Virgin Australia Airline Quality Management System Qualitative Research

Quality Management Systems ISO 9001: 2008

Quality policy

In 2012, Virgin Australia Airline was ranked as the best airline within the Australian airline industry. The firm’s success both in international and domestic markets hinges on its commitment towards provision of high quality services. Virgin Australia has formulated comprehensive quality policies, which has enabled it to attain an optimal market position. Some of the issues considered in its quality include:

1. The airline is committed at attaining a high level of customer satisfaction. Virgin Airline has integrated a number of issues such as adoption of a low-cost model, offering high-quality in-flight services, and integration of innovative features for example kiosk and web check-in in a bid to achieve this goal.
2. The airline ensures that it only procures well-designed and stable aircrafts to ensure customer safety. The firm also undertakes continuous safety audits on its aircrafts. This move aims at ensuring that its aircrafts undergo effective maintenance. Its engineers are required to have a comprehensive understanding in addition to observing aircraft operations and safety maintenance activities coupled with regulatory requirements. Consequently, Virgin Australia has managed to achieve appropriate performance in the industry.
3. In an effort to provide airline services, which are in line with the customer’s needs and wants, the firm continuously conducts consumer research. The objective of the research is to help the firm understand consumer needs and thus aim at meeting the needs for a strong customer base.
4. In its recruitment process, the firm has developed a comprehensive employee selection criterion. The criterion aims at ensuring that only the highly qualified applicants are incorporated in the organisation. This aspect enables the airline to offer optimal services thus eliminating any form of discontent amongst the customers (Virgin Australia 2012).

Stakeholders

To succeed in the competitive airline industry as a sustainable entity, Virgin Australia appreciates the role of stakeholders in its operation. As a result, the airline is committed at nurturing a strong relationship with its stakeholders. Some of the airline’s key stakeholders include:

1. Customers- Virgin Australia is a profit-oriented entity. As a result, customers form an important element of its stakeholder’s component. Lack of customers may result in failure of the firm due to its ability to sustain its operations and attain its profit motive.
2. Employees-The success of the airline in its effort to attain a high competitive advantage with regard to provision of quality airline services is dependent on the effectiveness with which the firm treats its employees.
3. Investor groups and shareholders-This category of stakeholders play an important role with regard to ensuring that the firm accesses long-term finances to undertake its capital investment such as acquisition of aircrafts.
4. Regulators and governments– In its operation, Virgin Australia is charged with the responsibility of ensuring that it adheres with the formulated legal requirements.
5. The society-Virgin Australia airline’s operation may influence the society within which it operates directly or indirectly.

Stakeholders’ needs

1. By consuming its services, customers have the expectation that they will attain their desired level of satisfaction. This forms the basis of determining whether customers have obtained value for their money.
2. Employees require the firm to guide and support them towards their effort to attain career objectives. This aspect increases their level of satisfaction hence their service offering effectiveness and efficiency.
3. By providing the firm with the necessary funds, investor groups and shareholders require the firm to maximise their wealth. The first step towards attainment of these stakeholders’ objective relates to attainment of profit maximisation.
4. Regulators and the government require the airline to adhere to the stipulated rules and regulations.
5. The community within which the Virgin Australia operates expects the airline to operate in a social responsible manner.

Process required for the firm to attain stakeholder’s needs

1. The airline’s management team should integrate a system of obtaining customer response in order to understand how effective the firm is offering quality services.
2. The effectiveness with which the firm delivers quality services is dependent on the level of employee job satisfaction. The airline should incorporate an employee-training program, which would contribute towards employee development.
3. Virgin Australia should incorporate a mechanism of monitoring its operational models in order to determine whether it contributes towards profit maximisation. This move will lead to attainment of shareholder’s needs.
4. The management should ensure that it understands the prevailing industry rules and regulations, for this knowledge would safeguard the firm against possible legal costs for non-compliance.
5. Virgin Australia should adopt a method of promoting corporate social responsibility.

Task input and output

Table 1: Task input and output for Virgin Australia

Performance parameters

Upon implementation of any program or strategy, it is critical for firms’ management teams to evaluate the program’s effectiveness. One of the ways through which this objective can be achieved is by integrating performance evaluation parameters (Charantimath 2007, p. 195).

To determine the effectiveness of its training program, Virgin Australia should identify the most effective parameters to determine the success of its training program. A measurement criterion on the identified parameters should also be identified.

Table 2: Parameters of performance

Key elements needed to implement continuous improvement program

1. Continuous market research-Virgin Australia should ensure that it continuously undertakes market research. The research should focus on two main market variables, viz. the competitor and the consumers. By conducting competitor market research, the airline will understand its competitors’ strategies. Therefore, the firm will gain an edge with regard to improvement of its competitive advantage. On the other hand, consumer market research will aid the firm in understanding its customers’ needs and wants with regard to airline services.
2. Innovativeness- Virgin Australia should implement emerging airline technology in its operations to increase the level of customer satisfaction. Some of the areas, which the firm should consider include in-flight services and ticket booking. For example, the firm should improve its flight booking by making it possible for customers to book flights online without experiencing delays.
3. Management review- A well-formulated process of measuring management’s performance should be integrated in the firm’s operations. The method designed should provide details regarding the management’s operational efficiency in steering the firm towards attainment of sustainability to its stakeholders.
4. Communication with the customers- Considering the intense competition within the airline industry, it is important for the firm to improve its competitiveness. One of the ways through which the firm should achieve this goal is by integrating the concept of Customer Response Management (CRM). The firm should obtain current market information, which will aid in implementation of new operational strategies.
5. Internal communication-The success of the airline’s continuous improvement program is dependent on the effectiveness with which the various departments interact. Thus, it is critical for the airline to integrate an effective internal communication. This will ensure that all employees participate in the continuous improvement program.

Environmental Management System (EMS)/ ISO 14001: 2004

Legislation requirement (Generic and Specific)

Businesses are required to operate in a responsible manner. In their quest to attain this, businesses have to take into account a number of elements such as the environment. Various laws have been formulated to ensure adherence to environmental issues.

Irrespective of their economic sector, Australian businesses are required to operate in an environmental sustainable manner. Thiess is one of the firms, which are well established within the Australian mining and construction industry. In its operation, Thiess has to adhere to a number of environmental legislations. Some of these laws include:

1. The National Greenhouse and Energy Reporting Act 2007 was formulated with the objective of ensuring that companies such as Thiess disseminate information regarding their greenhouse gas emission coupled with their energy production and consumption. This legislation enables businesses to conserve energy in their operation.
2. Hazardous Waste Act of 1989 regulates companies such as Thiess with regard to importation, exportation, and transportation of dangerous materials. This move minimises chances of contaminating the environment with hazardous substances that might pose environmental threats.
3. Ozone Protection Act 1989 (NSW)-The act empowers government agencies to prohibit and regulate manufacture, distribution, consumption, and recycling of substances that can cause depletion of the ozone layer. This legislation is very vital in minimising the rate of greenhouse gas emission, which stimulates global warming hence climate change.
4. Native Vegetation Act 2003 (NSW) postulates that companies should adopt sustainable management practices in order to protect and conserve native vegetation.
5. The Environmental Protection and Biodiversity Conservation Act of 1999 were formulated with the objective of protecting the country’s biodiversity and environment from adversely being affected by business operations.

Thiess company stakeholders and their needs

Some of the company’s main stakeholders include:

Customers

Thiess operates as a profit making entity, which makes customers a vital component of its stakeholders. The firm supplies customers with a wide range of construction products and services. In their purchasing process, some of the customers’ requirements include:

1. High quality products and services-The quality of the firm’s products determines the level of loyalty that the customers develop and hence their repeat purchase behaviour.
2. Customers also require the firm to be effective with regard to provision of post-purchase services such as after-sale services.

Suppliers

Thiess is committed at nurturing a strong relationship with its suppliers. The firm has established consistent standards for dealing with its local and international suppliers (Thiess 2012). Some of the suppliers needs include:

1. High levels of commitment to attain sustainability, safety, and diversity
2. Suppliers also require the firm to create fair and competitive business environment.

The government

As a stakeholder, the government’s role is to regulate operational activities of firms in the mining and construction industry. Moreover, as a stakeholder, the government has some needs from the firm. Some of these needs Include:

1. Ensuring that the firm complies with the stipulated rules and regulations aimed at protecting the environment.
2. As a profit entity, the government requires Thiess to contribute to the country’s economic growth and development by paying its corporate tax.

Shareholders and investor groups

These stakeholders contribute towards the firm’s financial strength by investing their money in the company. Their investment makes it possible for Thiess to implement capital projects. Their major needs include;

1. High net profits which will translate to high rate of dividends. This aspect increases the probability of shareholders’ attaining their profit maximisation objective.
2. Shareholders expect the firm to grow in its operation in order to attain their wealth maximisation objective.

Employees

They are responsible for the firm’s daily operations. Therefore, the firm’s success is dependent on the employees’ working efficiency. As stakeholders, employees have varying needs some of which include;

1. Attainment of high level of job satisfaction-Thiess should contribute towards employee job satisfaction. The firm can meet this need by aligning the reward system with employee performance.
2. Employees also require the firm to contribute towards their career development, for example, by incorporating programs such as employee training and development.

Processes that involve company operations

Demolition of old buildings

In its operation, Thiess Australia undertakes demolition activities. This entails careful tearing down of buildings. However, it may also be conducted on buildings with the objective of reusing some of the materials (Thiess 2012). To successfully undertake demolition, a number of sub-processes are undertaken. Some of these sub-processes include

Asbestos abatement

This entails removal of asbestos that is commonly used for thermal insulation in buildings. If not properly removed, asbestos can pose a health risk to individuals.

1. Building implosion- This involves the use of explosives to remove the vital vertical structural support of a building.
2. Building new structures-Due to its reputation within the construction industry, Thiess Australia is often awarded tenders to undertake major construction contracts. In September 2012, the company was awarded a tender by the Australian government to construct the Wynyard Walk (Thiess 2012). Some of the sub-process that the firm undertakes in the process of erecting a new building include;

Laying the foundation

This may entail a number of activities such as clearing the area where the intended building will be erected and excavation of the site.

Working around established utilities

The firm will be required to successfully work around utilities systems such as water, sewerage, and electricity.

1. Designing-In order to ensure that its construction projects to be in line with the laid down rules and regulation, the firm’s engineers undertake a comprehensive designing of the intended project.
2. Procurement- To complete its projects, Thiess Australia has to procure some of the materials used in the construction process from other suppliers. Some of the activities undertaken during the procurement process include:
   1. Identification of suppliers-This entails scanning the environment to identify the available suppliers of building materials.
   2. Selection of suppliers-Upon identification of the various suppliers, the firm evaluates each supplier to determine the best supplier to procure from. Some of the factors considered during the selection process include price and quality of the building materials.

Reward process

To ensure a high level of employee satisfaction, the firm has incorporated an effective reward system including

1. Performance appraisal-This entails reviewing the employees’ performance. A number of elements such as the employees’ effectiveness and efficiency in executing their duties are evaluated.
2. Upon completion of performance appraisal, employees are rewarded on the basis of the performance appraisal results.

Main processes as well as their environmental aspects

Demolition of buildings

Table 3: Building demolition process and its Environmental Aspects

Erecting new buildings

Table 4.

Environmental impacts of the two main processes

Demolition

Table 5: Demolition process and its impacts on the environment

Building new structures

Table 6

Environmental objectives

Demolition

Environmental Objectives

Building new structures

Table 7

Realistic and relevant targets

Demolition

Table 8

Building new structures

Table 9

Actions for target listed above

Demolition

Building new structures

Methods of monitoring progress of implementation of environmental actions

Occupational Health and Safety Management System (OHSMS)/AS 4801: 2001

Legislative requirements for firms within the mining industry

A number of standards have been developed by the Australian government in an effort to regulate the construction industry. The standards are aimed at increasing safety levels within and without the industry. In Australia, the Occupation Health and Safety Act 2004 forms the foundation of legislation of firms within the mining industry. Some of the provisions include:

1. Safety- Mining companies are required to ensure that their employees are free from any form of safety threat in executing their duties. Therefore, all the companies’ mining machines should be safe to operate.
2. Explosives– the Act outlines the legislative requirements that mining companies should consider with regard to handling of explosive materials used in the mining process.
3. The Dangerous Goods Safety Management Act of 2001 outlines the standards that should be followed in the process of transporting dangerous substances.
4. The Radiation Safety Act outlines the requirements that mining companies should take into account when handling radioactive substances. In an effort to minimise the hazardous effects of radioactive substances, mining companies are required to communicate various safety and health rules associated their occupation.
5. Communication-To ensure high levels of employee safety, mining companies in Australia are required to communicate various issues associated with health and safety. Mining companies are also charged with the responsibility of ensuring that employees understand the safety codes. Thus, they should communicate using various languages to ensure that all the language groups within the workplace understand.

Operational risk in mining

In the process of undertaking their duties, employees working in mining companies are faced with a number of operational risks. Some of these risks include:

1. Explosions– Occurrence of explosions in both underground and surface mining may pose a safety threat to mine workers.
2. Mine fires-There are some situations when mine fires occur. One of the sources of mine fires includes exposure of coal to fire.
3. Cave-in– Employees are also faced with the risk of mine collapsing in which might cause loss of life.
4. Exposure to harmful gases-During the mining process, there is emission of some harmful gases, which might cause respiratory problems.
5. Lung diseases- Intensive drilling is undertaken during the mining process. As a result, miners face the risk of suffering from lung diseases because of the fine dust associated with from drilling.
6. Noise-Some mining activities such as drilling and crashing the mined materials are very noisy. These activities may negatively affect the miners’ hearing ability.
7. Amputations– For mining to be successful, a number of mining machines are required. In the process of operating these machines, employees face the risk of their limbs being injured, which might lead to amputations.
8. Collisions-Mining machine operators face the risk of being injured in the event that their machines collide.
9. Fatigue– Working in a mining company may result in a lot of fatigue. This poses a risk to employees in executing their duties due to decline in level of concentration.

Risk assessment

Action to deal with the identified risk

Reference List

Charantimath, E 2007, Total quality management, Pearson Education India, Sydney.

Dendrobium Mine: Environmental Management System Management Plan 2009. Web.

South Australian Environmental Protection Agency 2012, Barriers and opportunities for re-use and recycling of clean fill and building demolition waste. Web.

Thiess: Construction 2012. Web.

Virgin Australia 2012. Web.