Discuss about the Research and Problem Solving Management.
The supply chain of Etihad Airways not only consists of the cargo that is being carried by the carrier but also the passenger transportations. The supply chain and the logistics industry UAE has been flying high and the amount of revenue from the industry is high. For the airline companies present in UAE, the sky is the limit. However, the limit from the military has constrained the operations of the companies (Thenational.ae, 2014). The business with the United Kingdom has helped the industry to bloom. Recently, Etihad Airways has been facing problems mainly after the exit of the United Kingdom from the European Union (Arabian Business, 2012).
The report will talk about the functions of the Etihad Airways and the different types of problem solving techniques that could be used to identify the problems and solve the problems. A comparison of the problem solving techniques will help the readers to understand the way the techniques could be applied to solve various problems. Finally, the best technique will be selected and the justification of the selected technique will be helpful to get an understanding of the best problem solving technique for such an issue.
The report will start with the discussion of the problems statement and the aims and objectives of the report. It will then move on to discussion the background of the company as well as the background of the supply chain of the organization. A review of the present status of the company will be next. Various types of the problem solving techniques and the comparison of the techniques will be done next. The best-suited techniques will be chosen for the present organization. Finally, recommendation will be given for the present report.
The main business for Etihad Airways and other airline companies lies in the business that they incur from the international countries. For Etihad Airways, not only the Etihad Cargo but also the normal passenger flights fall under the supply chain of the company. Even though the logistics and the supply chain condition of UAE is at its peak, yet the relation with the internationals countries is mainly creating the problem for Etihad Airways (Christopher, 2016). Moreover, along with Etihad Airways, the sudden change is also affecting other airlines companies and hence, the increase in the competitiveness among the companies is adding to the problem of the airline industry.
The over-dependency on the United Kingdom for their business is affecting Etihad Airways (Tayur, Ganeshan & Magazine, 2012). For Etihad Airways, the sky is the limit to carry out its logistic services. However, most of the areas are kept outside the reach of the commercial flights mainly because of the issues regarding the military services. Most of the areas are out of the reach of the airline industry because army and military limitations (Thenational.ae, 2014). The sudden economic downturn that has followed due to the Brexit has hit the logistics management of Etihad Airways (Gazzar, 2016). It has led to a slowdown in the services mainly because of the financial constraints that has been faced by the United Kingdom after Brexit. As there has been a downfall in the UK travelers and logistics, hence, the business of Etihad Airways has been affected negatively.
The main aim of the report is to identify a problem that Etihad Airways has been facing and suggest various problems solving tools techniques for the company. The problem regarding logistics will be mainly focused in this report and the solution will mainly talk about various ways that the company can apply solve the issues for the airlines company. A comparison with other problems solving tools and techniques will be done to evaluate the reason behind the chosen technique to be the best for the company. Another objective of the report is to make the readers aware of the various problem solving techniques and its use in the industry.
Etihad Airways was established by Royal (Amiri) Decree and can be called one of the youngest airlines out of all present in the world. The airline company is mainly based in Abu Dhabi in United Arab Emirates. It has flown its first national flight on 3rd November in the year, 2003 named Al Ain. It has flown its first commercial flights on 12th November in the year, 2003 and it was named Beirut. Presently, it has 150 offices in various locations and spread over 63 countries. It is covering 103 destinations with its services. Etihad Airways has been recognized as the national airlibe of the UAE.
The main vision of Etihad Airways is to reflect the best that Arabian hospitality could give in terms of culture, warmth, generosity and considerations. Another aim of Etihad Airways is to highlight Abu Dhabi as the centre of hospitality between the east and west. The services by Etihad Airways have won the company a number of accolades. It has won the title of World’s Leading Airline at the world travel awards for five consecutive years.
Collaboration is another part of the operations of the company. They have adhered to code sharing agreements to pride better quality of services to the customers. The code sharing agreements has helped the company to give services to the customers to those destinations where they cannot provide services with the help of their own aircraft.
The main competitors of Etihad Airways are emirates, Qatar Airways, Air Arabia, King pacific airlines, Cathay Pacific Airways and British Airways.
Etihad Airways carries out a number of services for its various types of the customers. The main service of the company is the air transportations for the passengers. Other types of products and services that are given by Etihad Airways are Etihad Ground Services, Etihad Cargo, Etihad Holidays and Etihad Flight College.
As far as tge air transportation is concerned, it operates both airbus and boeing. Etihad Airways operates nine cargo aircraft in 26 locations out of the 103 destinations where they operate their passenger flights (Etihad Global, 2017). The cargo aircrafts operates in Europe, Africa and Middle East Asia. Some of the producers that are being transferred with the help of the cargo aircraft are mail, cold chains, sky stables and human remains.
In the year, 2013, Etihad Airways acquired three subsidiaries of Abu Dhabi airport services (ADAC). The subsidiaries are:
In addition to the acquired subsidiaries, Etihad Airways has implemented its own subsidiary. They are:
Etihad Airways has been performing well and 2015 has been the strongest financial year for the company. They have earned a net profit of US$ 103 million for revenue of US$ 9.02 billion (Etihad Global, 2016). The volume of the passengers has grown considerably and the international passengers have outnumbered the growth within the country. The partnership revenues that have resulted from the code sharing agreements have been up by US$ 1.4 billion. They are delivering the services to five million passengers. The growth is not only for the passenger transportations but also for the cargo, ground handling, catering and frequent fliers program.
Along with the number of accolades that Etihad Airways has won in the past, it has been able to bag the 2016 airline of the year award by air transport world. For the seventh year in a row Etihad Airways has been accolades for the being the leading airline. There has been US$ 700 million financial transaction in Etihad Airways Partners’ (EAP). The financial transaction has been recognized by the air finance journal.
There are various problem solving techniques and tools that can be applied after the problem is being identified. Some of the problems solving techniques and tools are listed below:
The 5-Why analysis is asking five why questions to the problems and seeking the answer to those questions, which will eventually help in solving the problems of the organization (Stadtler, 2015).
For the current issue, the following why questions could be asked:
Brainstorming is the method where the problem is discussed in a group and a final decision is reached that will be finally implemented to solve the problems (Gogus, 2012). The final decision will be free from any criticism and judgment, as a team has agreed upon it (Ross, 2013).
Brainstorming is effective for open thinking and when an organization is operating in a diverse platform.
Out of the problem solving techniques and tools that have been discussed, it can be seen that all the techniques could be used to solve the issues of a company (Seuring, 2013). However, not all the techniques may be applied for all types of issues in an organization. The idea of brainstorming technique is good as the organization can come across a number of ideas but it can be time consuming. When a company is trying to improve a certain situation, then an urgent solution is needed (Barney, 2012). Asking for solution from a huge number of employees might not lead to a proper solution.
The 5-why analysis might help the business owners by asking number of questions. However, all solutions might not be reached by asking why (Ahi & Searcy, 2013). There can be other questions like how, which, where that might lead to a proper solution for the company.
The Ishikawa (Fishbone) Diagram is proper analyze a problem as it takes into consideration both internal and external processes (Neufeld et al., 2013). In addition to this, the people who are implementing the process can use sub processes that will help them is evaluate the problems in a better manner.
The Plan, Do, Check, Act or Adjust (PDCA) cycle can also be used for checking the issue (Green Jr et al., 2012). The cycle is step by step process, which when implemented can yield a proper result for the evaluation
The Ishikawa (Fishbone) Diagram and the Plan, Do, Check, Act or Adjust (PDCA) cycle can be implemented in any organization from any industry to evaluate a problem and solve it accordingly (Sarkis, 2012).
For solving the problems of Etihad Airways that would help them to enhance the supply chain management, the Ishikawa (Fishbone) Diagram will be the best-suited technique. The supply chain and the logistics industry of the UAE are going strong and countries like Dubai is taking every possible step to enhance the series of the industry. On the other hand, the entire logistics and supply chain industry is hugely dependent on the services with the United Kingdom. After United Kingdom left the European Union, the business of Etihad Airways has been hugely hit. The supply chain of the organization not only depended on the cargo but also the passenger transport system (Walker & Jones, 2012). In addition to this, many of the service are depended on the ground services that are working under the subsidiary of Etihad Airways.
The Ishikawa (Fishbone) Diagram takes into consideration every aspect that will help them assess the issue. They can measure the amount if revenue that have been gained after the Brexit. The amount could be compared with the revenue before that. Material will be the products and services that have been hugely hit after the problems. It has been seen that the passenger transport has been badly affected as the tourists from the United Kingdom has stopped going for tours. The diagram will be able to tell whether nature will affect the business. The manpower might not be an issue for the organization. There has been no news of employee turnover being increased in this case (GulfNews, 2016). The methods used to handle the downturn will also be included to check whether the methods will be fruitful for the organization.
Conclusion
After going through the present condition of the supply chain industry of UAE and the supply chain and logistics management of Etihad Airways, it can be concluded that the conditions of the supply chain industry is going good. However, Etihad Airways has been hugely depended on the United Kingdom for supply chain. The sudden exit of the United Kingdom from the European has limited the inflow of tourist in UAE and hence, the business of Etihad Airways has been hugely affected. There have been no issues in the supply chain of the organization. However, the external environment has been hugely responsible for the slowdown. It has been found that Ishikawa (Fishbone) Diagram has been found to be the best-suited problem solving technique for Etihad Airways.
It can be recommended to Etihad Airways that they should diversify the market of operations even more than what they have now. Over-dependency on any one service or one country will ultimately lead the company into downfall. There is no issue with the operations of the organization but the external environment is the main issue. Passenger transportation is a huge part of the supply chain of Etihad Airways and hence, they need attract more passengers from other countries to tackle the downturn in the economic system within the country as well as the international countries.
References
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