2-3 pagesAPA FormatReferencesBegin your proposal with an explanation of how the approach to operations strategy will differ between the service side of Going and the manufacturing end, and what operations challenges are likely to be faced with each. Include specific examples.Here is the other info for the assignment see the attached files
431285_636894040475170059_mgt636_u1ips.pdf

431285_636894040470013759_mgt636_u1dbs.pdf

Unformatted Attachment Preview

Manufacturing Division
Mission Statement: Become the premier private custom airplane provider.
Marketing Slogan: “Nothing comes close to Going”
Scenario- The manufacturing division of Going, Inc., unlike the airline service division, has
been successful in its production and sale of small privately-owned airplanes. Going, Inc.
airplanes have been wildly successful since its first plane rolled out from the assembly
hanger 3 years ago. The public has taken to the marketing idea of flying a “branded” name of
airplane. The concept for the planes has been to maintain a first class look and feel to the
interior and exterior, in addition to providing “best in class” power/speed. As the company
strategy was to build an expensive plane catering to a small market, it has been shocked by
the increasing demand for its product. The company has been slow to react to the demand in
forecasting, capacity, and process improvements.
Below are the key process measurements criteria that management wants to improve to
meet sales demand.
Criteria
Capacity
Quality Rating
Flexibility Rating
Order Accuracy Rating
Speed (lead-time)
Mfg cost overhead
Going, Inc.
15 planes /
month
Med
Med
Low
16 weeks
High
Production numbers by month:
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2002
4
4
5
6
6
8
9
8
7
8
9
10
Sales order by month:
2003
10
10
10
9
9
10
11
11
11
11
11
10
2004
10
11
12
13
14
11
14
12
11
14
12

Bezna
100 planes /
month
High
High
High
11 weeks
Low
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2002
5
4
6
6
7
8
8
9
8
9
10
12
2003
12
11
12
13
13
11
12
12
14
14
14
16
2004
15
12
13
16
18
20
18
20
18
21
23

Note: Current backlog is at 100 planes.
1. Product Design Strategy
a. Going, Inc. airplanes are luxury-laden, patterned after high-end products such as
Lexus, Eddie Bauer, and Sony.
b. Going, Inc. airplanes are built for speed and power to be “best in class” for small
class planes that are designed for up to a 1,000-mile range.
c. Going, Inc. has three base models that can be fully customized to any customer
request.
2. Quality Management Strategy
a. The company has been slowed in production by average quality, and
rework/scrap is commonplace.
b. Currently, the company is emphasizing quality control by 100% inspection.
3. Process and Capacity Strategy
a. The company owns one assembly hanger that can build three planes
simultaneously.
b. The company has estimated it can assemble a maximum of 15 airplanes per
month with its current capacity and design.
4. Location Strategy
a. The company owns a large warehouse 20 miles from the assembly hanger.
b. The assembly hanger is located in Houston, Texas, and Corporate Headquarters
is in New York City.
5. Layout Strategy
a. The Going, Inc. assembly hanger is rectangular and three planes can fit side-byside for final assembly.
b. Due to the many customization options, minimum amounts of parts for all options
are stored near the planes.
6. Human Resources, Job Design Strategy
a. The company does not have the best relationship with its unions. Minimal pay
increases and hiring over the last 3 years has created a chasm between the two
parties.
b. Employees have complained about lack of a voice and lack of up-to-date training
programs.
7. Supply Chain Management
a. Going, Inc. has maintained as much as possible a US-made-only parts
requirement.
b. Going, Inc. has collaborated with many vendors to seek the lowest cost possible.
8. Inventory Management
a. The company has over 10,000 part numbers and three basic models of airplane
in its software system.
b. Inventory is performed once a year.
c. The company does not have any vendor-owned inventory and tries to keep 30%
of its stock in its assembly hanger.
9. Scheduling Strategy
a. Orders are taken on a first-come, first-serve basis.
b. A 16-week lead time is currently given to all customers, regardless of plane
design.
10. Maintenance and Reliability Strategy
a. Going, Inc. has experienced costs in quality and owner warranties consistent with
the industry average.
Service Division
Mission Statement: Become the most successful provider of airline transport for the business
traveler.
Marketing Slogan: “High society in the air”
Going, Inc.’s airline service has been losing business in regular service operations for 20
months now and is saddled with low performance in on-time delivery, baggage handling, and
overall customer service. Several outside consultants have viewed these three areas for
short-term fixes that could quickly improve the bottom line, but perhaps even more drastic
steps are needed.
Industry
Avg
Going, Inc.
Avg.
On Time
83.91%
71.6%
Air Carrier
Delay
3.71%
9.82%
Weather
Delay
0.55%
2.62%
National
Aviation
System
Delay
5.01%
5.00%
Security
Delay
0.07%
1.2%
Aircraft
Arriving
Late
3.50%
3.75%
Cancelled
3.07%
6%
Diverted
0.18%
.10%
Total
Operations
100.00%
100%
Going’s competitive strategy is now questioned by company executives because many
previous business traveling customers are now seeking a less expensive air travel solution.
Ten areas of operations strategy have been identified for study to gain a competitive
advantage.
1. Service Design Strategy
2.
3.
4.
5.
6.
7.
8.
a. Going, Inc. mainly serves long routes across the United States and international
routes into Europe and Asia. It is also seeking new South America routes.
b. The company emphasizes in-flight service to its business and first-class
passengers.
c. The company has been slow to adapt to the Internet, offering only general
information about its airline on the company homepage.
Quality Management Strategy
a. The company has been content with average customer satisfaction rankings until
the recent downturn in business.
b. The company concentrates its efforts toward the big budget frequent flyer and
seeks to ensure top quality over other airlines in first and business class service.
Numerous frequent flyer programs and marketing materials are sent to target
customers.
Process and Capacity Strategy
a. The company owns many different commercial airplanes in its fleet—presently
seven different models from two manufacturers (AirDyno and Cosnot).
b. Full meals are offered on all flights, and in-flight meal customization, designed to
give the meal service a “Going, Inc. flair,” is performed on each flight at the flight
attendant stations. This includes folding napkins into the trademark Going, Inc.
symbol, adding a Going, Inc. pen to the tray, and inserting a small Going, Inc.
flag to the flower vase on each tray.
Location Strategy
a. Going, Inc. flies to all major cities and every state but rarely more than once per
day (other than hub cities).
b. The company has a major hub in the East (JFK, New York), Central (O’Hare,
Chicago), Mid-West (Denver) and West (LA) regions.
Layout Strategy
a. Going, Inc. gates are located at the best locations (closest to the terminal).
b. Going, Inc. boards its planes with first-class passengers and then by first-come,
first-serve.
Human Resources, Job Design Strategy
a. The company does not have the best relationship with its unions. Minimal pay
increases and hiring over the last 3 years has created a chasm between the two
parties. Pilots frequently fly right up to their legal limit.
b. Employees have complained about lack of a voice and lack of up-to-date training
programs.
c. After each flight, cleaning crews must go through each aisle, flight attendant
station, and lavatory. Due to the number of models in the fleet, the cleaning cycle
time is comparatively slow and contributes heavily to the poor air carrier delay
performance.
Supply Chain Management
a. Going, Inc. has a very elongated supply chain, serving four major hubs in the US.
b. Going, Inc. has what can be termed has a lukewarm relationship with AirDyno,
one of the company airplane suppliers, due to some past financial issues and a
lack of support on AirDyno’s part in supplying replacement parts.
c. The company maintains 4 models from AirDyno and 3 models from Cosnot,
relying on each to supply replacement parts.
Inventory Management
a. The company’s maintenance department must be exceptionally managed due to
the number of models of planes in its fleet. Maintenance stations are located at
each hub location, with a central larger facility at the airline’s Denver hub.
9. Scheduling Strategy
a. Going, Inc. has 225 inland destinations and flies to every state in the US on its
schedule on top of its Europe and Asia routes. For comparison, Southwest
Airlines serves 53 airports in 27 US states.
b. Data demonstrates that Going, Inc. is higher than the industry standard in air
carrier delay and connecting aircraft late arrival.
10. Maintenance and Reliability Strategy
a. Going, Inc. has experienced higher costs in maintenance, repair, and training in
the last 2 years.
b. Going, Inc. airplanes are grounded or in repair and maintenance 18% more than
the industry average.

Purchase answer to see full
attachment