BM1902

Names______________________________________________________Section
Date _

ACTIVITY
Pacific Airlines
External factors leading to a significant drop in the air travel market fueled the need for a well-known
airline to reduce its fixed cost base. Pacific Airlines decided to outsource its maintenance activities, for
the majority of its operational portfolio, to a single provider. In doing so, the property function within
the
airline changed from a large in-house resource of engineers and supervisors to a small number of
contract managers. This in turn led to the need for a clear definition of the retained roles, significant
changes to the supporting business processes, and the replacement of legacy systems with up-to-date
information technology solutions that could provide meaningful management information.
Recognizing that the company was in an entirely new position, the airline decided to enlist the help of an
external facilities management consultant. The newly appointed facilities head was instrumental in this
decision. Being new to the organization, the facilities head was unfamiliar, as yet, with the resources at
his disposal and the precise nature of the task ahead of him. As the projected consultancy work could
not be specified in detail, being of an unknown quantity and composition, the company chose to
approach four (4) consultants. There was, therefore, a competitive element among the consultants
identified by the airline as prequalified for the role. The four (4) consultants were asked to tender for a
three (3)-year period of consultancy aimed at helping the airline to manage the transitional period
within its property function. The consultants are required to provide support services through an expert
team of facilities managers, project managers, procurement specialists, contracts managers, electrical
and mechanical engineers.
The head of maintenance of Pacific Airlines reflected the fact that the requirement to manage facilities,
particularly within the wider context of the organization’s overall business needs, was not fully
recognized. Similarly, the type of reactive approach that dominated maintenance activities was evidence
of a lack of strategic thinking and of a failure to recognize facilities as something more than a cost, and
to appreciate their ability to add value to the core business of the organization.

Answer the following items: (3 items x 10 points)

1. Propose ways on how Pacific Airlines may succeed in their organizational restructuring using the
concept of organizational management levels.
2. Suggest ways on how the newly appointed facilities head of Pacific Airlines may adapt to the
practices of the company.
3. Identify the appropriate courses of action in managing the facilities of Pacific Airlines based on
the organizational considerations of strategic analysis, solution development, and strategy
implementation.
Rubric for grading:
CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting details, and factual scenarios 8
Grammar Used correct grammar, punctuation, spelling, and capitalization 1
Organization of Expressed the points in clear and logical arrangement of ideas in the
1
ideas paragraph
TOTAL 10
Reference: Atkin, B. & Brooks, A. (2009). Total facilities management (3rd ed.). United Kingdom: John Wiley & Sons, Ltd.

05 Activity 1 *Property of STI

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