Introduction
This project aims at the exploration of Emirates Airlines’ company and the problems associated with it. In particular, the core goal of the project is to analyze the mentioned company in the framework of project management. At this point, the following objectives may be identified: to specify the company’s organizational structure, issues related to the reservation system and analyze them, and deliver a certain decision to resolve these problems. It is necessary to note that the analysis will be conducted from the point of a project manager.
Project Description
It seems necessary to conduct a SWOT analysis, justifying the goal of the project. Among the strengths of the organization, there is support from the UAE government, nationwide coverage, significant workforce, and so on. The mentioned aspects lead the company and help to meet the customers’ satisfaction. Also, focus on social responsibility in the form of special environmental programs complements the list of strengths. Currently, Emirates Airlines lacks some technological improvements, thus conceding in fierce competition with other airlines. This is likely to lead to the limited market share increase and considerable costs on adhering to modern requirements. The opportunities involve the development of a strong technological base. Another potential opportunity is the expansion to China market the growing economy of which needs a new inflow of transpiration partners. As for threats, one might state that ever-increasing fuel costs, strengthening of competition, and failure to implement global technology development might significantly reduce the company’s productivity.
The project will begin with the description of Emirates Airlines to provide necessary information related to the company. In particular, a range of services offered by the company will be pointed out. In the course of this project, the reservation system will be accurately assessed and subsequently analyzed from the perspective of a project manager. After that, various project management tools and techniques will be employed to provide relevant findings that will contribute to the possibility of coming up with the business solution. The project will also include the implementations of such strategies as the adoption of planning, budgeting, and scheduling. Finally, several recommendations will be identified and evaluated from the perspective of their feasibility. Finally, the conclusion part will provide the key points of the project, list the main consequences, and assume the theme of the potential perspective research.
Organization structure of Emirates Airlines
Emirates Airlines is one of the biggest networks that is famous all over the world. The company plays an essential role in the international aviation industry, connecting people, and promoting economic growth. The mission of the company relates to the management of resource consumption that is associated with the reduction of global ecologic problems. At the same time, it promotes continuous growth to connect even more countries and cities. The organizational structure of Emirates Airlines is headed by CEO and Chairman His Highness Sheikh Ahmed bin Saeed Al Maktoum (Emirates Airlines). In his turn, President Sir Tim Clark performs transformational ideas and manages the following departments: service and data, human resources, flight operations, facilities/project management, and so on. Each of the mentioned departments is led by the executive vice presidents.
There are various services offered by Emirates Airlines both onboard and outside. Along with the guaranteed superior care, the passengers may order additional services, depending on a certain route and cabin class (Graham, Papatheodorou, and Forsyth 48). For example, the first-class passengers may enjoy onboard shower spas or lounges. The basic set of services involves baggage delivery, e-booking system, duty-free, advanced seat reservations, etc. This project will focus on the airline reservation system (ARS) that provides such opportunities as e-booking, in particular, the reservation of flights, hotels, and airport transfer. For example, it is possible to make the reservation and pay within 72 hours that ensures the customers’ convenience.
Problems Facing Service It Provides
Emirates Airlines ARS causes some difficulties associated with booking, data security, and other similar issues. Considering that the modern digitalized world sets new challenges and opportunities in the field of reservation, these problems become even more important. To understand the core of the issue, it is necessary to briefly identify the essence of the reservation system. According to the information presented on the company’s website, it is simple to plan a flight and reserve the necessary option (Emirates Airlines). To make a booking, it is necessary to select departure and arrival airports, dates, and class types. After that, the search engine will provide a customer with a list of available flights. Confirming the selection, a customer will be redirected to the next page with flight details, including itinerary peculiarities, benefits, and terms and conditions. As soon as the flight booking is verified, it is possible to make a seat reservation.
The option of seat reservations may be especially significant for passengers with children, older adults, and other customers with additional requirements. Nonetheless, the company provides this opportunity for all the passengers, thus striving to meet their expectations and ensure a comfortable flight. It is essential to emphasize that advanced seat reservations may cause different problems regarding refunds, charges, reward systems, and seat changes (Graham, Papatheodorou, and Forsyth 65). The first issue relates to the fact that sometimes reservation leads to overbooking. To compensate for the customers’ cancellations, the seating capacity is sometimes enlarged. In its turn, this may cause misunderstanding between the company and a customer as reservation seat charges are primarily non-refundable. The second issue is associated with the difficulty of accessing online reservations. In particular, there are no integrated reservations that, for example, embrace mobile services and ticketing. Another problem of reservations concerns delays caused by system failure. Even though the company makes every effort to prevent them, there are still some occasional system fails.
Analyses of Delays or Problems of Project
From the observations that were provided below, it becomes evident that the company’s reservation system needs to be improved and updated according to the current requirements. Considering the problems that were enumerated earlier in this paper, it is necessary to properly analyze them, using the tools and techniques of project management. However, certain delays and problems may occur in the course of the project. For example, it is possible to suggest that the required data that is important to initiate the analysis will not be founded on time. Another potential delay is software problems. Despite the above points, the project will be completed and submitted promptly according to the instructions.
To identify risks that may occur in the course of the project, it seems appropriate to conduct a risk analysis. First of all, it is necessary to identify potential threats. Using qualitative methods of analysis, human, operational, financial, or market risks may be taken into account. For example, the risk of exceeding the cost of production when the production costs are higher than the planned ones may occur, thereby reducing the profits of the project. In this regard, a cost analysis of the project is to be performed. The market risks may arise for the following reasons: incorrect choice of product markets, improper identification of market operation strategies, inaccurate calculation of market size and production capacity, or delay in entering the market. The mentioned risks can deteriorate the effectiveness of the project and even delay its implementation deadlines. Speaking of operational and technical risks, one might point out that they can be caused by design errors, shortcomings of the technology, wrong choice of equipment, erroneous determination of priorities, and lack of effective management.
Some conditions of the project may also change. For example, it may be discovered that reservation system improvement exceeds the capacity of its execution, and, therefore, it is appropriate to postpone the start of works. This can lead to changes in the budgeting plan or to the fact that necessary for the project staff can be employed in other jobs. Also, the tax laws may change that is likely to impact the economic feasibility of the project. At the stage of optimization, some changes in the plan may be necessary to address the mentioned criteria. These changes may make it necessary to return to the previous planning phases. As a result of one or multiple iterations, the project schedule that is close to the optimal may be obtained.
The measures to reduce the enumerated risks may comprise the involvement of government and partners with extensive experience in conducting design, execution, and operation in the development and implementation of the project. The careful design and preparation of management strategies on the interaction of the parties that are directly involved in the project may assist in addressing the potential risks. Besides, the development of adverse situation scenarios seems to be useful, too.
Implications of Project Management Tools and Techniques
To enhance the current situation, a project manager is to employ a range of tools and techniques accepted in the context of project management. A project manager must ensure reliability, accuracy, and communication. At the same time, cancellations are to be properly investigated to reduce their impact on onboarding capacity. First of all, it is of great importance to state that project management implies the distinction of certain phases that are as follows: initiation, planning, execution, and evaluation (Gido and Clements 23). Each of the mentioned phases has its own set of techniques. Thus, the first phase focuses on the project initiation plan, defining the activities required to establish an appropriate environment, and communication with staff. The second phase involves the composition of tasks along with preliminary budgeting and scheduling techniques. Monitoring the project execution and managing changes can be related to the third phase. Ultimately, the last phase focuses on the post-project review.
The most obvious way to implement the project is to break it into phases and separate tasks as it was described above. In other words, this reminds a receipt when one purchase the ingredients, mixes them in the proper order, cooks, and serves. However, as a project manager has to control several processes simultaneously, there is a need to apply some tools, helping to keep track of time spent on each of the elements and time when they should be completed. For example, a Gantt chart that illustrates the project schedule based on completion dates and achievement of tasks can be used (Gido and Clements 25). This tool can track tasks, their duration, and relations between them, calculating the critical path – the longest chain of interrelated tasks that defines the life span of the project. The implementation of this tool seems to be a rather important decision as the exhibition of accurate forecasts contributes to effective project management.
PERT (Program Evaluation and Review Technique) is another essential tool the use of which allows a project manager to know exactly what should be done at any given time and who should do it, as well as the likelihood of timely completion of certain operations. PERT leads the methods of planning and controlling of the project by dividing it into several sub-tasks where each of them has estimated time needed for its implementation and the assigned execution priority (Gido and Clements 28). Employing PERT, a project manager can evaluate the tasks that are involved in the implementation of the project, especially the time frames needed to complete each task. This method is principally designed to facilitate planning and scheduling processes. Through this tool, it becomes possible to control the execution of the project, using a presentation in the form of a chart that takes into account all the tasks necessary to complete the project.
The following PERT chart is developed to illustrate the critical path method, assessing intervals that are required to implement the proposed project.
The above PERT chart supported by the explanation table represents a set of points (activities) with the interconnecting circles (duration). Every activity implies some process that is necessary for the implementation of the project as well as the attributed quantified characteristics. In particular, the required resources – expected duration can be clearly understood from the chart. Every activity is interpreted as the completion of a certain process and, at the same time, as the beginning of the other one, proceeding from there. Thus, it becomes evident that none of the processes can be started until previous ones are not carried out according to the course of the project. Meanwhile, it is essential to stress that the flow of the chart is consistent and accurate. The sequence of activities is treated as a path from the starting to the final vertex, and the sum of the lengths of the activities is attributed to the project implementation life span. As can be observed from the chart, the beginning and end of the project are connected through the two ways, which are different in length and number of activities. This means that some processes may go in line with others, for example, product model and sales brochure. Therefore, the critical path is the total duration of the project, in particular, 24 weeks.
Adoption of Planning, Budgeting, and Scheduling by the Project Manager
Taking into account the significance of implementation techniques, it seems critical to consider them in detail. Planning in one form or another is carried out throughout the life cycle of the project that is usually developed at the beginning of the project by a preliminary plan – an idea of ​​what is required to be performed as a result of the project. The formal and detailed project planning starts after the decision on its implementation and involves the following stages: definition of the main points (milestones) of the project and formulation of tasks along with their interdependence. It is this stage at which a project manager may use the development kit that comprises construction tools, network diagrams, Gantt charts, and histograms of the destination resource utilization. As a rule, the project plan does not remain unchanged as the project is subjected to constant adjustment in the light of the current situation.
Scheduling is the formulation and process verification routine procedure that is to be used in budgeting. This process takes place when the conditions of the project are specified. It is a complex structure that, in contrast to other project management processes such as process execution, control, and planning, relies on the process of planning and documentation. A project manager needs to repeatedly refer to the scheduling process until the completion of the project as the projects are unique and create a product that previously never existed. Thus, scheduling is crucial to all areas of project management and takes into account budget, a program of action, potential risk, personnel, equipment, and so on.
As it was stated earlier in this paper, the PERT chart identified the duration of this project that is expected to be 24 weeks. At this point, five weeks are given to develop the product design that was identified as the improvement of the reservation system. Market research that is of great importance to specify market tendencies along with competitors’ strong points is to be conducted within one week. This activity is likely to help to make the potential improvements relevant and accurate. The production analysis and product model design will take the five weeks, resulting in the succeeding testing process that, in turn, will require four weeks of effective work. Cost estimate and pricing are to take three and one weeks correspondingly and followed by a thorough review within one week. The mentioned project scheduling seems to be sufficient to achieve the stated goal and meet the global standards related to technology implementation and enhancement.
Budgeting refers to the determination of cost values ​​that are to be carried out by the project realization. In other words, it is the process of budget outlining that contains the set of allocation of costs by type of activity, cost items, centers, or structure. The structure of the budget is determined by the cost accounting plan of a certain project. A project manager may form the project budget as a part of the traditional accounting chart of accounts or by using a specially developed plan of management accounts. The research shows that in most cases the accounting chart is not sufficient to initiate budgeting as every project requires the consideration of specific features from cost management (Gido and Clements 41). In this regard, a project manager needs to base budgeting on the established indicators of accounting management. The budget can be prepared in the form of calendar cost schedules, cost allocation matrix, bar charts, etc.
The cost of the proposed project can be evaluated through the budgeting process. The development of budgeting refers to the process of structuring and analysis of costs obtained in the budgeting section. Structuring and systematization of data on costs are carried out by the points of expenses that were approved within the organization of the project. This implies the list of project costs derived from the scope of the project, required resources, and prices. Traditionally, there are direct costs (expenses), overheads (indirect) costs, and general and administrative overhead. Direct costs are those that are directly associated with the production of goods or activities of the project. They usually are directly related to the work package and include the following aspects:
- labor costs that were estimated at $ 40,000;
- costs of materials and equipment- $ 80, 000;
- other expenses related to the performance of work – $ 5, 000.
A project manager and a team may directly affect the mentioned type of costs while the impact of the project team on other expenses is limited.
Overhead indirect costs are costs that accompany the main production yet not directly related and not included in the cost of labor and materials. Overhead costs cannot be tied to any particular operation or concrete results. Applying to the whole project, they involve:
- operation and maintenance of fixed assets – $ 15, 000;
- management, organization, and production services $ 12, 000;
- business trips and meetings – $ 20, 000;
- training of employees – $ 5, 000.
General and administrative overhead (fixed costs) are costs that are not related to any specific project. They belong to the company’s costs but are also relevant to the project. The general and administrative costs generally include the maintenance management or support of various units such as accounting, secretarial, security, etc.
Recourse Allocation, Monitoring, Controlling, and Evaluating Techniques
To influence the achievement of the project results, goals, quality, time, and cost, it is important to select certain technologies, composition, characteristics, and assigning resources to perform management operations. Thus, the technologies and resources of the project can be attributed to the main levers of project management. In addition to these, there are auxiliary control levers, allowing them to attract the right resources at the right time. Besides, to manage resources, it is necessary to ensure the efficient organization of work. It concerns the project management structure and organization of information interaction between the project participants. It should be stressed that the basic resources such as project management or key executives are assigned in the early stages of the project while the specific ones are identified and appointed at the later stages.
To monitor the progress of the project, a manager needs to employ special documentation, systematizing resources, and strategies. The normative and regulatory documents determine the basic project management processes. For example, according to the regulation established by ISO 21500:2012 guidance on project management, program and project portfolios are to be documented in detail to organize the performance of a company. Among the most important documents that can be used in this project, one may note project charter, status reports, statement of work, risk register, and so on.
Controlling implies the evaluation of the execution of the project and the analysis of its consistency. If a project manager detects some differences, the corrective actions are to be taken to ensure that the project is carried out according to the plan. This may require additional changes in the planning and review of the main goals of the project. The core management processes of controlling include performance reporting – collection and distribution of information on the execution of the project; and overall change control – definition, coordination, approval, and acceptance to perform corrective actions and coordinating changes across the project.
Thus, the execution of the project should be regularly measured and analyzed to identify any deviations from the scheduled plan to identify and assess their impact on the project. The continuous assessment of the project parameters and identification of the emerging deviations promotes its timely implementation. The mentioned process is also should be considered to assess the condition and prognosis of the successful execution of the project according to the criteria and limitations that were set out at the planning stage. For most projects, among the major constraints criteria, there are targets, deadlines, quality, and cost of the project. The analysis of any decision on the continuation implies either the planned execution of the previous planning or determination of the need for the corrective action. The main processes of the analysis of the project execution are the processes that are directly related to the project objectives and indicate the success of the project execution:
- timing analysis – definition of conformity of actual and expected timing of the project execution operations, either directive or planned;
- cost analysis – identification of conformity of actual and forecast cost of operations and decision-making;
- quality analysis – monitoring of the results with a view to their checking on compliance with applicable quality standards and defining ways to address causes of undesirable results of quality;
- confirmation of goals – formal acceptance process of the outcomes.
If the performance of the project is by the agreed plan, management comes down to execution, in particular, communication of the project targets and monitoring of their implementation. These processes are included in the execution of processes. In case the implementation detected any deviations, and the analysis showed that it is necessary to introduce the corrective actions, it is required to find the optimal corrective action, adjust the plan of remaining work, and agree on the pending changes with all the participants of the project.
Executing can be referred to as a set of processes of the project implementation. The execution processes can be divided into major and minor. The basic execution processes can be attributed to the project plan execution itself while the sub-processes involve the following ones:
- information distribution – preparation and distribution of the necessary information for the project participants with the required frequency;
- quality assurance – regular evaluation of the project implementation to confirm compliance with the accepted standards of quality;
- solicitation – preparation of proposals, recommendations, comments, suggestions, etc.;
- source selection – evaluation of proposals, selection of suppliers and contractors, and contracting;
- contract administration – control of the execution of contracts to suppliers and contractors;
- team development – the development of the project team.
Resources are components that ensure the project activities, including performers, time, materials, equipment, etc. Accordingly, each activity function can be associated with resource requirements. Each time estimate is based on the use of a certain permissible amount of resources, and, therefore, by estimating the project duration, one can calculate the use of resources in advance. The main levers of project management that are to be used on resources level include:
- logistics – preparation for the work based on separate tasks: purchase, installation, and commissioning of controls provided by the project;
- human resources – necessary staff. This refers to hiring, training, motivation, reward system, design of work tasks, organization of work, and all other activities that are crucial for the management of human resources.
- intelligence – information systems development experience, special skills, abilities, and knowledge;
- financial resources;
- organizational aspects – distribution of responsibilities among the team members, the interaction between them.
- Information – a resource that can be used either in the form in the initial form or after conversion into an operational process. The introduction of information technology (IT) significantly increased the possibility of the use of information in both ways.
Paying attention to the specifics of this project, the project manager can be regarded as a specialist who is responsible for the successful implementation of the project within a specified time frame, with a fixed budget and required quality, and corresponding limited resources. The project manager is responsible for quality control, deadlines, budgets, and risks. In other words, his or her key task is to implement the project with the existing project resources that include qualified staff, equipment, services, consumables, and budget involved for the execution of the project. It seems necessary to emphasize that among the resources that are available to the project manager, there are people, equipment, materials, and supplies.
In this case, the project manager should act as a connector between the various departments of the organization that are involved in the project. For example, production plans or deadlines often require the collaboration of several departments. Therefore, one of the main tasks of the project manager is to ensure the coordinated work of the participants. This requires the maintenance of a large volume of both internal and external communications. The project manager is the formal leader of the project team, leading and controlling the entire workflow. For this purpose, it is essential to organize meetings with the project team members, monitor the implementation of the work plan, both for the project as a whole and for each team member.
Business Solution
Seeing the implication of tools and techniques that are presented above, it seems important to suggest some relevant business solutions. As a project manager, it is possible to note that the core strategy to employ is a flexible solution, embracing all the identified reservation issues. At this point, the key goal is to enhance customer satisfaction that can be achieved by delivering accessibility and improving productivity. The integration of reservation system with mobile apps and customer care service is one of the possible solutions. This means that a project manager should utilize his or her knowledge and skills to plan, budget, and schedule the necessary changes to implement the suggested decision. Particularly, such techniques as initiation, planning, execution, and evaluation are to be used. Also, all the techniques enumerated earlier in this paper are to be properly implemented.
The enhancement of website functionality is another possible business solution to the specified problems. The factor of the user-friendly reservations can significantly reduce the level of their dissatisfaction by simplifying the very procedure of reservation and the related terms. To this end, it should be specified how to combine the projects and programs carried out within an organization and use the subsequent project implementation experience for the development and promotion of strategic objectives. Most of today’s business issues involve the complexity of the decisions that need to be addressed to achieve the effective execution of a company. To accomplish this mission, the project solution is to be formulated and implemented strategically. The organization of project activities should be provided based on project management methodologies, processes, and phases. These standards provide a concentration of best practices in project management, form the basis for the interaction between the project team members, and make it possible to systematize knowledge in the corresponding area.
Providing cost breakdown, it is possible to use a cost breakdown structure (CBS) that consists of operation, planned maintenance, and corrective maintenance. Project cost management proposed in this paper is associated with the three major elements such as cost, timing, and resources. The main objective of cost breakdown is to complete it within the approved budget. The forecast of economic indicators of the project is based on an assessment of the market prospects on technology implementation that underlie the project and is designed to determine the financial viability of the project. The latter is the company’s ability to meet its financial obligations, arising from the implementation of the project timely and fully, and, at the same time, to achieve the initial goal of reservation system improvement. If the first of these factors requires compliance with a positive balance of cash receipts and payments during the realization period, then the second assumes a positive assessment of the economic efficiency of the project.
Here is a list of costs along with the required resources:
- people: employee + experts + consultants + contracts with other organizations;
- remuneration: salary + cost of contract services + tax + inflation rates;
- travel and transport: tickets + Daily Subsistence Allowances (DSA) + price of housing in hotels;
- equipment: maintenance of existing + purchase of new;
- dispatch and communications: postage costs + telephone + e-mail.
As it was reflected above, the company plans a budget of $ 177, 000. This total investment is expected to be released after the end of the project as the bulk of financial resources is invested in fixed assets, which would be fully amortized over the five years. At this point, 100 percent of the investment needs are to be financed by the company’s capital, thus avoiding any loans. The company expects to get a return on its financial resources invested by 28 percent within the period that coincides with the duration of the project. According to cost breakdown, the company’s net profit before depreciation, interest payments, and income taxes would compose $ 49, 560 per year. More importantly, Emirates Airlines is likely to reach its design capacity by the end of the project and will maintain the planned amount of profit after it. It is also important to point out the fact that the project’s successful execution is expressed in the gained objectives that are, in their turn, to be evaluated by comparing primary data and resources with the progress that was ultimately achieved. In this connection, a project manager is responsible for the assessment of the level of deviation and the resolution of contradictory issues, if required.
Analysis of Findings and Recommendations
A project manager is responsible for the three aspects of the project: time frame, costs, and quality of results. By the principles of project management, it is considered that the effective management of scheduling is the key to the success of all the mentioned indicators. Time limits of the project are often the most critical ones as if the terms of the project are seriously delayed, the likelihood of cost overruns and insufficient quality of service increase. Therefore, it is of great importance to focus on scheduling and monitoring timetable compliance. Meanwhile, one more recommendation is to coordinate all types of available resources throughout the project life cycle by employing project management tools and techniques that will lead to the desired outcome.
The presented business analysis involves a set of ambiguous data, global environment, and the apparent lack of proper solutions and rigid time constraints that are necessary for adequate decision-making. Therefore, a manager is encouraged to develop a comprehensive solution to the problem by taking advantage of data collected from the case. Thus, the business case immerses a manager in the atmosphere of the actual situation and allows him or her to gain experience in solving complicated problems. Because the analysis revealed various feasible approaches to the given issue, it is possible to select the correct decision.
Among other benefits, a new reservation system will provide the opportunity to implement several special services associated with mobile apps. For instance, SMS informing about transactions made by cash or creation of a section that will contain the possibility of additional booking in an online mode (e.g., rental cars, delivery tickets, etc.). The benefits of using the service of creating an online ticket reservation systems involve the creation of the following aspect of a uniform customer base, the possibility to quickly produce reports based on existing indicators, storage of information about customer transactions, automation of workflow, and provision of simple non-stop access to the reservation system.
Conclusion
In conclusion, it is important to emphasize that the presented project specified key issues of Emirates Airlines reservation system, including insufficient integration, overbooking, and subsequent delays. In the course of the project, it was revealed that a project manager may utilize a range of tools and techniques such as PERT analysis and Gantt chart. At the same time, the company’s reservations were accurately considered appropriately so that a project manager may plan, schedule, and control the execution of all the tasks required to complete the project. It was stated that planning, budgeting, scheduling along with resource allocation, monitoring, controlling, and evaluating techniques are to be used to achieve the desired outcomes. The implications of this project concern the fact that several recommendations were suggested to enhance the current situation regarding Emirates Airlines’ reservation from the perspective of a project manager. Ultimately, it seems important to point that that this project may be interesting both for an average reader and an expert. The findings that were made in the course of the project present essential grounds for prospective studies in the field of airline project management.
Works Cited
Emirates Airlines. Emirates Airlines, 2017, Web.
Gido, Jack, and James P. Clements. Successful Project Management. Cengage Learning, 2015.
Graham, Anne, Andreas Papatheodorou, and Peter Forsyth. Aviation and Tourism: Implications for Leisure Travel. Routledge, 2016.