Total Quality Management

Shahzad Ahmed Memon
Address: 104 – Princess Road, Woking, Surrey, GU22 8ES, UK.
E-Mail: Mobile: shahzi_2005@hotmail.com 0044-7853839785

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
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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.

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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
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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.

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 6

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 Total Quality Management| A Case Study of Pakistan International Airline Page 7

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

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List of Figures
Figure – 1: Structure of TQM Philosophy……………….……………………………….11 Figure – 2: Components of TQM Philosophy ….………………………………………..11 Figure – 3: TQM Concepts……………….……………………………………………….26 Figure – 4: TQM Concepts……………….……………………………………………….27 Figure – 5: TQM Concepts……………….……………………………………………….28 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 KSE EQA MBNQA SQC IATA PIA EFQM JIT ISO Saudi Arabian Airline Karachi Stock Exchange European Quality Award Malcolm Baldrige National Quality Award Statistical Quality Control International Air Transport Association Pakistan International Airline European foundation for Quality Management Just in Time International Standard Organisation

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Chapter One

Introduction

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 11

certain processes is known as The Total Quality Management (Sashkin and kiser, 1993).

Figure-1: Structure of TQM Philosophy Source: [Adapted from Oakland, 2003]

Figure-2: Components of TQM Philosophy and their interrelationship 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 Total Quality Management| A Case Study of Pakistan International Airline Page 12

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

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 14

initially covered routes were most domestic area with addition of Delhi, CalcuttaDacca. 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 Total Quality Management| A Case Study of Pakistan International Airline Page 15

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 destinations from passenger flights in a week, Emirates Airline covers 157 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,

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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).

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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.

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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.

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 20

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.

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Chapter Two

Literature Review

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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.

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 24

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 19481949, 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 Total Quality Management| A Case Study of Pakistan International Airline Page 25

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 Total Quality Management| A Case Study of Pakistan International Airline Page 26

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 Total Quality Management| A Case Study of Pakistan International Airline Page 27

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

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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. Total Quality Management| A Case Study of Pakistan International Airline Page 29

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

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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]

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 32

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. Total Quality Management| A Case Study of Pakistan International Airline Page 33

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

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 35

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 Total Quality Management| A Case Study of Pakistan International Airline Page 36

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 ―factbased 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]

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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).

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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).

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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). important role, Furthermore to employee commitment and involvement play 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 nonconformance 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

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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). Total Quality Management| A Case Study of Pakistan International Airline Page 41

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 Total Quality Management| A Case Study of Pakistan International Airline Page 42

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).

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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).

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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) Total Quality Management| A Case Study of Pakistan International Airline Page 45

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) Total Quality Management| A Case Study of Pakistan International Airline Page 46

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 Total Quality Management| A Case Study of Pakistan International Airline Page 47

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 cooperation 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 Total Quality Management| A Case Study of Pakistan International Airline Page 48

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] Total Quality Management| A Case Study of Pakistan International Airline Page 49

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).

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 51

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 Total Quality Management| A Case Study of Pakistan International Airline Page 52

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 Total Quality Management| A Case Study of Pakistan International Airline Page 53

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).

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Chapter Three

Research Methodology

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 56

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.

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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.

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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.

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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). Total Quality Management| A Case Study of Pakistan International Airline Page 60

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.

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Chapter Four

Results of Findings

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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.

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Selection of Airline on Particular Reason
60 50

40 30 20
10 0 Passenger PIA 15 55 Service 3 30 Price 2 5 Time/Sched ule 8 15 Other Reason 2 5

Emirates
SAA Others

20
10

12
3

3
2

3
4

2
1

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.

Poor 13% Fair 13%

PIA

Excelle nt 13%

Fair 5% Good 7% V. Good 22%

Emirates

Poor 2%

SAA
Fair 10% Good 15%

Poor 5%

V. Good 27%

Excelle nt 40%

Good 34%

Excelle nt 64%

V. Good 30%

Figure – 21Overall Rating of PIA, Emirates and SAA regarding Service, Price and schedule

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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.

90 80 70 60 50 40 30 20 10 0

Others SAA Emirates PIA

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

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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.

What do you say that all the above qualities exist in Pakistan international airline?
None of Above 14% Not Agree 52%

Yes Agree 34%

Figure - 24 [Important Aspects Needs To Be Improved
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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.

Quality Management System
8 7 6 5 4 3 2 1 0 yes PIA Emirates SAA No Yes No Yes No Yes No Others 0 8 0 0 8 5 Six Sigma 2 6 2 1 4 4 ISO 14001 7 1 6 3 0 2 ISO 9001 8 0 6 5 0 0 Axis Title

Figure - 25 [QMS in PIA, Emirates and SAA]
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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.

Leas t Sati sfie d 25% Sati sfie d 25%

PIA
Full y Sati fies 50% Satis fied 17%

Emirates

Leas t Satis fied 0% Full y Satif ies 83%

Leas t Sati sfie d 20% Sati sfie d 20%

SAA
Full y Sati fies 60%

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.

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 69

remains same, PIA is also over staff although cannot reduce wastes or scrape so therefore overall customer satisfaction is average.

View of Manager's on Benefits of TQM
Improved Management Role New Service Development Reduced Staff Turnover Decrease in Complaints Develop Service Realibility Decline in Waste or Scrape Increase in Customer… 0 2 4 6

SAA Emirates PIA

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.

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Pakistan International Airline
Employee… Top… 0 5 10

Emirates Airline
Customer Feedback Employee… Requirement of… Top Management … 0 Strongly Disagree Strongly Agree 2 4 6 8

Strongly Disagree Least Agree Strongly Agree

Least Agree

Saudi Arabian Airline
Customer Feedback Employee Involvement & teamwork Requirement of Documents Top Management Commitment 0 Strongly Disagree 1 Least Agree 2 3 4 5

Strongly Agree

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.

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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. Total Quality Management| A Case Study of Pakistan International Airline Page 72

 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. Total Quality Management| A Case Study of Pakistan International Airline Page 73

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. Total Quality Management| A Case Study of Pakistan International Airline Page 74

 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..

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Chapter Five

Discussion, Analysis and Recommendation

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 77

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, Total Quality Management| A Case Study of Pakistan International Airline Page 78

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 Total Quality Management| A Case Study of Pakistan International Airline Page 79

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 Total Quality Management| A Case Study of Pakistan International Airline Page 80

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 Total Quality Management| A Case Study of Pakistan International Airline Page 81

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

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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.

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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

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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. Total Quality Management| A Case Study of Pakistan International Airline Page 85

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

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 87

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.

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Chapter Six

Conclusion

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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

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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

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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 Total Quality Management| A Case Study of Pakistan International Airline Page 92

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

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Appendix

1

Passenger/Customer Name: _____________Gender: Male

Female

1. How often do you travel internationally? (Tick appropriate option) a) b) c) d) Less than one month. One to three months. Three to six months. Six to twelve months.

2. Which airline would you prefer for international travelling? a) b) c) d) Pakistan International Airline. Emirates Airline. Saudi Airline. Other Airline.

3. Why you travel via that airline, is there any specific reason? a) b) c) d) Service. Price. Time or schedule. Other reasons.

4. What is the Service expectation regarding your chosen airline? a) b) c) d) e) Excellent. Very Good. Good. Fair. Poor.

5. What is the Price expectation regarding your chosen airline? a) b) c) d) e) Excellent. Very Good. Good. Fair. Poor.

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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.

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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 Six Sigma ISO14001 Others

c) At which level do the Quality activities take place in the organisation? 1) All levels 2) Operational Levels 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. 3) Management Levels 4) Quality Department

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 b) Employee Empowerment c) Customer Focus d) Continuous Improvement YES YES YES YES NO NO NO NO

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e) Quality Assurance/ISO 9001 f) Benchmarking

YES YES YES YES

NO NO NO NO

g) Training h) Supplier Customer Relationship

Ques2: What are the Benefit(s) the organization gained after implementing ISO/TQM? a) Increase in Service Quality b) Decline in Brand Image c) Develop Service Reliability d) New Service Development e) Enhancement in Customer Profile f) Decrease in Complaints YES YES YES YES YES YES YES YES YES NO NO NO NO NO NO NO NO NO

g) Reduced Staff Turnover h) Improved Management Roles i) Improved customer satisfaction

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 To produce accordance with customer needs and expectations. Providing better quality Service at lower costs 1 2 3 4 5

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 Total Quality Management| A Case Study of Pakistan International Airline Page 111

TQM increases flexibility in meeting market demands TQM demands empowerment employees involvement and

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…. 1 2 … 3 …. ……Strongly Disagree 4 5

b) To ensure uniformity in the Service quality, there is a requirement of documents of all processes? Strongly Agree…. 1 2 … 3 …. ……Strongly Disagree 4 5

c) An organization requires company-wide commitment towards quality by employee involvement, teamwork and trust between management and employees? Strongly Agree…. 1 2 … 3 …. ……Strongly Disagree 4 5

d) Is Customer feedback should be used to constantly in order to improve service? Strongly Agree…. 1 2 … 3 …. ……Strongly Disagree 4 5

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