EECT055 Production Engineering And Operations Management

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EECT055 Production Engineering And Operations Management

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EECT055 Production Engineering And Operations Management

0 Download6 Pages / 1,331 Words

Course Code: EECT055
University: Coventry University

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Country: United Kingdom

Questions:
1. Identify key candidate order winners and qualifiers for an organisation of your choice and examine how that organisation might deliver and improve on the order winners/qualifiers.
2. Discuss the potential implications of delivering improved level of the order winners/qualifiers (or lack of improvement) on the organisations’ supply chains.  Support your discussion with relevant literature
Answer:
Introduction
EasyJet Airlines is an organization that is regarded as the most profitable airline organization in entire Europe that has the main objective of providing people with a standardized service in the most economical prices. The organization, through their operational strategy of “no-frills” and low-cost approach, which has helped the organization in creating a strong niche for themselves and for creating a market share that is huge and has given a huge competition to many airlines organizations, especially the British Airways, Air Berlin and Ryanair. Thus, this approach that is implemented in the organization this can be formulated that the EasyJet Airlines have certain order qualifiers and order winners.
Order Winners & Order Qualifiers of the EasyJet Airlines
According to Hung, Hung & Lin, order winners and order qualifiers are determined according to the business outcomes of an organization. It is regarded as a dyadic collaboration which is an integrated model that is present in every organization, to know about the relationship between the order winners, order qualifiers, and business outcomes (Hung, Hung and Lin, 2014). Also, in the current competitive world, every organization knows that they are the backbone of many organizations and for their successful operation. In the organization, EasyJet, the first order winner that has been identified is the airfares of the company that are at low prices, which is also their main business approach. The main focus of the organization for providing low-cost services is on their cost-cutting operations that include decreasing the cost of labor, materials, and various other facilities that every customer wants from every airline. The other order winner of the organization is their approach of providing the employees of the organization with extra and high-level training so as to provide the customers with high standard services which will help in yielding maximum outcome from a very low fragment.
According to Peng et al, there are four main aspects that are crucial for order qualifiers that are cost, flexibility, delivery, and quality (Peng et al., 2013). The organization EasyJet has focused on their four basics to fulfill the demands and the wants of the customers to increase their profit margins. The organization provides the customers with low cost, the quality of provided by the organization in the prices demanded is convenient and comfortable. Also, the organization provides the customers with immense flexibility and high delivery services in the form of a number of short routes they offer the customers and also they do not charge the customers with any extra charges for baggage.
According to Fabbe-Costes & Jahre, order winners are the aspects of an organization that can be improved simultaneously with the various changes that are required in the quality, cost, delivery, and flexibility. It states that the quality can be improved even if the organization focus on the cost simultaneously (Fabbe?Costes and Jahre, 2009). This has been the approach of the EasyJet from the very beginning. They have focused on bringing an improvement in their quality, by providing the customers with services that are economical for them and thus, they have the main focus on low-cost fares. The cost-cutting in the organization is conducted and utilized at every level of operation. The EasyJet has reduced their maintenance cost, cost of the crew and the staff, also the inventory charges, and many other charges. This has been conducted by the organization through keeping their routes short, so they could save a huge amount of money, also they prefer low crowded airports which helps them in saving the huge administrative charges that the organization has to give on the primary and crowded airports. They also do not have many connections in their routes that also helps in the cost-cutting. In the process of conducting all these operations, the company is able to reduce the time and cost of travel for the customers which is considered as the biggest order winners and order qualifiers (Koenigsberg, Muller and Vilcassim, 2008).  
Improvement in the Order Winners & Order Qualifier, for Effective Supply Chain
According to Leuschner, Rogers, and Charvet, it is a known fact that order winners and order qualifiers, they both are time-specific, cost-specific and also market specific. And all these three traits may differ due to the different market, different customers, and different trends (Leuschner, Rogers and Charvet, 2013). This introduces the instability that affects the operations of an organization. This also affects the supply chain of an organization due to the various uncertainties. In the organization EasyJet, there are a number of improvements that are required in the organization that are crucial for better supply chain and improves the order winners and qualifiers. The main airport of the organization EasyJet is Luton Airport. The organization is still missing a number of big airports that is crucial for it, as to cater to more audiences. The EasyJet Airlines are still not included in the London Heathrow Airport. Now, this is a state of a problem for the people to shift from Heathrow airport to the Luton Airport (Hu, Li and Tung, 2017). This is being conducted by the organization under their cost-cutting strategy of avoiding crowded and popular airports due to high administrative cost, but the organization are losing a lot of clients and is also not catering to a huge market due to their unavailability at big airports.
According to Banomyong & Supatn, business performance is the most intricate issue and is also multi-faceted. Business performance is affected due to small services that an organization misses due to their strategic operational approach (Banomyong and Supatn, 2011). The organization EasyJet Airlines mostly conducts booking through online and they do have the facility of booking tickets through phone calls. For the young and the internet savvy people, this would be a convenient option to book tickets through the internet. But for people like the baby boomers and the senior citizens who do not adequate knowledge about the internet and would prefer to book tickets through a phone call are left helpless as they would not be able to book their tickets (Escobari, 2012).
Conclusion
From the various popular authors and articles, this can be formulated that the organization EasyJet, though have some strong and effective order winners and order qualifiers, but there are certain additions that are required in the organization for building a more effective supply chain. The various improvements are also required so that the organization is able to cater to a bigger market, which will ultimately help in the profit maximization of the organization. The organization’s availability at more locations will also contribute to earning more profits and more customers. Thus, this can be concluded that at EasyJet the organization needs to improve its various operational management approaches to cater to a larger market.   
References
Banomyong, R. and Supatn, N. (2011). Developing a supply chain performance tool for SMEs in Thailand. Supply Chain Management: An International Journal, 16(1), pp.20-31.
Escobari, D. (2012). Asymmetric Price Adjustments in Airlines. Managerial and Decision Economics, 34(2), pp.74-85.
Fabbe?Costes, N. and Jahre, M. (2009). Supply chain integration and performance: a review of the evidence. The International Journal of Logistics Management, 19(2), pp.130-154.
Hu, J., Li, Y. and Tung, H. (2017). Operational efficiency of ASEAN airlines: based on DEA and bootstrapping approaches. Management Decision, 55(5), pp.957-986.
Hung, S., Hung, S. and Lin, M. (2014). Are alliances a panacea for SMEs? The achievement of competitive priorities and firm performance. Total Quality Management & Business Excellence, 26(1-2), pp.190-202.
Koenigsberg, O., Muller, E. and Vilcassim, N. (2008). EasyJet® pricing strategy: Should low-fare airlines offer last-minute deals? Quantitative Marketing and Economics, 6(3), pp.279-297.
Leuschner, R., Rogers, D. and Charvet, F. (2013). A Meta-Analysis of Supply Chain Integration and Firm Performance. Journal of Supply Chain Management, 49(2), pp.34-57.
Peng, D., Verghese, A., Shah, R. and Schroeder, R. (2013). The Relationships between External Integration and Plant Improvement and Innovation Capabilities: The Moderation Effect of Product Clockspeed. Journal of Supply Chain Management, 49(3), pp.3-24.

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