APPENDIX A: ASSESSMENT COVER SHEET

ASSESSMENT COVER SHEET

Zulu
Surname
Ntombizodwa
First Name/s
210302
Student Number
Operations Management
Subject
Formative Assessment 1 Case study
Assessment Number
Lewis Kaplan
Tutor’s Name
29 April 2024
Date Submitted

Submission () First Submission Resubmission

50 Stiemens Street
Braamfontein
Postal Address
Johannesburg

2017
210302@students.mancosa.co.za
E-Mail
(Work) 011 877 6923
(Home)
Contact Numbers
(Cell) 067 960 4489

Bachelor of Commerce Honours in Supply Chain Management

Course/Intake

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.

Signature: Date: 29 April 2024

Table of Contents
Question 1.1 .................................................................................................................... 4

Safety Performance Indicators: ................................................................................... 4

Aircraft Turnaround Time: ............................................................................................ 4

Load Factor: ................................................................................................................ 5

Question 1.2 .................................................................................................................... 7

Total Quality Management (TQM): ............................................................................... 7

Lean and Six Sigma:.................................................................................................... 7

Cost of Poor Quality (COPQ): ...................................................................................... 8

Question 1.3 .................................................................................................................. 11

Baldrige Excellence Framework ................................................................................ 11

Leadership: ............................................................................................................ 11

Strategic Planning: ................................................................................................. 11

Customer Focus: .................................................................................................... 12

Workforce Engagement: ........................................................................................ 12

Knowledge Management: ...................................................................................... 12

Operations: ............................................................................................................ 12

Outcomes: .............................................................................................................. 12

Total Quality Management (TQM) Framework: .......................................................... 13

Customer Focus: .................................................................................................... 13

Employee Involvement: .......................................................................................... 13

Continuous Improvement: ...................................................................................... 13

Process Optimisation: ............................................................................................ 13

Bench marking: ...................................................................................................... 13

Supplier Relationships: .......................................................................................... 13

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 Lean Principles: ......................................................................................................... 14

Value Stream Mapping: .......................................................................................... 14

Continuous Flow: ................................................................................................... 14

Kaizen (Continuous Improvement): ........................................................................ 14

Six Sigma Methodology: ............................................................................................ 14

ISO 9001 Quality Management System:.................................................................... 15

Quality Policy: ........................................................................................................ 15

Process Approach: ................................................................................................. 15

Risk-Based Thinking: ............................................................................................. 15

Internal Audits: ....................................................................................................... 15

Question 1.4 .................................................................................................................. 16

Seasonal Trends and Patterns: ................................................................................. 16

Economic Indicators: ................................................................................................. 16

Changes in regulations: ............................................................................................. 16

Weather Conditions: .................................................................................................. 16

Historical Sales Data: ................................................................................................ 17

Recommended Forecasting Approach:...................................................................... 17

Time Series Analysis:................................................................................................. 17

Artificial Intelligence and Machine Learning:.............................................................. 17

Market Research and Surveys: ................................................................................. 18

Collaborative Forecasting Platforms: ......................................................................... 18

Question 1.5 .................................................................................................................. 19

Factors Contributing to Higher Productivity: .............................................................. 19

Operational Efficiency: ........................................................................................... 19

Employee Engagement and Training: .................................................................... 19

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 Technological Advancements: ................................................................................ 19

Measurement of Productivity in the Airline Sector:..................................................... 20

Revenue Passenger Kilometres (RPK): ................................................................. 20

Available Seat Kilometres (ASK): ........................................................................... 20

Cost per Available Seat Kilometres (CASK): .......................................................... 20

Revenue per Employee: ......................................................................................... 21

Example of Productivity Measurement ...................................................................... 21

Bibliography .................................................................................................................. 23

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Question 1.1

In order to make the assessment of Alaska Airlines' operational performance more

complete, there are several performance indicators that can be provided in addition to
those that have been mentioned in the case study. These metrics focus on the vital
elements that comprise the safety, customer satisfaction, financial performance, and
operational efficiency.

Safety Performance Indicators:

Because commercial aircraft accidents can cause catastrophic injuries and major losses,
safety is especially crucial (Chen, et al., 2021). Safety performance management, a
fundamental component of safety management systems, is becoming more and more
crucial to enhancing service providers' safety management effectiveness (Chen, et al.,
2021). There is an urgent need for evaluation and assessment of safety-related indices
in certain specified contexts. The metrics that I am referring to such as number of safety
incidents, accident rates, and compliance with safety regulations are vital in order to
measure performance of safety in a workplace or anywhere safety is an issue. Through
various methods such as key performance indicators, Alaska Airlines can employ these
safety performance indicators in order to foster greater safety practices and thus it can
sustain a superior standard of operational perfection for example, they can monitor safety
incidents by observing safety indicators to figure out the number and kinds of safety
incidents that have taken place in operations such as, there bird strikes, ground handling
muck-ups or bumps, or turbulence during flight.

Aircraft Turnaround Time:

This is the amount of time it takes for an aircraft to land, clean up, refuel, and board before
taking off on its next flight. For the tactical management of airport and airline network
operations, estimating the goal time of an aircraft turnaround is crucial however, several
sporadic factors, including passenger behaviour during boarding, personnel availability,
and unexpected maintenance tasks, might affect this turnaround time (Asadi, et al., 2020).
Quick turnaround times are a sign of effective management and operations at airports
(Lindner, 2023). The timely completion of processes at the airports has a great impact on
the success of airline companies, such as Alaska Airlines, and therefore this factor affects

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their operational efficiency, expenses, and quality of service. Alaska Airlines can achieve
and maintain better turnaround time by streamlining their processes, continuous
improvement, collaborative team effort amongst different functions and, collaborating
effectively with suppliers.

Load Factor:

This represents the proportion of passenger seat miles to available seat miles of an airline
(Lindner, 2023). It gauges how completely flights are reserved by an airline and shows
how well it makes use of its seat capacity (Lindner, 2023). An airline with a high load factor
is favoured over one with a low load factor as it means that many of its seats have been
sold (Beers, 2022). An airline may distribute its fixed expenses among passengers to a
greater extent when the load factor is higher (Beers, 2022). Investors and management
can assess an airline's ability to generate revenue, pay costs, and maintain profitability
by looking at its load factor (Beers, 2022). An airline's success depends on its high load
factor because they have low profit margins and hefty costs.

Customer Wait Times:

Measuring average wait times at check-in counters, security checkpoints, and baggage
claim areas to enhance customer experience. Waiting time may be inadvertently or
purposely created (Paramount Business Jets, 2022). Waiting times are imposed in larger,
busier airports to facilitate the efficient flow of traffic into and out of the facility. Planes
must be delayed in order to avoid creating too much traffic on the taxiways and ramps at
once because of the high number of aircraft and the runway's limited capacity. Consumer
Affairs rates airports and airlines according to customer happiness and convenience
using waiting times. Alaska Airlines has implemented this strategy well as they have won
the J. D. Power and Associates Award for highest customer satisfaction in the industry for
8 years in a row while being the number one on-time airline for 5 years in a row (Heizer,
et al., 2023)

Revenue Generation per Passenger:

The number of miles travelled by paying passengers is displayed by the transportation
industry's revenue passenger mile (RPM), which is usually an aircraft traffic statistic
(Kenton, 2022). The number of paying passengers multiplied by the distance travelled
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yields the revenue passenger mile, for instance, a 360-mile flight carrying 100 people
produces 36,000 RPM. The rate of usage, or occupancy, of the aircraft by the passengers
is determined by the RPM asset utilization statistic. This statistic ignores the element of
currency amount. This is because, even in the case of a high load factor, the fare price
that will be required to calculate the total income in dollars will remain unknown (Kenton,
2022). Although RPM displays traffic volume, it works in tandem with Available Seat Miles
(ASM) to provide airline management with vital information on the number of seats it
needs to fill in order to increase profitability (Kenton, 2022).

Employee Engagement and Retention Rates:

The term "employee retention" describes keeping workers for as long as possible at their
present company (Houssein, et al., 2020). Organizations are paying more attention to
employee retention since human resources have a significant influence on their
performance and ability to compete. Monitoring employee satisfaction levels, turnover
rates, and engagement scores to assess workforce effectiveness and organizational
health.

These additional quality metrics will provide Alaska Airlines with comprehensive insights
into various facets of their operations, enabling better decision-making, resource
allocation, and continuous improvement efforts. By utilizing these metrics alongside
existing performance indicators, the airline can drive operational excellence and enhance
competitiveness in the dynamic aviation industry.

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Question 1.2

To justify why it might cost Alaska Airlines less to "do things right the first time," we can
analyse this concept through the lens of quality management frameworks such as Total
Quality Management (TQM) and Lean Six Sigma. These frameworks emphasize the
importance of quality, efficiency, and continuous improvement in reducing costs and
enhancing organizational performance. These are some frameworks which explain why
it would be better for Alaska Airlines to do things right the first time:

Total Quality Management (TQM):

Total Quality Management is a management methodology which stresses on the result

productivity, customer satisfaction, and the activities participation of all employees in
approaching quality-related goals (Shafiq, et al., 2019). Total quality management, or
TQM, is applied extensively in several industries. Organizations use Total Quality
Management (TQM) to obtain a competitive edge in terms of profitability, customer
happiness, productivity, and quality (Shafiq, et al., 2019). Businesses use Total Quality
Management (TQM) to get a competitive edge over rivals, to win over consumers, to
acquire company resources, or to secure large amounts of money. Additionally, TQM
shows significant gains in customer attention, communication, teamwork, and
effectiveness; these gains are attributable to collaborative problem-solving, managerial
dedication, and employee empowerment (Shafiq, et al., 2019). TQM logics contend that
this can be done economically by putting more emphasis on the elimination of defects
and errors that are likely to occur than on the subsequent correction of the same errors
(Shafiq, et al., 2019). Investing in quality assurance procedures from start-to-finish
ensures more timely and affordable construction, as well as the goodwill of customers.

Lean and Six Sigma:

Businesses are always under pressure to enhance their organizational performance in

today's competitive market. Being still can be interpreted as a failure, and even generating
surplus earnings that don't surpass goals from the previous year might be viewed as
underperformance (Alexander, et al., 2019). The Lean technique originated with Taiichi
Ohno's Toyota Production System (TPS), which was created in Japan in the 1940s, just
after World War II (Alexander, et al., 2019). Value Add (VA) and Non-Value Add (NVA)

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activities are the two primary categories into which it seeks to divide activities. All VA
actions are ones that the client is willing to pay for. It is connected to processes that
change a product from its original state to the finished good or service that is provided to
the client (Alexander, et al., 2019). Activities under the NVA should be viewed as waste.

With the ultimate goal of lowering output variability, Six Sigma focuses on reducing input
variability in a system (Alexander, et al., 2019). This ought to lower the quantity of flaws
or mistakes in the problematic procedure. The Six Sigma technique is highly organized
and employs a five-stage framework to enhance the DMAIC process (Alexander, et al.,
2019). The team must first define the issue during the Define phase. This entails defining
what is inside and outside of scope and coming to a consensus on what needs to be
changed (Alexander, et al., 2019). Making ensuring the current issue has been quantified
is the goal of the Measure phase. This will assist in determining whether any
improvements have been realized at project completion. A more thorough examination of
the issue is provided by the Analyse phase. This stage will clarify any potential
relationships or linkages between different process factors. Applying process changes
and making sure the process is heading toward a more acceptable state will be the main
goals of the Improve phase (Alexander, et al., 2019). The Control phase makes sure that
the process is continuously observed and that procedures are implemented to indicate
the process's status so that prompt action may be taken if necessary (Alexander, et al.,
2019).

Lean Six Sigma combines Lean manufacturing principles (which aim to eliminate waste
and inefficiencies) with Six Sigma methodologies (which focus on reducing variation and
defects). The goal of Lean Six Sigma is to optimize processes and improve quality while
minimizing costs. This framework emphasizes the concept of "first-time quality" or getting
things right from the start to avoid the need for rework and additional resources (Gholami,
et al., 2021). Alaska Airlines can benefit from applying Lean Six Sigma practices to
streamline operations, improve reliability, and enhance customer experiences.

Cost of Poor Quality (COPQ):

Costs that might be saved if a company's operations and goods were flawless are known
as COPQ (Galli, 2021). These costs resulted from the raw materials that were substituted

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throughout the production process, which was undertaken by businesses in an effort to
reduce production costs and offer products at competitive pricing (Galli, 2021). Moreover,
the COPQ challenge was further complicated by the fact that several organizations lacked
enough knowledge about their issues and how to estimate the COPQ (Galli, 2021).
According to Galli (2021), the idea is that COPQ must be measured in order to be
managed. The decision-making process would be difficult without quantification since the
decision-makers wouldn't have the knowledge they needed to understand the issue. This
makes it necessary to determine the difference between the quality department and the
decision-makers as well as how COPQ would be quantified (Galli, 2021). The
management team would be fired as a result. Defects, mistakes, and process
inefficiencies have a financial cost that is measured by the Cost of Poor-Quality
framework. COPQ comprises both the obvious expenses (such as scrap, warranty claims,
and rework) and the unnoticed costs (such as diminished customer loyalty and
reputational harm) connected to subpar quality. Alaska Airlines may minimize COPQ and
realize considerable cost savings by using proactive quality measures that reduce the
occurrence of defects and mistakes.

Preventive vs. Corrective Actions:

The distinction between preventative activities, which aim at the identification and removal
of whatever difficulties occurred prior to their occurrence, and corrective measures, which
focus on the elimination of issues when they occur, is another factor to be considered
(Koo, 2020). A viable approach to guaranteeing ongoing enhancement via remedial and
preventative measures is to concentrate on the check phase of the plan-do-check-act
(PDCA) cycle (Koo, 2020). Adopting new procedures and making sure that process
owners do not revert to the previous methods need reviewing the outcomes from the Do
stage. Furthermore, a root cause analysis might be useful in accurately determining the
nature of the necessary remedial action (Koo, 2020). Finding the source of a
nonconformity might help identify the best course of action for stopping it from happening
again. This investment to preventive operations will allow Alaska Airlines to avoid delays
and rework, which can be more expensive than the corrective action. As such preventive
measures cover complete training, quality scoring, and preventive maintenance.

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Through including the basic principles of the quality management systems into their
operations, Alaska Airlines can exploit the concept of "doing things right the first time" to
gain higher efficiency, eliminate wastes, increase customer satisfaction, and at last reach
the low-cost level.

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Question 1.3

The organization’s DNA will change and will ‘put quality first’; this is demonstrated by Mr.
Ben Minicucci of Alaska Airlines who stated that driving and achieving quality excellence
requires a strategic and holistic approach (Heizer, et al., 2023). Let's explore relevant
frameworks that can guide Alaska Airlines towards successful quality management
implementation:

Baldrige Excellence Framework

The Baldrige Excellence Framework provides a holistic approach to organizational

excellence. No matter the size of the business whether it is startup, expanding, or well
established the Baldrige Excellence Framework is designed to support organizations in
evaluating their performance (Alda, 2021) The organization is able to assess its overall
state and help it pinpoint its advantages and disadvantages in order to better prepare it
for long-term obstacles and commercial rivalry (Alda, 2021). The seven criteria that make
up the Baldrige Excellence Framework are: workforce, operations, knowledge
management, customers, leadership, strategy, and outcomes. Alaska Airlines can
leverage this framework by:

Leadership:

Alaska Airlines should establish leadership practices that are aligned with Baldrige
principles in such a way to create and sustain the culture of continuous improvement and
innovation. By bringing together top executives in the leadership team to endorse the
strategic plan, they can enhance transparency, and support customer-based operations,
for example, more than two hundred of Alaska Airlines’ managers have earned their Six
Sigma Green Belt certification (Heizer, et al., 2023). This is a clear demonstration of how
they as an organisation are prepared to foster a culture of continuous improvement
amongst their leaders, which will intern have a positive effect on customer satisfaction.

Strategic Planning:

They must be able to make the strategic planning processes more seamless based on
the Baldrige Framework to achieve the goal setting and performance measurement, and
alignment of the result with client needs and market perspectives. By Institutionalising

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feedback from stakeholders into strategic thinking, they can achieve a higher degree of
impact and effectiveness.

Customer Focus:

Through application of the customer engagement and satisfaction methods provided by

the Baldrige framework, Alaska Airlines can strive to meet customer needs and beyond.
Based on customer's data and feedback, they can aim to offer service advancements and
new features that will help them to create a superior experience.

Workforce Engagement:

They should develop and implement a supportive and inclusive workplace culture, which
will inspire employee involvement and facilitation. They ought to design programs for
employee development and provide recognition to them according to the Baldrige
principles because the productivity and satisfaction levels of workers depend on this.

Knowledge Management:

By implementing a high-quality data analysis and performance measurement system,

they can keep track of the key performance indicators identifying with the Baldrige
indicators. Data-driven insights can help them to identify improvement opportunities, be
the basis of process optimization, and can power informed decision-making.

Operations:

They should utilise process improvement techniques (such as Lean, Six Sigma) within
flights In Alaska to simplify processes, eliminate wastes, and improve operations. Alaska
Airlines can apply Baldrige criteria to evaluate process, expertise, and continuous
improvement-oriented initiatives.

Outcomes:

According to Baldrige criteria, they ought to define organizational targets and obtain the
information necessary for constant monitoring and outcome measuring. Alaska Airlines
should frequently run performance reviews and use the insights for reforming strategies,
assigning available resources, and achieving overall organizational progress.

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Total Quality Management (TQM) Framework:

Total Quality Management is a systematic and a focused strategy whose aim is to attain
ultimate customer satisfaction through constant improvement and employee participation
(Shafiq, et al., 2019). Alaska Airlines may implement TQM principles so as to ensure that
quality is deeply woven into every facet of the establishment’s operations. This includes:

Customer Focus:

Besides creating and enhancing customer satisfaction, service excellence paves the way
for customer insight identification and their needs.

Employee Involvement:

Embracing employees across the organizational spectrum to quality improvement

projects is one of the key roles of quality management.

Continuous Improvement:

To this end, we are fostering an organizational culture of continuous improvement and

learning.

Process Optimisation:

The optimisation process for Alaska Airlines comprises of the identification and
enhancement of operational processes, aiming to lower costs and maintaining quality
services, providing a great passenger experience. Alaska Airlines should ensure strict
adherence to the process to maximize efficiency and uniformity.

Bench marking:

According to Heizer, et al., (2020) an additional component of an organization's TQM

program is benchmarking. In the case of Alaska Airlines, they can determine which
processes their competitors excel in, benchmark those processes, collect the data
gathered and utilize the data to meet or surpass their competitors.

Supplier Relationships:

By collaborating with suppliers, Alaska Airlines can ensure quality standards are met
throughout the supply chain.

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Lean Principles:

The main goals of lean principles are waste reduction and efficiency enhancement
(Gholami, et al., 2021). Lean principles may be implemented by Alaska Airlines to improve
overall operational performance, minimize non-value-added operations, and simplify
processes (Gholami et al., 2021). This comprises:

Value Stream Mapping:

Alaska Airlines can visualise and optimise end-to-end processes to maximize value
delivery.

Continuous Flow:

They should design their processes for smooth and continuous flow of activities
throughout the service chain.
Kaizen (Continuous Improvement):

They must foster a culture of small, incremental improvements driven by frontline

employees.

Six Sigma Methodology:

Six Sigma is a streamlined process built on data analyses to minimize the number of
defects and defect variations in processes. Alaska Airline may apply Six Sigma
methodologies to detect causes of quality problems, evaluate performances of operation
using various tools, and make the necessary adjustments.

• Define: Clearly state the project goals and the customer needs.
• Measure: Collect and figure out the process performance data in order to
understand.
• Analyse: Establish the root problems and the spot for the improvements.
• Improve: Apply measures to achieve sustainability of the improvement process.
• Control: Set up control mechanisms to preserve quality gains and prevent
degeneration.

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ISO 9001 Quality Management System:

Implementing ISO 9001 standards can provide a structured framework for Alaska Airlines
to establish and maintain effective quality management systems (ISO, n.d.). This
includes:

Quality Policy:

Identify a distinct quality policy conforming to the objectives of the company.

Process Approach:

Process mapping allows making sure that activities are fulfilled in such a way to keep the
business at a high level.

Risk-Based Thinking:

Assess and eliminate anything that could be deemed unsafe and detrimental to the quality
and the customer satisfaction.

Internal Audits:

Regularly conduct internal audits to see how the company is following the rules and to
find areas where it can improve.

A strategic integration of these systems in the organizational framework will help develop
the quality-oriented culture, improve the processes, and allow the company to achieve
customer value and the top of the industry standards.

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Question 1.4

Alaska Airlines can incorporate various predictors within its forecast analysis to increase
the precision of its predictions in the case of the daily flight sales. Here are five predictors
that can be considered, along with a recommended forecasting approach:

Seasonal Trends and Patterns:

There might be fluctuations in the demand for air transportation to various tourist sites
over a given year or given period within the year. Seasonal variations and patterns, such
as peak travel seasons (e.g., summer vacations, holidays) and off-peak periods,
significantly influence flight demand and sales. Incorporating seasonal factors into
forecasting models can enhance accuracy (Heizer, et al., 2020).

Economic Indicators:

Predicting the demand for air travel requires an understanding of the economy. Growing
firms sometimes result in more business travel during periods of economic expansion. In
a similar vein, businesses may curtail travel during a recession, which would lower
demand for air travel for business (Kamath, 2024). Monitoring relevant economic
indicators can provide insights into broader market conditions affecting flight sales
(Kamath, 2024).

Changes in regulations:

The demand for airline travel can be severely disrupted by changes in regulations, such
as those pertaining to immigration, security, or travel limitations (Kamath, 2024). Travelers
may plan their visits ahead of time and prevent unforeseen obstacles on business trips
by being aware of these changes and the new laws.

Weather Conditions:

Severe weather incidences greatly impacts people’s travelling behaviour. A weather

condition opposite to what is in the interest of the airline transport company (e.g. Storms,
hurricanes) can make or affect the booking of passengers. Integrating weather forecasts
in sales forecasting models proves to be a source of reducing risks associated with
interruptions caused by weather.

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Historical Sales Data:

One of the most important factors in every firm that indicates its level of success is its
sales (More, 2024). It is the primary source of income for all businesses, enabling them
to remain open and competitive (More, 2024). Historical forecasting projects future sales
using past data. Businesses may more accurately predict variations from historical
performance and modify their plans by looking at historical sales data (More, 2024).
These forecasts assist companies in anticipating market shifts, staying one step ahead
of rivals, and making sure they are satisfying client expectations. Alaska Airlines may, for
instance, examine historical sales data over several years to spot patterns, such as
seasonal trends. Future performance might therefore be predicted using these metrics.
This exercise can assist businesses in staffing and inventory plans that take into
consideration projected changes in consumer trends or preferences as well as projected
customer demand. Businesses may predict and prepare for changes by utilizing historical
sales forecasting techniques.

Recommended Forecasting Approach:

Alaska Airlines should incorporate the methods of statistical analysis as well as machine
learning algorithms for forecasting the amount of flight sales on a particular day. Here’s a
defendable approach:

Time Series Analysis:

The most recent information on demand, scheduling, and interruptions related to air travel
is available through real-time data feeds and monitoring technologies (Kamath, 2024).
These systems gather and analyze data in real time from a variety of sources, such as
weather stations, airports, social media, and airlines. Through proactive monitoring of
variables like airline delays, cancellations, and shifts in demand trends, stakeholders may
promptly react to any changes and modify their operations and travel schedules as
needed (Kamath, 2024).

Artificial Intelligence and Machine Learning:

Forecasts of business flights heavily rely on machine learning and artificial intelligence
(AI) techniques (Kamath, 2024). These tools use enormous volumes of past data

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bookings made by passengers, airline schedules, and market trends, among other things
to find patterns and make precise projections about future demand. Machine learning
algorithms can improve the accuracy of predictions about air travel over time by iteratively
learning from fresh data (Kamath, 2024).

Market Research and Surveys:

Surveys and market research are useful resources for projecting air traffic (Kamath,
2024). Analysts may learn about travel preferences, future travel plans, and expected
demand by gathering data from travelers, travel companies, and corporations (Kamath,
2024).

Collaborative Forecasting Platforms:

Airlines, travel agents, and industry specialists are among the players in the aviation
sector that are brought together by collaborative forecasting platforms (Kamath, 2024). In
order to provide projections that are more accurate, these platforms facilitate the
exchange and analysis of data, market insights, and knowledge (Kamath, 2024).

Such predictors, when used in conjunction with integrated forecasting approach, can
assist Alaska Airlines in optimally allocating the resources, enhancing revenue
management strategies and improving overall operative efficiency. These indicators can
be harnessed and an integrated approach to forecasting can be adopted which will enable
the usage of optimized resource allocation-combined with revenue management strategy
and better overall operational efficiency.

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Question 1.5

Ben Minicucci's claim that Alaska Airlines has achieved higher productivity while its
competitors has not might be explained by a few reasons and the accuracy of productivity
metrics in aviation would be determined.

Factors Contributing to Higher Productivity:

Operational Efficiency:

The capacity of a company to minimize waste in terms of time, labour, and resources
while still delivering high-quality services or goods is known as operational efficiency
(Gillis, 2021). Alaska Airlines could probably put in place process improvements and make
their operation more efficient with adequately working on such features as optimised
choices of flight time, reduced airport turnaround times, and improved maintenance
regimens. All these, undoubtedly, will bring about productivity.

Employee Engagement and Training:

Every business wants to hire the best candidates for the jobs that need to be done, but it
also wants to draw and keep these candidates (Siddiqui & Sahar, 2019). The most
valuable resource for every firm is its workforce (Siddiqui & Sahar, 2019). Their beneficial
contribution to business success cannot be understated. A well-trained and responsive
workforce are the key to achieving the high productivity. Alaska Air can invest in the
corporate need of growth is usually dynamic and undergoes various changes over time,
training and development programs will help to promote an environment of creativity and
productivity. (Siddiqui & Sahar, 2019)

Technological Advancements:

As the link connecting different countries, the aviation sector plays a vital role in the world
economy (Ukwandu, et al., 2022). Because even small mistakes or oversights can lead
to a variety of serious losses and damages, including fatalities, the loss or exposure of
stakeholders, employees, and customers' personally identifiable information, credential
theft, intellectual property theft, and intelligence, the resilience of the infrastructures
supporting its operational integrity is essential (Ukwandu, et al., 2022). Using technology

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to improve operational efficiency and productivity is possible when it comes to ticketing
systems, in-flight amenities, and customer relationship management.

Measurement of Productivity in the Airline Sector:

Productivity in the airline sector can be measured using various key performance
indicators (KPIs) and metrics:

Revenue Passenger Kilometres (RPK):

Revenue passenger kilometres (RPK) are a measure of the number of passengers

carried by an airline (MoneyTerms, 2020). A revenue passenger-kilometre is flown when
a revenue passenger is carried one kilometre. Passengers whose transportation is
provided by an air carrier for which it receives commercial compensation are referred to
as revenue passengers; this category does not include passengers travelling at fares
reserved for airline employees or infants and children who do not have a reserved seat
(MoneyTerms, 2020). An airline's RPK is the total number of kilometres travelled by all
passengers. RPK is a measure of sales volume of passenger traffic.

Available Seat Kilometres (ASK):

The capacity of an airline to carry passengers is measured in Available Seat Kilometers

(ASK) (MoneyTerms, 2020). That is:

available seats × distance flown.

Although this figure should be determined for each aircraft, it is typically reported per
airline, at least when discussing investments (MoneyTerms, 2020). When a seat that can
accommodate a passenger is flown one kilometer, it becomes available for use as a seat-
kilometer (MoneyTerms, 2020). For a variety of reasons, seats that are not useable are
not included.

Cost per Available Seat Kilometres (CASK):

The airline's cost for each and every available seat kilometer is referenced by the CASK
index (Travel Radar , 2021). Stated differently, the CASK provides information on the cost
incurred for the transfer of a single passenger per kilometer (Travel Radar , 2021). By
dividing an airline's operating expenses by the number of available seat kilometers flown,

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the index is calculated. Because it makes it possible to analyse the unit expenses
associated with operating each aircraft in a fleet, this index is helpful for airline
management (Travel Radar , 2021). It is so simpler to determine which aircraft is more
effective. But in this instance, it's crucial to keep in mind that the CASK index only takes
into account an aircraft's direct operating costs, such fuel, lease, and depreciation (Travel
Radar , 2021).

Revenue per Employee:

A financial indicator called revenue per employee (RPE) calculates the average profit that
each employee provides. Organizations may assess each person's productivity,
efficiency, and profitability as well as the overall performance of the business by looking
at revenue per employee. Divide the total income by the number of full-time employees
to get the revenue per employee. A higher RPE often denotes increased output and
efficiency at work.

Example of Productivity Measurement:

Suppose Alaska Airlines operates a flight from Seattle to Los Angeles which is 1,545.30
km. The aircraft has a capacity of 416 passengers, however there are 390 passengers
per leg. To measure productivity for this route, the airline can track metrics such as:
• RPK for the Route: Calculate the total revenue passenger kilometres generated
on this route over a specific period. E.g. 390 paying customers multiplied by the
distance which is 1545.30 km is equal to 602 667 Revenue Passenger Kilometres
per leg.
• ASK for the Route: Determine the total available seat kilometres for flights on this
route during the same period. E.g. 416 available seats multiplied by the distance
which is 1545.30 km is equals to 642 844.8 Available Seat Kilometres per flight
leg.
• Load Factor: Compute the load factor by dividing RPK by ASK, indicating how
effectively the airline is filling available seats. E. g. 602 667 divided by 642844.8
equal to 0.9375 multiplied by 100= 93.75%
• CASK for the Route: Evaluate the cost per available seat kilometre specifically
for flights on this route, considering fuel costs, crew expenses, maintenance, etc.

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Analysing these indicators over time or in comparison to industry standards can reveal
information about how productive and efficient Alaska Airlines' operations are in
comparison to those of its rivals.

In conclusion, operational enhancements, staff engagement, and technology

breakthroughs might be the cause of Alaska Airlines' superior productivity as compared
to other airlines. Examining important performance indicators including load factor, RPK,
ASK, and cost efficiency indicators is part of the process of assessing productivity in the
airline industry.

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