Summary
Highlights
Qantas evaluates its operations through six performance objectives: quality, speed, dependability, flexibility, customization, and cost. Quality ensures services meet customer expectations (e.g., clean aircraft, courteous staff). Speed focuses on efficient service delivery (e.g., online check-in, kiosks). Dependability measures on-time departures and arrivals. Flexibility allows Qantas to adapt to market demand changes (e.g., variable fare structures, different seating classes). Customization offers varied products and services (e.g., Oneworld alliance, Jetstar). Cost management aims to keep expenses low while maintaining high standards, with productivity measured by passenger load factor.
Qantas develops new products and services to stay competitive, such as launching Jetstar Asia, Pacific, and Japan. Supply chain management controls the flow of resources from sourcing raw materials (like fuel) to final customer delivery, involving sourcing, global sourcing (employing staff in lower-wage countries, overseas maintenance), e-commerce, and logistics. This aims for efficiency and cost-effectiveness.
Qantas outsources various functions like IT, call centers, and some maintenance for cost savings, efficiency, access to specialized skills, and increased flexibility. However, outsourcing can lead to loss of control, quality issues, industrial disputes, and negative public perception. Qantas utilizes both leading-edge technology (Dreamliner planes, in-flight Wi-Fi, flight pulse app for fuel optimization, biofuel development) and established technology (computer-aided design, EFT, websites) to maintain competitive advantage.
Quality management at Qantas encompasses quality control (inspections), quality assurance (continuous monitoring against standards to broaden organizational responsibility for quality), and quality improvement (reducing errors, finding better methods, involving staff, customers, and suppliers). This approach makes quality central and strategic to Qantas's operations.
Implementing change at Qantas faces financial restrictions (equipment costs, redundancy, retraining) and human restrictions (staff inertia, fear of new skills, job insecurity). Global factors significantly influence Qantas, leading to global sourcing for cost advantages (e.g., employing staff in lower-wage countries, offshore maintenance for A380s). While this can cause industrial action due to job concerns, Qantas must stay informed of global developments and engage in research and development to remain competitive and respond to changing market conditions.