M3 Discussion (KE) Responce

NEED RESPONSE:

Managers have the overall authority to implement changes in the company that would yield better services to their customers and maintain higher profits. For instance, its vital for the manager of Swift Airlines to implement the new fares owing to changes observed on the London-Nice flight outbound. The necessity for implementing the new charges is attracted by the desire of maintaining high-quality services and ensure the standards are not compromised (Beecroft, Duffy and Moran, 2003). As such, the new prices will ensure that no more losses are incurred as a result of the outbound route from London-Nice as well as, lower the oversubscription numbers in the standby fares.

Also, the new recommendations should be made to sustain the interest of the company as well, like those of the customers as far as the quality management is concerned. Peratec (1995), asserts that for any business set to offer services must function under the guidelines of business management policy. Therefore, the interests of the company and customer needs are inseparable, and the manager should do anything within his/her jurisdiction to ensure that both are maintained hence the new prices are worth implementing. As such, the new fare prices by Swift Airlines help the company to optimize on ticket sales on a 48-hour time range since there is adequate market allowing it to take place. Additionally, the new charges have a relevant cost advantage in that the company can sell 15 more seats per flight through statistical control process.

Lastly, the company has the advantage of controlling losses and easier operations since the aircraft and crew can be maintained in one area as opposed to being assigned elsewhere therefore easy to make the six sigma. Moreover, the process makes it easier to meet the customers’ needs while meeting the market demands (Pande, Holpp, 2002). The net income of the company can be analyzed in the fourth month through Profit Volume analysis.

References

Beecroft, G. D., Duffy, G. L., & Moran, J. W. (2003). The executive guide to improvement and change. Milwaukee, Wis: ASQ Quality Press

Pande, P. S., & Holpp, L. (2002). What is six sigma?. New York: McGraw-Hill.

Peratec. (1995). Total quality management: The key to business improvement. London [u.a.: Chapman & Hall.

ORIGINAL DISCUSSION:

Using this case study, take the role of the production manager and prepare a report for the board that either recommends the proposed changes or does not recommend the changes. Support your position with details from the case and also from information from the text or other outside references.

Make sure your original answer explains the following in your own words:

• Cost of Quality
• Total Quality Management (TQM)
• Statistical Process Control (SPC)
• Six Sigma
• Relevant Costs
• Sunk Costs
• Cost Volume Profit (CVP)