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Summary
Term Paper

On

The Evaluation of Operations Management and Its Impact on Modern Business .

Key Operational Challenges in the Bangladesh Airline Industry .

27
Course Name: Operation Management

Course Code: BUS - 3202

Submitted To

Md Suliman Hossin
14
Senior Lecturer

ULAB School of Business

University of Liberal Arts Bangladesh

Submitted By

Afsana Mimi

ID: 211011065

Section: 03
 Date Of Submission: 22-8-23

21
Table of Contents

1.1 Introduction 3

1.2 Key Factors in Operations 4

1.3 Historical Development of Operation Management 6

1.4 Today Operation Management Environment 9

1
1.5 Modern Trends in Operations Management and Computer Aided Technologies

1.6 Computers in Quality Control 11

2.1 Bangladesh Airline Industry 11

2.2 SWOT Analysis of Bangladesh Airline Industry 15

2.3 Operational Challenges of Bangladesh Air Industry 16

3.1 Conclusion 18

3.2 References 19
1.1 Introduction

13
Operation Management is the process or system that creates goods and provides

services . Individuals in operations management play a pivotal role in crafting product

and service blueprints, making decisions about process options, overseeing

technology choices, shaping work system structures, strategizing site selections,

orchestrating facility arrangements, and elevating the caliber of an organization's

offerings and services. Operation management affects the entire organization.

1
To illustrate, the realm of finance encompasses realms like investment, real estate,

insurance, and banking. Although management is treated as an autonomous academic

1
domain, it's an integral component of three domains: financial management, marketing

management, and operations management. Operations management pertains to

optimizing the operation's efficiency and effectiveness to further the firm's strategic

objectives. It encompasses concerns like designing and running systems to offer

8
goods and services. In essence, operations management involves the coordination,

planning, and oversight of activities converting inputs (raw materials and labor) into
1
outputs (finished goods and services). Operations management constitutes a

framework encompassing a recognized array of well-established concepts, tools, and

11
techniques. Although the term often brings to mind manufacturing environments, these

concepts have been adapted for service settings, and some have been specifically
11
tailored for service organizations. Additionally, operations management constitutes an
1
academic discipline, emphasizing the skillful planning, scheduling, utilization, and
control of manufacturing or service firms and their operations. It amalgamates insights
1
from design engineering, industrial engineering, management information systems,

quality management, production management, inventory management, accounting,

and other fields. Another catalyst for heightened awareness of operations

management is its growing application to service operations. Furthermore, operations

management concepts are finding relevance in other functional domains like marketing

and Human Resources.

2
When using an airline company as an example of a service organization's operational

system, this system encompasses airplanes, airport facilities, as well as maintenance

facilities, sometimes spanning across a broad geographical area. The tasks involved

encompass:

Forecasting: This includes factors like weather conditions, landing prerequisites,

2
predictions for seat demand on flights, and the projected surge in air travel

Capacity Planning:In the airline industry, maintaining a steady cash flow and achieving

reasonable profits is of utmost importance.

Facility Location:* Decisions by managers about the cities to serve, placement of

5
maintenance facilities, and the strategic positioning of major and minor hubs.

Facilities and Layout: Creating effective utilization of workers and equipment is a

crucial aspect.

Scheduling: This involves the scheduling of aircraft maintenance, coordinating pilot

and flight attendant schedules, managing ground crew availability, scheduling flights
and routine operations for aircraft, organizing counter staff shifts, and overseeing

baggage handlers' schedules.

5
Inventory Management: This pertains to items such as food and beverages, first aid

supplies, in-flight reading material, pillows, blankets, and life-saving equipment.

Quality Assurance: Essential in both flight and maintenance operations, where the

primary focus is on safety, as well as in customer interactions at ticket counters, check-

ins, reservations (both electronic and telephone), and curb services, where efficiency

and politeness are key concerns.

1
1.2 Key Factors in Operations

While an organization formulates strategies to address the prospects and hurdles

presented by its unique operational context, it ought to devise a system adept at

6
generating desired quantities of quality products and services within acceptable time

parameters.

Designing the System:

Initiating the system design commences with product development. This phase entails
1
defining the characteristics and attributes of the item (or service, in the case of service-

focused industries) intended for sale. It initiates by assessing customer requirements

and subsequently evolves into a comprehensive product blueprint. The incorporation of

facilities, equipment, and information systems essential for performance monitoring

and control is an integral part of this system design procedure. Significantly, the

decisions linked to manufacturing processes bear direct influence on a system's

 1
eventual prosperity or lack thereof. Thomas S. Bateman and Carl P. Zeithaml in

"Management: Function and Strategy" aptly note, "Among all the structural choices

confronting operations managers, the process/technology selection holds the utmost

9
impact on the manufacturing operation's achievement. This decision revolves around
1
the query 'How will the product be manufactured?'." The course of product

development should manifest as a cross-functional decision-making process, relying

on collaboration and effective communication to institute the requisite marketing,

financial, and operational plans essential for a successful product launch.

Product Design:

Crafting the product design is a pivotal responsibility as it delineates the product's

26
attributes, functions, and operational dynamics. The product's cost, quality, features,

and performance are contingent upon its design. These are pivotal criteria influencing

customer purchasing choices. In modern times, innovative design methodologies like

1
Design for Manufacturing and Assembly (DFMA) have been adopted to enhance

product quality and reduce expenses.DFMA directs attention to operational

24
considerations during the product design phase. This holds significance despite design

expenses constituting a small fraction of the overall product cost, as practices that

squander raw materials or replicate tasks can markedly undermine a company's

1
operational profitability. Another innovation akin to DFMA, centered on design, is

Quality Functional Deployment (QFD). QFD encompasses a series of planning and

communication processes employed to enhance product design by channeling design

endeavors towards meeting customer requisites.

Process Design:

Process design outlines the procedure of crafting the product. This decision involves
9
two key facets: a technical dimension, linked to engineering, and a scale economy

dimension, tied to business considerations. The technical facet entails equipment

9
selection and establishing a sequence for different operational phases. The scale
1
economy or business aspect involves judiciously implementing mechanization (tools

and equipment) to enhance the productivity of the organization's workforce.

This encompasses determining:

The viability of mass production based on product demand

Whether flexible production systems are necessary due to diverse customer

demands; and
1
Whether product demand is too limited or seasonal to sustain a dedicated production

facility.

Facility Design:

Facility design encompasses the assessment of capacity, location, and layout for the

production facility. Capacity quantifies an organization's capability to deliver requested

goods or services in the desired quantity and timeframe. Capacity planning involves
1
projecting demand, ascertaining facility capacity, and strategizing adjustments to the

organization's capacity to align with demand fluctuations.

Facility Location:

1
Facility location pertains to situating a facility in relation to its customers and suppliers.

This is a strategic determination due to its enduring commitment of resources, which is

not easily or affordably alterable.When appraising a location, managerial assessment

should encompass factors like customer convenience, the initial capital required for

land and facility acquisition, governmental incentives, and ongoing transportation

expenses. Furthermore, qualitative elements such as employee well-being,

transportation network, and labor conditions must also factor into the decision-making

process.

Facility Layout:

16
Facility layout involves organizing the workspace configuration within a facility. It

entails deciding which departments or work zones should be positioned nearby each

other to facilitate a smooth and swift movement of products, information, and

6
personnel through the production system.
Planning the System:

System planning delineates how management intends to leverage the established

resource foundation that stems from the production system design. This planning
18
procedure might lead to alterations in the system design to accommodate shifts in the

external environment. For instance, management could opt to modify capacity in

1
response to evolving demand or reconfigure layout to optimize operational

efficiency.The decisions taken by production planners are contingent on the time frame
1
they're addressing. For the long term, decisions might involve assessing the number of

facilities necessary to meet customer demands or forecasting the impact of

technological advancements on production methods for goods and services. The

extent of long-term planning varies depending on the industry, influenced by the scale

and intricacy of proposed changes. However, it generally encompasses aspects like

1
determining workforce size, devising training initiatives, collaborating with suppliers to

enhance product quality and delivery systems, and gauging material quantities for

aggregate ordering. Conversely, short-term scheduling pertains to crafting production

plans for specific job orders, encompassing details such as task assignments ,

equipment utilization, material consumption, work initiation and completion times, and

choice of transportation for delivering the completed order.

6
Managing the System:
Effectively overseeing the system involves collaborating with individuals to foster

engagement and enhance organizational effectiveness. Active involvement of

personnel and collaborative teamwork stand as integral components of prosperous

operations, paralleled by leadership, training, and organizational culture. Furthermore,

pivotal areas encompass material management and quality assurance. Material

management encompasses decisions related to sourcing, regulation, handling,

storage, and distribution of materials. Given that, in numerous organizations,

purchased materials expenses constitute over 50 percent of the overall production

cost, material management is gaining heightened significance. This domain

necessitates addressing queries regarding material order quantities and timings,

especially when comparing attributes among different suppliers.

1.3 Historical Development of Operation Management

The evolution of these operational management strategies has yielded numerous

beneficial outcomes for businesses, although there have been a few unfavorable

repercussions as well. Within manufacturing sectors, production has transformed into a

structured endeavor, with each facet of the factory manned by its own experts.

Consequently, every subsystem pursues a distinct goal. This shift has contributed to

enhanced productivity efficiency, facilitating the generation of high-quality products.

20
The Industrial Revolution
The onset of the Industrial Revolution marked a significant shift in various aspects. Its

commencement in the 1770s brought about a series of innovations centered around

mechanical power rather than human effort. Among these, the steam engine, credited

to James Watt's invention in 1764, stood out as the most pivotal. This engine

introduced a fresh power source that substituted manual labor in sectors like textile

mills, machinery production plants, and other facilities. This period also saw the

emergence of the factory concept. Furthermore, the steam engine's influence

extended to advancements in transportation, such as the establishment of railways,

enabling a more extensive dispersion of goods.

Around the same period, the notion of dividing labor into distinct segments was
1
introduced. Initially articulated by Adam Smith in 1776 within "The Wealth of Nations,"

this significant idea would later play a key role in forming the foundation of assembly

line methods. The division of labor entails breaking down the production of an item into

a sequence of small, basic tasks, each assigned to a different worker. This allocation

of tasks facilitates workers to become exceedingly specialized in their designated

tasks. Consequently, the division of labor allowed for increased production volumes.

When combined with advancements in transportation, this phenomenon enabled

steam-powered boats and railroads to access various markets.

1
In 1790, Eli Whitney brought forth the idea of using interchangeable components. Prior

to this point, each part employed in the manufacturing process was distinct. With

interchangeable parts, these components are made uniform, ensuring a consistent fit

for every item in a batch. This concept enabled a shift from producing items individually
 3
to producing them on a larger scale. For instance, this approach found application in

the production of watches, clocks, and similar objects.

Scientific Revolution

Scientific management emerged as a management approach championed by

Frederick W. Taylor during the early 20th century. Taylor, an engineer known for his

emphasis on efficiency, aimed to enhance both worker productivity and organizational

output through scientific management principles. This approach is characterized by

two key aspects. Firstly, it presupposes that financial incentives are the primary
1
motivators for workers, and their capabilities are restricted solely by their physical

capacities. Taylor asserted that worker productivity adheres to scientific principles, and
3
it's the responsibility of management to uncover these principles through analysis and

observation. Compensation should be directly correlated to production output.

Secondly, this approach involves segregating the planning and execution functions

within a company, resulting in the division between management and labor.

Management assumes the role of designing efficient systems and establishing

acceptable worker performance standards. Employees are not involved in this process;

they are only authorized to perform their work tasks. Numerous individuals expressed

dissatisfaction with the scientific management method. This sentiment was particularly
1
shared among workers, who believed that management was leveraging these

techniques to unfairly amplify production without corresponding fair compensation.

1
Nonetheless, numerous companies embraced the scientific management approach.
Presently, scientific management is regarded as a significant landmark in operations

management, wielding substantial influence in this field.

Henry Ford played a pivotal role in popularizing the scientific management approach

by integrating it into his factories. By amalgamating technology with scientific

3
management principles, Ford incorporated concepts like division of labor and

interchangeable parts, leading to the formation of mass production. These innovative

5
ideas and practices significantly augmented production capacity and efficiency within

his factories.

Human Revolution

The scientific management ideology predominated during the early 20th century.
3
However, this narrative shifted when the outcomes of the Hawthorne studies were

unveiled. These studies were carried out at the Western Electric plant in Hawthorne,

Illinois, in the 1930s. Their objective was to examine how alterations in the work
1
environment, such as variations in lighting and room temperature, impacted the

efficiency of assembly line employees. The study results were unforeseen: regardless
1
of environmental modifications, worker productivity consistently rose. Elton Mayo, a

sociologist from Harvard, scrutinized the results and inferred that the workers were

spurred by the attention they received. This phenomenon of workers responding to

3
attention became recognized as the Hawthorne effect.

Numerous sociologists and psychologists visited the Hawthorne facility to investigate

these findings, giving rise to the human relations movement. This new philosophy
 1
acknowledged that factors beyond monetary incentives can contribute to enhancing

worker productivity.

The impact of these discoveries on the evolution of operations management has been

profound. The influence of this fresh perspective is evident in the integration of

numerous concepts designed to inspire workers by infusing their roles with greater

interest and significance. As an illustration, the Hawthrone studies revealed that the

scientific management framework had led to monotonous and uninteresting jobs. Job

enlargement, an approach that assigns a more extensive portion of the entire task to

workers, was implemented to counter this. Another strategy utilized to enhance job

significance is job enrichment, which empowers workers with a more substantial role in

the planning process.

Decision Models and Management Science and computer age

1
As one stream concentrated on the technical dimensions of job configuration and

another delved into the human facets of operations management, an independent

movement termed management science was unfolding, poised to bring its distinct

influence. Management science's emphasis was on creating numerical methodologies

to address operational challenges. F.N. Harris crafted the inaugural mathematical

blueprint for inventory management in 1913. In the wake of that, methodologies were

devised for statistical sampling theory and quality control.

2
During the 1930s, three colleagues at Bell Telephone Laboratories - H.F. Dodge, H.G.

Romig, and W. Shewhart - formulated statistical methodologies for sampling and

 2
quality control. L.H.C. Tippett's investigations in 1935 laid the initial foundation for

statistical sampling theory. However, at first, these numerical models found limited

application in industries. It wasn't until after World War 2 that this scenario underwent

transformation.

In the 1960s and 1970s, management science methodologies held considerable

esteem. Their prominence waned somewhat during the 1980s. Nevertheless, the

extensive adoption of personal computers and user-friendly software within workplaces

2
played a pivotal role in rejuvenating the appeal of these techniques.

The influence of Japanese Manufacturers

A significant count of Japanese manufacturers honed management strategies that

elevated their operational efficiency and product quality. This transformation was partly
2
attributed to the guidance of American figures W. Edwards Deming and Joseph Juran.

This enhancement bolstered their competitive edge, prompting non-Japanese firms to

evince keenness in adopting similar practices. Their methods underscored the

importance of quality, ongoing improvement, team collaboration, empowerment of

workers, and the pursuit of customer contentment.

1.4 Today Operation Management Environment

1
The current operational landscape differs significantly from that of just a few years ago.

Customers now demand heightened quality, swiffer delivery, and reduced expenses.
 1
To thrive, companies must thoroughly grasp the fundamental tenets of operations

management. To achieve this, numerous enterprises are adopting a strategy known as

lean systems. These systems adopt a comprehensive approach to establishing an

efficient operation, amalgamating the most effective practice principles. This

1
encompasses concepts like Just in Time (JIT), total quality management (TQM),

continuous improvement, resource planning, and supply chain management (SCM).

The pursuit of enhanced efficiency has also propelled many businesses to integrate

expansive information systems known as Enterprise Resource Planning (ERP).

1
1.5 Modern Trends in Operations Management and Computer Aided Technologies

2
Technological innovation refers to the discovery and development of new or improved
7
products , services or processes for producing or providing them. It can involve such

factors as knowledge, materials ,methods and equipment. High technology refers to

the most advanced and developed equipment and methods .

4
Advanced computer-aided technology tools amalgamate diverse facets of product

lifecycle management (PLM), encompassing design, finite element analysis (FEA) for
1
analysis, manufacturing, production planning, virtual lab-based product testing and

visualization, documentation, and product support. The term CAD/CAM (computer-

aided design and computer-aided manufacturing) is frequently employed to describe a

software tool that spans various engineering functions.

List of Computer Aided Technologies

1
Product data management (PDM)

Product lifecycle management (PLM)

Computer-aided manufacturing (CAM)

1
Manufacturing process management (MPM)

Manufacturing process planning (MPP)

Material requirements planning (MRP)

Manufacturing resource planning (MRP II)

1
Computer-aided design (CAD)

Computer-aided architectural design (CAAD)

Computer-aided design and drafting (CADD)

Computer-aided process planning (CAPP)

Computer-aided quality assurance (CAQ)

Computer-aided reporting (CAR)

Computer-aided requirements capture (CAR)

4
Computer-aided software engineering (CASE)

Component information system (CIS)

Computer-integrated manufacturing (CIM)

computer numerical controlled (CNC)

Computational fluid dynamics (CFD)

Electronic design automation (EDA)

Technology and automation bring substantial advantages: They enhance quality,

decrease expenses, elevate productivity, and broaden processing capacities.

Furthermore, automation presents several benefits compared to human labor. It

exhibits minimal variability, a feat challenging for humans to achieve when performing

tasks consistently and repeatedly. Additionally, it curtails variable expenditures.

22
There are three (3) kinds of Automations

Fixed Automation

Programmable Automation
3
Flexible Automation

Fixed Automation : It uses high cost , specialized equipment for a fixed sequence of

operation. Advantages: Low cost , High Volume .

25
Limitations: High Cost of making Major changes ,Low variety .

Programmable Automation: Programmable automation involves utilizing computer-

driven systems to control and carry out manufacturing procedures. These systems are

designed to be adaptable and tailored to specific tasks, enabling automation of various

operations. Programmable automation finds application in industries requiring frequent

process adjustments, allowing swift reconfiguration for diverse product variations or

production needs. N/C (Numerically Controlled) and some Robots are applicable for

Programmable Automation.

Advantages: Enhance efficiency, minimize human errors, and bolster the flexibility of

manufacturing processes.

Limitations: Limited of Customization ,High maintenance costs , Initial Investment

,Complexity , Long Implementation Period , Low Volume .

2
Flexibility Automation: It uses equipment that is more customized and less changeover
19
time. FMS (Flexible Manufacturing System) ,CIM (Computer -Integrated

Manufacturing) are used for this flexibility automation .

Advantages: Customization , Quick Changeovers ,Reduced Waste,Cost Savings,

Resource Optimization , Future - Proofing, Mixed-Model production.

Limitations: Risks of Errors , Dependency of Skilled Workforce, Risk of Over

Engineering, Maintenance and Updates , Complexity .

1.6 Computers in Quality Control

A wide array of computer software options are accessible for utilization within the

expansive realm of quality management. To classify their applications, a

straightforward breakdown is as follows:

Gathering Data about item and process attributes, encompassing the gathering,

arrangement, and documentation of data concerning quality levels, reject percentages,

failure rates, customer grievances, and more. This information serves as a foundation

for informed decisions regarding design, equipment updates, pricing strategies, and

the like.

Streamlining Analysis , and Presentation of Data, which involves processing the

aforementioned data to derive insights, allowing for its presentation, often in graphical

format.

Instantaneous Process Management , involving direct oversight and regulation of

processes to guarantee the fulfillment of specific quality standards.

Automated Assessment and Testing, potentially linked to the above, but also
1
encompassing the substitution of manual supervision of incoming or outgoing

products.

Statistical Evaluation of data, such as analyzing sample data to establish control charts

and determine whether items meet predetermined acceptance criteria.

2.1 Bangladesh Airline Industry

The realm of airlines comprises diverse enterprises known as airlines, which deliver air

transportation services to paying passengers and commercial associates. These

services extend to both individuals and freight, and are predominantly facilitated

through jet aircraft, although certain airlines employ helicopters as well.Airlines serve

as a vital link that unites individuals, cultures, and enterprises across all corners of the

globe. It fosters economic development, facilitates global commerce, and stimulates

15
the tourism sector. With a vast network comprising over 1,300 airlines operating
31,717 aircraft across 3,759 airports, the profound influence of the airline sector cannot

be overstated.

The airline sector in Bangladesh is currently experiencing rapid growth, with a

significant expansion in the market. In this age of globalization, the industry’s influence

is substantial, contributing to the expansion of both export and import activities in the

country. Being a developing nation, Bangladesh is witnessing a gradual increase in its

export and import sectors. Additionally, a considerable number of Bangladeshi

students are pursuing higher education abroad. Moreover, there is a growing interest

among the people of Bangladesh to explore the world through consistent travel. Over

29 airlines, including the country's national carrier, conduct their operations at the

Hazrat Shahjalal International Airport in Bangladesh.

Scheduled Airlines

10
Biman Bangladesh:

Biman Bangladesh Airlines holds the distinction of being the initial domestic airline
10
within the nation. It proudly serves as the national flag carrier of Bangladesh and

maintained its status as the sole domestic airline until 1993. Established on January 4,

1972, Biman Bangladesh Airlines initiated its operations on February 4 of the same

year. Beginning with a solitary DC-3 aircraft, the airline progressively incorporated

additional planes, which included two F-27s and a Boeing 707. By the end of the

1980s, Biman Bangladesh Airlines boasted a fleet of 18 aircraft. Over subsequent

years, the airline continued its fleet enhancement endeavors, transitioning to

contemporary aircraft models. Presently, Biman Bangladesh Airlines operates with a

fleet of 21 aircraft. At the current juncture, Biman Bangladesh Airlines extends its

services to encompass both domestic and international passenger and cargo

operations. The airline maintains connections with 25 flight destinations and holds air

service agreements with 42 countries. Its international flight offerings encompass

destinations such as India, Nepal, UAE, Qatar, Kuwait, Oman, Saudi Arabia, Malaysia,

Thailand, Singapore, China, Canada, and England. Until 2002, Biman Bangladesh

Airlines held the exclusive government authorization to operate Hajj flights, facilitating

the transportation of pilgrims from Bangladesh to Jeddah. Many perceive Biman's

position to still wield a certain degree of market monopoly, leading to the eventual

cessation of more than 25 private airlines. Capitalizing on this competitive edge, Biman

Bangladesh Airlines reported a substantial profit of Tk 272 crore during the fiscal year

2018-19.

However, the newly appointed Managing Director and CEO of the airline, Zahid

Hossain, expressed dissatisfaction with the quality of service. In accordance with his

vision, Biman's focus is now set on enhancing service quality and elevating flight

frequency. With an expansive growth strategy, the airline aims to achieve an annual

turnover of Tk 9,500 crore.

US-Bangla Airlines:
It emerges as a promising contender within the realm of Bangladesh’s airlines industry.

It has solidified its status as the leading domestic airline, commanding the highest

share of air passengers within the country. The airline embarked on its journey on July

17, 2014, under the guiding principle of “Fly Fast Fly Safe”. However, it encountered a

tragic incident in Nepal’s Tribhuvan Airport, marking one of Bangladesh’s most

unfortunate air industry accidents, involving nearly 200 passengers. Subsequent to this

incident, the airline has earnestly focused on upholding safety standards.

Beyond its well-frequented domestic destinations, US-Bangla Airlines extends its reach

across a substantial number of international routes. Notably, the Delhi to Kolkata,

Kolkata to Delhi, Delhi to Chennai, and Dhaka to Chennai flights remain highly sought-

after routes for the airline. Further expanding its scope, the airline serves destinations

such as Guangzhou, Kolkata, Muscat, Doha, Singapore, Kuala Lumpur and so on .

Amidst the air industry market in Bangladesh, where foreign airlines dominate 80% of

the sector, US-Bangla Airlines has charted a course to enhance its fleet by

incorporating 16 new aircraft before the conclusion of 2023. With a strategic

partnership with Biman Bangladesh Airlines, US-Bangla Airlines has articulated its

ambition to secure a substantial 50% stake in the domestic civil air industry market.

NovoAir:

Novo air stands as a prominent domestic airline presently in operation within

Bangladesh founded in 2007 but didn’t start operating until 2013. The airline's primary

emphasis is on serving domestic destinations within the country. Novo Air's network
 23
encompasses eight locations, comprising- Cox's Bazar, Chattogram, Saidpur, Jessore,

Sylhet, Barisal, Rajshahi, and Dhaka. Additionally, the airline maintains a single

international route, which connects to Kolkata.

Regarding in-flight offerings, Novo Air extends light snack provisions for both domestic

and international flights. Passengers can also avail themselves of newspapers and the

airline's exclusive magazine, titled "Novoneel."

Regent Airways:

It was founded in 2010 and started its journey offering domestic flights and was owned

by HG air industry Limited and was a subsidiary of Habib group. It stands out as a

premier airline in Bangladesh, the position of the country's second top airline. The

airline's operational base is situated at Hazrat Shahjalal International Airport, its

headquarters is situated in Gulshan, Dhaka. All official operations and management

activities were centered at this location. Regent Airways extended its services to

Chattogram and Cox's Bazar within Bangladesh, in addition to facilitating a selection of

international flights. The airline offered overseas services to destinations including

Doha, Kolkata, Kuala Lumpur, Muscat, and Singapore but unfortunately the airline had

not operating any flight since 2020

Air Astra:
 4
It is the inaugural private airline to be introduced in Bangladesh since 2013,

commenced its commercial activities on November 24, 2022, utilizing Dhaka as its
4
central hub. The airline marked the commencement of its services with thrice-weekly

flights on the Dhaka–Cox's Bazar–Dhaka route, alongside bi-weekly flights on the

Dhaka-Chittagong–Dhaka route.

Fly Dhaka

Fly Dhaka, under the ownership of Shasha Denims Ltd., obtained a NOC from CAAB

on October 21, 2021, and is currently awaiting the issuance of its AOC. In May 2022,

the airline enlisted the expertise of AirAsia, a consultancy specializing in areas like

fleet assessment, network and airline strategy, human resource management, and

fuel-saving initiatives. Fly Dhaka's strategy involves commencing its operations with

domestic flights and subsequently extending its reach to international destinations. The

airline intends to establish its services utilizing a fleet of ATR 72-600 aircraft.

Cargo Airlines

Bismillah Airlines

Bismillah Airlines (BML) is a cargo airline headquartered in Bangladesh, serving as the

nation's initial international cargo carrier. Established in 1998, Bismillah Airlines is

under the ownership of the Mollah Group of Industries. It holds the distinction of being
Bangladesh's first international cargo carrier. In 1999, BML initiated a commercial

route between Bangkok and Dhaka using a Boeing 707 aircraft. Notably, in 2009, the

Mollah Group established the Bismillah Flying School, marking the country's inaugural

private flying school. By 2010, Bismillah Airlines managed the export of 120,000 tons

of cargo goods and the import of 75,000 tons. In June 2023, Bismillah Airlines

expressed intentions to recommence its aircraft operations. The airline outlined plans

to secure A321Fs through operating leases, with operational activities targeted to

commence by the close of the third quarter of 2023. Simultaneously, the airline actively

seeks to onboard qualified A321 pilots and engineers with experience.

Easy Fly Express

Easy Fly Express launched its activities on July 18, 2008, utilizing an HS-748 Cargo

Aircraft, following its establishment in 2007. The airline has engaged in collaborative

freighter flights globally, partnering with carriers such as Etihad, Emirates, Korean Air,

China Cargo, and others. Currently, the airline possesses a single SAAB 340A

freighter within its fleet, servicing both domestic and international routes. In February

2014, Karnaphuli Group assumed control of this cargo airline.

SkyAir

Sky Capital Airlines Ltd., known as SkyAir, was established in 2009 and commenced

its services on January 26, 2010. The airline is under the ownership of the Blue Planet
Group. Its current fleet encompasses three aircraft: two Fokker 27 MK 050 and one

Boeing 737-200F. SkyAir has intentions to expand its fleet with the inclusion of a

Robinson R66 Helicopter and a Boeing B737-400. Presently, the airline operates

within the domestic circuit, servicing destinations like Sylhet, Chittagong, Cox’s Bazar,

and Jashore. In the future, SkyAir envisions extending its services to encompass

international destinations such as Guangzhou, Kunming, and neighboring countries.

Hello Airlines

Hello Airlines, owned by the IPSSL Group, was established in 2012 and initiated its

services in 2017. In its early stages, the airline operated an ATR 42-300 freighter

aircraft. Presently, its fleet comprises an ATR 42-300F and an ATR 72-200F.

Furthermore, Hello Airlines has intentions to expand its fleet by incorporating an

additional A330-200F aircraft.

NXT Air

NXT Air stands as the latest inclusion in Bangladesh's roster of domestic airlines.

Functioning as a subsidiary of Hello Airlines Bangladesh, the airline secured its NOC in

December 2021, followed by the acquisition of its AOC in January 2022. With

intentions to initiate domestic services within the same year, NXT Air's present fleet

encompasses a leased ATR 42-300 and a leased ATR 72-212. As part of its
expansion strategy, NXT Air envisions incorporating an ATR 72-500 freighter into its

fleet by the year 2023.

The domestic air industry field in Bangladesh confronts a significant journey ahead.

The backdrop predominantly bears the imprint of foreign carriers, generating a

formidable setting for the survival of local airlines, particularly those with fixed

schedules. Additionally, the shuttering of numerous private airlines can be attributed to

intricate financial and managerial complexities.

Notwithstanding these challenges, persistent efforts are being made to cultivate a

more favorable atmosphere within the national air industry sector. Multiple prospective

airlines are on the cusp of embarking on their operations, heralding a more positive

outlook. The central challenge remains the task of reducing the prevalence of foreign

airline dominance within the local sphere.

The air industry industry is experiencing unprecedented growth, capitalizing on the

idea of a "Global Village." The escalating prominence of the tourism sector further

underscores the industry's pertinence in today's market dynamics. It is, therefore,

imperative for Bangladesh to allocate attention to this sector and devise well-

considered growth strategies that address challenges with prudence. Noteworthy is the

fact that specific airlines such as GMG Airlines and United Airways grappled with

closure due to mismanagement in recent years. In essence, the air industry sector in

Bangladesh exhibits notably superior performance when compared to neighboring

nations.
2.2 SWOT Analysis of Bangladesh Airline Industry

Strength

Weakness

Threats

Opportunities

Large Customer Base

High Competition

Potential Labor Shortage

Increasing Standard in Living

Safest means of Transport

Contributes in Carbon Emission

Management Issue

Growthing in the Tourism Industry

The Industry is Growing

High Spoilage Rate

Less Trained Pilots

Technological Development

Aircraft Maintenance

Global Recession

Debts

Increasing Natural Calamities

Raising Fuel Cost

Cyber Weakness

Interest and Foreign Currency Exchange Rate

2.3 Operational Challenges of Bangladesh Air Industry

The air industry sector stands as a crucial pillar of Bangladesh’s economy, linking the

nation with global markets and stimulating economic progress. However, this sector is

not devoid of challenges. Operations management, known for optimizing processes,

resource allocation, and quality assurance, plays a pivotal role in surmounting these

challenges and ensuring the sector’s ongoing success.

Operational Challenges :

Infrastructural Constraints: Inadequate advancement and expansion of airport

infrastructure present a noteworthy challenge. Limited facilities and constrained

runway capacity lead to delays, prolonged turnaround periods, and congestion.

Principles of operations management can guide effective resource allocation,

streamline runway utilization, and enhance terminal operations to curtail delays and

boost overall efficiency.

Safety and Adherence to Regulations: Ensuring safety holds paramount significance in

the air industry sector. Meeting international safety standards and complying with

regulations poses significant demands. Operations management can facilitate the

development of robust safety protocols, standardized procedures, and comprehensive

training regimens. Implementing a Total Quality Management (TQM) approach fosters

a culture rooted in safety and quality across the organization.

Human Resource Management: The availability of skilled personnel is indispensable

for seamless airline operations. Challenges arise in recruiting, training, and retaining

proficient pilots, cabin crew, and ground staff. Operations management techniques can

aid in strategic workforce planning, skill enhancement, and performance evaluation,

thereby cultivating a more capable and motivated workforce.

Supply Chain and Inventory Oversight: Navigating the air industry supply chain,

encompassing spare parts and fuel, is intricate. Inefficient supply chain management

can result in disruptions, delays, and escalated costs. By employing inventory

management models such as Just-In-Time (JIT) inventory, the procurement and

storage of critical supplies can be optimized, leading to waste reduction and cost

savings.

Optimal Capacity and Overbooking: Ensuring optimal seat capacity and addressing

overbooking necessitate meticulous planning. Operations management principles aid

airlines in precisely forecasting demand, managing seat availability, and deploying

yield management strategies to maximize revenue while upholding passenger

contentment.

Integration of Technology: Adapting to technological advancements is paramount in

the contemporary air industry landscape. Integrating modern technologies like

Electronic Flight Bags (EFBs), computerized maintenance management systems

(CMMS), and advanced reservation systems can elevate operational efficiency, reduce

paperwork, and facilitate real-time data exchange.

Application of Operations Management:

Enhanced Process Efficiency: By embracing methodologies for process enhancement,

such as Lean and Six Sigma, operations can be streamlined, waste minimized, and

productivity heightened across diverse departments within air industry entities.

Assured Quality: Integrating the principles of Total Quality Management (TQM)

establishes an environment of continual improvement, guaranteeing safety, efficiency,

and customer satisfaction across all facets of air industry operations.

Utilization of Data Analytics: Harnessing the potential of data analytics and predictive

modeling aids in demand prediction, scheduling aircraft maintenance, and optimizing

flight routes, ultimately enhancing efficiency and cost-effectiveness.

Fostering Collaborative Networks: Enforcing collaborative supply chain networks and

partnerships bolsters resource sharing, cost reduction, and augments overall

operational resilience.

The Bangladesh air industry sector grapples with a spectrum of operational challenges

that mandate strategic resolutions for sustained advancement. Operations

management principles offer invaluable insights and methodologies to effectively

address these challenges. By adopting process refinement, quality assurance, data

analytics, and collaborative strategies, the sector can effectively navigate its obstacles

and carve a reputation as a dependable and efficient contender in the global air

industry arena.
3.1 Conclusion

In the intricate domain of the Bangladesh air industry sector, operations management

emerges as a pivotal force propelling efficiency, safety, and expansion. This paper

delved into the multifaceted role operations management assumes in the face of the

industry’s challenges. As the nation’s air industry sphere undergoes continuous growth

and transformation, the relevance of operations management becomes notably

conspicuous. The operational obstacles explored in this paper provide insights into the

intricate landscape within which air industry companies and entities function. From

limitations in infrastructure to the paramount concern of safety, from the intricacies of

human resource management to the intricacies of technology integration, each

challenge underscores the complexities intrinsic to managing a dynamic and

multifaceted industry. It’s within this intricate backdrop that operations management

concepts prove their worth. The application of operations management concepts

presents a roadmap for triumphing over these challenges. The optimization of

processes, the assurance of quality, informed decision-making grounded in data, and

collaborative efforts all contribute to crafting a more agile and responsive air industry

environment. When scrutinized in the context of Bangladesh, operations management

provides a systematic approach to surmounting operational barriers, optimizing costs,

ensuring safety, and fulfilling customer expectations. In the context of the Bangladesh

air industry sector, the significance of operations management is pivotal. With rapid

expansion and mounting competition, the sector necessitates a structured framework

to optimize resources, simplify processes, and uphold both safety standards and
customer contentment. Operations management delivers the mechanisms to

accomplish these goals, whether it’s through effective human resource management,

the leverage of data analytics, or methodologies that drive process enhancement.

Moreover, the ramifications of operations management transcend immediate

operational challenges. It cultivates a culture of continuous enhancement, aligning the

sector with global benchmarks and standards. This not only bolsters the sector’s

reputation but also places it in a favorable position for enduring progress. As the air

industry domain in Bangladesh witnesses ongoing growth and maturation, the

integration of operations management principles is pivotal for retaining a competitive

edge and guaranteeing enduring prosperity. By weaving these principles into their

strategies, stakeholders in the air industry sector can adeptly navigate challenges,

elevate efficiency, and provide the caliber of services that cater to the aspirations of

customers and the nation at large. In essence, operations management stands as the

foundation on which the Bangladesh air industry sector can construct a robust and

prosperous future

3.2 References

Book - Operations Management William J. Stevenson ( Twelfth Edition)

17
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tions-management-

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