Impact of continous improvement on costumers' satisfaction

A case study of Emirates Airlines


Term Paper, 2012

34 Pages, Grade: A


Excerpt

Table of Contents

Introduction

Interest to the Learner

Problem Statement

Literature Review

Research Questions

Data Analysis

Methodology

Findings

Discussion

Limitations of the Research

Recommendations

Conclusion

References

How does Continuous Improvement exert impact upon the Customers’ Satisfaction in Emirates Airlines?

Introduction

Continuous improvement refers to the process in which an organization makes effort to improve its services, processes and products. For the process of continuous improvement to become successful, it is necessary for an organization to have good feedback mechanisms where customers’ preferences are evaluated according to the goals that a company has. Organizations use Kaizen principle to ensure success in their operations. These principles introduce continuous improvement in the culture of a company, quality of products and services, technology, safety, productivity and leadership. Using Kaizen system, employees from every level of management are given a chance of suggesting the techniques that an organization can adopt in order to improve its entire operations. Continuous improvements benefit an organization in several ways. One of the benefits of this strategy is that it helps in reducing all the wastes that may be in organization’s processes. It also improves the quality of organization’s products increasing the level of consumers’ satisfaction.

Customers’ satisfaction focuses on the extent at which consumers are happy concerning services and products that are offered by a particular business. The level of consumer satisfaction is used to assess the efficiency of employees in an organization. All the employees should be trained so that they attend to all the needs of consumers. Being polite to customers drives the sales of a company. Due to this, companies are able to achieve the profits targeted by focusing on consumer satisfaction. Conducting customers’ surveys is one of the methods that companies use to determine whether consumers are satisfied with the services offered to them. From the surveys, a company is able to assess its chances of having return customers. Such surveys also enable firms to know whether they have met or exceeded the expectation of consumers. Firms use the calculated customers’ satisfaction levels to assess the purchase intentions of consumers. It enables firms to project the market share that they will have. All marketing efforts should be directed towards increasing the level of satisfaction of consumers. It will enable organizations to increase their brand loyalty.

Continuous improvement of processes leads to increase in the level of consumer satisfaction. The principle of continuous improvement ensures that all organizations produce goods that match the needs of consumers. By conducting market surveys, companies are able to know the goods that consumers want to be produced. Emirates Airlines has been focusing on consumer improvements in its provision of services. This has made it to grow and become the largest airline in the Middle East. It was the fourth largest airline in the whole world in 2012 based on the number of international passengers that it carried. This airline has won many awards because of its excellent customers’ services, safety standards and efficient operations. This dissertation focuses on how continuous improvement of processes has caused the increase in the level of consumer satisfaction in Emirates Airlines.

Interest to the Learner

This topic is that of interest to the learner due to several reasons. One of the key reasons is that the learner will manage to learn the importance of continuous improvement in an organization. Operation managers of the most companies have started forming strategic plans that ensure continuous improvement being implemented in the organization. The learner will know the processes of the organization that are altered while implementing continuous improvement. This topic also explains why it is necessary for organizations to focus on increasing the level of consumer satisfaction in order to increase their market share. Techniques of increasing the level of consumer satisfaction are also presented in this topic. Learners will also know processes in Emirates Airlines that undergo continuous improvement. Investigations will be carried out in order to assess whether Emirates Airlines consumers have become more satisfied because of improvement of these processes. Learners will also know key management issues and plans of Emirates Airlines in regards to customers’ satisfaction.

Problem Statement

The project aim is to assess how continuous improvement in the processes of Emirates Airlines has caused the increase in the level of customers’ satisfaction. This project aims at identifying the processes in Emirates Airlines that have undergone through continuous improving and assessing whether they have caused the increase in the level of customers’ satisfaction at Emirates Airlines.

Literature Review

Many scholars and practitioners have conducted extensive research on impact of continuous improvement on customers’ satisfaction in organizations such as Emirates Airlines. Chang (1999) covered continuous improvement by adopting Kaizen process. In his study, he argues that Kaizen process focuses on promoting improvement in the productivity as a continuous process in an organization. From his research, he found out that it creates a culture of improvement in an organization when implemented well by the management of the organization. Robson (2010) supported the argument of this researcher by stating that changing organization’s culture is critical while implementing continuous improvement in the organization. He argues that a culture of continuous improvements helps in ensuring that workers are growing, ready to learn new production methods and processes, and positively contribute to the organizational growth. The culture of continuous improvement can be cultivated in the organization using several key steps. The first step is communicating expectations of the organization to all the employees. Workers should be told of the importance being punctual in an organization in order for them to attend to the customers on time. This helps to raise the level of consumer satisfaction. Workers should also be trained on the importance of completing projects assigned to them on time. This will eliminate delays on the delivery of goods to consumers (Robson, 2010). The employees should also be told that they are expected to contribute their ideas on how to enhance processes and products offered by the organization.

According to Oliver (2009), continuous improvement can only be implemented in an organization if management succeeds in training all its employees. Management should first identify all the skills that employees need to have in order to implement continuous improvement successfully in the organization. Training programs should be designed from the skills identified by the managers. Martin-Gracia, Val and Martin (2008) supported the argument of the above scholar by stating that training programs are important since they eliminate defects during implementation of continuous improvements. Workers are able to know ways of improving their service delivery and attending to all the needs of consumers. It raises the level of consumer satisfaction. After the training program is implemented successfully, management should conduct regular assessments to determine whether there is an improvement on the skills of employees. Assessments can be carried out using computerized tests. The tests will reveal specific areas that were not covered well during training programs.

Robson, (2010), states that a culture of continuous improvement can be implemented fully in an organization only when employees are motivated and encouraged to adopt it. This can be achieved when managers recognizes the efforts of employees when they show progress in a particular area. Employees are able to know that management values their effort. Incentives should be provided to motivate employees to improve their overall dedication to continuous improvement in an organization.

For continuous improvement to be implemented in an organization, several key issues need to be considered. Plenert, (2011), states that company involvement is one of the important factors to consider. It should be the key priority for the achievement of the goals of the organization. Managers should be ready to dedicate their time in the evaluation of employee progress. This will enable them know the skills that employees need to improve. Continuous improvement can only be successful in the organization when both managers and employees have an open mind. The open mind will enable employees welcome change in a positive way. Robson, (2010), argues that continuous improvement fails in organizations since some employees are not ready to welcome change. Some of them may lose their jobs when this program is implemented in the organization. It makes them to resist change. Other employees feel that the new technology to be implemented after continuous improvement might be too difficult for them to understand. By encouraging the employees to have the open mind, these issues will not arise. Employees will see that continuous improvement aims at bringing positive impacts in the organization. Teamwork is also very important for the success of continuous improvement. The effort of every employee should be respected. This will encourage the employees to share their own ideas on the areas of the organization that they feel should be improved. Innovation and creativity would result because of this.

Plenert, (2011), analyzed the benefits of continuous improvements in an organization. One of the advantages is that it reduces wastes through lean production. Resources are utilized efficiently reducing breakages in the process of production. The quality of products is also improved because of continuous improvement. Workers are told to give their own ideas on how to make products better. Innovative ideas from the employees help to improve the quality of products. Rework time of production is also reduced since deficiencies in the production process are significantly reduced. Response time also becomes faster increasing the number of clents that can be served at a particular time.

Customers’ satisfaction is very critical in the airline industry. A study conducted in American airlines found out that the level of customers’ satisfaction in this region was low (Graham, Papatheodorou, & Forsyth, 2008) The reasons that consumers gave for low customers’ satisfaction included that there was crowded seating in some of the airlines. Due to this, passengers were not comfortable during their trips. Some of the passengers also stated that they received poor service during their flights. They complained that they were not given the right food according to their health needs. The airline industry has a lot of competition. Examples of the large airlines in the Middle East are Emirates, Etihad, Kuwait Airways, Oman Air, Turkish Airlines, Syrian Arab Airlines, Saudi Arabian Airlines, Qatar Airways and Nas Air. Since there is high competition in the airline industry, it suggests that it is necessary for companies to offer excellent customers’ service in order to succeed at this market.

According to Hayes, (2008), customers are satisfied with a particular airline if it does not have many delays and cancellation of flights. Flight delays occur when a flight lands or takes off later than the time of its initial schedule. Flight delays may be caused when maintenance problems occur in a particular aircraft. The process of fuelling the aircraft may also take longer than the scheduled time because of lack of enough fuel from the airport. This may cause further delays. In case if there are extreme weather conditions such as hurricanes, a particular flight may be cancelled completely. This is in an attempt of guaranteeing the safety of the passengers. Congestion in air traffic may also cause delays or cancellation of particular flights. All these factors cause the level of consumer satisfaction to reduce.

Graham, Papatheodorou, and Forsyth (2008) claim that rising ticket prices may also cause the level of customers’ satisfaction in airline industry to reduce. The rising oil price in the Middle East has caused the price of jet fuel to increase. This has caused the cost of operations of airlines to increase. To absorb this shock, airlines are forced to transfer this cost to consumers in terms of rising ticket prices. The rising oil price has caused the profitability of companies of operating in this industry to reduce. Some airlines are forced to reduce the number of their employees in order to break even. Due to this, the number of workers required to attend to the needs of consumers reduces. It further reduces the satisfaction level of consumers. The Syrian civil war is one of the factors that have caused oil prices to increase. According to a research conducted by Barclays, there is very high correlation between fuel and revenue in the airline industry. Previously, the correlation level ranged between 60 and70 percent. The current level of correlation is about 80 percent (MobileReference, 2011). This shows that the fuel prices determine the ticket prices.

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Excerpt out of 34 pages

Details

Title
Impact of continous improvement on costumers' satisfaction
Subtitle
A case study of Emirates Airlines
College
University of Massachusetts Boston
Grade
A
Author
Year
2012
Pages
34
Catalog Number
V269820
ISBN (eBook)
9783656611493
ISBN (Book)
9783656610847
File size
480 KB
Language
English
Tags
impact, emirates, airlines
Quote paper
Barrack Kennedy (Author), 2012, Impact of continous improvement on costumers' satisfaction, Munich, GRIN Verlag, https://www.grin.com/document/269820

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