EasyJet airline operations management

Easy Jet's operations represent a combination of information processing, customer processing and materials processing. On an economic basis, customer processing comprises the bulk of the revenues. However, the customer processing function (flights) is facilitated by materials processing (fuel, aircraft). Thus, the two cannot be easily separated. Information processing is about 20% of the business, as data regarding routes, load factors and other industry variables are processed intensely to determine EasyJet's product/service offerings. Additionally, the company uses the it function extensively to lower costs, from which they derive competitive advantage (Biz/Ed, 2008). Materials and customer processing, being co-dependent, represent the other 80%

In fiscal 2008 they carried over 43 million passengers (EasyJet, 2008). The capacity was 51.9 million seats, for a load factor of 82.8%. This was the primary output, with no variety. Overtime, demand has been increasing at a rate of 37% over 10 years. Another measure is revenue, which for fiscal 2008 was £2362.8 million (Reuters, 2008).

2A. The process design for EasyJet begins with scheduling and pairings that identify which planes and flights will be matched. The next step is manpower planning, followed by rostering, crew tracking and then the on the day operation (EasyJet, 2008). There are ancillary functions such as maintenance as well.

2B. This is an appropriate process for this type of operation. EasyJet also places significant emphasis in its process design of breaking down the cost structures in order to find ways to reduce costs (BBC, 2006). This is appropriate for the volume/variety combination. A high volume, low variety operation derives success from cost reduction and operational consistency. This process design and the information systems that facilitate the cost analysis are ideal for this activity.

3A. EasyJet's supply chain focuses on staff, aircraft and fuel. Other outputs such as food and customer relationship management are outsourced (FBR, 2007 & CRM Today, 2008)). With regards to aircraft, EasyJet purchases from Airbus. The staff supply chain begins with fleet, network and schedule planning. This is followed by manpower planning, pairings, training, rostering, intermediate rostering and day-to-day crewing (EasyJet, 2008).

3B. EasyJet meets performance objectives by planning its requirements carefully and utilizing their inputs efficiently. EasyJet focuses on increasing the amount of time the aircraft are in use, and has systems to improve fuel efficiency. Staffing requirements are met through their extensive planning process.

4A. EasyJet uses a variety of tools to motivate its workforce. They have built a team-oriented environment (EasyJet, 2008) and strong management-labor communication. Staff hired prior to 2002 have shares or options in the company. There is also a two-year loyalty bonus (Biz/Ed, 2008).

4B. EasyJet's workforce is organized into teams, which are determined according to scheduling requirements. Different functions (pilots, stewards, maintenance) are managed separate from one another. EasyJet has a union to assist with organization (EasyJet, 2008).

4C. EasyJet has developed an informal organizational culture highlighted by a flat organizational structure (EasyJet.com, 2008). Open communication is important. The culture emphasizes a customer focus. The company also features a strong cultural emphasis on cost reduction. The crew area at airports, for example, is relatively spartan.

5A. EasyJet has been innovative in both its operations and its service offering. The company has found unique ways to drive revenue from passengers beyond the basic seat offerings. They have utilized the Internet and other information technology such as text messaging as a service and marketing tool to a greater extent than many of their competitors (Caswell, 2007). They have also been innovative in their choice of strategic alliances, such as their deal with Business Travel International (BTN, 2005). Furthermore, many of their techniques and structures for cost management show their innovative approach on the operations side. The design of their route architecture, their methods for increasing aircraft turnaround time and other efficiency strategies are innovative (Messinger, 2006).

5B. These services are moderately innovative. EasyJet's business model is similar to other low-cost airlines, but they have implemented their own improvements. Despite being modeled after other companies, EasyJet has consistently worked to build upon earlier innovations and existing features. Thus, EasyJet is an innovative company, but their innovations are focused more on improving or enhancing existing product/service offerings rather than the development of entirely new ones.