted is venturing into tourism and resort realm. This has been done through acquisitions and creation of scores of spas, resorts and focusing in quality controls – this has attracted a lot of admiration and also opened more business opportunities for the company. Besides, the company has capitalized on this opportunity by building a tourism business, which makes the company grow even further (Emirates Airlines n.d.).
To achieve this, Emirates Airlines recognize that each activity and each person affects and is in turn affected by others. TQM is, therefore, chosen as a strategy to improve competiveness, by enhancing the effectiveness across all processes and functions (Ambroz 2004). Nevertheless, as industries expand, the competition continues to heighten while, at the same time, the need for quality improvement is becoming more critical. Businesses that operates in scores of countries across the world, upholds the principle of TQM to ensure sustainable growth and competitiveness in the market (Godfrey 1997). Emirates Airlines has taken several steps to achieve high market share and to face the market competition (Silver Associates Inc. n.d.).
Quality control is the foundation stone of Emirates Airline’s basic accomplishment. This starts from devoted interest on how they take care for their customers in everything they do to the maintaining and creating a high-tech airline – they devote the highest possible standards in each aspect of their business (Business Week 2008)
The managements of Emirates Airlines recognize that the organizational services and products have no value if they do not include what the customers really want. Nevertheless, identification of the customer needs is not an easy task. This is especially because the customers’ needs and preferences differ, especially considering that Emirates Airlines operates across the world, making needs and preferences more diverse (Ambroz 2004).
In addition, it is not easy to meet customers’ expectations since a number of them differ from the levels of expectations. To counteract these challenges, Emirates Airlines persistently draw information together, which helps them remain at par with the customers’ wants (Emirates Airlines n.d.). This is achieved through data collection methods such as market surveys, focus groups and customer interviews, just to mention but a few. Businesses are guided by the principle that they are in business because of their customers and, as such, they must focus on their interests and ensure that these customers are satisfied (Ambroz 2004).
Continuous improvement also remains a center focus on Emirates Airlines’ strategies. This is contrary to the traditional systems that assumed that a company that is successful and has achieved a certain level of quality does not need further improvement. Ambroz used an analogy that describes this concept when he maintained that the Japanese “believe that it is better to take frequent small doses of medicine than” (149). The Continuous improvement, which was referred to as Kaizen by the Japanese, requires “the company to continually strive to be in good health through learning and problem solving” (Babbar and Aspelin 2004, p. 56). Although the management of the Businesses believes that the company cannot achieve perfection, they take measures to ensure that the performance is evaluated and improvements made where necessary. To ensure continuous improvement, Businesses can pursue two different approaches. That is, bench marking and the plan-do-study-act (PDSA) cycle (Environmental Protection Agency 2006).
Emirates Airlines is undergoing turbulent economic times in today’s world and for them to survive; they should be ahead of the set benchmarks. Breakthrough in technology and performance excellence is the most dominant requisites for companies to succeed. Emirates Airline has not been left behind as they have reinforced their global airline realm of information technology into a major profit making area, which is charged with software development for the industry (Barney 2002; Environmental Protection Agency 2006). Use of their skillful programmers and knowledge to develop an information technology organization to assist the global airline industry is an outstanding strategy that adds value to their business (Emirates Airlines n.d.).
Notably, technology and innovation are critical driving forces that Emirate has used to grow internationally. Indeed, the company pioneered in offering seatback leisure to the passengers without discrimination on classes. Another area of technological advancement, for Emirates Airlines, is use of Danware’s NetOp complex skills that help international companies cut down on cost and time of providing top-notch technological support (NetOp n.d.).
Six sigma includes reduction of defects, reduction of cycle time and ensuring customer satisfaction. To achieve process improvement and variation reduction, this methodology attempts to implement a measurement based strategy. The methodology is hinged on two models; that is, DMAIV (Define, measure, Analyze, Design and verify) process and DMADC process. The first process focuses on existing processes that fall short of set specifications by putting extra emphasis on incremental improvement. On the other hand, the former process tends to develop new processes. Emirate Airlines endeavor to offer persistent customer experience internationally. For instance, its global e-Ticket system is widely available and helps more customers access this efficient service. Also, “electronic ticketing benefits both the customer and the airline by providing greater convenience, reduced processing time, simplified operations and faster check-in” (Scoop Business 2008. p. 5).
Six sigma is a recently discovered management approach, with little of its information having been written so far. Great research is required to develop an in-depth understanding of this methodology, in order to separate facts from fiction. The techniques for the practice of this methodology are similar to other management approaches; however, its practice totally represents a new structural improvement approach. It helps Emirates Airlines by providing them with a structural switch that enables them to act more organically, in unveiling new ideas of enhancing improvement and operational mechanisms improvements (Barney 2002; Environmental Protection Agency 2006). It further employs many mechanisms that promote the conflicting demands of exploring and controlling improvement efforts (Silver Associates Inc. n.d.).
Structure method is used by six sigma methodology in the process of improvement. The DMAIC (define, measure, analyze, improve and control) method is one of the structured methods of the six sigma methodology that help in identification of the main cause of problems, when used at the MFG and SERV. A Cause-effect charts, FMEA and statistical process control are part of the standard quality tools employed through this method, and they are part of the tools used in problem identification and diagnosis.
Improvement specialist is an element that involves training of employees. The trained employees act as intermediaries between the senior managers and individuals working in the improvement projects. Their main responsibilities include serving as instructors who provide assistance and mentoring services. The aviation education of Emirates airline is an essential tactic that helps in accomplishment of its objectives. The company persistently adds and maintains airline skills within its workforce, as well as building an immense track record as it also educates other employees in the industry (Silver Associates Inc. n.d.).
Performance metrics can be classified either as financial or customer-oriented metrics. In MFG and SERV, sigma performance metrics were employed at multiple levels of the organization and in the administrative, service and manufacturing processes (Schroeder et al, 2008). They also stated the importance of customer requirements for being part of the six sigma. The customer oriented metrics takes into account the importance of understanding the customers’ current needs and their future desires. This has the effect of designing new products and services to meet customers’ requirements; this is a fundamental aspect of the six sigma methodologies known as Critical to Quality (CTQ) characteristic. The financial metrics of the six sigma methodology are determined by the financial personnel present in Emirates Airlines and reveals the financial benefits of the project (Schroeder et al. 2007; Silver Associates Inc. n.d.).
Quality management frameworks applied by Emirates Airlines
For an organization like Emirates Airline to thrive, a thorough research, detailed studies and investigation of the factors to engineer its success are considered. The management of this company continually monitors its competitors and the changes that occur in the internal and external environment with the aim of tackling these issues.
Consequently, frequent evaluation of the strategies, approaches and the resources currently in the business is a crucial aspect as it aids in predicting the future position of the company even in the face of competition. Moreover, it is a key factor in determining the company’s strengths and helping in eradicating their points of weakness. The management has championed the excellence of Emirates Airlines by their innovative contributions to the airline industry, and these have helped in maintaining its status during the highs and lows of the industry (Emirates Airlines n.d.)
The Airline’s corporate strategy exhibits the essence of multiplicity to its customers and other stakeholders by serving a variety of markets across the world. Emirates Airlines is proud of their zealous and committed staffs who work hard to meet the organizational goals. It makes sure that its services are unique and enjoyable for the customers. This is done through convenience, safety and comfort measures in all its services. Emirates also focus on good leadership to ensure its strategies are successfully executed. Being a leader in the airline industry is one of its strong focus strategies (Silver Associates Inc. n.d.).
The management facilitates the expansion of the business to be able to cater for many people, therefore, increasing its profit margin. In addition, customer-focused strategies are one of its ways of marketing that is very effective (Environmental Protection Agency 2006).The implementation of the 24-hours customer service by the management has helped in catering for a wider variety of clients. It has also helped in immediate resolution of clients’ concerns and needs over a range of destinations all over the world. Furthermore, this strategy has propelled the airline to market leadership, and overall competitiveness in the industry.
Although the company is faced with a tasking mission of serving the whole world, it does not concede its customer-focused strategy in each of all the countries. The company’s diversity management approach enables it to meet the clients’ needs and demands in the global market. However, their diversification can at times act as a point of weakness while the existence of other companies that provide affordable and quality air travel services in the airline industry are potential threats (Emirates Airlines n.d.)
Emirates Airlines also ensure continuous improvement by identifying specific companies, which are considered to have very good practices, and then study them for the purposes of benchmarking. They identify a successful company from any industry with a specific practice that is admirable and uses it as a benchmark to measure and evaluate its own performance (Godfrey, 1997).
Emirates Airlines adopts part of the TQM philosophy that empowers the employees to identify quality problems and seek ways to tackle them. Apparently, this is a remarkable shift from the old concept, when the employees feared identifying problems because they had no much authority on their disposal (Environmental Protection Agency 2006). Employees who identify problems are highly rewarded, and hence encouraged and motivated.
They are given a degree of authority to make decisions with the aim of enhancing the quality in the hotel processes. Plenty of incentives are offered to those employees who uncover problems within the organization. The organization highly values the input of the workers and considers their effort as key in achieving high quality in services provision. An extensive and continuous training is offered to the employees to ensure they are capable of performing their duties effectively and are capable of maintaining quality services (Eckes 2000; Emirates Airlines n.d.).
Six-sigma quality management, its benefits and problems
Benefits
Use of Six sigma techniques bring about process metrics and structured techniques in a bid to achieve organizational goals for the airline. In addition, this methodology helps predications to model their business strategies to achieve critical improvement efforts, speed business results, accumulate resources to take advantage of the available opportunities and lastly to oversee that improvements are sustained.
Six Sigma contributes to employee involvement: the employees are actively involved in the process of business improvement in their teams, which is created to increase the value for their customers and also improve business process. Since the employees are involved in execution of these plans, they really benefit through recognition of their contribution of their efforts on the bottom-line business results, and also recognition for the efforts of other departments and employees towards the business success (Emirates Airlines n.d.).
Six sigma leads to reduction of costs for the Airline, especially the ones concerned with reduction of time due to process improvements, as well as through reduction of the loss that could result from cases of rework. Six sigma is also very important as it leads to customer satisfaction. This is because this process is concerned with an emphasis on customers’ requirements and needs, as well as providing them with a very high value, which contributes to their satisfaction. Customer satisfaction is associated with numerous positive aspects including customers’ entertainment while travelling with the airline (Eckes 2001).
The techniques for the practice of this methodology are similar to other management approaches; however, its practice totally represents a new structural improvement approach. It aids organizations by providing them with a structural switch that enables them to act more organically, in unveiling new ideas of enhancing improvement and operational mechanisms improvements. It further employs many mechanisms that promote the conflicting demands of exploring and controlling improvement efforts (Environmental Protection Agency 2006; Barney 2002; Environmental Protection Agency 2006).
Six sigma can be seen from two different structural dimensions: structural exploration that is rooted in communication and boundary spanning roles, and as structural control, which has its interest at the control theory. Though six sigma methodologies are skeptically claimed to lack discriminative validity over prior approaches to quality management, many organizations, however, are continuously adopting them to enhance their performance
Problems
Application of Six Sigma and lean manufacturing in Emirates Airlines is challenging because of its emphasis on process goes against the benefits of creativity and innovation. Innovation in an organization is not possible without production deviations, insufficient studies, unusual solutions and redundancy, all of which contradicts with the principles of Six Sigma (Breyfogle & Cupello 2003).
The cost of implementing as well as the initial cost of six sigma techniques can be very harmful because it is very huge for the Airline. Analyzing and retrieving the essential information to carry out the kind of questions required for a successful six sigma cannot only be time consuming, but also very costly. It is extremely difficult to achieve this with sigma since it will result to overreliance on certified and trained six sigma professionals. This will require the company to seek services of consultants and build division within the organization at the expense of creating synergy. Furthermore, sometimes not all employees are utilized at their expertise (Barney 2002; Environmental Protection Agency 2006).
References
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Babbar, S, and Aspelin, D 2004, ‘TQM it is as easy as ABC.’ The TQM magazine, vol. 6 no. 3, pp. 32-38.
Barney, MF 2002, The New Six Sigma: A Leader’s Guide to Rapid Business Improvement and Sustainable Results, Prentice Hall, Saddle.
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Environmental Protection Agency 2006, Crown Equipment Corporation eliminates chromium, McGrin, New York.
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Harvard Business Review March 2007, Managing Differences: The Central Challenge of Global Strategy, Web.
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Travel Daily News 2008, Emirates calls a world first, Web.