Read the case study below and answer the questions that follow

ALASKA ARLLNES QUALTYY DRNE

Alaska Airfines, with nearly $100$ desinations, including regular service to Alaska, Hawail, Cenada, and Mexico, is the seventh$-$

largest U$.$S$.$ carrier. Alaska Airlines has won the J$.$ D$.$ Power and Associstes Award for highest customer satisfaction in the

industry for $8$ years in a row while being the number one on$-$time airtine for $5$ years in a row. Managements urwavering

commitment to quality has driven much of the fim's suocess and generated an extremely loyal customer base. Execultive VP

Ben Minicused exclaims, $"$We have rearitten our DNA." Buiding an arganization that can actieve quality is a demanding task,

and the management at Alaska Artines acospted the challenge. This is a kighly participative quality culture, reintorced by

leadership training, constant process improvement, comprehensive metics, and frequent review of thase metrics. The usual

training of flight crews and pilots is supplemented with classroom training in areass such as Six Sigma. Over $200$ managers

have obtained Six Sigma Green Belt cerfification.

Alaska collects more than $100$ quality and performance mestics every day. Fox example, the acompenying picture tells the

crew that it has $6$ minutes to close the door and back away from the gate to meet the "lime to pushback" target. Operations

personnel review esch aipon thut's performance scorecard daily and the overall operations socrecard weekly. As Director of

System Operations Control, Wayne Newton proclaims, $"$If it is not measured, it is not managed." The focus is on identifying

problem areas or trends, determining causes, and working on preventive measures. Witin the operations tunction there are

numerous detaled input metrics for station operations $($such as the percentage of time that hoses are free of twists, the

ground power cord is stowed, and no vericles are parked in prohbited zones$).$ Management operates under the assumption

that if all the detailed input metrics are acceptable, the major key performance indicators, such as Alaska's on$-$time

performance and $20-$minute luggoge gusantee, will automatically score well.

For the scorecard the major evaluation categories include process complisnoe, stafling $($degree that crew members are

avalible when needed$),$ MAP rate $($minimum scoeptable performance for mishandled bags$),$ delays, time to carousel, safety

compliance, and quality compliance. The quality compliance category alone tracks $64$ detailed input metrics using

approximately $30,000$ monthly observations. Each of the major categories on the scorecard has an importance weight, and

the provider is assigned a weighted average score at the end of each month. The contract with the supplier provides for up to

a $3\mathrm{.}7\%$ bonus for outstanding performance and as much as a $5\mathrm{.}0\%$ penaty for poor performance. The provider's line workers

reosive a portion of the bonus when lop scores are actieved.

As a company known for outstanding customer service, service recovery ettorts represent a necessary area of emphasis.

When things go wrong, employees mobilize to first communicate with, and in many cases compensate, affected customers.

$"$It doesn't matter if its not our faul;", says Miricuct. Front$-$line workers are empowered with a "loolkit" of options to offter to

inconverienced customers, including the ability to provide up to $5,000$ frequent fiyer miles andlor vouchers for meals, hotels,

luggage, and tickets. When an Alaska fight had to make an emergency landing in Eugene, Oregon, due to a mallunctioning

oven, passengers were immediately texted with information about what happened and why, and they were told that a

replacement plene would be artiving within $1$ hour. Within that hour, an apology letter along with a $$450$ ticket voucher were

akeady in the mail to each pessenger's home. No customer complaints subsequently appeared on Twitter or Facebook. Its

mo wonder why Alaska's customers return again and again.

QUESTION $1\mathrm{.}1$

As highighted by Wayne Newton, $y$ it is not measured, $t$ is not managed. In addinon to those already provided, examine the

quality metics that Alaska arines should be tracking to determine the performance of their operajons.

QUESTION $1\mathrm{.}2$

$(20$ Marks$)$

In light of the case study provided, justify why might it cost Alaska Airlines less to do things right the first time. Provide

relevant frameworks in presenting your response.

QUESTION $1\mathrm{.}3$

$(20$ Marks$)$

As indicated by Ben Minicucci $"$We have rewritten our DNA." Building an organisation that can achieve quality is a

demanding task, and the management at Alaska Airtines acospled the challenge. Using relevant framemorks demonstrate

how the organisation can successfully achieve tris.

QUESTION $1\mathrm{.}4$

$(20$ Marks$)$

In the context of Alaska Airlines, celtically discuss ANY FIVE $(5)$ predictors that can be usilised in forecasting d