Quality Management: Cathay Pacific Airways Essay

Introduction chinaw atomic number 18 peaceful disperseways is an international airline registered and based in Hong Kong, offering schedule cargo and rider functions to over 80 destinations around the world.They ar deeply committed to Hong Kong, where the Comp all was founded in 1946. They continue to make satisfying investments to develop Hong Kongs aviation indus study and enhance Hong Kongs rate as a regional transportation hub. In addition to their go across of aircrafts, these investments include catering, aircraft maintenance and ground handling companies, as well as their corporate headquarters at Hong Kong International Airport mainland China peaceful and its subsidiaries and associate employ 25,000 staff in Hong Kong. The airlines devil major shareholders are both Hong Kong companies listed on the Hong Kong Stock Exchange, as is chin aware pacific itself. chinaware Pacific is the major shareholder in AHK Air Hong Kong especial(a), an all cargo carrier that offer s scheduled religious suffices in the Asia region, and is a shareholder in Hong Kong Dragon Airlines Limited.They are excessively a understructure member of the one world global alliance whose combined net serves over 570 destinations worldwide. another(prenominal) members of one world are Aer Lingus, Ameri go off Airlines, British Airways, Finnair, Iberia, LanChile and Qantas. character Management DefinedIn a totality spirit circumstancesting, Quality is as determined by the node and employees produce it. olibanum musical note of a answer is the guests perception of the power point to which the service dallys their deliverationsSix-sigma tint is a standard and a philosophy of client felicity. The six-sigma philosophy requires an ongoing audit mechanism that identifies opportunities for improvement and changes in node expectations.Emphasize the importance of node contentment. Define a quality goals and objectives and acquaint these into actual service and se rvice delivery activities. There are well-nigh types of goals and objectives contend to consider.-To satisfy customers.-To encourage nonstop improvement.-To respect social and environmental of necessity.-To foster a collective commitment to quality.-To improve the efficiency of service delivery.-To clearly define customer needs and expectations.-To look for opportunities to improve service quality.Define service quality responsibilities and give your personnel the authority to deem out these responsibilities. Make sure that senior management retains the responsibility for developing, measuring, auditing, and alter your service quality sy bowing.Various interviews and customer surveys conducted throughout the year, customers are invited to inscribe in the mainland China Pacific Voice of the Customer survey, conducted multiple generation per year to determine where customers are squelched and where they canful improve. These survey results are then used to develop plans to a ct on your suggestions, improving the solutions and experiences customer get from chinaware Pacific. They greatly increased customer enjoyment with mainland China Pacific service.Customer ExpectationIn a total quality setting, customers define quality and employees produceit. Customers were considered outsiders who used a gilds products and suppliers were outsiders who provided the materials needed to provide the good service. Every organization has both pronounceal and external customers. An external customer is the one spoken to in the conventional definition. An internal customer is any employee whose work depends on that of employees whose work precedes theirs.mainland China Pacific Airways have much varied kind of customers and with any age. mainland China Pacific have sponsor young people from Asia to attend a special ecological course in South Africa. Over one hundred ninety students from around the world have traveled here to study Chinese language and culture at t he Chinese University of Hong Kong. In addition, they sponsor the student exchange programmers at the Chinese University of Hong Kong and the City University of Hong Kong respectively. Also they can be a vocationperson or people who is going just for tourist. severally year chinaware Pacific sponsor wheelchair athletes from Hong Kong to compete in the 10km wheelchair slipstream in Vietnam.The organizations survival depends on the customer. Customers who are satisfied with the quality of their purchases from an organization become reliable customers. So customer satisfaction is essential. Providing proud quality service ensures customer satisfaction.Companies have to look to customers when they set standards for measuring quality. Products and services need to be improved with time to meet the varying need of the customers.To clarify how customers perceive quality, there are summarizes the quaternity foundations of perceived quality Product Quality, Service Quality, Brand Image and personalized Cost. Customers perceive quality on the following basic tangible principles1. proceeding2. Features3. Reliability4. Serviceability5. Durability6. Appearance7. Customer serviceCustomers expect to have a best service with lower price. Therefore chinaware Pacific always believes in Service Straight from the Heart. From their front-line staff to those coffin nail the scenes, the dedication of all person at chinaware Pacific stiff the driving force behind our service. Its about treating people as individuals and treating them like your best friend.They call it Service Straight from the Heart because it stems from within. and then their staff led their personal lives in the same way they sweep their professional one with fervor, integrity and optimismThis positive lifestyle may stem from an exercise regimen in the quest to stay fit and alarum and always ready for the next big challenge and to deliver expectations. It could splay around a continuous thirst for k nowledge that leads to self-improvement and improving the lives of others. Or else it may be a personal passion for traveling that offers incredible insight on what makes an unforgettable travel experience.Reputation is something that can be good or rugged for a Cathay Pacific by customers. It is built upon the competitive elements such(prenominal) as quality, reliability, delivery and price. erstwhile a Cathay Pacific acquires a bad reputation for quality, it takes a very long time to change it. Reputations good or bad can quickly become national reputations.Customers tend to remember exactly the bad quality they receive. For example If 99 % of passages arrives is on time, the customer result only remember the 1%of passage arrives late.Quality and customer satisfaction may not be enough to hold on to customers. Cathay Pacific must also build relationships with customers. Customer retentiveness is a more accurate reflection of an organizations success than quality or custome r satisfaction. Customer retention is affected by factors that the federation can control, like service improvements, and factors that are controlled by the marketplace, like price flexibility. Strong relationships with customers can increase retention by asking customers the right hand questions, really listening to what they have to say, and providing feedback to them on the results of action plans. Quality and customer satisfaction are still very important, but customer retention should be the organizations ultimate test of success.Customer satisfaction is achieved by producing high-quality services that meet or exceed expectations. The key to establishing a customer focus is to put employees in touch with customers so that customer needs are known and understood.Scholtess six-step strategy for identifying customer needs is as follows speculate about results, develop an information fulfiling plan, gather information, analyze the results, check the validity of conclusions and t ake action.Customer needs are not static. Therefore, constant contact with customers is essential in a total quality setting. Whenever possible, this contact should be in person or by telephone. Written surveys can use, but they will not produce the take of feedback that personal contact can generate.Measuring customer satisfaction simply is not enough. Many customers who forsake are satisfied. Cathay Pacific should eyeshade customer retention. They should go beyond satisfying customers to creating value for them in every supplier customer interaction.Cost of QualityCost of quality as defined by Crosby Quality Is Free, Cost of quality is the get along of money a business loses because its product or service was not done right in the first place. In early April, Cathay Pacific boil downd their passenger capacity in response to the cutpurse in passenger traffic arising from the severe acute respiratory syndrome outbreak. They cancelled 45% of their passenger flights and parked 22 aircraft. The integrity of their network was maintained, although services to Fukuoka and Sapporo were temporarily suspended. This is the business loses by the suddenly severe acute respiratory syndrome occur or a poorly performed service, businesses lose money every day due to poor quality.Quality is the confluence of customer expectation and realization. It is essential that every organization is aware of the terms of quality, which awareness must. In Cathay Pacific, the lowest possible take aim of defects, which can be achieved only by an aggressive search for and ejection of the sources of error, is a prerequisite for an internationally competitive performance.There have foursome major areas of the price of quality Prevention, Appraisal, Internal Failure, and External Failure. Prevention involves be of any effort to eliminate defects in service. When providing service, an excellent service with industrial-strength planning can certainly prevent the occurrence of error s and other problems go across the line.Appraisal includes the cost of measuring, evaluating and auditing services to assure conformance with requirements. If a defect occurred on the assembly line, the defect was thrown out irrespective of the cost of materials and labor.Internal loser refers to costs required to evaluate or comprise service not conforming to requirements prior to furnishing services. This could include rework, operations disciplinal actions, re-inspections, and labor losses. In Cathay Pacific, this can include the need for rescheduling different flights when they are interdependent and errors occur, e.g., in the computer system. Reports have to be rewritten. Other internal failure occurs when errors inwrong data affect other departments within the Cathay Pacific.External failure refers to the cost of failure later furnishing services to customers. This includes complaints, liability, goodwill, and both lost sales and customers. If customers are lost, this typ e of failure is most expensive, especially considering that new customers are estimated to be five times as expensive to acquire as the cost to maintain alert customers.Quality ProgramThe reason of severe acute respiratory syndrome arising in early April, Cathay Pacific cut down their passenger capacity in response to the authorize in passenger traffic. Cathay Pacific Airways have to implement arrest measures to guard against the spread of Severe Acute Respiratory Syndrome (SARS) at airports served, in provision of in-flight service, and related to its ground and in-flight personnel.In any business, also need to continuous improvement to keep survival in the world. Quality exploit Deployment (QFD) is an approach to continuous improvement that brings customers into the design of services. It translates what the customer wants into what Cathay Pacific provides. A QFD matrix takes shape of a house. An example will show in the next page.QFD yields the following benefits to Cathay Pacific that is interested in continual improvement customer focus, time efficiency, teamwork orientation and documentation orientation.QFD also makes use of several specialized tools including Affinity diagrams, which are used to encourage creative thinking. The interrelationship diagraph is used to bring logic to the care for of identifying relationships among ideas. The head diagram identifies all tasks that must be accomplished to solve a problem. Matrix diagrams are used to identify connections among responsibilities, tasks and functions.Cathay Pacific can use QFD to closely monitoring the SARS situation in adjustments to its flight schedule, according to passenger demand. Thats why they can identify the problems of SARS and find out the solution to eliminating the problem happen occur again. Cathay Pacific can implement measures to guard against the spread of the SARS computer virus as followsProtective measures for all staff in all functions? crack operative mask and rub ber-base paint gloves every time that work is conducted on the aircraft upon flight arrival from an affected country as determined by the World Health Organization (WHO).?Check-in staff providing passenger service at airports in affected countries must wear surgical masks at all times when providing service provision.-After work has been completed, staff must cleanse their hands thoroughly with clean water and disinfecting soap.-Used surgical mask and latex gloves must be disposed of in a specifically designated container, tagged accordingly.-Disinfecting spray must be used on all flights travel from countries considered affected areas.Measures related to in-flight service provision-Disinfecting spray must be used on flights departing from countries considered affected areas.-Cabin crew must observe passengers for SARS symptoms related to the respiratory system, such as high fever, coughing, sneezing, and provide surgical masks for passengers to wear.-Cabin crew must separate the passenger suspected to have SARS symptoms from other passengers, or separate the passenger in a designated area, and informthe International Communicable Disease Control Office under Cathay Pacific, before the flight lands.Measures related to customer serviceCheck-in and embarkment gate staff working at airports in Taiwan, Singapore, Vietnam, China ?in Hong Kong, must observe passengers for SARS symptoms. If passengers are observed to have high fever, coughing, and hard-foughty breathing, they must provide a extend tos letter stating they are fit to travel. If the passenger does not have a doctors letter, the physician on duty at the respective airport must be contacted to examine the passenger with related symptoms. If there is any doubt to the nature of the passengers illness, the passenger may be denied boarding.Difficulties or LimitationCustomer information is the most important for continuous improvement. We have to collect reliable information to identify the cause of prob lem. This is difficult to ensure all the information is reliable. Sometimes the information is according by the service-testing editor for magazine or newspaper gives the service a try and writes an article pointing out weaknesses.Customer information falls into two grand categories feedback and stimulation. Feedback is given after the fact. In Cathay pacific, this means after a problem has been occur. Feedback is valuable and should be collected. However, it comes too late in the process to help ensure that customer requirements are met.Input is obtained before the fact. In Cathay pacific, this means during the problem happening. Collecting customer input during service provides allows changes to be made before the worst problem occurs. Collecting input is more valuable than collecting feedback.ConclusionThe outbreak in mid(prenominal) March of atypical pneumonia or SARS had a devastating impact on Cathay Pacific passenger business.The interim performance of Cathay Pacific Caterin g Services (H.K.) Limited was badly affected by the outbreak of SARS. The company implemented stringent cost controls. All foreign flight kitchens were impacted by SARS and also implemented cost control measures. SARS had little effect on the airfreight business and the company reported a satisfactory interim profit. Hong Kong Airport Services Limited reported an interim loss due to the large number of flight cancellations.After an air quality monitoring programmed, undertaken in aircraft cabins, showed that the air is of a good quality. A comprehensive programmed to sort and recycle paper materials such as newspapers and in-flight menu cards has been implemented on all inward flights. The impact of SARS resulted in a concerted effort to reduce energy consumption in Cathay City. Measures taken include temperature adjustments, reduced lighting and restricted availability of lifts and escalators.We can see the SARS had a little effect to the Cathay Pacific. Hence they need to use QFD to continual improvement that brings customers into the design of services. It translates what the customer wants into what Cathay Pacific provides.