BOSHM

SEPTEMBER / 2019

BBPP1103

PRINCIPLE OF MANAGEMENT

MATRICULATION NO : 871226055455001
IDENTITY CARD NO. : 871226-05-5455
TELEPHONE NO. : 018-2433930
E-MAIL : coim87@oum.edu.my
LEARNING CENTRE : Shah Alam

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Table of contents Pages

1.0 Introduction 1
2.0 Workplace scenario 2
3.0 Defining problem 3
4.0 Identifying decision criteria 3
4.1 Price 4
4.2 Quality 4
4.3 Compatibility 4
4.4 Warranty 4
5.0 Allocating weight to each criterion 5
5.1 First allocating weight 5
5.2 Second allocating weight 6
5.3 Third allocating weight 6
5.4 Fourth allocating weight 6
6.0 Generating alternative 6
6.1 Aeroflex IFR-6000 7
6.2 Aeroflex 2945B 7
6.3 Aeroflex ATC600A 8
6.4 Aeroflex IFR Cobham ATC-601-2 8
7.0 Evaluating alternatives 9
7.1 First alternative 9
7.2 Second alternative 9
7.3 Third alternative 10
7.4 Fourth alternative 10
8.0 Selecting the optimal decision 10
9.0 Conclusion 11
References 12

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Table Pages

Table 1: Comparison of each criterion 5

Table 2: Evaluating alternatives 9

Figure Pages

Figure 1: Aeroflex IFR-6000 7

Figure 2: Aeroflex 2945B 7
Figure 3: Aeroflex ATC600A 8
Figure 4: Aeroflex IFR Cobham ATC-601-2 8

List of abbreviation

AIROD Aircraft Inspection, Repair, and Overhaul Depot

NADI National Aerospace & Defense Industries
MRO Maintenance, Repair & Overhaul
TNI-AU Tentera Negara Indonesia - Angkatan Udara
ETCAS Enhanced Traffic Collision Avoidance System
EGPWS Enhanced Ground Proximity Warning System
CAAM Civil Aviation Authority of Malaysia
IMAA Indonesia Military Airworthiness Authority
EASA European Aviation Safety Agency
ATC Air Traffic Controller System
IFF Identification Friend or Foe System
TACAN Tactical Air Navigation System

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1.0 Introduction.
The manager is one of the crucial people in an organization. The manager needs
to make sure that the objectives achieved efficiently and effectively. To ensure the
objectives of an organization are achieved efficiently and effectively, the manager should
be able to make the good rational decision making. To be a manager is not easy because
the manager not only gives instructions but must be able to make the right decision
before giving direction. (Shahrol Aman Ahmad, Azhari Ramli, Nasri Nalimi, Azelin
Aziz, & Santhi Raghavan, 2013, p. 1)
Management means ensuring that a job is carried out well until completion. That
means a manager does not necessarily need to know how to perform a specific job but
needs to act as a coordinator to ensure the task carried out smoothly. For example, the
manager of aircraft servicing and maintenance does not necessarily have to know the
details of aircraft repair and maintenance. Instead, the manager needs to ensure that all
resources allocated to him, including human resources, for example, the employees under
him, function satisfactorily and that the objectives set by the organization achieved.
(Shahrol Aman Ahmad, Azhari Ramli, Nasri Nalimi, Azelin Aziz, & Santhi Raghavan,
2013, p. 1-2)
"Making a rational decision can be defined as a systematic process of defining
problems, evaluating decision alternatives, and selecting the best alternative decisions
available." (Shahrol Aman Ahmad, Azhari Ramli, Nasri Nalimi, Azelin Aziz, & Santhi
Raghavan, 2013, p. 41) "The first step in rational decision making is to identify the
problem. At this stage, a manager needs to identify the problems faced, the source of the
problems, and how to resolve them". (Shahrol Aman Ahmad, Azhari Ramli, Nasri
Nalimi, Azelin Aziz, & Santhi Raghavan, 2013, p. 42)
This essay will discuss how to make the rational decision making. "Rational
decision making refers to making decisions based on facts, opinions, and reasonable
reasons." (Shahrol Aman Ahmad, Azhari Ramli, Nasri Nalimi, Azelin Aziz, & Santhi
Raghavan, 2013, p. 37) The rational decision-making process has six-step start from
defining the problem, identifying decision criteria, allocating weight to each criterion,
generating alternatives, evaluating alternatives, and the last step of rational decision
making is selecting the optimal decisions.

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2.0 Workplace scenario.

AIROD (Aircraft Inspection, Repair, and Overhaul Depot) is a fully Malaysian-

owned company under the NADI (National Aerospace & Defense Industries) group of
companies. AIROD is an internationally recognized MRO (Maintenance, Repair &
Overhaul) organization and was a pioneer of this in the country and remains Malaysia’s
top aviation MRO center. With world-class facilities to support fixed and rotary-wing
aircraft, strengthened by more than two decades of technical expertise and excellence,
AIROD has itself transformed from a national and regional player to a recognized brand
in the international aviation industry, servicing 78 customers in 33 countries. (AIROD
SDN BHD, 2019)
AIROD's vision is to be the leading global aerospace partner delivering
professional services, meeting customer satisfaction at world-class standards. Besides
that, AIROD has a mission to excel and grow profitability and focus on strategic
businesses and partnerships, achieving customer satisfaction through delivering the
highest level quality, safety, and value services most effectively and professionally.
(AIROD SDN BHD, 1998) However, AIROD faced a problem that causes a delay in its
delivery of the aircraft. As a result, this has affected the AIROD quality of service. Faced
with such a challenge, hard now to compete with the other companies, which are also
providing similar services.
Within the Southeast Asia region, two other companies also provide similar
services that are Thai Aerospace company and ST Aerospace company. These two
companies also offer the servicing of the HERCULES C-130 aircraft. The world has
already known that AIROD is one of the pioneer companies authorized by the
LOCKHEED MARTIN. AIROD provides the servicing and modification of the
HERCULES C-130 aircraft. Even though competitors like ST Aerospace company are a
new company, but it grows and become one of the big companies in the world. AIROD
can benchmark against ST Aerospace base on their achievement. (ST ENGINEERING,
2018) To achieve the AIROD vision and mission, it has to solve the main problem that
persists in AIROD. Defining the problem is required to find the root cause of the main
AIROD problem.

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3.0 Defining problem.
AIROD is one of the aircraft servicing and maintenance company. Besides that,
AIROD also capable of modifying C-130H aircraft. Currently, AIROD faced a problem
with the late delivery of the plane. TNI-AU (Tentera Negara Indonesia - Angkatan
Udara) is one of the AIROD customers. TNI-AU aircraft are unable to prepare within the
time frame because the aircraft are involved with modification on ETCAS (Enhanced
Traffic Collision Avoidance System) and EGPWS (Enhanced Ground Proximity Warning
System). This two system requires a modern type of the test set which are not available at
AIROD. AIROD only has the old version test, which is the test set is not up to date
version and can be considered as obsolete.
Faced with a such of the lack of test equipment problem, which is the problem
will affect the delivery of the aircraft. To complete the system modification installation
procedure, the system required to carry out the functional test using the appropriate test
set. During the system functional test is carried out, test equipment is simulating the
aircraft system the same as the usual flight. These integral components of the system that
has been installed can be tested during the system functional test using the appropriate
test equipment. The functional test of the system using the test set is compulsory. Aircraft
must go through the functional check procedure without any failure during the test to get
the permit of flight. The requirement had been set by the certified body such as CAAM
(Civil Aviation Authority of Malaysia) and IMAA (Indonesia Military Airworthiness
Authority). As mention above, the functional test required the modern test set, which is
AIROD need to purchase the new test set to support the installation procedure of the new
system.

4.0 Identifying decision criteria.

"After identifying the problems, the next step in rational decision making is to
establish the decision criteria. The decision criteria refer to the standards or features that
will be considered when making a decision." (Shahrol Aman Ahmad, Azhari Ramli,
Nasri Nalimi, Azelin Aziz, & Santhi Raghavan, 2013, p. 42) Four criteria had been
identifying before purchasing a piece of new test equipment is a price, quality,
compatibility, and warranty before buying the test set.

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4.1 Price.
The first criterion to be considered before buying the new test equipment is a
price. Most of the test equipment is very expensive because of the quality of the item
itself. The price is high because the test equipment must meet the requirement set by the
certified body, such as EASA (European Aviation Safety Agency). The test equipment
must be eligible and suitable to test a particular system and also need to be scheduled
maintenance and calibrated to meet the EASA standard.

4.2 Quality.
When talking about the quality of an aircraft test equipment, usually, every part of
the aircraft or the test equipment build in with high-quality material. Aircraft parts or
aircraft test equipment should go through with several tests to ensure quality. Most of the
aircraft's test equipment an already built in high quality. Test equipment should go
through several tests and meet the requirement set by the certified body such as EASA
before entering the market.

4.3 Compatibility.
The compatibility of the test equipment is the most important before buying any
test equipment. Before purchasing a piece of test equipment, the user should ensure that
the system is going to use using the test equipment and its compatible or not with the
aircraft system. Nowadays, most of the test equipment is build in ready to test several
systems. Some of the test equipment can test several aircraft systems such as mode s
transponder, ATC (Air Traffic Controller System), IFF (Identification Friend or Foe
System), ETCAS, EGPWS, and TACAN (Tactical Air Navigation System). But some of
the test equipment which is can only test the specified system.

4.4 Warranty.
Another criterion must be through before buying new test equipment for AIROD
is a warranty for the item and the duration of the warranty period. According to the
warranty, another thing to be considered is which part of the item will cover during the
warranty period. Some of the test equipment is included with free maintenance and

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 servicing for a certain period, and it becomes one of the advantages of buying the new
test equipment.

5.0 Allocating weight to each criterion.

" After identifying the criteria that need to be considered when making a decision,
the next step will be to allocate weight to each of the criteria. One method that is
normally used for this purpose is to make relative comparisons. In this method, each
criterion will be compared directly with others. This is to identify which are the most
important criterion, the second important criterion and thereafter the less important
criterion for the decision maker. Thus, decision criteria are arranged according to
priorities. The priorities of an individual might be different from those of another
individual." (Shahrol Aman Ahmad, Azhari Ramli, Nasri Nalimi, Azelin Aziz, & Santhi
Raghavan, 2013, p. 42) After compared the four criteria, the first allocating weight is the
compatibility of the test equipment, followed by the price, warranty, and last is quality as
per the table below.

CRITERION WEIGHT
Compatibility 4
Price 3
Warranty 2
Quality 1

Table 1: Comparison to each criterion.

5.1 First allocating weight.

The first allocating weight is the compatibility of the test equipment. Before
buying a piece of test equipment, the user should ensure that the system is going to use
using the test equipment and its compatible or not with the system to use. The test
equipment should be compatible with both systems ETCAS and EGPWS that has been
installed at TNI-AU aircraft. Follow by the other systems, which can use the same test

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 equipment. Another thing to be considered is test equipment meets the requirement for a
particular certified body such as CAAM and IMAA.

5.2 Second allocating weight.

The second allocating weight is the price of the test equipment. Most of the test
set is very expensive because of the quality of the test set. The price is high because of
the test set also need to meet the requirement some of the certified body such as EASA
before getting enter the worldwide market. Before purchase the test equipment, the price
must be below the allocating budget, as low as possible, and can be used for multiple
purposes.

5.3 Third allocating weight.

The third allocating weight is the warranty of the test equipment. Warranty for the
test equipment is essential, which is the test equipment able to repaired or replaced if any
defect that occurred during the warranty period. Another thing that considered is the
duration of the warranty period and which part of the item covered under the warranty
period.

5.4 Fourth allocating weight.

The fourth allocating weight is quality. Quality becomes the last of the allocating
weight is because test equipment that is related to the aircraft must through several tests.
This requirement set by a particular certified body such as EASA before getting enter the
worldwide market. That means the test equipment is usually of high quality.

6.0 Generating alternative.

After "identified and allocated weights to the criteria, the next step is to develop
as many alternative solutions as possible. The more alternatives are generated, the better
is the process." (Shahrol Aman Ahmad, Azhari Ramli, Nasri Nalimi, Azelin Aziz, &
Santhi Raghavan, 2013, p. 42) Several models of the test equipment are identified, such
as Aeroflex IFR-6000, Aeroflex 2945B, Aeroflex ATC600A, Aeroflex IFR Cobham
ATC-601-2.

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6.1 Aeroflex IFR-6000.
Aeroflex IFR-6000 is the latest test equipment that can use as mobile test
equipment, rechargeable power supply, small size, and suitably used for shop and ramp
area. Aeroflex IFR-6000 test equipment most commonly used by modern aircraft, which
is supporting several systems. This test equipment able to test ETCAS and EGPWS and
also can test other transponder systems installed in the aircraft. The price of this test
equipment is quite higher.

Figure 1: Aeroflex IFR-6000

6.2 Aeroflex 2945B.

Aeroflex 2945B is one of the test equipment that commonly used at the shop. This
test equipment can test several transponder systems, which are ETCAS, and EGPWS can
be tested using this test equipment. This test equipment can be used at ramp area but need
the extension cable because it is non-rechargeable type and bulky in size. The price is
much higher than the Aeroflex IFR-6000.

Figure 2: Aeroflex 2945B

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6.3 Aeroflex ATC600A.
Aeroflex ATC600A price is lower than the other test equipment. This test
equipment is old version test equipment but still can be used to check only ETCAS
system. Suitable for both shop and ramp area because this test equipment is movable type
equipment and rechargeable unit but bulky in size.

Figure 3: Aeroflex ATC600A

6.4 Aeroflex IFR Cobham ATC-601-2.

Aeroflex IFR Cobham ATC-601-2 is one of the test equipment that commonly
used at the ramp area and not suitable to used at the shop. This test equipment is only
able to test ETCAS and EGPWS systems. This test equipment can be used at ramp area
because it is rechargeable type but bulky in size. The price is lower than the Aeroflex
IFR-6000.

Figure 4: Aeroflex IFR Cobham ATC-601-2.

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7.0 Evaluating alternatives.
" At this level, every alternative will be compared with each decision criterion.
This is to determine the extent of the alternatives to fulfill the decision criteria that had
been set. Usually, this level takes the longest time as there is a lot of information that
must be collected first before comparisons can be made. It also involves a huge sum of
money." (Shahrol Aman Ahmad, Azhari Ramli, Nasri Nalimi, Azelin Aziz, & Santhi
Raghavan, 2013, p. 43) After generating the alternative, the evaluation has to carry out as
per the table below.

Models and Aeroflex Aeroflex Aeroflex Aeroflex IFR Cobham

criterion. IFR-6000 2945B ATC600A ATC-601-2
Compatibility 4 2 1 3
Price 2 1 4 3
Warranty 4 3 1 2
Quality 4 3 1 2

Total 14 9 7 10

Table 2: Evaluating alternatives

7.1 First alternative.

The first alternative is to buy the test equipment Aeroflex IFR-6000. Aeroflex
IFR-6000 able to use as portable test equipment, rechargeable power supply, small size,
and suitably used for shop and ramp area. The evaluating mark for the Aeroflex IFR-
6000 is a fourteen, which is the higher evaluating mark.

7.2 Second alternative.

The second alternative to buying the test equipment is an Aeroflex IFR Cobham
ATC-601-2, which can be used at ramp area and not suitable to use at the shop. This test
equipment can only test ETCAS and EGPWS systems. This test equipment can be used at
ramp area because it is rechargeable type but bulky in size. The evaluating mark for the
Aeroflex IFR Cobham ATC-601-2 is a ten, which is the second evaluating mark.

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7.3 Third alternative.
The third alternative to buying the test equipment is an Aeroflex 2945B, which
usually used at the shop. This test equipment can test several transponder systems, which
are ETCAS, and EGPWS can be tested using this test equipment. This test equipment can
be used at ramp area but need the extension cable because it is non-rechargeable type and
bulky in size. The price is much higher than the Aeroflex IFR-6000. The evaluating mark
for the Aeroflex 2945B is a nine, which is the third evaluating mark.

7.4 Fourth alternative.

The third alternative to buying the test equipment is an Aeroflex ATC600A,
which is winning at a price but loose in the three other criteria. Aeroflex ATC600A price
is lower than the other test equipment. This test equipment is old version test equipment
but still can be used to check only ETCAS system. Suitable for both shop and ramp area
because this test equipment is movable type equipment and rechargeable unit but bulky in
size. The evaluating mark for the Aeroflex ATC600A is a seven, which is the third
evaluating mark.

8.0 Selecting the optimal decision.

"The last step in the process of making rational decisions is to select the best
alternative solution available. The best alternative is the alternative that fulfills all the
decision criteria according to the importance that has been arranged. However, if there
are no alternatives that can fulfill all the decision criteria according to the arrangement
set, then the alternatives that fulfill the most criteria will be selected". (Shahrol Aman
Ahmad, Azhari Ramli, Nasri Nalimi, Azelin Aziz, & Santhi Raghavan, 2013, p. 43)
The optimal decision can be made through all the step above is to purchase the
Aeroflex IFR-6000 test equipment. Aeroflex IFR-6000 is the latest test equipment that
can use as mobile test equipment, rechargeable power supply, small size, and suitably
used for shop and ramp area. This test equipment commonly used by modern aircraft,
which is supporting several systems. This test equipment Aeroflex IFR-6000 can test
several systems installed in the plane. Even though the price is higher, but it's reasonable
to buy because of the several issues had been mention in the step above.

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9.0 Conclusion.
In a nutshell, the main AIROD problem is a failure to prepare aircraft within the
time frame given. Lack of test equipment is the root cause that had been identified in the
defining issue above. Buying the appropriate test equipment will reduce the percentage of
AIROD problem. After through six steps defining problems, identifying decision criteria,
allocating weight to each criterion, generating alternative solutions, evaluating
alternatives and last is selecting the optimal decision. The final decision had been made
to buy the Aeroflex IFR-6000 test equipment which has several functions.
(2963 words)

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References
AIROD SDN BHD. (1998). Mission statement. Retrieved from
http://airod.tripod.com/mission.htm

AIROD SDN BHD. (2019). Corporate profile introduction. Retrieved from

http://www.airod.com.my/

Shahrol Aman Ahmad, Azhari Ramli, Nasri Nalimi, Azelin Aziz, & Santhi Raghavan.
(2013). Principles of Management (2nd ed.). Malaysia: Open University Malaysia
(OUM).

ST ENGINEERING. (2018). Awards. Retrieved from

https://www.stengg.com/en/about/awards/

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