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CHAPTER 6 MANAGING QUALITY 279 PERFORMANCE SCORE BONUS POINTS GRADE 15 WEIGHTING 20 15 20 10 TOTAL 15 20 15 5 15 9 A 10 10 ELEMENTS Process Compliance Staffing MAP Rate (for bags Delays Time to Carousel total weight 10) Percentage of lights scanned Percentage of bags scanned 20 Minutes al bags dropped compliance Outliers 25min Safety Compliance Quality Compliance Total 100% 2 4 987 709 925 2 15 20 A. 15 10 89 10 100 A 10 99 10 A. Time to Carousel Ponts Percentage of flights scanned Points Percentage of bags scanned 95%-100% 15 90%-949% 899%-85% 60% or above 5599 Pons Last bag percent compliance Below 19.9% 90%-100% Fonts Last Bag 25 mn Outiers 20 15 10 15 classroom training in areas such as Six Sigma. Over 200 managers penalty for poor performance. The provider's line workers receive have obtained Six Sigma Green Belt certification a portion of the bonus when top scores are achieved Alaska collect more than 100 quality and performance metrie As a company known for outstanding customer service, every day. For example, the accompanying picture tells the crew vice recovery efforts representa necesary area of emphasis that it has 6 minutes to close the door and back away from the gate When things go wrong, employees mobile to first communi to meet the time to pushbuck" target Operations personnel review cate with, and in many ces compensate affected customer each airport hub's performance scorecard daily and the overall doesn't matter if it's not our fult." says Minicuci. Front-line operations scorecard weekly. As Director of System Operations workers are empowered with a toolkit" of options to offer to Control, Wayne Newton proclaims, it is not measured, it is not inconvenienced customers, including the ability to provide up to managed." The focus is on identifying problem areas or trends 5.000 frequent flyer miles and/or vouchers for meals, hotels, lug determining Causes, and working on preventive measures age, and tickets. When an Alaska flight had to make an emer Within the operations function there are numerous detailed gency landing in Eugene, Orego, due to a malfunctioning oven, input metrics for station operations such as the percentage of passengers were inmediately tested with information about what time that hoses are free of twists, the ground power cord is stowed. happened and why, and they were told that a replacement plane and no vehicles are parked in prohibited zones). Management would be arriving within one hour. Within that hour, an apologs operates under the assumption that if all the detailed input met better along with a $450 ticket voucher were already in the mail ries are acceptable, the major key performance indicators, such as to each passenger's home. No customer complaints subsequently Alaska's on-time performance and 20-minute lursare guarantee appeared on Twitter or Facebook. It's no wonder why Alaska's will automatically score well customers return again and again The accompanying table displays a sample monthly scorecard for Alaska's ground crew provider in Seattle. The major evalu tion categories include proces complunce, stalling (degree that Discussion Questions crew members are available when needed), MAP rate (minimum 1. What are some ways that Alaska can sure that quality and acceptable performance for mishandled bags), delays, time to performance metric standards are met when the company out carousel, safety compliance and quality compliance. The quali sources its ground operations to a contract provider ity compliance Category alone tracks 64 detailed input metrics 2. Identify several quality metrick, in addition to those identified using approximately 30.000 monthly observations. Each of the earlier that you think Alaska tracks or should be tracking major catepories on the scorecard has an importance weight and 3. Think about a previous problem that you had when thing, for the provider is assigned a weighted average score at the end of sample, a late flight, a missed connection or lost luggage cach month. The contract with the supplier provides for up to a How if at all. did the airline respond? Did the airline ade 3.7% bonus for outstanding performance and as much as a 5.0% quately address your situation not what we should they