Professional Certification:

A Critical Factor for Airline Safety & Success

Quality Practices for the Southeast Asian Airlines Operations

LSP AVIASI INDONESIA

Professional Aviation Board of Certification

Organisational Quality practices:

a key determinant of commercial
air carriers success
An evaluation framework for air operators performance
by

Toto Hardiyanto Subagyo

totohardiyanto@hotmail.com
Cell: 0812 103 5458
Jakarta, February 2012

Objectives
An introduction to a model of quality
management for airlines operations
to be developed as a framework for
air transport performance evaluation.

The Importance Of Air Transportation

(Dempsey, P. S. and Gesell, L. E. Airline Management: Strategies for the 21st Century. Coast Aire Publications, 1997)

Integrating disparate economies & cultures

Stimulating social and cultural crossfertilisation
Economic growth and diversity in an
increasingly interdependent global
environment
Trade and tourism

Pihak-pihak yang berkepentingan dalam

penyelenggaraan Transportasi Udara
Pemerintah/penga
tur

Transporta
si Udara
Efektif &
Efisien

Penyedia Jasa

Pengguna
Jasa

Important Quality Factors In Air Travel

(SOURCE: T.J. Kloppenborg, K.N. Gourdin. Identifying Service Gaps in Commercial Air Travel. Transportation Journal, Fall 1991)
(D) PASSENGER AIRLINES
GOVERNMENT:

(A) PASSENGER AIRLINE:

Convenient check-in

Convenient departure time

Convenient connection

Convenient arrival time

On-board comfort during delays

Meaningful flight information promptly

displayed

Comfortable seat

Beverage service on long flights

Enough knee and leg room

Aircraft clean inside

Delayed flight status promptly

provided

Prompt baggage delivery

Airline assumes responsibility for

delayed passengers

Careful baggage handling

(C) PASSENGER GOVERNMENT:

Lower fares for non-peak travel

Preassigned seating

Lost bags procedure

Non-stop flights

Airline complaint mechanism

A
AIRLINES

(B) AIRLINE GOVERNMENT:

Pre-flight security screening

PASSENGERS

Take-off on time

Depart gate on time

Airlines must earn a profit

Courteous/friendly Cabin
crew

Safety announcements made

Beverage service on short

flights
Prompt meal/beverage
service
Airlines care about
customers
Overbooking is ok

C
GOVERNMENT
Needs more airports

Air traffic control system is

OK
Overall satisfied with air
transport system

Quality of Air Transportation

(Rosander, A. C. Application of Quality Control in the Service Industries. ASQC Quality Press, 1985)

Quality of planning

Quality of route structure

Quality of aircraft

Quality of air
transportation

Quality of operations

Flight safety
On-time performance
Quality of service performed

Quality of flight frequency

and schedules
Quality of service planning

Sociality; public hazards

Protection; number of
departures operated over
noise level limit

The Airline Industry

(Wells, A. T. Air Transportation 4th ed. Wadsworth, 1999.)

An industry can be defined as a number of firms that

produce similar goods and services and therefore are in
competition with one another.
The airline industry is a segment or part of a broader air
transportation industry.
The airline industry consists of a vast network of routes
that connect cities throughout the country, and indeed,
the world. Over this network, a large number of airlines
carry passengers and cargo on scheduled service.

The Unique Characteristics of Commercial Aircraft Flying

(Dempsey, P. S. and Gesell, L. E. Airline Management: Strategies for the 21st Century. Coast Aire Publications, 1997.)

The airline industry is a service industry which is

capital intensive, labour intensive, and fuel intensive.
Because it confines people in canisters of aluminium
and steel, propelling them through the skies at
speeds of hundreds of miles an hour at elevations of
several miles above the sea level, it is potentially a
highly dangerous industry.
For that reason, it is highly regulated, and requires
highly skilled and therefore, adequately trained and
paid employees.

Airline Certification
Fitness Determinations. Fitness of the applicant refers
to the carriers size, financial resources, flight equipment,
flight equipment, strategy for conducting the proposed
operations, and past conformity to various legal
requirements.
Public Convenience and Necessity Determinations.
For carriers desiring to provide foreign air service, a
determination of public convenience and necessity is
required in addition to the fitness finding.

From an Airline Standpoint

The desire to meet every individual passengers
needs must be weighed against profitability.
A nonstop flight costs less to operate from point
A to point Z than one on the same type equipment
that makes intermediate stops.
If sufficient traffic demand is not available to
justify nonstop operation, through service means
that each passenger is handled only once and
therefore costs are lower than they are on
connecting service.

The Passengers Viewpoint

The goal is safe, speedy, dependable, and
comfortable service.
Safety is the overriding and controlling factor in
all airline operations.
A nonstop flight from A to Z, or if that service is
not available at a convenient time, a through
flight, or if the journey can be speeded, a
connecting flight with adequate connecting time
to ensure dependability and with fast equipment
and as few stops as possible.

The Swiss Cheese Model of Accident

Causation
SOURCE:

J. Booth-Bourdeau. Safety Management Systems and Human Error Management . 18th Airbus Human
Factors Symposium, New York City, NY, October 29th, 2003.

Some holes due

Hazards

to active failures

Losses

Other holes due to

latent conditions

Successive layers of defences, barriers, & safeguards

Organisational Process Model

Factors for
Assessment

(Critical

Success Factors)

Current
Performanc
e

Processing
the
Organisation
Resources
(take into
consideration the
CSFs of the
business)

Business
Environment

Business
Performanc
e

Performanc
e
Objectives

QUALITY MANAGEMENT
PRACTICES
for
THE AIR OPERATORS in
INDONESIA

Quality Practices ~ Firms Performance

Various studies demonstrated that there is a
direct relationship between quality management
practices and a firms performance, which
eventually will improve profitability.
Sources:
George and Weimerskirch, 1994; U.S GAO, 1991; Jones, 1998; Bank, 2000; Forza and Filippini,
1997; Adam, 1994; Adam et al, 1997; Buzzell and Gale, 1987; Hakes, 1996; Easton and Jarrell,
1998.

Profit through Quality

Profit
Sales

Operating
Cost

Profit
Quality
Improvement

Sales

Increased PROFIT through Quality improvement absorbs

less incremental operating cost than through organising
more Sales.

Operating
Cost

Profit through Quality (cont)

Sales

Customer
Satisfaction

CUSTOMER SATISFACTION through Quality

improvement carries its own acceleration resulting
in increased sales at minimum incremental cost.

Quality Improvement

QUALITY
Conformance
Reduced
Waste

Perceived

Greater
Productivity

Increased
Market
Share

Lower
Costs
Improved
Asset
Utilisation

Greater
Value

Improved
Margin
IMPROVED PROFITABILITY

Revenue
Growth

Quality Definition
. . . quality of a product is the
ability of the product to satisfy the
requirements of the customer as
well as the industrys standard.
the definition of quality should not be associated
with product quality alone but also , more
importantly, with a process in which the quality of
the product can only be ensured by the process.

Quality Management
. . . managing a process of delivering
quality to satisfy the requirements of
customer and industry standards, in
which particular management
techniques and organisation
commitment through employees
involvement are necessary.

The Foundation of Commercial

Air Service
. . . is an airlines promise to
get people and goods to their
destination, based on the
schedule that it publishes.
Key Areas of Management:
Safety, Punctuality, and Efficient of Operations

The Need for Quality Management

. . . there is a need for the
developing airlines of Southeast Asia
to improve their ability to deliver,
consistently, a high quality of service,
so, that customer requirement and the
industrys standards will always be met.

Quality Management ~ Airlines

Performance
. . . that improving the quality of an
organisations products and services is
fundamental to business success.
. . . this study focus on quality management
practices as a means of improving the
performance of the airlines of Southeast Asia.
Consistent quality . . . will improve the ability
to achieve a better operating ratio, which will
ensure operating profit in the end.

Airlines Major Line Functions

Marketing, sales and services make decisions about
marketing policy, so as to define the market sector
and demand, and develop the product specification,
with reference to the ability of the production
systems.
Engineering and maintenance keep the companys
equipment in condition to provide safe and saleable
air transportation.
Flight and ground operations are responsible for
developing flight operation policies, procedures, and
techniques that have as their purpose the safe,
efficient, and progressive operation of aircraft.

A Generic Model of Core Processes and

Systems
(Miller, A., Strategic Management, McGraw-Hill, 2001)

Marketing
&
Services

Engineering
&
Maintenance

Market Research

Line Maintenance

Product Design

Overhaul

Promotion

Cabin Interior

Sales
Customer
Relation
Ground Services
Purpose:
Valuable
product/servic
e

Purpose:
Safe and
Salable air
transportation

Flight/Groun
d
Operations
Crew
Management
Flight Operations
Ground
Operations
In-Flight Services
Flight
Management
Purpose:
Safe, Efficient,
and Progressive
operation of
aircraft

The Focus Area of the Study ~ The

Airlines Operations Function
This function is a core activity of an airlines
operational process.
It can make a contribution to the success or
failure of delivering quality in the product
and direct service to the customer.
The operations function flight and ground
operations and aircraft line maintenance.

The Airlines Operations Functions

Definition
The operations function to provide a safe,
punctual, and efficient transportation of
passengers on the ground and in the air:
1.
2.
3.
4.
5.
6.
7.

Aircraft routing and line maintenance

Crew scheduling and monitoring
Aircraft loading and ground services
Catering uplift
Passenger on the ground and in-flight handling
Flight planning and documentation
Flight operations planning and control

Sub-title

Developing a Model of
Quality Management Practices
for the Airlines Operations Function

The Research covers Airlines in

two regions
Successful Airlines of Western Europe to
be used as a yard stick against the
Southeast Asian.
Developing Airlines of Southeast Asia a
model of quality management practices will
be required to ensure effective and efficient
process of operations.

Aim of The Research

Identify the critical success factors of quality
management practices in the Operations function of
the airlines.
Analyse the differences in quality management
practices between the successful and the developing
airlines.
Highlight the variables of organisational context which
cause differences in the practices between these two
groups of airlines.
Develop a model of quality management practices for
the Operations function in the developing Airlines of
Southeast Asia.

Research Approach

A Preliminary
Study

A study to
define
background,
area, aims,
benefit, and
how the
research
should be
approached.

Development
of The
Research
Structure

A business
process analysis
and modelling
methodology
was employed
as the research
structure.

Collection
of
Information

Desk and
Survey
Research were
adopted to
collect data and
information.

Development
of A Model

Following the
research
structure, the
findings were
processed to
generate a
model.

The
Research
Aim

Research Structure
Quality
Manageme
nt Practices
Definition

The Need for a

Model

Airlines Operations
Functions Definition
Questionnaires Plan
Semi-structured
Interview Plan

Develop a Model
of
Quality
Management
Practices in
Operations
function for the
developing
airlines of
Southeast Asia
Desk
Research

A Model of Quality
Management

Survey
Research

Collection of Information
Desk
Desk Research
Research
Quality
Quality Management
Management Studies;
Studies; -- covering
covering manufacture
manufacture and
and
services
services companies.
companies. Finding
Finding out
out similar
similar features
features in
in practising
practising
Quality
Quality Management.
Management.
Airlines
Airlines Case
Case Studies;
Studies; -- covering
covering airlines
airlines business
business management
management
studies.
studies. Developing
Developing an
an initial
initial propose
propose model
model and
and instrument
instrument for
for
Survey
Survey Research.
Research.

Survey
Survey Research
Research
A
A Questionnaires;
Questionnaires; -- 77 factors
factors with
with 58
58 question
question items
items were
were
processed
processed and
and giving
giving aa result
result of
of 12
12 factors
factors (Critical
(Critical Success
Success
Factors)
Factors) with
with 48
48 items.
items.
Semi-structured
Semi-structured Interviews;
Interviews; -- conducted
conducted for
for airlines
airlines representing
representing
two
two groups
groups of
of airlines
airlines involved.
involved. This
This validated
validated the
the differences
differences found
found
from
from the
the result
result of
of questionnaires.
questionnaires.

The Elements of Operations

Function Organisation
1.

Operatives or persons who handle the various types of

airline equipment, facilities, passengers and goods.

2.

Airline equipment and facilities aircraft, ground

support equipment, flight loading/unloading equipment,
and airport terminal and ramp facilities related to the
requirements of the flight concerned.

3.

The passengers and goods served and

accommodated in interaction with the operatives, with
or without using the equipment and facilities.

The Elements of Operations Function

Organization
Quality of process
is depend on how
these elements
interact each
others, effectively
and efficiently,
within
organization to
ensure quality of
product/service.

The 12 Critical Success factors and

its 3 Organisational Context
12 Critical Success Factors:

3 Organisational Context:

1.

1. Management Knowledge
2. Past Quality performance
3. External Quality Demand

Technology Usage &

Management
a) Management Involvement
b) Tech. Usage Orientation
2. Reward Systems
3. Team Building
4. Benchmarking
5. Interdepartmental Interaction
6. Customer Oriented Motivation
7. Process Improvement Technique
8. Quality Demand Awareness
9. Manager-Staff Communication
10. Improvement Programme
Evaluation.
11. Customer Feedback Handling
12. Members Participation

12 Critical Success
Factors:

Quality
Management
Practices Model

1. Technology Usage &

Management
2. Reward Systems
3. Team Building
4. Benchmarking
5. Interdepartmental Interaction
6. Customer Oriented Motivation
7. Process Improvement
Technique
8. Quality Demand Awareness
9. Manager-Staff Communication
10. Improvement Prog.
Evaluation.
11. Customer Feedback Handling
12. Members Participation

Organisation
Performance

Customers
Requireme
nt

Satisfaction
Level

3 ORG.CONTEXT
Past Performance
Quality Demand
Knowledge

GAP

Industry
s
Standard

Industry
s
Standard
Customers
Requireme
nt

1a. Technology Usage and Management

Management Involvement

Management involvement in practising quality

management has a significant affect on the
technology usage orientation of the
organisation members, benchmarking
exercises, team building, interaction between
departments, evaluation of the improvement
programme, and rewards given to the member.

1a. Technology Usage and Management

Management Involvement
1.
2.
3.
4.
5.
6.

Customer representatives are used to review the

operations
Top/senior management encourage the use of new
working method
Customer requirement surveys are being carried out
Benchmarking result is used to improve efficiency
Technology-based equipment is used
Top/senior management accept to train members for
future benefit

1b. Technology Usage and Management

Technology Usage Orientation

Technology usage orientation has a strong

direct connection with the quality of flight as an
output of the Operations function. Orientation
of the member toward the use of advanced
technology will create a better interaction
between the departments and use of process
improvement technique, higher customer
demand awareness, and a better use of
improvement programme evaluation result.

1b. Technology Usage and Management

Technology Usage Orientation
7. Statistical or common methods are used to
improve operations chain
8. Statistical or common methods are used to
solve daily problem
9. Awareness that technology is changing rapidly
10. Awareness that new services have been
developed because of technology
11. Anyone can call anyone from other
departments with ease

2. Reward Systems

A reward system has an important role in

maintaining the members motivation, and it
will only work if the management of the
organisation is getting involved in setting up
this system. It has direct correlation with team
building within the organisation, orientation of
the member to customer demand, motivation
to use common working technique, and
motivation to evaluate the improvement
programme.

2. Reward Systems
12. Departmental performance in assessment criteria for
managers
13. Departmental performance in assessment criteria for
staff
14. Team-based assessment criteria for managers
15. Team-based assessment criteria for staff
16. Managers give reward to encourage team-working
17. Awareness that new demands are coming
18. Top/senior management give rewards to encourage
team-working

3. Team Building

Team building spirit, which appears in team

work, either within department or between
departments, will become a vehicle to make
benchmarking exercises success, programme
evaluation effectiveness, improvement of
quality demand awareness, and efficiency of
customer feed back handling.

3. Team Building
19. Approvement for staff to get involve in
departmental teams
20. Approvement for staff to get involve in crossfunctional teams
21. Customer requirements are translated to
operations
22. Top/senior managements' time is spent in
communicating quality
23. Agreement to solve the problem, managers
and staff working together

4. Benchmarking

Benchmarking should be used in improvement

programme evaluation and in handling the
customer feedback. The Benchmarking
exercise is influenced by teamwork, interaction
between departments, and technique used in
the exercise.

4. Benchmarking
24. Benchmark the efficiency of operations against
a competitor
25. Benchmark the operations efficiency against
the best performer
26. Use of Benchmarking results in improving
working processes
27. Availability of Information on Benchmarking
results
28. Top/senior management involvement in setting
objectives

5. Interdepartmental Interaction

Motivation of the organisations members in

improving interaction amongst them within and
with other departments will determine the
easiness of setting up objectives and flow of
work in the Operations function process.
Interdepartmental conflict and connectedness
appear to influence the level of quality
achieved in the Operations function.

5. Interdepartmental Interaction
29. Talking to anyone is easy, regardless of their
position
30. The departments' objectives are in harmony
31. Top/senior management involve in operations
activities improvement

6. Customer Oriented Motivation

Customer oriented motivation is very much

maintained or influenced by the existence of a
reward system within the organisation. It is
also affected by direct involvement from
top/senior management.

6. Customer Oriented Motivation

32. Customer satisfaction influence assessment
for managers
33. Customer satisfaction influence assessment
for staff

7. Process Improvement Technique

Strong technology orientation will stimulate

better use of technique of improvement. In
order to meet the quality demand at the end of
the process, follow up activity to the finished
project has to be conducted accordingly.

7. Process Improvement Technique

34. New project is conducted to prevent problems
re-occurring
35. Members use statistical or common methods
36. Follow up project is conducted

8. Quality Demand Awareness

Quality demand awareness will be

strengthened by involvement from
management, orientation toward advanced
technology usage, reward system, and
mutually influenced with team building.

8. Quality Demand Awareness

37. Aware that customer tend to look for new
services
38. Managers participation in group activities
39. Aware that customer preferences are always
changing

9. Manager-Staff Communication

Management-staff communication correlates

with the success of programme evaluation and
level of participation of the organisation
member.

9. Manager-Staff Communication
40. Managers' time spent in communicating quality
41. Managers make periodic evaluation on quality
management practices

10. Improvement Programme Evaluation

Improved effectiveness and efficiency in

Operations function process can not be
achieved by only a project or at once, but
instead, it will need a continuous effort along
the process. Member accessibility between
each department and organisation
performance analysis will be the major
practises for success in this factor.

10. Improvement Programme Evaluation

42. Members are accessible to others from
different organisations
43. How often the quality of operations is analysed
44. Top/senior management make periodic quality
evaluation

11. Customer Feedback Handling

Because the customer is the final arbiter, the

customers feedback should be represented
throughout all phases of the Operations
function process. Customer feedback handling
correlates with benchmarking.

11. Customer Feedback Handling

45. Importancy of customer visit

12. Employee Participation

Members participation is a factor that can

create the organisations energy to sustain an
improvement effort within the organisation.
This factor is influenced by the existence of a
reward system and communication between
the management and the staff.

12. Employee Participation

46. A percentage of staff in departmental teams
47. A percentage of staff in cross-functional teams
48. A number of department levels conducting
working-team activity

The Variables of Organisational Context

a. Management Knowledge The level of
knowledge of the management on quality
management, the business, and the
organisation situation will take many forms
of support including setting objectives in the
area of safety, punctuality and efficiency,
rewarding staff on the basis of qualityrelated performance, and making
resources available for the quality
improvement initiative.

The Variables of Organisational Context

a. Management Knowledge The level of
knowledge on quality management, the
business, and the organisation situation,
which will determine commitment of
management and staff toward quality
improvement initiative.

The Variables of Organisational Context

(cont)
b. Past Quality Performance The
information on Operations function past
performance and the objective that should
be achieved is necessary to define the way
in continuing quality management
practices.

The Variables of Organisational Context

b. Past Quality Performance The
information on Operations function past
performance and the objective that should
be achieved is necessary to define the way
in continuing quality management
practices.

The Variables of Organisational Context

(cont)
c. External Quality Demand This will affect
the selection of critical success factors of
quality management practices in the
Operations function that has to be put into
priority or focus of improvement.

The Variables of Organisational Context

c. External Quality Demand This will affect
the selection of critical success factors of
quality management practices in the
Operations function that has to be put into
priority or focus of improvement.

12 Critical Success
Factors:
1. Technology Usage &

Quality
Management
Practices Model

Management
2. Reward Systems
3. Team Building
4. Benchmarking
5. Interdepartmental Interaction
6. Customer Oriented Motivation
7. Process Improvement
Technique
8. Quality Demand Awareness
9. Manager-Staff Communication
10. Improvement Prog.
Evaluation.
11. Customer Feedback Handling
12. Members Participation

Organisation
Performance

Customers
Requireme
nt

Satisfaction
Level

3 ORG.CONTEXT
Past Performance
Quality Demand
Knowledge

GAP

Industry
s
Standard

Industry
s
Standard
Customers
Requireme
nt

Application to the Indonesian

A. Technology Usage & Management
Management Involvement;

The manager should involve in conducting customer

expectation surveys and invite the customer to
observe the Operations function in certain daily
work activities. They should give chances and
facilities for the members to acquire more
knowledge and improve their skills on process
quality improvement techniques.

Application to the Indonesian

B. Technology Usage & Management
Technology Usage Orientation;

Use common method/techniques in identifying the

weak link in the Operations chain of activities, and
to prevent solved-problems from re-occurring for
further process improvement. It will create a
working environment that stimulates the members
open to information on their airlines product/service,
competitors performance, technology development,
and market demand.

Application to the Indonesian

C. Interdepartmental Interaction;

Allow the members to communicate freely with

different functions in order to perform their work or
other work-related activity.

D. Improvement Programme Evaluation;

Conduct a periodic meeting to evaluate past

problems and action that has been performed on
them.

Application to the Indonesian

D. Members Participation;
Organise and encourage the entire members to get
involve in setting up the organisation objectives within
their own level and scope of work. Involve the entire
organisations members in process improvement
teams, within their own function organisation, as well
as cross-functions.

12 Critical Success
Factors:
1. Technology Usage &

Quality
Management
Practices Model
for The
Indonesian
Airlines

Management
2. Reward Systems
3. Team Building
4. Benchmarking
5. Interdepartmental Interaction
6. Customer Oriented Motivation
7. Process Improvement
Technique
8. Quality Demand Awareness
9. Manager-Staff Communication
10. Improvement Prog.
Evaluation.
11. Customer Feedback Handling
12. Members Participation

Organisation
Performance

Customers
Requireme
nt

Satisfaction
Level

3 ORG.CONTEXT
Past Performance
Quality Demand
Knowledge

GAP

Industry
s
Standard

Industry
s
Standard
Customers
Requireme
nt

Thank You