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In this assignment, my focus will be on Malaysian low-cost airline company - AirAsia Berhad (AirAsia). First of all, I will explain about operations management and operations strategy. Then, in literature review part I will describe some OM decision area

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MASTER OF BUSINESS ADMINISTRATION MGT 6206: OPERATIONS MANAGEMENT SESSION: JAN 2012 INDIVIDUAL CASE STUDY LECTURER: ANTHONY VAZ Ruslan Sansyabayev I12000706 Table of Contents Chapter I: Introduction 4 1.1 Operations Management 4 Chapter II: Literature Review 6 2.1 Operations Strategy 6 2.2 Location Selection Strategy 9 2.3 Capacity Planning and Control 10 Chapter III: Background of the Organization 12 Chapter IV: Analysis of OM Strategy Decisions 13 4.1 Business and Operations Strategy 13 4.2 Capacity Planning and Control 17 4.3 Location Selection Strategy 19 Chapter V: Recommendations 22 Chapter VI: Possible Organisational Barriers 23 Chapter VII: Learning Points 24 Chapter VIII: Conclusion 25 GANNT CHART 26 REFERENCES 27 LIST OF FIGURES Figure 1 5 Figure 2. 7 Figure 3 8 Figure 4 13 Figure 5. 14 Figure 6 18 Figure 7. 19 LIST OF TABLES Table 2.1 17 Table 2.2 17 Chapter I Introduction 1.1 OPERATIONS MANAGEMENT The aim of this assignment is to choose an organization, analyse the way in which the organisation's operations strategy complements its business strategy and compare 3-4 decision areas within the operations of the organization from an operations management perspective. In this assignment, my focus will be on Malaysian low-cost airline company - AirAsia Berhad (AirAsia). First of all, I will explain about operations management and operations strategy. Then, in literature review part I will describe some OM decision areas which related to organization areas. After that, I would like to describe AirAsia background and several operations strategies that this organization applies. Finally, there will be some parts of recommendations and personal reflections. The process how firm produce services or goods is operations management. (Slack et al., 2007) Everything that people eat, wear, every service expected in the supermarket and every movie that people watch at the cinema - all have been produced. The field of operations management (OM) has been evolving for many years and may broadly be construed as incorporating supply chain management, quality management, product and process design, project management, and other topical areas. ...read more.


Figure 4 AirAsia's Strategy. Adopted from AirAsia corporate website, 2011. Based on low-cost strategy, AirAsia is focusing in six main strategic thrusts. First of all, safety is one of the major thrust for AirAsia, as a result; they comply with the highest International Aviation Safety Standards and keep operations simple and transparent. Another thrust is lean cost structure; it means that AirAsia has very simple and efficient point to point operations, AirAsia hires and retains hardworking employees and AirAsia has a passion for cost reduction. Additionally, AirAsia focuses on human capital development; they invest in hard and soft skills, recognize all employees as contributors to success and reward excellence and individual contributions. Finally, AirAsia focuses to maximize shareholders value, to have transparency in business and to have a passion for customers' satisfaction. AirAsia's competitive advantages and success factors. AirAsia has achieved a tremendous success since its "renovation". Because of some success factors AirAsia gets some competitive advantages in airline competition. By using it AirAsia is the best lowest cost airline company in South Asia. The key point of AirAsia's success factors is very low ticket prices. Providing low costs needs the high efficiency in every part of organization. Thus, every part of organization, every system process, everything must incorporate best industry practices. AirAsia'a success factors can be analyzed in the core values of the organization. AirAsia gets competitive advantages and makes their business successful by using these key strategies: Figure 5 AirAsia Competitive advantages (example) * Safety First -The most vital part of AirAsia's operations is safety; safety is the area where AirAsia will never compromise on. All conditions, which determine by rules and regulators in the countries, are complied by the largest low fare airline. Furthermore, partnering with the world's most renowned maintenance providers makes AirAsia's airplanes in the best condition. * High Aircraft Utilisation - The AirAsia airplane captains' ability, to make a fast turnaround of 25 minutes which is the fastest in the region, is more convenient for customers to travel. ...read more.


Chapter VII Learning Points Generally, in this assignment I understand more about OM and five performances affect the OM of a organization. Additionally, I understand 10 strategic OM decisions and how they work and what to do with them. By doing this assignment I understand that is OM is very important and useful for me and my future. Before I did not know how organization operations look inside. Actually, before this assignment I did not thing that location selection is very important, I was thinking that organizations choose available place and do not worry about other things. However, nowadays, I realized that location selection decision is may be one of the important question in organization and this decision will help for organization. I understand factors which can play essential role in location selection. In addition, I understand how possible factors ad barriers can be challenges in location selection decisions. I realized that capacity planning and control play important role in business, by using capacity methods or strategies organizations are able to forecast demand and forecast future profit and affect to future of organization Additionally, I understand that organization should use different operations strategies to compete and be successful in business world. OM is very useful subject for me as a future manger and it will help me in the future. Finally, I would like to say that I understand the infrastructure of organization and what managers should do to improve and develop their business and increase profit and competitiveness. Chapter VIII Conclusion In conclusion, OM is a very important aspect in every organization and no one organization can survive without OM. Operations is an exciting area of management that has a good effect on the productivity in both manufacturing and services. By using OM strategies organization is able to reduce costs and increase revenue, and succeed. The success of AirAsia was not made without knowledge of OM and it is clear that effective operations strategies make AirAsia life better and easier. ...read more.

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