Organisational Quality Practices:

A Key Determinant of Commercial Air Transport’s Success

A Model of Quality Management for the Southeast Asian Airlines’ Operations

Toto Hardiyanto Subagyo

Cell: +62 (0)812 103 5458 Email: thardiyanto@yahoo.co.uk

Abstract: The need for the ‘developing’ Southeast Asian airlines to provide quality
of product/service that always meet the requirements of the customer as well as the
industry’s standards arises from the Asia-Pacific market growth. The quality of any
organisation’s product/service is determined by the core business or operational processes
that create them. Airline business activities consist of sales and marketing, engineering and
maintenance, flight operations, and ground services. The study was aimed at developing a
model of quality management practices for airlines’ Operations function for the ‘developing’
airlines of Southeast Asia. There were twelve critical success factors of quality practises in
the airlines’ operations function, which should be managed differently regarding the airline’s
organisational contexts in order to keep their operations effectiveness and efficiency at the
required level.

Key words: Quality Management, Airlines’ Operations.

A. Background
Market growth in Asia-Pacific, particularly in the Southeast Asian region, eventually, brings
more competition between the airlines operating in the region. Therefore, 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 industry’s standards will always
be met. This is why organisational efficiency and effectiveness through quality management
practices are needed in these airlines.

Many airlines in the world have been trying to have their own programme of quality
improvement designed or have adopted one from other successful organisation. Some of the
airlines have successfully implemented their quality programme, some have just started a
programme, but some of them have not even known where to begin.

Airline business main activities consist of sales and marketing, engineering and maintenance,
flight operations, and ground services. For the purpose of this study the operations function,
which consists of aircraft maintenance, flight operations and ground services become a focus,
as it is the core activity of airlines’ operational processes that cause the success or failure of
delivering quality in the product/service to the customer.

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With focus on airlines’ operations function, this study should be able to find the critical
success factors of quality management practices in the function. A model of quality
management practices in operations functions, particularly for the ‘developing’ airlines of
Southeast Asia, was the main objective of this study.

B. Approach to the Model

The approach started with a preliminary study and the development of the process structure.
Using the structure as a framework, the study was then conducted by collecting information
through desk and survey and, finally, the findings were integrated to generate the model. The
first activity was ‘developing the critical success factors of quality management practices and
identifying their variables of organisational context’. This desk study resulted in an initial or a
preliminary model of quality management practices in the operational functions of airlines.

The next activity was ‘investigating the critical success factors and their organisational
contexts’. In this process the Western European practices were used as a yardstick against the
Southeast Asian practices. After testing the reliability and the validity of the results, the critical
success factors of quality management practices in the operational functions of the airlines
and the variables of organisational context were determined. The final activity in the research
process was to generate the model. The findings from previous activities were studied and
processed according to the requirements of the model.

C. Developing the Model

It is defined that, the quality of a product is the ability of the product to satisfy the
requirements of the customer as well as the industry’s standard. In a business organisation,
the quality has been defined by considering its contexts along the process within the
organisation. Therefore, the definition of quality in a business firm should not merely be
associated with product quality alone but with the process by which the quality of the product
can only be assured. Furthermore, quality improvement initiatives in a business organisation
mean managing a process of delivering quality, in which a particular management technique
and organisation commitment through members’ involvement is necessary.

The model (see Figure 1.) was then developed by looking at the Operations function in the
airline as a process. Operations function in an airline organisation is defined as
transformation of goods, or people, from one place to another without any physical change
taking place. The process of transformation involves three main physical elements; - first,
operatives or persons; - secondly, the equipment and facilities; - and thirdly, passengers and
goods. The interaction of these three elements is reflected in the three aspects of managing
passengers and goods, managing aircraft movement, and managing maintenance. These
activities are aimed for safe and punctuality of flight and efficiency of operations function
process.

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This process starts with customer requirements and industry’s standards as inputs and ends
with customer satisfaction level and Operations function performance as outputs. To process
the input, the three elements of ‘operatives’ or airlines’ staff/crew members, ‘equipment and
facilities’, and ‘customers’ interact within the Operations function processes.

Critical Success Factors:

1. 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

Input Process Output

Customer Elements: Customer
Operations
13. Quality Demand Awareness Requirements
Requirements
14. Manager-Staff Communication
Gap

Operatives
Function
15. Improvement Programme Evaluation
Passengers & Goods
Industry‘s 16. Customer Feedback Handling Industry‘s
Equipment & Facilities Customer
Standards
Performance Standards
17. Members’ Participation
Satisfaction

Level

Organisational Context

Variables:
1. Management Knowledge

2. Past Quality performance

3. External Quality Demand

Figure 1. A Model of Quality Management Practices in Airlines’ Operations Function

The process effectiveness and efficiency are affected by how the Operations function

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organisation elements interact with each other. Quality management practices makes
interaction of the organisation elements to take place in such a way so that the process
effectiveness and efficiency are achieved. The success of quality management practices in the
organisation will depend on how its critical factors are managed with regard to the
organisational context.

The output of this process is the level of safety and punctuality of flight, efficiency of
operations function process, and customer satisfaction level. The gap between the output and
the requirements will then become a feedback for improvement back to the input as well as
to be used to manage the critical success factors of quality management practices within the
organisation.

The critical success factors of quality management practices:

1) a. Technology Usage and Management; Management Involvement – Management

should spend sufficient time and effort to get involved in formulating objectives, and
facilitating team building, improving customer service, reconciling group differences,
adapting to change, and facilitating competitive thinking. 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. Since this sub-factor has significant correlation with almost all of the factors, it
will contribute significantly to the ability of operations function in establishing the quality
of flight.
b. Technology Usage and Management; Technology Usage Orientation – It is
necessary to create a working environment that can give full access to the member of
information on their airlines’ product/service, competitors’ performance, technology
development, and market condition. 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. The
stronger the orientation toward the use of technology advancement the greater the
chances to have improved effectiveness and efficiency in the Operations function
process.

2) Reward Systems – A reward system has an important role in maintaining the member’s
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. By realising
that there will be always new demand from the customer, a reward system should be
established to bring the entire members heading toward the demand. Departmental

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 performance and teamwork should become the criteria in the assessment to give a reward,
either to managers or staff. It is the job of top/senior management.

3) Team Building – Team building within the organisation is influenced by the reward
system and significantly by encouragement from top/senior management. 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. Translating customer requirement into Operations function activity should
become the aim of the teamwork. Top/senior management encouragement by
communication will strengthen the process of building the teamwork orientation within
the organisation.

4) Benchmarking – Benchmarking is a prerequisite to get effective improvement.

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. The result of benchmarking will
be used as an indicator to assess the improvement level of achievement, and it has a direct
correlation with quality of flight.

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.
This factor will determine the Operations function organisation cohesiveness.
Interdepartmental conflict and connectedness appear to influence the level of quality
achieved in the Operations function. Interdepartmental interaction should be focused on
improving the efficiency of the Operations function process.

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. In order to have the
motivation, customer satisfaction should become one of the criteria to assess the manager
and the staff work performance.

7) Process Improvement Technique – Programme improvement technique employment

will be influenced by the organisation orientation toward the use of advanced technology
in the Operations function process. 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. All of
these activities should be participated in by the members and are performed with
common or statistical methods.

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8) Quality Demand Awareness – There must be chances and facilities for the member to
be able to acquire more knowledge on quality issues and improve their skills on quality
improvement techniques. Quality demand awareness will be strengthened by involvement
from management, orientation toward advanced technology usage, reward system, and
mutually influenced with team building.
9) Manager-Staff Communication – Management-staff communication correlates with
the success of programme evaluation and level of participation of the organisation
member. Effective communication will support these two factors significantly. This factor
would ensure each function within the organisation is well informed of their weaknesses,
and strengths.

10) Improvement Programme Evaluation – Effectiveness of the evaluation will depend on

how the departments interact, team building orientation amongst the members, how the
benchmarking is being exercised, and existence of reward system. 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. Nevertheless, involvement of top/senior management
in this practice is inevitable to have the programme evaluated.

11) Customer Feedback Handling – Because the customer is the final arbiter, the
customer’s feedback should be represented throughout all phases of the Operations
function process. Customer feedback handling correlates with benchmarking. Its process
efficiency and result effectiveness is influenced by the strength of teamwork within the
organisation. The continuity of the effort to exercise this factor will need top/senior
management involvement.

12) Members’ Participation – The organisation commitment to quality management

practices should be realised by participation of the members in Operations function
improvement activity at all levels of the organisation. Members’ participation is a factor
that can create the organisation’s 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.

In managing the critical success factors of quality management practices in the airlines’
Operations function, the variables of organisational contexts that influenced the practices
should be considered:

1) Management knowledge – The more the managers know about quality concepts and
techniques to improve the Operations function process, the more likely they are to make
positive changes in the organisation. The support from the senior managers may take
many forms including setting objectives in the area of safety, punctuality and efficiency,

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 rewarding managers on the basis of quality-related performance of their department, and
making resources available for the quality improvement initiative.

2) Past quality performance – the present level of airline’s quality management practices is
a function of the airlines past quality performance. The management should understand
their starting position and then utilise the practices that offer them the potential for the
greatest improvement. The information on Operations function past performance is
necessary and the objective that should be achieved is necessary to define the activity to
be conducted in the process of improvement.

3) External quality demand – the degree of competition, the extent of barriers to entry in
the airline industry, the extent of quality demands by customers, and the extent of
government quality regulation, will have an impact on the level of quality management
practices in the airlines. 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.

D. Application to the Southeast Asian Airlines

Considering all of the findings on organisational context for the ‘developing’ airlines of
Southeast Asia, the application of the model should be conducted through managing the
critical success factors of quality management practices in the Operations function of the
airlines. Management behaviour in supporting skills improvement and motivation
enhancement should be emphasised as an orientation to practice quality management in the
organisation.

Based on this orientation, the five critical success factors of Technology Usage &
Management, Interdepartmental Interaction, Improvement Programme Evaluation, and
Members’ Participation will become the main programme. It is described as follows:

1) Technology Usage & Management – The manager should involve in conducting

customer expectation surveys on the issues related directly to the Operations function,
periodically, and invite the customer to observe the Operations function in certain daily
work activities. They could also give chances and provide facilities for the members to be
able to acquire more knowledge on Operations function quality issues and improve their
skills on process quality improvement techniques. Use statistical methods or common
techniques in identifying the weak link in the Operations function chain of activities, and
solve the problem by improvement practices. Conduct a project to prevent
solved-problems from re-occurring and/or for further Operations function process
improvement. All of these activities will create a working environment that stimulates the
members of the organisation to find information on their airlines’ product/service,
competitors’ performance, technology development, and market demand.

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2) Interdepartmental Interaction – Allow the members to communicate freely with
different functions in order to perform their work or other work-related activity.

3) Improvement Programme Evaluation – Conduct a periodic meeting to evaluate past

problems and action that has been performed on them.

4) 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 organisation’s members in process improvement teams, within their own
function organisation, as well as cross-functions.

5) Benchmarking – Consistently perform benchmarking exercises, internally and externally

with some other airlines and non-airline organisation. A competence cross-functional
team might be necessary to facilitate the exercise throughout the organisation.

Since quality improvement is a never-ending process, so, to make the process of

improvement continue as the diagram (Figure1.) describes it, further effort should be
conducted by employing the 12 factors as a quality management construct to measure the
practices.

E. Study Contribution
The outcome of this study has given a contribution to the field of quality management as well
as to the field of airline management. Each of the 12 critical success factors of quality
management practices in airlines’ Operations function is a programme on its own. This
exercise will improve the effectiveness and efficiency of the organisation in pursuing safety,
punctuality and efficient processing of the Operations function. Besides, these factors will
also become an instrument to measure the progress of the programme within the
organisation.

The model describes the position of the critical success factors of quality management
practices within the Operations function and relate it to the variables of organisational
context that influences the process. The concept underlying the model and its structure can
also be used in any airline for the process improvement programme within their Operations
function. Analysing these variables in different airlines will give different results depending on
their organisational situation. Finally, it can be said that, the outcome of this study has found
the applicability of quality management concepts for airlines’ Operations function which have
never been empirically studied before.

F. Suggestion for Further Study

This study has been conducted by involving a numbers of airline companies from Western
Europe and Southeast Asia, and by studying their quality management practices in the
Operations function organisation for a period of time. Involving more airlines from other
regions for future study would improve the level of validity and reliability of the findings.

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Additionally, further study on each factor of the critical success factors of quality
management practices and its variables of organisational context mentioned in this study
would improve applicability of the model not only for Operations function organisation, but
also for other functions in airlines’ organisation.

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