QUALITY AND SYSTEMS MANAGEMENT

Quality and Systems Management



Table of contents

Introduction3

Task 13

The strategic objectives of operational management3

Company Profile3

EAS strategic objective4

Current/New Systems8

Task 29

Appropriate systems9

Outsourcing versus In-sourcing of IT and Costs11

Service12

Task 314

Organisational performance14

Processes and Business Restructuring16

Cost of Information Systems17

Summary and conclusion17

References19

Quality and Systems Management

Introduction

This report highlights EAS's operations strategic objective and how the information systems department supports this strategy through the strategic use of information systems as an enabling process in achieving the ON-TIME operations strategic objective. The current information systems were analysed and future needs & Information Systems (IS) strategic improvements recommended, where applicable.

Task 1

The strategic objectives of operational management

Company Profile

Equity Aviation Services (EAS) is africa's largest aviation ground handling business operations in South Africa. There are three main groundhandling competitors in South Africa of which EAS has over 70% of the market share and their biggest client is South African Airways (SAA). EAS operates from six local airports of which there are desinated as international airports. The company handles about 18000 flights a month, serving in excess of 35 domestic, regional and international airlines. It has on its payroll a total of over 2000 employees countrywide.

The company's fleet numbers some 2500 pieces of specialiesed equipment, including the latest tow-bar-less pushback tractors and other equipment necessary to load and offload the latest Boeing and Airbus aircrafts.

EAS strategic objective

The strategic objective and vision of the company is to be the lowest cost service provider and to be the largest aviation logistics provider in the SADC region and the rest Africa in the next 5 years. And in meeting with the strategic objectives and vision, EAS operations strategy is ON TIME service delivery at all times and maintenance of the highest SAFETY standards at all airports that it operate from. Service delivery performance, in this industry, is determined by the rate of 'on time' service and safety records. These are imperative criteria in achieving competitive advantage in the industry, without which one looses customer base rapidly.

Although there are about nine different services that EAS provides for it customers, however, Baggage Handling is the most crucial in achieving on time service delivery to its customers. EAS customers' customers, that is, the passengers, their most valuables possessions are the bags and these always bring the airlines in disrepute with their clients. (Direct consequential impact of the total service delivery performance levels of the company). EAS strives itself in being the industry leader by how it differentiates its service delivery processes from its competitors. It's constantly in search of new and innovative ways to improve upon its services and it does these through extensive training - pre-selection and on the job -training. These objectives are the strategic imperatives necessary in achieving the high service levels demanded and outlined in the service delivery agreements with the airlines.

However, for the purpose of this assignment and to allow the group to add value to EAS business operations, we decided to concentrate on the Baggage Handling Services area of EAS operations. This area is of great concern to EAS management not ...