Develop strategies for process improvement
This case study will enable you to:
Â· Assess and evaluate Spirit Airlinesâ€™ operations based on performance data and customer reviews.
Â· Practice collaboration skills to develop strategies for process improvement to keep costs low and improve customer satisfaction.
Within the airline industry, there are several key metrics that are evaluated to assess performance.
Revenue Passenger Mile (RPM):Â Measures the total miles traveled by all passengers
Available/Average Seat Miles (ASM):Â Measures the total miles that could have been sold from available (empty) seats on planes.
Passenger Mile Yield (PMY):Â The average price collected per mile traveled.
Load Factor:Â The number of seats sold divided by the total number of seats.
Passenger Revenue Per Seat Mile (PRASM) or Unit Revenue: Passenger revenue divided by Available Seat Miles.
Cost per Available Seat Mile:Â Shows how much revenue is being lost from empty seats. It is the operating cost divided by Available Seat Miles.
Download What is Diversity of Thought?
Download link:Â https://drive.google.com/open?id=1viWJbKGvyzbgsWRGtg2gO28aiZsz8Up_
A Net Promoter Score (NPS) is a number between -100 and 100 that measures customer satisfaction and willingness to recommend the business to others. Negative numbers means that the business has more detractors than promoters. Detractors are customers who had a bad experience with a company and share their experience and opinion with others, thus diminishing the brand. The NPS correlates with repeat business and revenues.
The NPS in 2020 for Spirit is -4. This is below the average airline industry score of 0. This means that Spirit will lose market share against its competitors.
A quick Google search of â€œSpirit Airline customer reviewsâ€ reveals many public complaints about the airlineâ€™s operations.
Consumer ReportsÂ even ranks it as â€œthe worst airline in America.â€ SkyTrax reviews by verified customers rate Spirit Airlines 3/10.
One common complaint is misleading pricing by Spirit. As a â€œno-frillsâ€ airline, they charge for many items that other airlines include in their price, such as carry-on bags, printing a boarding pass, or non-alcoholic beverages, like soft drinks or water, while in the air. Additional purchase items, such as seat selection and checked bags, which most airlines charge for, are actually priced higher than the same charges on competitor airlines. Once all items are purchased, the total price of flying on Spirit is often higher than that of competitors.
Flight delays on Spirit are also quite common. The delays are often exacerbated when upset customers have altercations with ground and air staff, often requiring law enforcement involvement. Labor issues with pilots, flight attendants, and ground maintenance have also led to work stoppages, cancelled flights, and physical altercations. In 2017, Spirit Airlines had to cancel hundreds of flights due to pilots turning down assignments. As a result, Spirit sometimes had to pay pilots a 200% premium over their regular pay.
To maximize space and place more passengers on an aircraft, the seats have minimal padding and do not recline. Fuel expenses have increased more than 15% in 2019. Other operational expenses have increased by 3.4% in 2019, due primarily to pay raises given to pilots. Spiritâ€™s liquidity is $1.2 billion in cash. While total revenues were up in 2019, profits were lower, due to these increased costs.
Spiritâ€™s leadership wants to explore options to streamline operations to reduce operating costs, improve employee relations, and increase customer satisfaction.
What could Spirit Airlines have done to prevent employee dissatisfaction and labor disputes? Were the pilots justified in their actions? Do you think the pilot union and subsequent work slowdown negatively impacted the airline? What collaborative strategies could both sides have employed to prevent a breakdown in operations?
How can Spirit integrate the customer voice? Are there collaborative opportunities here? Focus groups, social media analysis, and feedback forms are some tools the airline can use to collect customer input. Is satisfaction solely tied to operations improvements? Considering the airline presents itself as a â€œno-frillsâ€ option, are customers justified in their criticism of the airline?
Perform some research on the Internet about Spiritâ€™s operations and competitive advantage. What are some areas in which operational bottlenecks occur?
Flight delays and flight cancellations create significant bottlenecks. While weather conditions or incidents at an airport outside of Spiritâ€™s control can cause flight delays or cancellations, there should be strategies in place for contingencies and mitigation of these events. Decreasing bottlenecks should result in higher NPS, greater customer satisfaction and retention, and increased revenues.
What types of resources would Spirit need to deploy to mitigate delays and reduce cancellations due to weather, flight crew absences or â€œtime out,â€ or mechanical issues?
Spirit would need to increase the number and availability of ground crew, air crew, maintenance crew and equipment, and backup aircraft at each location.
Delays and cancellations can result from a variety of circumstances. Weather is the cause only 38% of the time.
Is it really possible or good business sense to have backup ground crew, air crew, maintenance equipment, and backup aircraft at every one of the 17 destinations served by Spirit in 16 countries each day?
What are some lower-cost alternatives?
Spirit could have backup personnel and aircraft at strategic hub locations. Technology could be used to better predict scheduling bottlenecks at airports served. Block times for flights could be evaluated to determine optimal times to stay on-time. Flights could be re-routed. Passengers could be placed on other airlines. Slack could be built into schedules to allow for contingencies.
To reduce bottlenecks, improve on-time performance, and increase customer satisfaction, Spirit should begin by looking at its operational performance data for departures, arrivals, and cancellations. Causes for delays and cancellation should be identified. Patterns should be correlated as well, such as more frequent delays or cancellations during certain times of the year or at certain airports.
The master flight schedule can then be modified to optimize time and resources. Routing of flights and pairing of flights on crew schedules can also be reviewed and modified to reduce risks of delays or cancellations.
For more details on how airlines handle these types of operational issues, see the report, â€œImproving airline operational performance through schedule perturbationâ€ (external link:Â http://www.pitt.edu/~schaefer/papers/ImproveAirOpsSchedPert.pdfÂ ).
Return to your course in Blackboard where you will prepare a reflection post. Include responses to the questions below.
Is process improvement alone a sufficient response to Spiritâ€™s declining profits? What other changes should Spirit make? What measurable outcomes should Spirit seek? Why?
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
There is a very low likelihood that you won’t like the paper.
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more