Kingfisher Airlines to modify Air Deccan’s service offering

untitled2.jpg Kingfisher Airlines tookover Air Deccan , India’s first budget airlines.

Air Deccan had been losing money and was not exactly in the pink of health, financially.

One of the reasons, for Air Deccan losing money, was that it had not got it’s service concept and service delivery right.

What does service delivery and service concept have to do with supply chains? Is there a supply chain for delivery of services?

Yes, there is a supply chain for delivery of services!
The tools, principles, processes and analytics that are applied to the supply chain of products are also applied to delivery of services.

Quality of service is slowly replacing price as the biggest differentiator between brands and service providers. Consumers prefer paying a small premium for better service, than tolerate dodgy service.This is true across services- telecom service providers, banks, DTH, retailing, cineplexes, transportation [ railways, airlines], tours and travel, after sales service, courier et al.

The service concept and the service delivery process has to designed well. The right quality and quantity of the facilities- counters, ATMs, people, space,location,routing- to deliver the service concept has to be in place to deliver the service. This will require analytics and application of supply chain principles.

Coming to Air Deccan, how could supply chain analytics and tools have helped Air Deccan deliver better service?

Aircraft turnaround time
As an example lets take the turnaround of the aircrafts at airports. Air Deccan’s scheduling was based on a 20 minute turnaround time- wheel stop to wheel start. Any delay in turnaround affected the on-time performance of Air Deccan- a key customer satisfaction parameter.

Cps,time maps: Supply chain tools could be used to design the 20 minute turnaround process. All the activities that had to be done in the 20 minutes- cleaning the cabin, loading the food, cleaning the toilets, replacing the magazines, filling fuel, loading the luggage, boarding the passengers- would have to be listed. The precedences, time taken, parallel activities, resources and tools required has to be mapped. The cps chart, GANTT chart and a lead time map would have to be drawn. The critical path activities would have been given extra resources to ensure the 20 minute turnaround time was achieved.

SMED: SMED [ Single Minute Exchange of Dies], a Toyota production principle could be used to complete all the preparatory activities, that do not require the aircraft to be present, to be completed before the aircraft stops. The activities that could be completed before the arrival of the aircraft are- assembling the crew, distributing the work, getting the equipment tested and ready.

Control charts, scorecards: The time taken for the activities will have to be continuously measured. Control charts and statistics tools should be used to monitor the process and ensure it is in-control.

EAP [ Emergency Alternate Procedure]: The process should have alternate processes built-in, in case of an emergency or problem. What to do if the crew for a particular activity is less than required, what to do if an equipment fails. Activities would have to be prioritized so that a low priority activity can be missed out in case of any issue.

If it is known from control charts and measurements, that a 20 minute turnaround was not being achieved, then the activity that was causing the delay should be provided more resources, or broken down into different sub-activities. Or the schedule changed to a accommodate a more realistic turnaround time.

Check-in process
Another important process is the check-in process. How many counters are required? Will the queue be specific to a flight or a common queue for all flights? Can any of the process be done even before the check-in?

One thought comes to mind, based on my experience of flying Air Deccan. In air Deccan only 15kgs is allowed and any excess baggage is charged. I have seen many times argument between the passengers and counter staff [ this happens in all budget carriers across the world] on the excess baggage, holding up the entire check-in process. A good way to manage it would be to have weighing machines before the check-in so that passengers can weigh their baggage before they check-in.

These are just two examples. The supply chain principles can be applied to all service delivery processes.

Air Deccan was the pioneer of budget air-travel in India and could have done an ‘Air Asia’ in India. It let that opportunity go to waste with a faulty service concept and poor management of the service delivery process. Air Deccan ended up giving a cheap experience at cheap rates.

It will be interesting to watch how Kingfisher converts Air Deccan to a Kingfisher-Lite to take on Jet-Lite and Air-India Express.

For the complete article click on the link. Kingfisher Airlines to modify Air Deccan’s service offering

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51 thoughts on “Kingfisher Airlines to modify Air Deccan’s service offering

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  2. По правде говоря, сначала не очень то до конца понял, но перечитав второй раз дошло – спасибо!

  3. Работаю менеджером. Хочу сделать интернет магазин. Порекомендуйте человека или организацию, кто поможет мне в этом. Главное чтоб человек, который его делает был адекватный и недорого.

  4. Прочитала сообщение, и в общем-то согласна. На мой взгляд все же можно было добавить некоторые не менее интересные факты.

  5. В принципе если на данном проекте будут писаться в такой же тематике и дальше, буду читать.

  6. Интересно, спасибо. На своем сайте мы стараемся отразить самые последние события на мировом автомобильном рынке.

  7. Хорошая статья. Действительно было интересно почитать. Не часто такое и встречается та.Наверное стоит подписаться на ваше RSS

  8. Интересно, спасибо. На своем сайте мы стараемся отразить самые последние события на мировом автомобильном рынке.

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