TQM in Pakistan International Airline

Shahzad Ahmed Memon

Address: 104 – Princess Road,

Woking, Surrey,

GU22 8ES, UK.

E-Mail: [email protected]

Mobile: 0044-7853839785

Total Quality Management

mailto:[email protected]

Total Quality Management| A Case Study of Pakistan International Airline Page 2

Total Quality Management

“Implementation in Pakistan International Airline with comparison of Emirates Airline & Saudi Arabian Airline”

Module Code: STRM015

Submitted By: Shahzad Ahmed Memon

Submitted to: Mr. Adrian Pryce

Total Word Count: 22,342

Masters in Business Administration

University of Northampton

United Kingdom

©Copy Right: Shahzad Ahmed Memon 2009-10


DEDICATION

This humble effort is dedicated to

my parents and my brother Riaz

Ahmed who did their best to

enable me to attend heights of an

ideal life and to my teachers.


ACKNOWLEDGEMENT

It is highest glory and distinction for me to thank those people who have advised,

encouraged and helped me in the preparation of this dissertation. I owe my gratitude

to all those people who have made this dissertation possible and because of whom

my graduate experience has been one that I will cherish forever.

First and foremost, I feel proud to express my deepest gratitude to my honourable

supervisor and guide, Mr. Adrian Pryce, who encouraged, guided and supervised me

in a way that I haven‘t got any hurdle to complete my dissertation. I have been

amazingly fortunate to have an advisor who gave me the freedom to explore on my

own and at the same time the guidance to recover when my steps faltered.

Mr. Adrian Pryce taught me how to question thoughts and express ideas.

His patience and support helped me overcome many crisis situations and finish this

dissertation. I also show my gratitude towards all the tutors who have thought me

during the course of business studies guiding me in right direction.

Many friends, especially Shahan Habib, Tahir Khanzada, Waqar Ahmed and Bader

Munir, have helped me stay sane through these difficult years. Their support and

care helped me overcome setbacks and stay focused on my post graduate study.

I greatly value their friendship and I deeply appreciate their belief in me.

Most importantly, none of this would have been possible without the love and

patience of my family. My family, to whom this dissertation is dedicated to, has been

a constant source of love, concern, support and strength all these years. I would like

to express my heart-felt gratitude to my family.

Shahzad Ahmed Memon


ABSTRACT

Total Quality Management has been considered as one of the most significant

management innovation of the 20th century. TQM is based on quiet native and

rational views of an organisation but it has had a major influence on the

contemporary management practices. ISO 9000 family quality standards and criteria

of quality awards have led to the realistic improvement and diffusion of the discipline.

Today, they provide the most complete and comprehensive definition of TQM.

TQM role and concepts is examined based upon how an organisation will meet its

mission and the definitive objective for long term survival. Organisation‘s main

concern is how to achieve survival and it depends on multiple factors. The very basic

level of organisational survival is based on the internal integration and the process of

external adaptation.

The first section of the study presents the importance of the Total Quality

Management concepts. This research provides an understanding and knowledge of

literature of Total Quality Management. The second section explores and

investigates the common picture of TQM in Airline industry followed by research

methodology. Third section shows the passenger survey and questionnaire results

and also examines the challenges faced by Pakistan International Airline while

implementing TQM.

The findings and results advocate that Total Quality Management System should

develop itself with the changing internal and external environment.

At last, recommendations were made which are helpful for the organisation (Pakistan

International Airline) for their future perspectives.


Table of Contents

1. CHAPTER – 1 Introduction ...................................................................... 11

1.1 Total Quality Management Overview ................................................................. 11

1.2 Research Background ....................................................................................... 13

1.3 Pakistan International Airline Company Background ....................................... 14

1.4 Emirates Airline Company Background ........................................................... 16

1.5 Saudi Arabian Airline Company Background ................................................... 17

1.6 Problem Statement ............................................................................................ 18

1.7 Research Questions ......................................................................................... 19

1.8 Significance of the Research ............................................................................. 19

1.9 Aims and Objectives of the Report ....................................................................20

1.11 Research Limitations ...................................................................................... 21

2. CHAPTER – 2.1 Literature Review .......................................................... 23

2.1 TQM Definitions ................................................................................................. 23

2.2 History and Evolution of TQM .......................................................................... 25

2.3 Total Quality Management Concepts ............................................................... 26

2.4 Quality Awards ..................................................................................................30

2.4.1 Malcolm Baldrige National Quality Award .................................................30

2.4.2 EFQM Excellence Award ........................................................................... 32

2.4.3 Four Ps and Three Cs Model ..................................................................... 32

2.4.4 PDCA Model .............................................................................................. 33

2.5 TQM Philosophy ............................................................................................... 34

2.6 Total Quality Management Process ................................................................. 35

2.7 TQM as a System ............................................................................................. 36

2.8 Elements of TQM Strategy ............................................................................... 38

2.8.1 Top Management Commitment ................................................................. 38

2.8.2 Customer Focus ........................................................................................ 39

2.8.3 Base Decision on Facts .............................................................................. 39

2.8.4 Employee Involvement and Empowerment ............................................. 40

2.8.5 Continuous Improvement ......................................................................... 40

2.8.6 Training ...................................................................................................... 41

2.8.7 Benchmarking ............................................................................................ 42

2.8.8 ISO-9000 .................................................................................................... 42


2.9 Tools and Techniques of TQM .......................................................................... 43

2.9.1 Brainstorming .............................................................................................. 43

2.9.2 Process Flow Charting ................................................................................ 44

2.9.3 Statistical Process Control (SPC)............................................................... 44

2.9.4 Histogram .................................................................................................... 45

2.9.5 Cause Effect Diagram ................................................................................ 45

2.9.6 Scatter Diagram .......................................................................................... 46

2.9.7 Control Charts ............................................................................................. 46

2.9.8 Quality Function Deployment (QFD) .......................................................... 47

2.10 TQM in Service Sector ................................................................................... 47

2.11 TQM in the Airline Industry ............................................................................. 48

2.12 Benefits of TQM in Airline Industry ................................................................. 50

2.13 Service Measurement Models in Airline Industry ........................................... 51

2.13.1 SKYTRAX ................................................................................................. 51

2.13.2 SERVQUAL .............................................................................................. 51

2.13.3 SERVPERF ............................................................................................... 52

2.15 Challenges faced by Airline Industry .............................................................. 52

2.16 Implementation of TQM in Airline Industry ..................................................... 53

CHAPTER: 3 – Research, Design and Methodology ................................. 56

3.1 Research Design .............................................................................................. 56

3.2 Research Strategy ............................................................................................ 57

3.3 Research Philosophy ........................................................................................ 58

3.4 Research Approach .......................................................................................... 58

3.5 Research Method ............................................................................................. 59

3.6 Data Collection................................................................................................... 59

3.6.1 Primary Data ............................................................................................... 59

3.6.2 Secondary Data ......................................................................................... 60

3.7 Data analysis .................................................................................................... 60

CHAPTER: 4 – Presentation Of Findings ................................................... 63

4.1 Survey Results .................................................................................................. 63

4.1.1 Selection of Airline on Customer Perspective ........................................... 63

4.1.2 Overall Rating ............................................................................................ 64

4.1.3 Attracted Aspects ...................................................................................... 65

4.1.4 Need to be Improved ................................................................................. 65

4.1.5 Above qualities exist in PIA? ..................................................................... 66


4.2 Questionnaire Results ...................................................................................... 67

4.2.1 Quality Management System .................................................................... 67

4.2.2 View of Managers on QMS........................................................................68

4.2.3 Type of Quality System and Methodology ................................................68

4.2.4 Manager‘s views on Benefits of TQM ....................................................... 69

4.2.5 TQM Concepts ........................................................................................... 70

4.2.6 QMS Implementation Reasons ................................................................. 71

4.3 Internal and External Challenges Faced by PIA ............................................... 72

CHAPTER: 5 – Discussion and Recommendations .................................. 77

5.1 Analysis and Discussion .................................................................................... 77

5.1.1 Passenger Perspective ................................................................................. 77

5.1.2 Managerial Perspective .............................................................................. 79

5.1.3 Challenging Perspective ............................................................................. 81

5.2 Recommendations ............................................................................................ 83

5.2.1 Strategy ........................................................................................................ 84

5.2.2 Structure / Management:........................................................................... 85

5.2.3 System (Effective Use of Technology) ........................................................ 85

5.2.4 Style Transparent policy adoption: ............................................................86

5.2.5 Skills (Two-Way Communication) .............................................................86

5.2.6 Staff Involvement and Empowerment ....................................................... 87

5.2.7 Shared Values ............................................................................................ 88

CHAPTER: 6 – Conclusion .......................................................................... 90

6.1 CONCLUSION ................................................................................................... 90


List of Figures

Figure – 1: Structure of TQM Philosophy……………….……………………………….11

Figure – 2: Components of TQM Philosophy ….………………………………………..11

Figure – 3: TQM Concepts……………….……………………………………………….26



Figure – 6: Malcolm Baldrige National Qulity Awards………………………………….30

Figure – 7: EFQM Excellence Model ……………………………………………………31

Figure – 8: Four Ps and Three Cs…..……………………………………………………32

Figure – 9: PDCA Cycle………….…..……………………………………………………33

Figure – 10: TQM Philosophy..….…..……………………………………………………34

Figure – 12: TQM PROCESS:.….…..……………………………………………………35

Figure – 12: TQM as a System.….…..…………………………………………………..36

Figure – 13: Process Flow Charting...……………………………………………………43

Figure – 18: Key activities in the passenger travel process……………………………48

Abbreviations

SAA Saudi Arabian Airline

KSE Karachi Stock Exchange

EQA European Quality Award

MBNQA Malcolm Baldrige National Quality Award

SQC Statistical Quality Control

IATA International Air Transport Association

PIA Pakistan International Airline

EFQM European foundation for Quality Management

JIT Just in Time

ISO International Standard Organisation


Introduction

Chapter

One


1. CHAPTER – 1 Introduction

Chapter one provides the overview of Total Quality Management and it includes

background of the research along with justification for research rationale.

This introductory chapter is about research’s aims and objective and it consists the

important research questions. Significance of research and limitations are also

included in this chapter.

1.1 Total Quality Management Overview

Initially Quality Control Circle (QCC) formed in Japan in 1960, it was a simple

statistical method used for quality improvement. Later on Total Quality Management

has been used for the purpose of quality improvement (Yang and El-Haik, 2009).

After having comparison with the Japanese competitors Hewlett-Packard criticised

the US chip manufacturers in the 1980s the reason for criticism were based on

quality issues of the service/product. Then after criticism, TQM initiated in America.

According to Talha (2004), the success or failure of an industry or organisation

throughout the world‘s marketplace depends mainly on quality of the service/product.

Each and every person working for the Total Quality Management is responsible for

managing the whole system and due to TQM there is an increase in the efficiency of

an organisation, which creates a competition among the industry. An organisation

can only produce best output when its each individual will dedicate their hard work for

the success of the organisation. Every organisation can use the same tools and

techniques for the TQM (Oakland, 2006).

Any organisation such as hospitals, health care systems, education centers etc use

the same methods for the TQM. To satisfy the client and to maintain the quality of

overall performance in an organisation for the improvement, can be achieved through


certain processes is known as The Total Quality Management (Sashkin and kiser,

1993).

Figure-1: Structure of TQM Philosophy Figure-2: Components of TQM Philosophy and their interrelationship

Source: [Adapted from Oakland, 2003] Source:[Adapted from Oakland, 2003]

―Top management, elimination of employee‘s fear, vision sharing, and empowerment,

all involvement of employees, customer focus, and open culture are included in TQM

Philosophy‖. According to Huarng and Chen (2002), suggests that training to the

employees for maintaining the quality, enhancement of the process and Benchmark

are the essential tools of TQM. Weinstein (1997), explains the employee

empowerment as ―Empowerment is a set of conditions that must be created that

allows people to reach their maximum potential and frees them to act in the most

beneficial way for the customer, their department and the company‖. Also he said

that due to employee empowerment there is an enhancement in the work of the

employees. Dale and Bunney (1999), believes that by using particular management

tools and techniques, a process can be created for the betterment and continuous

enhancement for an organisation. Hendricks and Singhal (1997) went through a

study and proved that the overall work and productivity of an organisation is

improved by the help of TQM. Similarly other quality gurus said that ―implementing an


effective TQM‖ would increase revenues, reduce costs and will give more and more

profit to the industry. To have continuous increase in the quality of the

products/service with certain methods for the satisfaction of clients and achievement

of goals to become successful organisation is known as Total Quality Management

(Vincent, et al., 2004). Kanji (2004), explains the success of any business as ―To

provide goods and services to satisfy the customer needs and achieving excellence

through TQM‖.

1.2 Research Background

Airline industry is the most important element in leisure/tourism as well as conduct

international business, which plays significant role for the growth of global economy.

Airline industry is worldwide biggest industry; in 2006 the revenue from airline

industry has been generated more than $12.9 billion (IATA, 2007a). Globally

estimated direct contribution for national GDP was $140-145 billion (IATA, 2007b).

There is lots of attraction in the airline industry. The airline industry will progress

more and more in future because of continuous increasing of tourists, convenience of

travelling, increase in the portability of fuel and entrance in the market of new airline

companies. Providing facilities to the passengers, with low costs and aggressive

marketing were focused by the airline industry during 1990s. The phrase TQM is a

common part nowadays included in business language. Transformation of inputs into

outputs through a process consisting a set of terms and conditions is termed as TQM

(Ross and Perry, 1999). Certain processes are essential for the airline industry in

context to quality. Emirates Airline and Saudi Arabia Airline have main focus on

customers to delight them, these airlines concentrate on processes to achieve high

customer satisfaction through which a reservation is confirmed, handling of luggage

which is being carried by the passengers, loading of passengers and providing


required facilities to passengers etc. Such type of working is known as a process in

which employees work together and using tools and techniques to give a better

output. The first national and international airline of Pakistan is Pakistan

International Airline (PIA), has got the certification of ISO 9000. It has been

declared at 31st march 2007 by the top management that PIA is suffering 28.6 billion

PKR losses and at 31st December 2008 losses has been almost cross 78.3 billion

PKR. PIA goes through loss, higher management has given the reason that the

Pakistani currency doesn‘t have much value in world‘s marketplace and the cost of

fuel is increasing day by day. After having close study about the Pakistan

International Airline it is proved that the expenses, revenue and income etc are

closely related with the dissatisfaction of passengers. Facilities given to customers

such as number of seats available, reservation process, luggage handling,

punctuality problem and food service are the reasons due to which customers may

be dissatisfied. Dissatisfaction of customers affects the profitability of the airline

industry (Buttle, 2008). Researcher has conduct a passenger survey during this

research to investigate quality in PIA with comparison of Emirates and SAA, in which

passengers shows their interest that they would prefer Emirates or Saudi Arabian

Airline as compare to PIA in context to service quality. So therefore PIA need to

attract the passenger because without satisfying the passenger an airline cannot

grow and earn profit it means it is essential to satisfy and delight passenger to remain

in the competition. It is also necessary to enhance the quality of provided facilities to

the customer for the success of airline industry (Cunningham, et al., 2004).

1.3 Pakistan International Airline Company Background

A Case Study:

An airline was born on 23rd October 1946, initially registered as an Orient Airways

Ltd. In starting there were two DC-3s fleets operated with three crew members and


initially covered routes were most domestic area with addition of Delhi, Calcutta-

Dacca. Orient Airways itself with limited capital and resource could not expect

earning because it was a privately owned company. So therefore, after

independence of Pakistan, Government of Pakistan invited Orient Airways for

merger. The result of that merger was beginning of Pakistan international Airline on

10th January 1955 www.piac.com.

According to Annual Report (2009), PIA currently operates 46 aircraft in its fleet

having a range of advanced aircraft, Boeing 777 airplane and Airbus A-310.

Pakistan International Airline is the 16th largest flying carrier in Asia, PIA covers 73

destination worldwide and 24 domestic. The vision and mission of PIA is Customer

Focus and Continual Improvement, to achieve this aim the higher management of

PIA has undertaken a number of pioneering initiatives throughout its history.

PIA has been divided into thirteen departments controlled by 19,263 employees

unfortunately PIA is suffering losses, due to heavy salaries of employees because

there are 440 employees per aircraft, whereas the international ratio is 150 to 250

employees. Mainly PIA is owned by Government of Pakistan having 87% share and

other shareholder are 13% so therefore a main drawback of political influence is

present at high level. The transportation sector accounts for about 10.5% GDP of

Pakistan and 27.4% of GFCF in FY2008. Latest report from PIA shows 87% revenue

from passengers and 13% from cargo services www.piac.com.

According to GEO News (20 Aug 2009) Pakistan International Airlines (PIA) posted a

loss of Rs 5.39 billion during a period of six months (January-June2009). According

to a notice released by Karachi Stock Exchange (KSE), PIA had suffered a loss of

Rs 17.99 billion during the same period the last year, showing a 70 percent decline

compared to this year‘s loss, but unfortunately still there is losses are remaining

because there is no accountability and the mismanagement in the organisation are

http://www.piac.com/

http://www.piac.com/


the reasons, therefore customers are not satisfied with service of PIA, there are a lot

of flaws present in the organisation regarding customer satisfaction due to which

organisation have still losses.

1.4 Emirates Airline Company Background

A Case Study:

Emirates Airline was created in 1985, to become the main resource of growth in

economy of Dubai, particularly tourism industry has been gain a charm. Nowadays it

is very famous and successful international airline and mostly known as Fly. There is

also competition in Middle East of several airlines but Emirates, is a major airline,

owned by the Emirates Group. Emirates is known as national airline, which operates

more than 1,990 passenger flights in a week, Emirates Airline covers 157

destinations from its Hub Dubai International Airport in 55 countries

www.emirates.com.

Emirates Airline operates latest aircrafts like 777-200LR and A380 airbus which are

suitable for longest nonstop flights. Emirates Group has over 40,000 employees from

101 nationalities (across the border), Emirates group is a Government department.

Sky-cargo is also a service provided by Emirates Group www.emirates.com.

In Asia quality effective airline concept has started by Emirates group, in every class

during on board or on the ground Emirates sets very high standards for all

passengers. The staff of Emirates either they are on board or ground they are

committed to provide more comfortable service to passenger throughout travel

process. From so many years Emirates is winning international awards for its service

excellence (Annual Report, 2008).

According to Khaleej Times (5th Nov 2009), at 30th September 2009 Emirates Airline

declare Dhs 752 million profit for its initial six months of current financial year,

http://www.emirates.com/

http://www.emirates.com/


this year it represents 165% improved as compare to 2008. The goal of Emirates

Airline is to entertain customer with high class service quality to delight the customer.

1.5 Saudi Arabian Airline Company Background

A Case Study:

Saudi Arabian Airlines (SAA) was born in 1945 when it had only a single twin-engine

DC-3 (Dakota) aircraft operated. Then slowly and gradually Saudi Arabian Airline has

been increased by eighty nine (89) aircrafts, including the latest and most advanced.

And very soon seventy (70) aircrafts will be included in its fleet in which Boeing 787,

and Airbus A320. Fortunately Kingdom of Saudi Arabia is GOD gifted with two Holy

Mosques and geographical location which are opportunities for air travel

www.saudiairlines.com.

Saudi Airline extends its flight services to all over the world; it covers domestic and

international routes and 90 destinations worldwide. Saudi Airlines have arrangements

to provide more flights during the Muslims holy months of Ramadan and the Hajj due

to high volume of passenger with its promising service alacrity. Saudi airline

transported more than 22.8 million passengers in 2009, one million more than in

2008, Saudi Arabian Airline has reduced its staff nowadays current staff is 18000

SAA is able to compete with its competitor for example low prices offered is the core

competency of the company and SAA is giving more focus on customer to provide

service with quality www.saudiairlines.com.

There was 40% of international market captured by Saudi Arabian Airlines which is

now reduced by 20% Still, Saudi Arabian is the second largest Middle Eastern carrier

by capacity after Emirates. Saudi Arabian Airlines (SAA) have record revenue in

2008 of SR 20.6 billion with net profits of SR 500 million (Annual Report, 2009).

http://www.saudiairlines.com/

http://www.saudiairlines.com/


1.6 Problem Statement

Mostly organisations worldwide use Total Quality Management for producing better

performance, by improving the quality of products/services and achieve success.

TQM implementation sometimes creates problem for many organisations. Because

the management considers that it is ―Time consuming, bureaucratic, formalistic, rigid

and impersonal, are the obstacles to TQM implementation‖ (Oakland, 1993).

According to Lee and Oaks (1995), believes that small organisations are also

important for the economy of world even still TQM is not adopted by them. Proper

implementation of TQM plays a significant role for any organisation to improve

efficiency make its position strong and maintain its standard in world‘s marketplace

(Zhang, et al., 2000; Chapman; and Al-Khawaldheh, 2002). According to

Gruickshank (2000), states that managers, employees, and suppliers work altogether

for TQM to improve the quality of services so their involvement has been increased in

the organisation (Evans and Lindsay, 1993; Oakland, 1993; Dean and Evans, 1994).

Further Hirschhorn (1991) said that the people working together are essential for the

management of quality.

Guangming, et al., (2000) states that the main aim of any organisation is to fulfill the

demands of their clients by providing them products and services as required, which

is done by the help of TQM, but the management of Pakistan International Airline has

forgotten the mission towards customer focus. So therefore PIA is suffering losses

and facing challenges. According to Gunasekaran, 1999 and Youssef, et al., (1996)

resources, equipments and quality management methods are supplied to the TQM

for the continuous enhancement of quality so that the customers can be satisfied.

This study aims to provide a proper knowledge to the management of Pakistan

International Airline to move forward in right direction.


1.7 Research Questions

―Proper Implementation of Total Quality Management in Pakistan International Airline

with comparison of Emirates and Saudi Arabian Airlines‖ is the guiding principles of

this research and following research questions are also included.

How Total Quality Management has been conducted in the Airline Industry?

What are the challenges Airline Industry facing nowadays in deploying TQM?

What benefits TQM gives in overall performance of the Airline Industry?

What are the challenges faced by Pakistan International Airline in the

implementation of TQM?

At which level Quality Management system is implemented in PIA, Emirates,

and Saudi Arabian Airlines?

What are the different aspects of TQM to make an organisation profitable

successful?

1.8 Significance of the Research

The customers of products and services have high expectations regarding the quality

so therefore TQM is well recognised because of improvement system of the quality

(Dale, et al., 1994). Due to TQM many organizations have achieved success by

improving the quality of their products (Talha, 2004). According to Eskildson (1994),

states that although the success of organisation depends on the satisfaction of

clients by the implementation of TQM but many organisations have still not adopted

TQM. ISO 9000 is today‘s highest standard which may be increases in future but

TQM will help to achieve the demands.


1.9 Aims and Objectives of the Report

Accomplishment of ―proper implementation of Total Quality Management in Pakistan

International Airline with comparison of Emirates and the Saudi Arabian Airlines‖ is

goal of this dissertation. Main theme of this report is to demonstrate to the airline

industry that a successful approach to the Total Quality Management consists of

various aspects regarding the client. The reason for doing this research is to find out

about the problems coming across the Total Quality Management in PIA and ways to

solve them. Service Quality is vital for that. Following are the aims and objectives of

this dissertation.

To investigate and examine the TQM practice in PIA, Emirates and Saudi

Arabian Airlines.

Proper implementation of TQM in Pakistan International Airline.

Customer Service according to customer needs and demands.

Involvement of employee to fulfill the customer‘s needs.

On the completion of this dissertation it will be helpful for PIA to come out from the

crises, and would be able to produce best quality to fulfill the requirements of the

customer and to compete with its competitors.

1.10 Motivation

Having personal experience in travel and tourism industry, researcher observed due

to lack of service quality in PIA, passengers are attracted by other airlines like

Emirates and Saudi Arabian Airline. Researcher is only interested to bring passenger

back to their national airline, by exploring the way in which they would get full

satisfaction. Regarding this the concept of TQM is always attentive, so therefore

researcher intend to evaluate and examine that how Total Quality Management has


been conducted in PIA as compare to Emirates and Saudi Arabian Airline.

And suggest PIA a path, to move forward in the right direction in context to customer

satisfaction.

1.11 Research Limitations

The undertaken research is based upon the primary and secondary data. The

primary limitation of this research is the use of secondary data; the analysis of

secondary data could reflect the questions and viewpoints of the original researcher

and may not properly address the interest and questions of another investigator.

Furthermore, for any cause the findings may not be constructive for decision makers,

and for policy maker. In addition, in secondary data there is always a doubt of

accuracy and validity.

Secondly, the limitation of access of information; access to information is a critical

aspect for the conduct of most researches. It was a big challenge to gain access to

the relevant information within the company, which was a requirement of the

research. The question of confidentiality has also been a barrier before researchers.

Thirdly, the limitation of time and finance; because of the limitation of time, the

researcher is only able to focus and concentrate on a few organisations with in airline

industry. Furthermore, due to financial limitations it is not been possible for the

researcher to get access of paid research journal resources.


Literature Review

Chapter

Two


2. CHAPTER – 2.1 Literature Review

This chapter gives the brief sketch of literature on Total Quality Management, that

contain, Total Quality Management objectives, Total Quality Management

principles and component, TQM standards, TQM indicators, TQM tool and models,

and TQM which are widely practices in the Airline industry.

2.1 TQM Definitions

Flynn, et al. (1994) expresses their view regarding total quality management as;

―An integrated approach to achieving and sustaining high Quality output, focusing

on the maintenance and continuous improvement of process and defect prevention

at all levels and in all functions of the organisation, in order to meet or exceed

customer expectation‖.

Crosby (1979); Deming (1986); Feigenbaum (1983); Juran (1986), have described

and advocated several instructions related to quality management. With the help of

their strong command on quality management gives better understandings on

principles use for quality management. there are many organisation that organize

many quality award ceremonies worldwide like the Deming Prize in Japan, the

European Quality Award (EQA) in Europe and the Malcolm Baldrige National Quality

Award (MBNQA) in the USA (Tari and Sabater, 2003). Quality management Guru

Juran (1989), stated that TQM is an aimed at continuously improving that merge

management philosophy on quality and process to accomplish consumer

satisfaction. In short, TQM is a way by which Organization improve quality and

process of product and it is also provide good understanding to satisfying all

stakeholders.


Deming, W. E. (1986) states that "By adopting appropriate principles of management,

organizations can increase quality and simultaneously reduce costs (by reducing

waste, rework, staff attrition and litigation while increasing Customer loyalty). The key

is to practice continual improvement and think of manufacturing as a system, not as

bits and pieces. Quality comes not from inspection but from improvement in the

process. You can expect what you inspect".

According to Ross and Perry (1999) different authors have given different definition

of TQM like Juran said ―Quality is fitness for use‖, Crosby said ―Quality is

conformance to requirements‖, Feigenbaum said ―Quality means best for certain

customer conditions. These conditions are (a) the actual use and (b) the selling price

of the product‖. Philosophies and teachings of quality gurus play very important role

to recognize or understanding the movement and evaluate of TQM process.

Table - 1: Views of Gurus on TQM


2.2 History and Evolution of TQM

In the last decade many organisations have come to appreciate the importance of

TQM to their business performance. They have realised that TQM will assist them to

become and remain competitive in both home and international markets. In 1948-

1949, Japan was trying to recover from its losses in World War II and to find ways to

revive its economy. An observation was noted by several Japanese engineers that

quality improvement almost always will lead to improvement in productivity so

therefore, TQM has been developed (Al-Assaf, et al.,1997). Naidu, N and Rajendra,

G. (2006) believes that this was the first time of SQC in Japan in 1950 Japanese

could really make tremendous progress by making heavy investments and by inviting

Dr. Juran in 1954. American industries took 30 years to understand the concept of

TQM. The development of quality activities has spanned the entire 20th century

curiously significant changes in the approach to quality activities have occurred every

20 years, Quality activities have traversed a long path from operator Inspection

(1900s) to verification of quality by supervisors (1930s) to establishment if quality

control departments and 100% inspection (1940s) to statistical quality control (1960s)

to TQC with statistical control (1980s) TQM and statistical problem solving (1990s).

Table-2:- Timeline showing the differences between old and new concepts of Quality


2.3 Total Quality Management Concepts

It must be company‘s top priority to improve its quality or service. In today‘s

competitive environment companies should except the value of TQM and must

impose on, if they want to increase their market share. It is important to keep

concentrate on product and services or whole value chain that increases customer

satisfaction and company profitability Customer satisfaction always achieved by

higher quality of product or service with adopting good price strategy. Further

Sreenivas, (2006) defines quality as ―Conformance to correctly defined requirements

that satisfy user needs‖ whereas, profitability can be increased by implement quality

improvement programmes (Kanji and Asher, 1996).

TQM is like strategic action that focuses managing over all organization to give its

consumer satisfactory product or service by using all recourses that organizations

hold. In this case, everyone considers that to achieve quality, TQM is highly

recommended and most advanced framework (Dale et al., 1994; Wilkinson et al.,

1998).

TQM can be describe as philosophy of an organization in which all members of

organization take its equal part which helps to develop business strategy of an

organization(Mehra et al, 2001). Total quality management (TQM) can be defined as

a systemic and global approach to a firm management based on management by

process and continuous improvement of business performances by all human

resources in order to satisfy explicit or implicit expectations of customers and other

stakeholders (Shiba et al., 1993; Dean and Bowen, 1994; Grant et al., 1994).

According to Hellsten and Klefsjo (2000) TQM emphasizing each stake holder by

using different set of principle. Dale, (1996) express that these reinforcing principle

supported by various tools and techniques. It is important for effective organization

that applies TQM to evaluate the process or culture among its employees. This


evaluation process helps organization to get desire results (Sigler and Pearson,

2000).

Figure - 3 TQM Concept [Source: Adapted from Oakland, J. S. 2001]

Oakland (1993) said that TQM is framework which provide guide line for continues

improvement process and also provides path to achieve objectives in less time

whereas this process of continuous improvement is consist of internal and external

quality improvement processes which is proportionally related with each other as

described by Steeples (1992), it is essential for an organization to maintain its

internal quality results because internal quality results are directly effect on image of

an organization. An organization take preventive stapes for failure of internal quality

results like organization must make plan to reduce errors, defect, scrap and

reprocessing rate, short production lead-time, competitive cost, and productivity (Rao

et al., 1999b; Steeples, 1992; Deming, 1986).

Customer satisfaction by product or service helps to judge the external quality results

of an organization. Organization can achieve better external quality result and

become or increase its loyalty in market by providing product and service in right

place and on right time without any delay which must be beyond the customer


expectation (Rao et al., 1999b; Evans and Lindsay, 1996). Satisfaction of consumer

rate of profit and position in competitive market are the factors which demonstrate

external quality result of organisation (Deming, 1982, 1986).

Figure – 4 TQM Concepts [Source: Adapted from Oakland, J. S. 1993]

Mehra et al., (2001) believes that focused on the customer and its importance and

mention that TQM itself is customer oriented. According to Chien et al., (2002) it is

fundamental and most important objective to achieve customer satisfaction for an

organization. TQM is a management strategy that, with sound design and successful

implementation, can be adopted to enhance customer satisfaction through a

concerted focus on customers. Furthermore, this strategy is equally applicable to

both manufacturing and service businesses operating in varied global cultures.

Mehra et al., (2001) conducted a literature review on TQM and suggested that

businesses implementing TQM should focus on five elements. These elements are

human resources (HRs), management structure, quality tools, supplier support, and


customer orientation. After summarizing the literature on TQM, Mehra et al., (2001)

Mehra et al., (2001) Concluded that organization should focus on future quality

improvement in which it must consider following four areas:

―(1) Customer focus

(2) Process focus

(3) Innovation focus

(4) Environmental focus‖

Figure – 5 TQM Concepts [Source: Adapted from Dale, B. G. 1996]

TQM is concerned with people, processes, and performance. But it also focuses on

communication, commitment, co-operation and company culture. Furthermore, it is

characterised by leadership, learning and long term objectives. Clearly TQM is not

easily defined in one sentence. But as described in the picture 1.1 by Oakland, J. S.

(2001) that a TQM initiative is requires commitment, culture and communication.


Dawson (1995) said that TQM is excessively dependent on Japanese culture and

cannot be successfully implemented in individualistic cultures like the USA. Other

scholars argue that TQM is not adaptable to dynamic situations in the current

business environment (Dooley and Flor, 1998). However, Hoover (1995) says

management anticipate quick and shortly from adapting TQM. However creating

organisational culture is a very difficult task in which all the employees should

committed for the improvement that effect customer needs and future expectation.

It is important for effective organization that applies TQM to evaluate the process or

culture among its employees. This evaluation process helps organization to get

desire results (Sigler and Pearson, 2000).

2.4 Quality Awards

Globally organisations maintain the quality with the help of any quality model and

there are so many quality awards and quality model, in which following are very

famous.

2.4.1 Malcolm Baldrige National Quality Award

The Malcolm Baldrige National Quality Award (MBNQA) led to a vast awareness

across the globe for quality awards frameworks to quality; on the result the

organization pay their attention toward quality product or service and evaluating itself

that also help to improving business strategy (Oakland, 2003). According to Jaideep

Motwani (2000), the Malcolm Baldrige National Quality Award (MBNQA) framework

has a seven-dimensional scheme that examiners use in assessing a company‘s

quality program. All of seven criteria seven criteria are help to obtain results and

concentrate on business result. MBNQA facilitate to achieve satisfaction of costumer


therefore organization keep continue improving quality and maintain standards for

better business, rather than providing a holistic quality management framework.

―The USA Baldrige Award aims to promote performance excellence and

Improvement in competitiveness through a framework of seven categories which are

used to assess organisation: leadership, strategic planning, customer and market

focus, information and analysis, human resource focus, process management and

business results‖ (Oakland And Marosszeky, 2006).

Figure – 6 Malcolm Baldrige National Quality Award

[Source: adapted from Oakland and Marosszeky, 2006]


2.4.2 EFQM Excellence Award

According to Dahlgaard et all., (2000) European foundation for Quality Management

(EFQM) was created in 1988 the purpose of EFQM is to promote quality as the

fundamental process for continuous improvements within a company.

The European (EFQM) excellence model provides guide line or framework of

improving performance via increasing the people involvement in process (Oakland

And Marosszeky, 2006). Oakland, (2003) believes that EFQM is mainly depends on

leadership and its sub criteria as part of their model of excellence. Organizations

apply this principle to create clarity and loyalty purpose.

Figure - 7: EFQM Excellence Model [Source: Adapted from EFQM, 2003]

2.4.3 Four Ps and Three Cs Model

Improvement and performance can be achieved by using business excellence

approach and increasing people involvement in process. The key drivers for

improving overall performance are planning, people, and process. Integration of four


P‘s and three C‘s framework with the simple model of TQM get organization forward

and successfully (Oakland, 2003).

Figure – 8: Four Ps and Three Cs (Source: Adapted from Oakland, 2003)

2.4.4 PDCA Model

The application of the PDCA has been found to be more effective than adopting the

‗right first time‘ approach concentrating on developing flawless plans, the PDCA

means continuously looking for better method of improvement (Juran, 1999). There

four steps of PDCA which are as follow:

A. Plan: the cycle starts with the plan stage, comprising the formulation of a plan

of action based on the analysis of the collected data.

B. Do: this may involve a mini PDCA cycle until the issues of implementation

resolved.

C. Check: where the results after implementation are compared with targets to

assess if the expected performance improvement has been achieved.

D. Act: if the change has been successful then the outcome is standardised.


If the change has not been successful however, the lessons are recorded and the

cycle starts again. Even if the change is successful, the results are sustained by

going through the PDCA cycle over and over again (Basu, 2004).

Figure – 9: PDCA Cycle (Source: adapted from Dale, 2000)

2.5 TQM Philosophy

The total quality management philosophy provides the overall general concepts for a

continuously improving organisation. The TQM philosophy stresses a systematic,

incorporated, reliable, organisation broad perspective concerning each person and

everything. It focuses mainly on full satisfaction of customer (both the internal and

external customer) within a management environment that fosters continuous

improvement of all systems and processes as claimed by Galloway, et all., (2000),

that there are two main targets of TQM are zero defect and customer satisfaction.

According to Saylor and Barkley (2001) the philosophy values empowering people.

Teams, predominately with a multifunctional emphasis, are an important primary

method used to lead improvement from within the organisation. The TQM philosophy

stresses optional life-cycle cost. It uses measurement within the disciplined

methodology to target improvements. Prevention of defects and quality in design are

key elements of the philosophy. Elimination of losses and reduction of variability are


its aims. Further, it advocates developing relationships internal, supplier, and

customer. Finally, the philosophy is based on an intense desire to succeed (Saylor

and Barkley 2001). Oakland and Marosszeky 2006 states that an organisation needs

a vision framework, comprising its guiding philosophy, core values and beliefs,

purpose, and mission for continuous improvement to achieve the total customer

satisfaction and overall success of the organisation.

Figure – 10: TQM Philosophy: [Source: Adapted from Oakland and Marosszek, 2006]

2.6 Total Quality Management Process

Ross and Perry (1999) in an organisation everything is a process, whether it is

processing a customer order, purchasing supplies, opening an account, or shipping a

product. There are dozens of activities in an organisation and each activity may have

several processes. Each of these processes is interconnected into a total system that

transforms input into output. Every process has customer (those who depend on it or


are affected by it) and suppliers (those who provide the necessary input for that

process). One of the primary objectives of TQM is to create processes in which

individuals or groups will ―Do it right the first time‖ and ―Do the right things right‖.

Oakland, (2003) It is necessary to define, monitor and control the inputs to the

process, which in turn may be supplied as output from an earlier process, although

excellent communication plays a vital role to total quality performance because poor

communication often produce undesirable output. There must be an arrangement of

a system, in TQM process in which customer feedback should welcome because by

receiving regular feedback the process accomplish and organisation get success

(Oakland and Marosszeky, 2001).

Figure – 11: TQM PROCESS: [Source: Adapted from Oakland, 2003]

2.7 TQM as a System

A system is a collection of components that interact and have a common purpose

(aim) to achieve for the success of an organisation. It is the responsibility of top

management to go through the entire system towards its aim. Total Quality

Management system consists of values, tools, and techniques, The core values

represent a starting point for the culture of an organisation. They have an enormous

control on the choice of strategies for reaching different type of objectives to achieve


the customer satisfaction (Pham, H. 2003). According to Hellsten, (1997) states that

literature shows in most of descriptions related to TQM that a number of core values

seems to be common, namely ―focus on customer‖ , ―management commitment‖ ,

―everybody‘s commitment‖ , ―focus on process‖ , ―continuous improvement‖ and ―fact-

based decisions‖, Although core values are considered as the culture of an

organisation but these core values are linked to technique which is another

component that provides the map how to work within the organisation, for achieve

the core values, techniques must performed some activities in certain order. The third

component is tools which can be defined as to support decision making and facilitate

analysis of data. Core values, tools and techniques are mutually dependent each

other and support each other (Hellsten and Klefsjo, 1998).

TQM is a management system as Deming, (1994b) described ―A network of

interdependent components that work together to try to accomplish the aim of the

system‖. ―TQM means that the organisation‘s culture is defined by and supports the

constant of customer satisfaction through an integrated system of tools, techniques

and training. This involves the continuous improvement of organisational processes,

resulting in hi quality products and services‖ (Kiser and Sashkin 1993).

Figure – 12: TQM as a System [Source: Adapted from Hellsten and Klefsjo, 2000]


2.8 Elements of TQM Strategy

Successful organisations have central core culture around which the rest of the

company revolves. It is important for the organisation to have a sound basis of core

elements into which management and other employees will be drawn.

2.8.1 Top Management Commitment

Top Management Commitment has been attracting a great deal of attention and

acquiring newer shades of meaning in the TQM because Klefsjo and Bergman

(1994), believes Organization must concentrate on quality strategy continuous and

reliable commitment from higher management question of Quality Furthermore Ross

and Perry (2004), states that It include structures and mechanisms for decision

making, selection and developments managers, and reinforcing values, practices,

and behaviours. Whereas most of the authors express their view regarding higher

management commitment for TQM is the main significant aspect in ensuring the

implementation of TQM successfully (Thomas, 1991; Doyle, 1992). Top managers

are seen to be engineers of culture that respect the individual and fosters creativity.

In this capacity, their most important task are to convey the brief information to

employees that what is the importance of quality, which help to imagine quality term

in strategic prospective, set achievable quality standards and provide training on

quality (Mihaela & Kelemen, 2003). The Chief Executive of an organisation must

accept the responsibility for and commitment to a quality if the CEO of the

organisation does not accept their responsibility then the staff in the company will not

pursue the quality system (Oakland, 1993).


2.8.2 Customer Focus

According to Goldsmith, (1994) TQM is the most excellent way to continues

improvement and has had huge impact on organization by gather the consumer at

the heart of decision and improvement regarding quality. The Quality improvement

process is driven by customer needs, expectations, and requirements. Once the

internal and external customers are identified the next difficult step is trying to meet

the customer requirement and expectations (CREs) (Arcaro & Arcaro, 1997).

This means that an organisation must remain close to its customers. Unfortunately

many organisations do not understand the needs of customer. So therefore

successful organisation realise that a major factor in Total Quality Improvement is

monitoring performance in meeting or exceeding customer requirements. As

suggested by Klefsjo and Bergman (1994) that quality has to be treasured by the

consumers and it has to be set as a reflection to their requirements and expectation.

2.8.3 Base Decision on Facts

According to Klefsjo and Bergman (2003), an important element of TQM is to make

decisions based on facts which are well founded, and not to allow random factors be

of decisive importance. It is very necessary in an organisation to have facts to

manage business at all levels and essential element of TQM for continuous

improvement (Kanji, 2002). According to Kotler (1996) when the companies launches

their product/service in the market majority of them are failed or remain unsuccessful.

This statement emphasizes that making decisions should be based on the facts

specially keeping in mind the present and future requirements and needs of customer

(Klefsjo and Bergman, 2003).


2.8.4 Employee Involvement and Empowerment

It is very important that strategy which is adopted for quality is successful and every

person in an organization must following this strategy to achieve higher level of

consumer satisfaction and to continuous improvement of quality (Klefsjo and

Bergman, 1994). Furthermore to employee commitment and involvement play

important role, organization emphasis great important on their employs

empowerment organisations have to create an environment in which employees

should take responsibilities, and management build a process which provide some

additional authority and skill to employee to take a part in customer satisfaction

(Oakland, 2003). According to Evans and Lindsay (1996), believes that in TQM

organisation HRM unites develop policies and procedure to ensure that employee

can perform multiple roles, improvise when necessary, and direct them towards

continuous improvement of both product/service quality and customer service.

Involvement and empower the individuals and teams in an organisation for decision

making that directly link with quality and satisfaction of costumer, and continually

improve key personnel management processes such as recruitment, hiring, training,

performance evolution, and recognition (Dale, 2002).

2.8.5 Continuous Improvement

Quality improvement objective of continuous improvement for quality by reduce non-

conformance in each step throughout the organization. As described by Faure and

Faure (1992), ―There are enormous benefits from successful implementing quality

improvement programs like customer satisfaction, elimination of errors and waste,

reduction in cost, increased motivation and commitment of employees, and increase

profitability and competitiveness‖. Because the external demands for quality are

continuously being increased. Therefore, continuous process of quality


improvements of goods and services produced by the company (Klefsjo and

Bergman, 1994). It is important for an organization to focus on wide range of options

for opportunities for improvement and to reduce the problem so that focus to creation

of teams whose membership is determined by their work and detailed knowledge of

process, and their ability to take improvement action. The teams must then be

provided with good leadership and the right tools to tackle the job (Oakland, 2003).

Furthermore Kehoe (1999), states that ―improve continuously quality offerings,

achieve customer satisfaction and reduce costs. Overall performance of the

organization is associated with continuous improvement‖. Continuous improvement is

an integral part of TQM and is mainly used in all sectors of Industries (Klefsjo and

Bergman, 1994).

2.8.6 Training

Seaver (2003), defines training as it is the process that enables people to do work

that they could not do before their training, it is the process which enables them to do

their work measurably better. Employees, from top to bottom of an organisation,

should be provided with the right level and standard of education and training to

ensure that their general awareness and understanding of quality management

concepts, skills, competencies, and attitudes are appropriate and suited to the

continuous improvement philosophy and it can be provided by organisation in two

ways on the job and off the job (Dale, 2003).

Every organisation defines its policy in relation to quality. The policy should contain

principle and goals to provide a framework within which training activities may be

planned and operated, policy should be communicated to all levels. Quality training

activities can be considered in the form of a cycle of improvement, the elements of

which are the following (Oakland, 1993).


2.8.7 Benchmarking

The word benchmark is a reference or measurement standard used for comparison,

and benchmarking is the continuous process of identifying, understanding and

adapting best practice and processes that will lead to superior (Oakland, 2003).

According to Goetsch and Davis (2010), ―Benchmarking is the process of comparing

and measuring an organisation‘s operations or its internal processes against those of

a best in class performer from inside or outside its industry‖. Benchmarking

measures an organisation‘s operations, products, and services against those of its

competitors. It establishes targets, priorities and operations leading to competitive

advantages. There are four basic type of benchmarking: internal, competitive,

functional and generic. The evolution of benchmarking is an organisation is likely to

progress through four focuses towards continuous improvement. The implementation

of benchmarking has fifteen stages which are characterised into plan, analyse,

develop, improve, and review (Oakland, 1996).

2.8.8 ISO-9000

Juszczyk and Seebacher (2002), stated that ISO 9000 was established in 1946 by

the International Standard Organisation (ISO) and the main benefit of ISO 9000 is to

ensure that manufacturer and service provider produce their goods and services

according to minimal standard set by the ISO. It is divided in five standards from

ISO-9000 to ISO-9004 (Klefsjo and Bergman, 1994). ISO 9000 and TQM are not

completely interchangeable; ISO 9000 is compatible and can be a subset of TQM.

ISO-9000 can be implemented easily in non TQM organisation but at the same time

both quality systems can be adopted (Goetsch and Davis, 2006).

The benefit of ISO – 9000 regarding organisation is stated by Goetsch and Davis

(2010), ―Provide the framework for continual improvement to increase the probability


of enhancing customer satisfaction and the satisfaction of other interested parties. It

provides confidence to the organisation and its customers that it is able to produce

products that consistently fulfill requirements‖. And further more ISO – 9000 provides

benefit for customer is ―Requirement can be met if the organisation listen to the

customer demand and design accordingly, price can be more competitive because

waste is minimised as improved processes become more efficient‖ (Goetsch and

Davis, 2010).

2.9 Tools and Techniques of TQM

Many of the tools and techniques utilised under the TQM umbrella. TQM involves

application of the right tools in the organisation for the continuous improvement of

quality. Therefore, each organisation may require a different mix of tools and

techniques depending on the business, quality of employees, culture, and the

customer profile. The tools and techniques that are available for TQM implementation

are given follow:

2.9.1 Brainstorming

Brainstorming is a technique used to generate large number of ideas quickly, and

may be used in a variety of situations. Every individuals are invited to put forward

new ideas concerning a problem, during the brainstorming session criticism is not

permitted because everyone have equal status to give relevant ideas for solving the

problem. Finally with mutual consent a decision is made regarding the raised

problem for better results in the organisation (Oakland, 2003).


2.9.2 Process Flow Charting

It is a diagrammatic view of the various steps in sequential order that form an overall

process in an organisation. Process flow charting ensures a full understanding of

inputs, outputs and flow of the process; it is used for describing any process in an

easy form to understand how any job and process carried out (Dale, 2003).

Figure – 13: Process Flow Charting (Source: adapted from Kanji, 2001)

2.9.3 Statistical Process Control (SPC)

This tool is used as a prevention tool in manufacturing or service sector to maintain

the cost, and produce high quality in product/service to achieve customer

satisfaction. It is very useful for prevention of unnecessary cost by monitoring and

measuring the process performance (Oakland, 2003).


2.9.4 Histogram

According to Oakland (2003), Histogram demonstrates in a very clear graphical way,

in which it shows how to organise data, summarising and with the help of histogram

people knows the results of their efforts.

Figure – 14 Histogram (Source: Dale, 1999)

2.9.5 Cause Effect Diagram

Cause effect diagram is also known as its developer‘s name Ishikawa diagram, which

is useful way of mapping the input that affects the quality. It is a graphic based

diagram which describes the causes and effects of the process furthermore, it shows

interrelated diagram format (Oakland, J. S. 2003).

Figure – 15: Causes and Effect Diagram (Source: Kanji, 2002)


2.9.6 Scatter Diagram

This technique is useful to establish the association between two parameters or

factors, to begin an analysis is simple X and Y plot of the two sets of data. The result

on scatter diagram will be a strong or weak, positive or negative, correlation exist

between the parameters (Oakland, 2003).

Figure – 16: Scatter Diagram (Source: Oakland, 2003)

2.9.7 Control Charts

A control chart is form of traffic signal whose operation is based on evidence from the

small sample taken at random during a process. These charts made easy to

understand and interpret and they can become, with experience, sensitive diagnostic

tools to be used by operating staff and first time supervision to prevent the errors or

defective output being produced (Oakland, J. S. 2003).

Figure – 17: Control Charts (Source: Berhman, 1993)


2.9.8 Quality Function Deployment (QFD)

Oakland (2003), states that Quality function deployment (QFD) is a system for

designing a product or service bas on customer requirement. QFD brings a number

of benefits to organisations trying to enhance their competitiveness by continually

improving quality and productivity. The process has the benefits of being customer

oriented, time efficient, teamwork oriented, documentation oriented (Goetsch and

Davis, 2006). All over the world QFD has been utilised to improve product/service

planning and process development with effective communication skills, QFD is also

an excellent tool for communication (Klefsjo and Bergman, 1994).

2.10 TQM in Service Sector

The service sector plays a vital role in maintaining the economic stability and such a

sector is growing at a very rapid rate. According to Harris, (1991) Service has been

defined as ―A social act which takes place in direct contact between the customer

and representative of the service company‖. Many organisations are pure service

businesses; their products are intangible, like law firms they provide legal advice and

a hospital which provides comforts and better health, and also real estates,

education, financial services, banking, insurance, transportation, police, hotels, and

public utilities are usually included in this category (Evans and Lindsay, 1996).

Globally many organisations have been progressively implementing TQM to reduce

costs, improving efficiency and provide higher quality to their customer to satisfy in

the service sector.

According to Bryman (2004), TQM in the service sector has meant that the emphasis

in the quality movement on ―fitness for use‖ or ―fitness for purpose‖ was translated

into a focus on ―fitness for the customer‖. Satisfying the customer‘s needs became a

paramount concern. The biggest challenge faced by top management in service


sector is to understand the exact nature of customer needs. As Cook, (2008) states

that today‘s consumers are increasingly sophisticated, educated, confident, and

informed so therefore they have high expectations of the service they want to

receive. ―In the service sector, consumers expect and demand more, because they

know they can get more‖. However Dale (2003), states that TQM is the mutual co-

operation of everyone in an organisation and associate business processes to

produce value for money products and services which meet and hopefully exceed the

needs and expectations of customer. Total quality management (TQM) is all about

fostering a culture that is continuously oriented towards increasing customer

satisfaction while minimizing the real cost of production (Kanji, 2002).

2.11 TQM in the Airline Industry

According to Ahmed, et all., (2006), the airline industry has undergone significant

restructuring in recent years. Airlines formerly rivals in a highly regulated industry. In

today‘s world, mega-carriers and small airlines are working together rather than

competing with one another.

According to Loudon, et all., (2004), Marketing share of airline‘s should be increase

by increasing the customer satisfaction through providing better food, cleaner cabins,

trained cabin crew, lower fares and better baggage handling. Specifically an Airline

can be measure on-time departure and the time it takes to make a reservation.

However For a long time the airline industry has found itself struggling not just in

terms of profitability, but also in customer satisfaction and loyalty (Gustafsson, 2001).

There is a growing competition amongst airlines to provide better quality services to

passenger at economical air-fares. Technology is also being extensively used to

improve customer satisfaction. Ahmed, et all., (2006), believes that information

technology is now being used substantially in areas like passenger enquiry, ticket


ordering, luggage tracing, check-in, frequent flyer programme (FFP), passenger

information system, on board services. Through choice of technology, Passengers

expect airline to ensure safe journey, support to mitigate problems due to critical

incidents and meet time commitments. Thus, service managers should ensure that

the performance on all components of delivered service is perceived as excellent by

customers and also sustain high levels of satisfaction. Ahmed, et all., (2006), states

that the airline company defined business activities and maintain quality from the

passenger points of view. Passengers travel process was divided into six phases

starting from passenger enquiry and ending up with passengers being out of

operations. Around passenger travel process and satisfaction drivers, the company

identified key business activities:

On/off flight service;

People management;

Supplier network management;

Information technology adoption and integration;

Passenger perception management; and

Customer satisfactions measuring and complaint handling.

Figure – 18: Key activities in the passenger travel process [Source: Airlines, 2002]


According to Lorenzoni and Lewis (2002), the airline has a service-oriented culture,

which emphasises the need to dedicate attention to the customer throughout all

aspects of the service delivery and interaction. Complaint management and service

recovery is an integral part of their service delivery strategy, and their training and

customer awareness programmes involve employee across all the levels of the

organisation.

2.12 Benefits of TQM in Airline Industry

Proper implementation of TQM in airline industry can provide many benefits to the

internal and external customer and increase overall performance of an airline

organisation. According to Sreenivas (2006), TQM offers an approach for an airline

organisation to design processes, policies, and jobs so therefore they are the best,

most effective methods for serving users‘ needs, eliminating inefficiencies, and

making sure that quality service is built into the way things are done. TQM enables to

focus on performance in order to ensure that people and organisational units

possess the competence to follow established processes and procedures

consistently and reliably (Jurow and Barnar, 1993). According to Dale and Plunkett

(1999), the benefits of TQM fall into two major categories – revenue enhancement

and cost reduction, significantly improved service performance, features, reliability,

conformance, durability, serviceability or perceived quality should result in increased

demand. A reduction in total product cycle time, improves the availability and the

ability to provide a tailored customer service. Such benefits translate into increased

market share and usually increased revenues, eventually these revenues by airline

industry plays a positive role in maintaining the economic stability of the country

(Kubr and Office, 2002).


2.13 Service Measurement Models in Airline Industry

Many researchers and marketers have focused their attention on customer

evaluations of services in an effort to find ways to improve service quality.

Kearney (1986), was the first one to conduct service quality assessments from the

perspective of the airline consumer, which examined service quality from the

perspective of industry-based economic and marketing measures, because

Measurement and management of service quality is the fundamental issue for the

survival and growth of airline companies (Cunningham, Young, and Lee, 2002).

Following are some measurement tools which are widely used in the airline industry.

2.13.1 SKYTRAX

According to Tsantoulis and Palmer (2008), SKYTRAX is an airline quality award, to

exercise for evaluate the quality of an airline. This was included in order to enrich the

index with an established indication of airline quality deriving from consumer opinion.

SKYTRAX award is a widely recognized worldwide survey based collection of

consumer views on airline service quality. SKYTRAX evaluates the reality of the

―delivered‖ service being supplied to the customers by being concerned with

consumers‘ perceptions of airline service quality. The delivered service is compared

against the promised service, giving a realistic view of the service quality provided by

the subject airline. Hence, a low cost airline with a much reduced product offering

than its traditional ―full service‖ competitors can still be eligible for a high ranking and

thus a SKYTRAX superior quality award (Tsantoulis and Palmer, 2008).

2.13.2 SERVQUAL

Parasuraman, et al., (Parasuraman, Berry, & Zeithaml, 1991; Parasuraman,

Zeithaml, Berry, 1985, 1988) developed a service quality measure, called


SERVQUAL, which states that the customer‘s assessment of overall service quality

is determined by the degree and direction of the gap between their expectations and

perceptions of actual performance levels. They also identified five essentials for

service quality: tangibles, reliability, responsiveness, assurance, and empathy. They

proposed that perceived service quality could be estimated by calculating the

difference between expectations and perceptions of actual service performance.

2.13.3 SERVPERF

Cunningham and Young (2004), used SERVPERF in measuring the airline service

quality, SERVPERF is a set of multi-dimensional measures of customer evaluation of

service quality. According to Wen Li and Chen (1998), the process of travelling a

domestic airline can be described as follows: Ticket—check, in—boarding, departure,

flying, arrival, and baggage claim. SERVPERF model aimed to provide an alternative

method of measuring perceived service quality and the significance of the

relationship between service quality and customer satisfaction (Gilmore, 2003).

2.15 Challenges faced by Airline Industry

The airline industry is going through dramatic changes. The big challenge in the

industry is regulated by government and increasing day by day customer demands

and expectations. So therefore, many airline companies have lost track of the true

needs of their passengers and are trapped in outdated views of what airline services

are all about. Airlines as a whole have serious problems with three of the lessons that

Berry, et al,. (1994), discuss namely reliability, basic service, and service design.

Data on on-time performance, denied boarding, and mishandled baggage suggest

serious problems with reliability and basic service provision for some carriers. While

airport congestion and the hub-and spoke system can be blamed for some of the


problems with on-time performance and flight problems (delays), airlines can reroute

some traffic to secondary airports, expand facilities and infrastructure, and refuse to

hold flights longer than a certain time waiting for incoming flights. Many of the

problems/complaints are related to information systems. According to Gruberfirst

(2004), many consumers ‗‗have more negative feelings about an organization after

they go through the service recovery process‘‘. Behn and Riley (1999), found that the

complaints of airline passengers are negatively correlated with future revenues and

profit margins so therefore, it is a big challenge nowadays in the airline industry.

Srinivasan, et al., (2002), he identified the negative effect of some measures of

service quality on satisfaction, including late arrivals, the number of mishandled

baggage and the number of ticket over sales on a flight (Januszewski, 2004).

Culture in places of work is one of the challenge in airline industry and most

important in stabilizing and making sense out of the social system. It is the soft

foundation on which the firm is built. Many researchers have attempted to understand

the effects of organizational culture on the delivery of quality services. Maull, et al.,

(2001), states that the organizational culture construct is a primary condition for the

successful implementation of quality management. Firms that have cultures

supportive of strategy are likely to be successful, while businesses that have an

insufficient ―fit‖ between strategy and culture must adapt, because organizational

culture plays such a central supporting role in the creation of viable strategic

objectives (Maull, et al., 2001).

2.16 Implementation of TQM in Airline Industry

The goal of service development is to attract and keep customers who are satisfied,

loyal and speak well of the company. To really understand customers' needs and

wishes, it is appropriate and often necessary to involve them in the process of


developing new services. However, there must be systematic work involved in first

collecting and then using customers' input either to improve an existing product or to

develop something new.

Norling, et al., (1992), have resulted in an attempt to set up a model for service

development, which consists of three concepts and a process in four phases. The

three concepts necessary to describe a service are: the service concept; the service

system; and the service process. According to Norling, et al., (1992), the four phases

are the idea phase, the project formation phase, the design phase and finally the

implementation phase. During the idea phase the service idea is identified and

evaluated against the current company business objectives. The idea phase ends

with a decision, often based on preliminary market research and customer analysis,

as to whether or not it is worthwhile and of interest to the company to pursue the idea

further. Once the decision has been made to proceed, the next phase in the process

is begun. The objective of the project formulation phase is to create a team of people

with knowledge and competence suitable for the specific service to be developed.

When such a team has been formed the project enters the design phase. It is during

this phase that the three concepts discussed above are combined to eventually form

the basis for the actual service. The service development process is concluded with

the implementation phase, during which the service is launched both internally, for

example in the form of education and training of employees, and externally with a

market entrance (Norling, et al., 1992).


Research Methodology

Chapter

Three


CHAPTER: 3 – Research Methodology

Research chapter explains that how the research has conduct the research.

Further this chapter includes research design, research strategy, research

approach, research philosophy and research method. After this chapter will also

briefly describe how data has collected and analysed.

The main objective of the study is ―To investigate and examine the TQM practice in

PIA with comparison of Emirates and Saudi Arabian Airlines‖, to keep in mind

researcher has decided to collect primary and secondary data from different sources.

After collection of data researcher has gone through a mixed method

(quantitative/qualitative) for analysing the data. Researcher has collect secondary

data from a wide range of literature and primary data was collected through a close

ended passenger survey at Karachi Airport (Pakistan), and also collect data through

close ended questionnaire from managers of PIA, Emirates and SAA. The way of

collecting primary by close ended survey and questionnaire was chosen because

there will be no any uncertainty during research. Researcher has made questionnaire

and survey forms very easy for the understanding of managers and passengers

3.1 Research Design

According to Ghauri, et. al., (2005), believes that it is a way in which researcher

make a plan, that how to collect data and analyse it. Research design provides a

theoretical framework in which researcher how conduct the research. Management

research projects are designed on three types of research design which depends

upon aims and objective, which is exploratory, explanatory and descriptive. This is


exploratory based research because the objective of this study is concern with the

research question like ‗How‘ or ‗why‘ and ‗what‘. This study is comparative in nature

because to compare the collected data from PIA, Emirates and SAA on particular

research question (Saunders, et. al., 2007). How Total quality management can be

implement in PIA with comparison of Emirates and SAA. So therefore it is clear that

research frame was exploratory. Research design of this dissertation consist of close

ended survey form, which has been distributed approximate in 100 passengers at

Karachi Airport (Pakistan) and close ended questionnaire has given for filling to 15

managers of PIA, Emirates and SAA, in different departments of each organisation.

After receiving all filled survey forms and questionnaire an analysis was done.

The study TQM in Pakistan International Airline leys emphasis that new ideas will be

come out that what are the passenger‘s preferences in context to the services

provided by PIA, Emirates and SAA. The aim of this dissertation is to understand the

need and importance of quality in service sector.

3.2 Research Strategy

As described earlier that this research is exploratory so therefore it is very easy for

researcher to chose the research strategy for this dissertation, because any research

strategy would be suitable (Yin, 2003) in context to the research question ‗How‘,

‗What‘ and ‗Why‘ researcher has select the case study which suits best according to

the topic of this dissertation which is ―How to implement total quality management in

PIA with comparison of Emirates and SAA‖ Further Robson (1993), defines case

study as ―development of detailed, intensive knowledge about single ‗case‘ or small

number of related ‗cases‘‖. The method of collecting data would be several as

researcher has collect data through distributing survey forms in passengers and

distributing a questionnaire in managers of PIA, Emirates and SAA.


3.3 Research Philosophy

The main theme is how researcher thinks about the development of knowledge,

research philosophy bases on thinking of researcher. In other world it is a way in

which researcher conduct the research (Saunders, et al., 2007). There are two types

of philosophy in the research area Positivism and phenomenology. As the topic of

this dissertation is TQM in Pakistan International Airline for this purpose researcher

has gone through Phenomenology (Interpretive) because the positivism philosophy is

linked to natural science. ―An Interpretive philosophy contends that generalizations

are not of essential importance and this approach describes the scenario of the

situation to recognize the reality worked behind them (Ghauri and Grohaung, 2005)‖.

The reason to go through interpretive philosophy is, it was required to analyse the

manager‘s perspectives of quality in PIA, Emirates and SAA as well as passenger

perspective of quality in these airlines.

3.4 Research Approach

Before starting this dissertation researcher has clear idea of aims and objective of

this research work, so keeping in mind researcher has found inductive approach is

very suitable for this dissertation, because of inductive approach‘s nature of flexibility

and exploratory. In which there will be need to collect data from passengers as well

as managers of PIA, Emirates and SAA and a conclusion will be developed as a

result of data analysis (Saunders, et. al., 2007).

Having personal contacts in PIA as well as in Emirates and SAA so therefore an

inductive approach will be use suitably by researcher in order to get information

about the TQM practices in PIA with comparison of Emirates Airline and SAA.


3.5 Research Method

Quantitative and Qualitative are two types of research methods available for research

purpose. In qualitative approach researcher can get information in shape of words

while quantitative approach only deals with numeric (Merriam, 1994). Quantitative

approach is mostly used as a synonym for any type of data collection method for

example questionnaire or surveys and data analysis method like graphs which shows

only numerical data. While in qualitative approach data can be collect through

several techniques in shape of interviews, face to face or telephonic and for data

analysing categorise the collected data used as non-numericals (Saunders, et. al.,

2007). The researcher used mix method (Qualitative/Quantitative) for data collection,

based on quantitative data a passenger perspective survey will be conduct and a

questionnaire will be distributed to the managers of PIA, Emirates and SAA. On the

basis of personal relation in PIA who wanted to be anonyms some qualitative data

has been gathered, in order to provide clear picture of TQM implementation in PIA

with comparison of Emirates and SAA.

3.6 Data Collection [

For the purpose of this study, an amalgamation of primary and secondary data has

been used. The secondary data provide an in-depth knowledge of TQM concept and

also offers a support for conducting the research.

3.6.1 Primary Data [

Primary data is one in which the information was gathered by researcher himself for

the reason of a precise study. The data is original and is created with the help of

surveys and questionnaire from passenger and managers of PIA, Emirates and SAA.


On the study of PIA the main objective of the primary research is based on the

quality improvement process in cross section of airline sector.

The management of PIA, Emirates and SAA are very much busy so therefore the

researcher has collect little bit data by conducting short interview, researcher has

given the questionnaire to the managers of PIA, Emirates and SAA and get it back by

hand. There is a list of questions in the questionnaire which was asked and has a

space where respondents write their answers.

3.6.2 Secondary Data

The data used by the researcher from other sources and the same was used and

composed by someone; such data was known as secondary data. For the researcher

the data is a secondary because he use for his own purposes but for the organisation

is the primary one. The secondary data can be taken from journals, websites,

business magazines etc. Secondary data is compiled by other people and for other

purposes and is not meant specifically for the objectives of the study. Internal records

and reports of previous research about total quality management carried out in PIA,

Emirates and SAA, external sources like trade associations, newspapers,

magazines, journals and articles from internet may be sources of obtaining

secondary data.

3.7 Data analysis

The data analysis is vital and important step of the research. The data collected from

various sources is categorised and restructured the aim and objective of the

research. As the researcher has to look after the possible threats of misconception of

data and this is a significant stage in the research. This method allows researcher to

study and then categorise the data into thoughts (Agar, 1980).


For improvement in business an ongoing agenda is the main TQM concern in the

existing company environment. Therefore, the thorough review of airline sector and

the data created from the formerly published reports, articles and questionnaire is

observed to look on the present market situations and structural dangers.

3.7 Deductive and Inductive Approach

An inductive argument is one in which the premises are supposed to support the

conclusion in such a way that if the premises are true, it is improbable that the

conclusion would be false. Thus, the conclusion follows probably from the premises

and inferences. A deductive argument is one in which it is impossible for the

premises to be true but the conclusion false. Thus, the conclusion

follows necessarily from the premises and inferences. In this way, it is supposed to

be a definitive proof of the truth of the claim (conclusion). Major differences between

deductive and inductive are as bellow.


Results of Findings

Chapter

Four


CHAPTER: 4 – Results and Findings

The fourth chapter will clearly brief the picture of TQM in PIA, Emirates and SAA

through conducted passenger survey and managerial questionnaire, then provide

the internal and external challenges faced by PIA.

4.1 Survey Results

Researcher has conducted a survey in this research through distributing approximate

one hundred survey forms at Karachi Airport (Pakistan) in the passengers, in order to

fulfill the aim of this dissertation which is ―How to implement Total Quality

Management in PIA with comparison of Emirates and Saudi Airlines‖.

4.1.1 Selection of Airline on Customer Perspective

Most of the respondents were attracted by Emirates and Saudi Airline than PIA and

in the last other airlines, during survey it has been observed that 15% passenger like

PIA in which 3% respondent like PIA because of service, 2% for price, 8% for

time/schedule and 2% for other reasons. While 20% people attracted by SAA as well,

in which 12% for service, 3% for price, 3% for time/schedule and 2% other reasons.

According to survey 55% of the passenger pays particular attention to fly via

Emirates having different perception as 30% for Service, 5% for price, 15% for

time/schedule and 5% other reasons. In this survey 10% passengers have variety to

select airline according to their destination or time and schedule.


0

10

20

30

40

50

60

Passenger Service Price Time/Schedule

Other Reason

PIA 15 3 2 8 2

Emirates 55 30 5 15 5

SAA 20 12 3 3 2

Others 10 3 2 4 1

Selection of Airline on Particular Reason

Figure – 20: [Selection of Airline on particular reason]

4.1.2 Overall Rating

Overall rating means how customers perceived the expected service provided by the

organisation. This overall rating has been conducted on the basis of service, price

and time/schedule. In passenger survey 13% passenger gave excellent remarks and

13% poor remarks for PIA, and 64% of them gave excellent remarks and 2% poor

remarks for the Emirates Airline while 40% of passengers gave excellent remarks

and 5% poor remarks for the SAA. To distinguish between the passenger of PIA,

Emirates and SAA most of passenger would prefer Emirates and subsequently SAA

after that PIA.

Figure – 21Overall Rating of PIA, Emirates and SAA regarding Service, Price and schedule

Excellent

13%

V. Good27%

Good34%

Fair13%

Poor13%

PIA

Excellent

64%

V. Good22%

Good7%

Fair5%

Poor2%

Emirates

Excellent

40%

V. Good30%

Good15%

Fair10%

Poor5%SAA


4.1.3 Attracted Aspects

In this survey the result of some aspects has been identified which attract the

passenger to select an airline in which Emirates Airline is the most popular airline

and the second number is Saudi Arabian Airline and Other airlines are also well

known as compare with the Pakistan International Airline. PIA have no more such

attention by the passenger regarding quality of services while PIA have few attracted

aspects like luggage weight and time/schedule.

Figure - 22 [Important Attracted Aspects]

4.1.4 Need to be Improved

While conducting this survey researcher has recognised some main aspect which

needs to be improved in PIA because as shown in the above figure 22 that almost

passengers were not satisfied with services of PIA as compare with Emirates, SAA

and other airlines, accept luggage weight and time/schedule. Passengers are

satisfied In Emirates Airline almost with all the aspects at all levels only baggage

claim and luggage weight must improve by Emirates management. SAA is providing

average service in all areas but in some aspects special needs to be improve in

0102030405060708090

Others

SAA

Emirates

PIA


cabin crew behaviour, check in Desk and time/schedule. While other airlines are also

satisfactory at all.

Figure - 23 [Important Aspects Needs To Be Improved]

4.1.5 Above qualities exist in PIA?

In this survey approximate 52% passengers were not agree that above mentioned

service qualities are available in PIA and 34% of passengers are agree with above

service qualities while 14% have not given remarks about PIA. Finally in the

conclusion of above survey and with the help following pie chart researcher can

identified that most of the passenger are not satisfied with service quality of PIA with

the comparison of Emirates and Saudi Arabian Airline.

Yes Agree34%

Not Agree52%

None of Above14%

What do you say that all the above qualities exist in Pakistan international airline?

Figure - 24 [Important Aspects Needs To Be Improved


4.2 Questionnaire Results

Researcher has designed a Questionnaire (App: 2) to achieve the clear picture of

total quality management in ―Pakistan International Airline with the comparison of

Emirates and Saudi Arabian Airline‖. For this purpose researcher gave separately

Questionnaire to 15 managers of different department in each organisation and

received the response of 8 managers from PIA, 6 from Emirates and 5 from SAA.

The structure of Questionnaire was designed on the basis of Aims which already

researcher described in chapter one.

4.2.1 Quality Management System

While conducting this research work, the researcher has got responses of 8

respondents from PIA, 6 respondents from Emirates and 5 respondents from SAA.

The results achieved from responses shows that PIA has got the certification of ISO

9001and ISO 14001 in the year 2006. Whereas results shows that Emirates has got

certification of ISO 9001 in the year 2002 and ISO 9002 in 1999, in the Middle East

Emirates is the first who achieve such achievements. SAA is also certified with ISO

9001 and ISO 9002 in year 2000.

Figure - 25 [QMS in PIA, Emirates and SAA]

012345678

yes No Yes No Yes No Yes No

Others Six Sigma ISO 14001 ISO 9001

PIA 0 8 2 6 7 1 8 0

Emirates 0 8 2 4 6 0 6 0

SAA 0 5 1 4 3 2 5 0

Ax

is T

itle

Quality Management System


4.2.2 Managers Opinion About QMS

Responses of all the respondents from each organisation are almost on positive side

but there is a difference between the satisfaction level of managers from PIA with the

mangers of Emirates and SAA. Like 25% responses from PIA were least satisfied, in

SAA 20% were least satisfied while in Emirates no body were there dissatisfied. So

therefore in PIA the reason of 25% least satisfied may be due to less training

provided, communication gap and corrupted culture of the organization.

Figure - 26 [Managers Opinion about Quality Management System]

4.2.3 Quality System Types & Methodology

In this research, received responses of respondents shows that Emirates is on the

top at all level, Emirates has got a leadership, who believes in giving more

importance to management commitment, employee empowerment, customer focus,

training, continuous improvement and customer relationship. Whereas Emirates don‘t

think more about benchmarking because Emirates itself recognised as a world class

airline. PIA and SAA these both airlines are almost equal in all these elements but as

comparison PIA with Emirates the leadership of PIA is weak to give more

concentration on these elements.

Fully

Satifies50%

Satisfied

25%

Least

Satisfied

25%

PIA

Fully

Satifies

83%

Satisfied17%

Least

Satisfied0%

Emirates

Fully

Satifies60%

Satisfied

20%

Least

Satisfied

20%

SAA


Figure - 27 [Quality System Types]

4.2.4 Manager’s views on Benefits of TQM

The results exposes that Emirates is growing more than PIA and SAA with the

adaptation of TQM and enjoying the benefits of TQM like they have improve their

leadership role for developing new services, to increase the customer satisfaction by

giving reliable service, to enhance the customer profile. Emirates have also reduced

the staff turnover with the help of TQM that‘s why Emirates have decline in waste and

scrap but the customer complaints remains same because every time customers

have different demands and needs. Emirates airline has got high level of customer

satisfaction. While SAA is also enjoying the benefits of TQM as bellow mentioned in

the graph but SAA is not much successful to decline in waste and scrape because

SAA have over staff even having sufficient staff. SAA is also facing customer

complaints while overstaff can meet the customer demands and needs. PIA has

improve management role but cannot prove even much better then SAA because

PIA cannot maintain service reliability, due to this customer complaints are still


remains same, PIA is also over staff although cannot reduce wastes or scrape so

therefore overall customer satisfaction is average.

Figure - 28 [TQM Benefits]

4.2.5 TQM Concepts

From the result it has been recognised that Emirates is giving more concentration on

employee involvement, team work, top management commitment, and customer

feedback is welcome in the company which are the beneficial gaining quality factors.

PIA is also focusing on all these concepts of TQM; regarding requirements of

documents some of the employees are disagree this is may be due to time

consuming. Customer feedback is a factor on which the PIA is giving more focus.

Whereas SAA is also trying to concentrate on all these concepts but like PIA they are

also little bit disagree with the requirements of documents may be they have same

reason, furthermore in SAA customer feedback is not so much valuable may be

Saudi‘s literacy rate is low so that‘s why the passenger don‘t know about their rights.

0 2 4 6

Increase in Customer …

Decline in Waste or Scrape

Develop Service Realibility

Decrease in Complaints

Reduced Staff Turnover

New Service Development

Improved Management Role

View of Manager's on Benefits of TQM

SAA

Emirates

PIA


Figure - 29 [TQM Concepts]

4.2.6 QMS Implementation Reasons

The acquired results shows that PIA has given importance to all levels but

specifically in service improve which should be based on customer needs and

prevent poor quality. Emirates and SAA is also giving importance to all levels

specially by improving service on customer demands.

Top …

Employee …

0 5 10

Pakistan International

Airline

Strongly Disagree

Least Agree

Strongly Agree

0 2 4 6 8

Top Management …

Requirement of …

Employee …

Customer Feedback

Emirates Airline

Strongly Disagree Least Agree

Strongly Agree

0 1 2 3 4 5

Top Management Commitment

Requirement of Documents

Employee Involvement & teamwork

Customer Feedback

Saudi Arabian Airline

Strongly Disagree Least Agree Strongly Agree


Figure - 30 [Reason for Implementation]

4.3 Internal and External Challenges Faced by PIA

Competition is a factor which is posing serious challenge to PIA by fast

growing domestic and international airlines at high level from everywhere.

There are few private airlines in operations in Pakistan in which Air Blue is

considered the main domestic competitor of PIA, earned a profit of $1.28

million, whereas the main international competitors are emirates, earned profit

$941 million and SAA earned profit of $500 million. Whereas on the other

hand PIA suffers a loss of 78.3 billion PKR. For this PIA has given the reason

of increase in fuel prices and devaluation of PAK Rupee. Even all the airlines

are facing the challenge of rising in fuel prices however they managed to earn

profit by providing full satisfaction to customers and remain in competition.


Technology plays a vital role globally as a competitive advantage and has

significance in airline industry. Pakistan International Airline is facing Major

technology wise challenging issues, whereas other airlines are taking benefits

of innovations like reservation system, entertainment systems in flights and

auto check in. Safety issues are also concern with technology. PIA is also

facing challenges of safety due to lake of latest technology so therefore PIA

faced some accidents particularly in flight take off and landing. Eventually

now customers feel insecure and uncomfortable during flight time.

High fares as compared to other airlines like Emirates and SAA is a challenge

for PIA. Emirates and SAA offers low fare with newer aircraft, better in-flight

services like satellite radio and better on time performance to satisfy the

customer. PIA has stated the reason for high fare due to fuel prices and high

volume of employees getting salaries of millions in a year, but still cannot

carry passengers profitably.

PIA has always safety concerns about aircrafts, as their ageing aircraft face a

partial flight ban in the European Union because EU found PIA aircrafts are

not reliable in takeoff and landing, like in the year 2007 one of PIA flight was

partially damaged while landing at Manchester airport, therefore to maintain

the aircrafts on international standards is a challenge for PIA. Another aspect

of safety is Terrorism in which passengers would feel there may be any

Terrorist activity in flight so they feel uncertainty. Even the pilots of PIA refuse

to operate from Peshawar (northern area of Pakistan) because of safety

concern therefore it is a big challenge faced nowadays by PIA.

Work culture is another factor hampering the growth of the Airline. Decision

taking has been very slow when a file processes through 15 different people

and disciplinary actions cannot be taken very easily while reference culture is

very common and every people have connections with influential people.


In PIA all the employees are Pakistani; they can only speak mother language

which is Urdu, it is very tough for the foreigner to understand, due to this there

is big communication gap between employees and foreign passengers so

therefore employees would be unable to provide full satisfactory service.

While Emirates hired employees from 101 different countries (Cross Culture)

to provide better service to their customer so there is less chances of

miscommunication and influence from outside the organisation, whereas in

SAA there is same culture like PIA but there is very strictness of rules and

regulations because of Islamic Law so the employees of SAA are sincere with

organisation.

Mismanagement, Leakages and corruption are huge challenges facing

nowadays by PIA, due to this level of service and image of the organization

has been damaged which depends on the management and the leadership in

any organisation. Due to these challenges PIA suffers losses so PIA cannot

maintain fares and the service by which customer would not be delighted and

attracted for regular flying through PIA. While in Emirates and SAA the

management and the leadership is sincere and honest about their vision, so

therefore almost passengers are satisfied.

Recruitment process and merit are huge challenges for PIA. There have been

compromises on merit, that‘s why a large number of employees with

lack of professionalism have been appointed in PIA on political

basis. Even politically influenced people get promotions and reward without

merit not on seniority basis. Even they are not skilled for satisfying the

customer. PIA has highest number of employees as compare to the Emirates

and SAA. Whereas PIA has over employed but suffering from losses. PIA is

not adopting effective promotion and reward strategies as Emirates and SAA

have so therefore recruiting is challenge for PIA.


Training is a challenge facing by PIA, basically there is a training centre at

Karachi to provide training on different levels but there is not any specific

training program which provide training that how to satisfy a customer with

quality.

COMMENTS:- Lack of professionalism of management and leadership is

the main cause of damaged reputation of PIA, because management is

responsible for all operations in the organisation. It is a responsibility of high

management to maintain and provide service in a better way to customer on

the basis of needs and demands. When there are compromises on merit,

employees without training, without latest technologies, with corruption PIA

cannot compete globally as Emirates and SAA are competing globally with

better quality..


Discussion, Analysis and Recommendation

Chapter

Five


CHAPTER: 5 – Discussion and Recommendations

The chapter fifth Discus with the support of literature and Recommend, initially

examine the findings and then advise few suggestions for the success of Pakistan

International Airline (PIA) in future. In which few recommendation will be from the

researcher of this thesis and few from academic authors.

As researcher has conducted the survey from customer perspective and also

designed a questionnaire for managers of PIA, Emirates and SAA to understand the

exact picture of organisation in context to TQM. On the basis of survey and

questionnaire results, the researcher has made a subsequent analysis of findings

with the support of different authors from literature review. Finally researcher has

given some recommendations on the basis of passenger survey for the success of

Pakistan International Airline (PIA), recommendation will be from the academic

authors as well as from the author of this thesis.

5.1 Analysis and Discussion

The researcher has analysed the findings on basis of revealed results from

passenger survey perspective, managerial perspective and challenging perspective.

Further discus those analysis with the support of different authors from literature

review.

5.1.1 Passenger Perspective

This analysis has been made on the basis of passenger survey because nowadays

to satisfy the customer with better quality of service and product is very important and


plays a vital role for any organisation, and to fulfil the customer‘s need and demand

on their requirement is a crucial factor due to this every organisation taking initiatives

to conduct the surveys (Docherty et al., 2002) that how customer measure the

service quality. In global market airlines can compete on the basis of passengers

through different ways like, by providing better service with quality and reasonable

price of ticket (Doganis, 2002). Emirates airline capture 55% of passenger as seen in

the survey of passenger mainly on the basis of service quality. Service quality would

be different in Emirates Airline according to the needs of passenger, however service

quality of Emirates Airline can be expressed in terms of big Boeing aircrafts with

latest technology, flight connections (direct or connecting), entertainment (satellite

radio, phone and internet), seating comfort, time/schedule of (arrival and departure)

and affordable fare. The responses of passenger survey revealed that SAA is

average popular may be because of passenger select SAA for specific destination for

example (Makkah and Madina) Holy Places in Kingdom of Saudi Arabia. Whereas

PIA is not so much popular in passenger due to service as Robert (2002), stated that

nowadays passenger are looking for service quality. From the result of passenger

survey 15% passengers were liked to travel via PIA and average passengers give

the impression of satisfaction with the provided service of PIA and usually

passengers were dissatisfied, a very low level of passenger satisfaction consistently

has been revealed from passenger survey, as Oum and Yu (1998), recognised the

negative impact on passenger satisfaction from aspects of service quality, including

health and safety, increasing mishandled baggage, seating comfort with

entertainment, crew member behaviour and over sale of tickets in one flight

(Holloway, 2002).The PIA management should listen seriously to the complaints of

passenger and respond them very quickly. During the passenger survey it has been

observed that PIA has been facing increased competition from Emirates and SAA in

context to low fares, whereas PIA cannot maintain the low cost fare for passengers,


as identified in the survey that passengers can be attracted mainly by low cost fare in

any airline even there would be shortage of service offers (Beiske, 2007).

The management of Emirates and SAA has given more concentration on customer

satisfaction, and customer focus is the main reason for their success. Emirates and

SAA have won the customer in their targeted markets. For long lasting relationship

with customer everyone is responsible especially in Emirates. In the end of

passenger survey the results revealed that 52% of passengers were not agreeing

that PIA is striving for consistently high quality in every aspect. While Emirates and

SAA ―know that if they take care of their customer, so therefore market share and

profits will follow (Kotler, et al., 2008)‖.

In the end of passenger survey it has been expressed by 52% of passenger that PIA

is not maintaining quality of service due this PIA suffer losses, whereas airlines would

increase their profits by satisfying the customer through providing suitable meals,

employee behaviour (on ground and on board), baggage handling and with low cost

fare etc (Loudon, et all., 2004).

5.1.2 Managerial Perspective

On the basis of revealed results of questionnaire and review of literature, the

researcher has made a subsequent analysis from the findings. Company profitability

is closely linked to the customer satisfaction by providing product/service with quality,

customer satisfaction can be achieved by offering higher level of quality, and due to

this most of the organisations are trying to maintain their quality of product/service

(Kanji and Asher, 1996). Core concepts of TQM always attracted by PIA, Emirates

and SAA, and the management consider core concepts of TQM as they will achieve

customer satisfaction and success of their organisation. On the basis of findings,

researcher has found that PIA, Emirates and SAA has got the certification with ISO


9001 and ISO 14001, as Goetsch and Davis (2010), stated that it is a framework

which provide a confidence to the organisation as well as customer that ISO certified

service/product produce quality to fulfil the requirements and needs of customer, and

in any organization it is very important and first step towards implementation of TQM

(Rabelo & Perigo, 1994). View of manager‘s from PIA, Emirates and SAA on

certification of ISO expresses that in all departments of their organisation certification

standards are necessary as shown in (figure 5.7). Managers from all departments of

PIA, Emirates and SAA were mostly looking satisfied with quality management

system (QMS). From the result of received responses of managers, researcher has

evaluate that the 50% managers of PIA were fully satisfied and 25% were satisfied,

83% managers from Emirates were fully satisfied and 17% were satisfied, 60%

managers of SAA were fully satisfied and 20% were satisfied, here it is little bit

difference on satisfaction level in between the managers of PIA, Emirates and SAA

may be because managers of PIA having less knowledge of quality management

system. Whereas managers of all these airlines are trying to move farward in order to

improve quality. Every organisation like PIA, Emirates and SAA have given top

priority to QMS the reason behind this, it is a strategic action that focuses on

managing whole organisation to provide their customer with quality service/product to

meet the customers satisfaction (Mehra et al., 2001). As achieved findings from the

responses of respondents and case study of PIA, Emirates and SAA that all these

organisations while implementation of TQM is giving more concentration on these

main concepts Management commitment, Employee Empowerment and

Involvement, Customer Focus and Training. Because these concepts help

organisation to deliver better quality of service/product on time with zero defect to

achieve the satisfaction of customer with results of competitive market position and

profitability (Rao et al., 1999b; Evans and Lindsay, 1996). Responses of all the

respondents show that all these are the core elements of TQM and have been used


in implementation process. Results from finding reveals that in PIA there is less

concentration on the core values of TQM to compare with Emirates, like

management commitment, employee empowerment may be because of political

influence and training, customer relationship because of lack of knowledge or skills.

Researcher has found some benefits of TQM in PIA, Emirates and SAA. Results

illustrated from the responses of respondents that all these airlines have improved

their management roles on the available resources, Emirates improves management

role because they have manage their staff turnover in order to enhance customer

profile. Whereas in PIA the main concern of reducing staff, management is not able

to reduce staff again because of political influence due to this PIA suffer losses. From

the findings it has been observed that unfortunately PIA is not enjoying the benefits

of TQM, as Tallah (2004) stated that the whole process of organisation can be

improved by the proper implementation of Total Quality Management.

5.1.3 Challenging Perspective

As the world economy grows the demand for air travel can be expected to increase

too. This continuing growth gives both opportunities and great challenges to the

airline industry, as PIA is facing nowadays enormous challenges in the history.

According to Shaw (2004), stated that without the challenge of strong competition,

airlines do not work efficiently, although PIA is facing competition with competitors

like emirates and SAA. However, the management of PIA is taking suitable initiative

to compete with these competitors. Quality is the main concern in PIA which special

need to be improved for competition, because the decline in the quality is the most

serious implication for airline competition (Hanlon, 2007).

Technology is also being extensively used to improve customer satisfaction. But it is

also challenge for PIA, in current business scenario of airline industry technology


plays important role. As Ahmed, et all., (2006), believes that information technology

is now being used substantially in airlines like passenger enquiry, ticket ordering,

luggage tracing, check-in, frequent flyer programme (FFP), passenger information

system, on board services. Through choice of technology, Passengers expect airline

to ensure safe journey, support to mitigate problems due to critical incidents and

meet time commitments. Having limited resource PIA should concentrate on

technological issues. It has been observed from the challenges that PIA has very

high fare as compare to the fares of Emirates and SAA. Almost in every airline there

is war on fare although a low fare airline can compete on the basis of providing low

fare to their customer (Hanlon, 2007).

The management of PIA has declared the reason rising in fuel price for high fare,

however one reality is that the aircrafts of PIA are not fuel efficient. Fuel prices began

to rise as crises of oil started in early 1990. Emirates and SAA also facing the same

reason but they belong from oil producing countries so therefore they have managed

this reason at some level and they are offering low fare eventually the passenger of

PIA are not delighted. Globally terrorism and flight (landing/take-off) in any airline are

recognised as a safety challenge nowadays. PIA is facing such type of challenges,

lack of latest technology and due to belonging from high risk country and may

happen terrorism activity in any flight of PIA, so therefore passengers are afraid to

travel, safety concern damages the brand reputation of PIA and tourism industry in

Pakistan as a consequence the economy of Pakistan affected (Kucukaltan, 2006).

Culture in places of work is one of the challenge in airline industry and most

important in stabilizing and making sense out of the social system. Effective

organizations like Emirates Airline attempt to empower their employees in the context

of total quality management (TQM) examine their cultures (Sigler and Pearson 2000).

Because when organisation empower their employees they can take decision


frequently with confidence, unfortunately in PIA the higher management does not

concentrate on culture as Maull et al., (2001), believes that the organizational culture

construct is a primary condition for the successful implementation of total quality

management. Researcher has observed that Mismanagement, leakages and

corruption posing serious challenges in PIA because leadership is not sincere with

the organisation, whereas leadership is the paramount qualification for success in

TQM (Swansburg, 1996). Whereas the leadership of Emirates and SAA have

changed the culture and the climate of their business to give workers the training,

where employees not involve in corruption even participate in planning, make

decisions, and improve productivity through improvement of quality of service. Highly

influenced by politics and beurocrates the leadership of PIA is unable to select or

recruit highly skilled employee on merit basis. While the management of Emirates

follows the policies and practices in which the management cannot breach the laws

and provide equal opportunities. Because quality and commitment of the employees

is crucial in improving the quality of the product and service, so there is a need for

systematic recruitment, selection and training (Mckenna and Beech, 2008).

5.2 Recommendations

After analysing the PIA with different tools, techniques and McKinsey 7-S framework

the researcher has given some recommendation on the basis of revealed results

from passenger survey and challenges faces by the management of PIA.

The recommendations mainly analysed through McKinsey 7-S model which provides

a set of 7-S, to help the management of PIA for proper implementation of total quality

management. McKinsey 7-S includes strategy, structure, systems, style, skills, staff,

and shared values.


5.2.1 Strategy [

A company‘s strategy serves as an action plan and is use to stake out a market

position, conduct its operations, attract and please customers, compete successfully,

and achieve organizational objectives. Thus, TQM as a strategy is certainly

appropriate for such situation in PIA. Total Quality Management is a philosophy of

management that is driven by the constant attainment of customer satisfaction

though the continuous improvement of all organizational processes (Mullins, 2007).

The management of PIA must consider following appropriate strategy on the basis of

long term strategy in order to employ a total quality management operations and

services that would satisfy all clients and customers.

a) Management commitment:- Leadership of PIA must built a quality strategy

on continuous and consistent commitment from top management, it will help

PIA as Ross and Perry (2004), states that decision making, selection and

developments and reinforcing values, practices, and behaviour. Because the

top management commitment is the essential factor for proper

implementation of total quality management (Thomas, 1991; Doyle, 1992).

b) Customer focus:- Customer is king in any organisation, so therefore top

management of PIA should keep customer on top priority, to understand

customer needs, expectation and requirements. Keep customer close

because customer focus is the main element of total quality management

strategy, quality has to be valued by the customers and it have to be put in

relation to their needs and expectation (Klefsjo and Bergman, 1994).

c) Continuous improvement:- Pakistan International Airline would get benefits

from successful implementation of TQM strategy, for instance ―customer

satisfaction, elimination of errors and waste, reduction in cost, increased

motivation and commitment of employees, and increase profitability and


competitiveness‖ (Faure and Faure 1994). Therefore, continuous process of

quality improvements of services for PIA is necessary. Because continuous

improvement is an integral part of TQM strategy and is mainly used at all

levels (Klefsjo and Bergman 1994).

d) Merger and Alliances:-

5.2.2 Structure / Management:

Business needs to be organised in a specific form of shape that is generally referred

to as organisational structure. Organisations are structured in a variety of ways,

dependent on their objectives and culture (Allotey 2008). Although this is still the

most widely used organisational structure, the recent trend is increasingly towards a

flat structure where the work is done in teams of specialists rather than fixed

departments (Sinha, 2000).

a) Team work:- In PIA team work would play a key role for total quality

management, provides a vehicle for the employee of PIA staff empowerment

and involvement necessary to gain their commitment and participation in the

business (Sinha, 2000). Team work would be beneficial in PIA because

employees can share their new ideas and improves employee satisfaction

eventually improves overall performance of organisation.

b)

5.2.3 System (Effective Use of Technology)

PIA should integrate latest technology in all its systems, giving it an edge over

competitors.

a) Internet:- PIA should offer its services of reservation and seat confirmation

with by SMS and flight confirmation message should also be sent via SMS to

the passenger.


5.2.4 Style Transparent policy adoption:

PIA should adopt transparent policy that employees should be promoted on merit

basis. And Chairman of PIA should be appointed from within the organization. Union

should support it, it will motivate the employees and PIA will grow in profit. PIA

should not induct new employees till the time they are needed PIA should give bonus

to the industrious and competent employees.

a) Reward and Recognition:- Due to political influenced organisation there is

compromises on merit, so therefore higher management of PIA should adopt

transparent policy in which equal opportunity keep on priority basis. Rewards

can be extrinsic, such as compensation, promotion and benefits, or they can

be intrinsic, such as feeling of accomplishment, improved self esteem, and

personal growth (Barkley and Saylor, 2001).

b) Recruitment and Selection:- Again due to political influenced organisation

PIA is facing challenge of recruitment and selection, lack of knowledge and

skills employees have been appointed on the basis of influences so therefore,

higher management of PIA should change style of recruitment and selection

and give preference to merit.

5.2.5 Skills (Two-Way Communication)

The suggestions of the employees can prove to be very effective in improving the

operations as they are the ones who manage them. Therefore, a top-down approach

should be replaced with two-way communications. In this way, the employees would

feel motivated and valued as they would be included in decision-making.

a) Communication:- Due to lack of training and knowledge there is a big gap

between the customer and front line employees. Skilled communication of


employees can satisfy the passenger and solve their problem in very short

time.

b) Interpersonal:- Higher management should provide a atmosphere in which

employee feels comfortable and flexible. So that employees can share

information with each other and resolve conflicts of each other and customer.

c) Continuous Learning:- There is an obvious need in PIA to ensure effective

learning. If learning is not treated seriously by higher management of PIA

then there will be adverse repercussions for the organisation concerned.

d) Training:- Although PIA has running training centre in Karachi Pakistan but

there is ignorance of proper training regarding quality. Employees of PIA from

top to bottom should be provided with the right level and standard of

education and training to ensure that their general awareness and

understanding of quality management concepts, skills, competencies, and

attitudes are appropriate and suited to the continuous improvement

philosophy (Dale, 2003).

5.2.6 Staff Involvement and Empowerment

PIA should make efforts towards empowering the employees that is going to lead to

more employee participation in the decision making process and also result in more

employee satisfaction and enhanced motivation. Apart from this, employees would

feel more independent to discuss the issues explicitly without hesitation. This would

also enhance team work process at PIA as quality team and cross-functional teams.

The employees will work with more commitment and dedication. However, with

empowerment comes accountability, so it is suggested that while they empower their

employees, there should also be a ―controlled check‘‘ on them to ensue the correct

usage of power delegated to every employees within their circumscribed limits. In

order to ensure that quality strategy is successful everybody has to be committed to


customer satisfaction and to continuous quality improvement

(Klefsjo and Bergman, 1994).

5.2.7 Shared Values

All the employees of Pakistan International Airline have to work for a common goal

towards customer satisfaction, as TQM strategy does provide a way to insure that all

elements of the organisation are working towards a common goal (Jurow, 1993).

a) Corporate Culture:- One of the leading and primary element of TQM is

changing corporate culture, PIA should change the corporate culture of

favouritism, due to unskilled labour, corruption instability, and lack of

advanced technological tools, therefore management should change the

corporate culture, and adopt flat culture in which there will no need of middle

management to communicate with higher management (Allotey, 2008).

b) Overhead Cost:- PIA should also reduce its overhead costs that it should

manage its resources. Labour more effectively, so that with less input, more

output can be achieved and the saved resources can be utilised in other

areas such as introducing more training courses for the employees so that the

quality of the workforce could be increased. Hiring the services of expertise

can improve the efficiency of their services, so by saving the overhead costs,

they can utilize that money for the expertise services.

c) Poor Management:- The management is also responsible for current

situation of PIA. The management should take initiative towards proper

implementation of Total Quality Management to delight the passenger and

bring them back to their national airline.


Conclusion

Chapter

Six


CHAPTER: 6 – Conclusion

6.1 CONCLUSION

Mainly organisational performance and success is based on producing

product/service with quality. Proper implementation of Total Quality Management

plays a significant role for the success of an organisation. Nowadays everything is

moving towards globalisation, so therefore it is necessary to improve quality of

product/service by successful implementation of TQM. Although it is very tough job

but nowadays almost all companies are trying to deploy TQM to remain in the

competition. Pakistan is under development country, so therefore most of the

organisations are learning and some have awareness of TQM and feels the

significance of TQM.

The main focus of this research was ―How to implement Total Quality Management in

Pakistan International Airline with comparison of Emirates Airline and Saudi Airline‖

and what were the core elements of TQM being used in PIA, in order to make

organisation profitable with satisfied customer.

Pakistan International Airline is the national airline of Pakistan and most of the

passengers are local nationals. Researcher has widely discussed the PIA in above

piece of research. Nowadays customers have also awareness of quality so therefore

PIA is facing challenges on different levels to satisfying the passenger. For the clear

picture of TQM in PIA the researcher has conduct passenger survey and designed a

questionnaire for managerial level of PIA, Emirates and Saudi Arabian Airline, in

which mostly managers from these organizations were identified as satisfy with the


quality of service, however it has been observed from the results of survey that most

of the passenger prefer Emirates and SAA as compare to PIA in context to service.

It means that whenever the passengers have choice for the selection of airline they

give priority to other airlines rather than Pakistan International Airline.

It has been also observed that management of PIA is the main cause for current

business scenario. Employees are not in control of management so employees do

what they want. Some policies from management is also costing the organization, for

instance Emirates Airline use only two hundred employees per plane whereas in PIA

there are four hundred Employees per plane that means PIA is overcrowded which is

definitely unnecessary, and by paying these additional employees it is costing a lot to

the PIA.

The other reason is misuse of funds; most of the funds were used for lavishness by

managements instead of using it on the service or on fleet to make it considerable for

the international standards. Second main reason for failure in service is involvement

of politics due to this there is lack of professionalism. The leadership always

compromise on merit so unskilled people have been appointed who does not have

knowledge and skills even does not trained after appointment, they don‘t know how

to solve the problems of passengers to satisfy them. So therefore always passengers

have complaints about the service of PIA, while customer is always right and

customer is king nowadays.

Researcher has identified some important element for the management of PIA to

follow, in context to successful implementation of TQM. The significant element of

TQM required in PIA, to become a successful organization such as, the leadership of

PIA should introduce quality programs for the top management in which provide

training on the quality issues. The management of PIA should find out the


weaknesses regarding quality, and recruit skilled people who can improve customer

service, respect the customer, and recognize business goals.

In order to look deep insight into the implementation process of QMS in Pakistan

International Airline and how quality has been maintained to delight the passenger,

the researcher has collected the data through conducting passenger survey and

questionnaire which was filled by managers at the time of interviews because

shortage of time. Researcher discussed the results from the responses of

respondents and justifies analysis of collected data.

Researcher‘s main focus was, after collecting all data and relevant information is to

present findings in such a way in which the results of survey and questionnaire

shows understanding and usefulness of this study. After that, everything was easy in

approach for the author of this dissertation to investigate and explain the process of

implementation QMS in Pakistan International Airline. It has been expressed by the

management, from the results of questionnaire that Pakistan International Airline in

context to maintain the quality takes every possible initiative to remain in the

competition with Emirates and Saudi Airline and with other competitors in global

market, even the management is satisfied with QMS. Although from the passenger

survey it has been expressed that PIA is not maintaining quality that is why the

passengers are not happy with the service of PIA. It is mostly due to highly politically

influenced people and the management is corrupt so they don‘t concentrate sincerely

on core elements of TQM.

So therefore the leadership of PIA should focus on the core elements of TQM such

as employee empowerment, recruitment, management commitment, customer focus

and training. The certification of ISO 9001 is also helpful for PIA to maintain quality,

but management should ensure that they have to follow the rules and regulations of

ISO. Other than this some extra suggestion has been given in this dissertation which


will be very useful and helpful for Pakistan International Airline. Furthermore PIA

should focus on reward recognition, recruitment and selection on merit basis, and

two way communication. Because with the negligence of these areas Pakistan

International Airline will not grow and remain profitable organization.


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Appendix


Appendix – 1

Passenger/Customer Name: _____________Gender: Male Female

1. How often do you travel internationally? (Tick appropriate option)

a) Less than one month.

b) One to three months.

c) Three to six months.

d) Six to twelve months.

2. Which airline would you prefer for international travelling?

a) Pakistan International Airline.

b) Emirates Airline.

c) Saudi Airline.

d) Other Airline.

3. Why you travel via that airline, is there any specific reason?

a) Service.

b) Price.

c) Time or schedule.

d) Other reasons.

4. What is the Service expectation regarding your chosen airline?

a) Excellent.

b) Very Good.

c) Good.

d) Fair.

e) Poor.

5. What is the Price expectation regarding your chosen airline?

a) Excellent.

b) Very Good.

c) Good.

d) Fair.

e) Poor.


6. What is the Time or schedule expectation regarding your chosen airline?

a) Excellent.

b) Very Good.

c) Good.

d) Fair.

e) Poor.

7. How would you rate the overall value for selected airline?

a) Excellent.

b) Very Good.

c) Good.

d) Fair.

e) Poor.

8. What are the main aspects which attracts you from your selected airline?

(Multiple Choices can be select).

a) Price.

b) Time or schedule.

c) Check In at counter.

d) Luggage weight.

e) In flight Food.

f) Cabin crew member behaviour.

g) Seating comfort.

h) Entertainment.

i) Health and Safety.

j) Baggage claim.

9. What you think which aspects can be improved from your selected airline?

(Multiple choices can be select).

a) Price.

b) Time or schedule.

c) Check in at counter.

d) Luggage weight.

e) In flight food.

f) Cabin crew member behaviour.

g) Seating comfort.

h) Entertainment.

i) Health and safety.

j) Baggage claim.

10. What do you say that all the above qualities exist in Pakistan international

airline?

a) Yes agree. b) Not agree. c) None of above.


APPENDIX - 2

QUESTIONNAIRE

Note: All information given will be held in complete confidentiality and no individual

data will be presented in any analyses. Please do not include your name in any part

of this questionnaire.

I. BASIC INFORMATION

This section contains basic information about the company. (Please

answer these questions).

a) Has PIA implemented a Quality Improvement Program?

(Please tick)

YES NO

b) Type of Quality System or Methodologies does the company have?

ISO 9000 ISO14001

Six Sigma Others

c) At which level do the Quality activities take place in the organisation?

1) All levels 3) Management Levels

2) Operational Levels 4) Quality Department

5) Others

d) To what extent the total quality management fulfil your organizational needs?

1) It has exceeded expectation.

2) It has fulfilled expectations.

3) It has not fulfilled expectations.

4) It is too early to know.

5) Did not answer.

II. CORE ELEMENTS OF TQM

Ques1:- In your opinion the elements which are given below are considered to

be the core concepts of TQM?

(Please multiple Ticks or Circle the appropriate)

a) Management Commitment YES NO

b) Employee Empowerment YES NO

c) Customer Focus YES NO

d) Continuous Improvement YES NO


e) Quality Assurance/ISO 9001 YES NO

f) Benchmarking YES NO

g) Training YES NO

h) Supplier Customer Relationship YES NO

Ques2: What are the Benefit(s) the organization gained after implementing

ISO/TQM?

a) Increase in Service Quality YES NO

b) Decline in Brand Image YES NO

c) Develop Service Reliability YES NO

d) New Service Development YES NO

e) Enhancement in Customer Profile YES NO

f) Decrease in Complaints YES NO

g) Reduced Staff Turnover YES NO

h) Improved Management Roles YES NO

i) Improved customer satisfaction YES NO

III. Importance of Quality Management System

Following are the reason for implementing for Quality Management System in

the company. Please Tick their appropriate usefulness level in your

organization

(1 – Most Important, 5- Least Important)

Reasons 1 2 3 4 5

To produce accordance with customer needs and

expectations.

Providing better quality Service at lower costs

To prevent poor quality rather than directing and

preventing defects.

Gain a competitive advantage

TQM aims at eliminating shortages in supply of inputs.

To improve Service Quality


TQM increases flexibility in meeting market demands

TQM demands employees involvement and

empowerment

It enables the company facing competition and

challenges

Q6. Has the company benefited from the application of Quality Tools and

Techniques?

a) Yes b) Partially c) No

IV. TQM Operations and Practices

There are number of questions which describe actions in implementation of

QMS (Quality Management System) in an organisation. Please rate each of

these statements by circling the number on the scale.

a) For successful Quality Management System, top management commitment is

essential towards quality improvement?

Strongly Agree…. … …. ……Strongly Disagree

1 2 3 4 5

b) To ensure uniformity in the Service quality, there is a requirement of

documents of all processes?


1 2 3 4 5

c) An organization requires company-wide commitment towards quality by

employee involvement, teamwork and trust between management and

employees?


1 2 3 4 5

d) Is Customer feedback should be used to constantly in order to improve

service?


1 2 3 4 5