Southwest Airlines in Baltimore
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Southwest Airlines in Baltimore

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  • A bit background: Industry-wise & SW achievementCar and bus: Chief competition: most inexpensive fares and most frequent flights between urban markets separated by 500 miles or less. Hub and spoke system: consolidate passengers from small markets at hub airports to assure relatively full planes for long-haul flights. Spend less time aloft relative to other carriers’ planes. Time spent on the ground and physical stress on aircraft from a higher frequency of take-offs and landings- costly and labor intensive
  • Operating strategies to reduce operating costs and offset the productivity disadvantages inherernt in short-haul, point-to-point flying. They focused on turning aircraft around quickly at gate to minimize the time on the ground 2, Using only one operating platform, the Boeing 737, enhancing efficiencySW used less-congested airports with easy access to large metropolitan areas.Offering limited services (no in-flight meals, did not transfer baggage to other airlines) Offered open, single class seating.
  • 1972-2001, stock outperformed ALL other US stockWon “Triple Crown” in Airline Industry: Fewest delays, fewest complaints, fewest mishandled bags Southwest Effect
  • FIDS- Flight Information Display SystemOTIS-Operations Terminal Information System
  • Definition: A moment of truth is usually defined as an instance wherein the customer and the organization come into contact with one another in a manner that gives the customer an opportunity to either form or change an impression about the firm.
  • American: Measuring performance by numbers & assign outcomes to individual department ---- carried out from distance, supervisory functions be minimized, ----- flat in the field operation (efficient/week coordination, employee focus on their own piece of process and ignore downstream consequences---narrow functional perspective front-line employees Southwest: need for coordination --- ‘Team delay’, reduce the precision of performance measurement (reduce unproductive blaming)—supervisors ---coaching, richer communication across levels
  • Looking at the cases above, we have come to 3 recommendations for Southwest. The first one is to have a more comprehensive plane holding decision making process. Holding a plane is expensive. We encourage Southwest to conduct a financial estimation to determine what is their time limitation for holding a plane. By using this time frame, there will be 2 outcomes. First, is to

Southwest Airlines in Baltimore Southwest Airlines in Baltimore Presentation Transcript

  • Beatrice Bella Inda Joyce Nan Southwest in Baltimore
  • Agenda • • • • • • • • • Background Southwest Vs American Airline The Importance of BWI BWI’s Challenges F110 Turnaround Value Map of F110 Key Customer Interface Southwest Control Mechanisms Recommendations
  • Background Our Story and Position • Founders: Rolling King and Herd Kelleher • Chief Competitions: Car and Bus • Commitment: Most inexpensive fare and most frequent flight between urban markets separated by 500m or less
  • Background To Reach Our Commitment Strategy Turn Aircraft Around Quickly at Gate Benefits Minimize an airplane’s time on Ground One Operating Platform --the Boeing 737 Increase efficiency (crews, furnishing, etc.) Use less-congested airports Avoid Disrupting flight operations and maximize plane in the air Limited Services No in-flight meal No transfer Baggage Single class seating Increase Efficiency
  • Southwest vs American Airline Employees Cross-Functional Accountability Functional Accountability Managers Focus on Learning Focus on Measurement Supervision Small Spans of Control Large Span of Control Hiring Based on Teamwork Ability Based on Working Experience Resolution Proactive Conflict Resolution Minimal Conflict Resolution • More supervision • Less performance measurement • Less supervision • More performance measurement
  • The importance of BWI • First East Coast gateway - Strategic location - in the center of East Coast • After 7 years, share of Southwest’s passengers reached 34%  higher than the perennial leader, US Airways • One of Southwest’s mega station - Offered more than 100 flight departures per day • One of Southwest’s biggest transfer station - More than 800,000 passengers made connection there
  • BWI’s Challenges Growing number of connecting customers Operational challenge Facility constraint Any delay of flights could result in holding the next flights which will ripple throughout the system Bag sorting area had already reached its capacity Shortage of Employees New workers create inexperienced workforce
  • Current Flight Situation Flight From To Scheduled Arriving Time Actual Arriving Time F110 Nashville Baltimore 8:15 8:55 Flight From To Scheduled Departing Time Actual Departing Time F110 Baltimore Manchester 8:55 9:10 6/33 make connection to Flight 232 (Buffalo) departing at 8:40(B15) 3/33 make connection to Flight 1819 (Albany) departing at 9:25(B13) 24/33 have enough time to make connection
  • Flight Departure Process
  • Process 7:30 7:45 8:45 9:03 8:55 Get a call from F110 Assign B17 Gate to F110 Broadcast Crew ”Arriving Late” Attach The FI and CBLS on the Clip Ramp Supervisor (B17, B19) 8:50 Make the Bags to Manchester Ready Identify Hot Bags Ramp Agent B17 Take the CBLS F110 Crews Pilot Calls Alice F232 Ops Agent F232 Board Passengers 9:15 9:12 F110 Arrive Inform flight Crew Transfer Gate 9:05 Ops Coordinator F110 Ops Agent Doug Dallas Office Notice the Delay of F110 Decide to Hold F232 Fuel Invoice Nashville Cargo Bin Loading Incomplete Data Schedule of F110 Decide to Hold F232 F110 Depart Deplane Finish Start On Boarding Finish Boarding Farewell to Passengers • Report to Dallas • Informed of the lost Luggage in B17 Send out Allowed Fuel Amount Click Me to See Breakdown Put back the CBLS Clean Cabin F232 Depart Notify the Lost Three Luggage
  • Ramp Agent Process Breakdown Set to Proper Position to load Fuel Begin Engine Off 8:55 10 sec 75 sec 40 sec Finish Uploading 90 sec 1 min 20 sec 30 sec 9:07 9 min 30 sec F110 Arrive First Hot Bag Out Disgorge the Packages Unloading Completed
  • Process 7:30 7:45 8:45 9:03 8:55 Get a call from F110 Assign B17 Gate to F110 Broadcast Crew ”Arriving Late” Attach The FI and CBLS on the Clip Ramp Supervisor (B17, B19) 8:50 Make the Bags to Manchester Ready Identify Hot Bags Ramp Agent B17 Take the CBLS F110 Crews Pilot Calls Alice F232 Ops Agent F232 Board Passengers 9:15 9:12 F110 Arrive Inform flight Crew Transfer Gate 9:05 Ops Coordinator F110 Ops Agent Doug Dallas Office Notice the Delay of F110 Fuel Invoice Nashville Cargo Bin Loading Incomplete Data Schedule of F110 Decide to Hold F232 F110 Depart Deplane Finish Start On Boarding Finish Boarding Farewell to Passengers • Report to Dallas • Informed of the lost Luggage in B17 Send out Allowed Fuel Amount Click Me to See Breakdown Put back the CBLS Clean Cabin F232 Depart Notify the Lost Three Luggage
  • Process 7:30 Ops Coordinator 8:45 7:45 9:03 8:55 Get a call from F110 Assign B17 Gate to F110 Broadcast Crew ”Arriving Late” Notice the Delay of F110 F110 Ops Agent Doug Nashville Incomplete Data of F110 Fuel Invoice Dallas Office Decide to Hold F232 Attach The FI and CBLS on the Clip 8:50 Make the Bags to Manchester Ready 9:15 9:12 F110 Arrive Inform flight Crew Transfer Gate 9:05 Identify Hot Bags F110 Depart Deplane Finish Start On Boarding • Report to Dallas • Informed of the lost Luggage in B17 Send out Allowed Fuel Amount Ramp Supervisor (B17, B19) Cargo Bin Loading Schedule Ramp Agent B17 Take the CBLS F110 Crews Pilot Calls Alice F232 Ops Agent F232 Board Passengers Click Me to See Breakdown Finish Boarding Notify the Lost Three Luggage Put back the CBLS Clean Cabin Farewell to Passengers F232 Depart
  • Value Map Turnaround F110 Front End Back End On Flight 110 to Baltimore System OTIS & FIDS Get Notified about the delay Arrive Offer Customer Services Transfer/ Stay on F110 Manchester passengers onboard Manchester Passengers take seats Fly to Manchester Clean Cabinet& Assist onboard Apologize for the delay Offer Customer Services Broadcast System
  • Key Customer Interface Key Customerfacing activities Southwest Action -Crew in place (Inbound) Flight 110 Deplane passengers -Take care of passengers with special needs Positive Impact Passengers with special needs All passengers Meet and direct hot passengers Meet, greet & direct Hot Passengers Confirm passengers with continual flight stayed onboard Check & Confirm, Fast Maintenance Passengers onboard
  • Key Customer Interface Key CustomerFacing Activities Southwest Action Positive Impact (To Buffalo) Flight 232 Regular Passengers Onboard Regular Passengers Complete onboarding before F110 arrived Hot Passengers Onboard Hot Passengers Supervisor lead Hot Passenger to F232 Hot Passengers
  • Key Customer Interface Key Customerfacing activities Southwest Action Positive Impact (inbound) Flight 110 Issue boarding passes Complete before F110 arrived All passengers Board Passengers Group & Greet & Board All passengers Onboard Hot passengers Assist hot passengers & Apologize All passengers
  • Southwest Control Mechanisms Strength Weakness Achieve control without compromising coordination Good performance is not easily defined Reduce unproductive blaming Employees are not easily evaluated and motivated High level of trust Vulnerable to the loss of trust Richer communication & flow of information across all levels Hiring & training process is more complicated and time-consuming
  • Recommendation 1 Future F110 Situation • A more comprehensive plane-holding decision making process Hold the plan Conduct Financial Projection Transfer to other airlines Don’t hold the plane *Require form an alliance with other airlines Provide accommodation for overnight stay
  • Recommendation 2 • Operation Agent delegates Cargo process responsibility to Ramp Supervisor Operation Agent Ramp Supervisor Cargo Chart Other responsibilities Ramp Agent Less Mishandled Luggage
  • Recommendation 3 • More efficient Mentor & Training Program for new employees Experienced Employees from Dallas Relocate to BWI Mentor new employees BWI New Employees Dallas 1 month working/training BWI New Employees
  • THANK YOU