Page 119 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes for money’ service that most airlines offer in economy class. Jan Carlzon, the man who
turned Scandinavian Airlines’ (SAS) $ 8 million loss into a gross profit of $ 71 million on
sales of $ 2 billion in just two years, called every moment of customer contact a moment
of truth. Jet Airways uses this philosophy to attain its standards of customer satisfaction.
The customers are made to use the interactions with the airline staff to evaluate the
performance of the airline. Jet Airways manages these ‘moments of truth’ to create ‘golden
moments’ and not ‘coffee stains’, according to the CEO Steve Forte.

Questions
1. Analyse the case and efforts to manage quality at Jet.
2. Do SWOT analysis for Jet Airways?

Source: Upendra Kachru, Production and Operations Management – Text and Cases, First Edition, Excel Books, New Delhi,
2007.

5.9 Summary

 The Quality costs include Internal Failure Costs, External Failure Costs, Appraisal Costs
and Prevention Costs.
 Eight quality management principles have been enunciated by the International Standards
Institute (ISO) on which the quality management system standards are based.

 Total Quality Management is managing the entire organization so that it excels in all
dimensions of products and services that are important to the customer.
 For any organization the key elements that affect quality are people, facilities, and materials.

 Kaizen seeks continual improvement of machinery, materials, labour utilization, and
production methods through applications of suggestions and ideas of company teams.
 The quality management process is judged by the degree to which the product or service
design specifications are met.
 Zero Defects, initiated by Philip Crosby, is a business practice which aims to reduce and
minimise the number of defects and errors in a process and to do things correct the first
time.

 Parameters of service quality include complex customer perceptions such as timeliness,
employee’s attitudes towards customers and the physical environment where the service
is delivered.

 Six Sigma refers to a disciplined, data-driven approach and methodology for eliminating
defects in any process—from manufacturing to transactional and from product to service.
 A sampling plan is the overall scheme for the acceptance or rejection of a lot based on
information gained from a sample.

5.10 Keywords

Acceptance Sampling: When samples are measured for the key product characteristics, in order
to ensure that the specification limits are not exceeded.
Conformance Quality: It refers to the degree to which the product or service design specifications
are met.

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