MEGENAGNA CAMPUS

MASTER'S OF BUSINESS ADMINISTRATION

(MBA)

COURSE TITLE: OPERATIONAL MANAGEMENT

:
ASSIGNMENT TITLE EVALUATING OPERATIONAL MANAGEMENT DECISIOS

OF ETHIOPIAN AIRLINES

SECTION : B

GROUP MEMBERS

NAME Id No

1. ASCHALEW SHC/013/15

2.GETINET MAMO SHC/068/15

3. SEYOUM ADERE SHC/113/15

4.TENAGNE LEGESSE SHC/120/15

5.TILIKGETAYALEW GETACHEW SHC/131/15

6. TSEHAY FIKADU SHC/132/15

Submission date : 24 ,Sep 2023

Submitted to: Wondmagegn (PhD).

 1. Introduction

1.1 Organization background

Ethiopian Airlines (Ethiopian) is the fastest growing Airline in Africa. In its seventy-five years of
operation, Ethiopian has become one of the continent’s leading carriers, unrivalled in efficiency
and operational success. Ethiopian commands the lion’s share of the Pan-African passenger and
cargo network operating the youngest and most modern fleet to more than 130 international
passenger and cargo destinations across five continents. Ethiopian fleet includes ultra-modern
and environmentally friendly aircraft such as Airbus A350, Boeing 787-8, Boeing 787-9, Boeing
777-300ER, Boeing 777-200LR, Boeing 777-200 Freighter, Bombardier Q-400 double cabin with
an average fleet age of five years. In fact, Ethiopian is the first airline in Africa to own and
operate these aircraft. Ethiopian is currently implementing a 15-year strategic plan called Vision
2025 that will see it become the leading aviation group in Africa with Seven business units:
Ethiopian International Services; Ethiopian Cargo & Logistics Services; Ethiopian MRO Services;
Ethiopian Aviation Academy; Ethiopian ADD Hub Ground Services, Ethiopian Airports Services
and Ethiopian Express Services (Domestic). Ethiopian is a multi-award-winning airline
registering an average growth of 25% in the past seven years.

1.2 Statement of problem

Ethiopian Airlines faces challenges in maximizing the utilization of its aircraft fleet, leading to
increased operating costs and suboptimal revenue generation. It struggles with maintaining a
systematic and efficient approach to aircraft maintenance, resulting in unplanned maintenance
disruptions, reduced fleet availability, and potential safety concerns. It encounters difficulties in
optimizing crew schedules and allocating resources efficiently, leading to increased labor costs,
crew fatigue, and potential operational disruptions.It faces challenges in managing its inventory
of spare parts, resulting in delays in aircraft maintenance, increased downtime, and higher costs
due to rush orders or excessive stockpiling.It struggles with accurately predicting passenger
demand for different routes and flight times, leading to suboptimal flight schedules, underutilized
capacity, or overbooked flight. It faces issues in effectively managing customer service
operations, resulting in customer dissatisfaction, low customer retention rates, and negative
brand reputation.It encounters challenges in fully integrating technology systems across various
operational functions, leading to inefficiencies, data inconsistencies, and limited real-time
visibility into operations.It faces difficulties in managing its supply chain effectively, resulting in
delays in receiving necessary supplies, increased costs due to inefficient procurement practices,
and potential disruptions to flight operations.It struggles with optimizing fuel consumption and
management practices, leading to increased fuel costs, environmental impact, and potential
operational inefficiencies. It faces challenges in optimizing its route network and flight
schedules, resulting in suboptimal connectivity, increased fuel consumption, and potential
missed revenue opportunities.

1.3 Basic Questions

1. What are the main factors contributing to inefficiencies and increased operational costs
within Ethiopian Airlines' operations management?

2. How does Ethiopian Airlines utilize scheduling software in its operations management? What
are the limitations or shortcomings of the current software?

3. What measures can be taken to reduce operational costs and improve efficiency within
Ethiopian Airlines' operations management?

4. How does ineffective operations management impact customer satisfaction and overall
business performance for Ethiopian Airlines?

5. How can Ethiopian Airlines measure and track the success of its operations management
improvements in terms of cost savings, efficiency gains, and customer satisfaction?

1.4 Methodology
The evaluation have done on operational management decision areas of Ethiopian airline by using
written review of literature ,reports of Ethiopian airline,magazines and comparative study of airline
industry from secondary sources of data.

2. Literature review
A growth in the modern world has not only allowed a deep rooted investigation of the present
but also a prediction of the future. It is noted with a development of several theories, policies
and strategies experts have largely taken to build up competency levels of the upcoming days.
In addition to a focus on making an optimum use of resources and technology, nations across
the globe compete against each other in building up opportunities for the future generation. As
compared to the extraordinary prototypes, the professionals ensure that the future has a lot
more. According to Slack (2015), an expansion of knowledge has allowed an increment of
expertise and an effective know-how of operations in the world as well.

As stated by Krajewski, Ritzman & Malhotra (2013), the concept of operation management
applies to all productive organizations across the world. Being a diversified topic, the aspect is
recognized as one the most crucial factors that affects decision making and developmental
processes. Apart from a focus on production and value addition processes, the topic highlights
application of tools and various strategies. Moreover, supply chains, logistics, marketing,
financing and delivery management all form part of the widely spread concept as well. It is
noted that the in comparison to the present times the future will present business firms with
more developed resources.

Managers in a firm often tend to work in collaboration with experts and the taskforce to study
the market and further build up future scopes. Based on the video it is seen that Australian
firms focus on developing an unbelievable future in every aspect of the world. Ranging from
kitchens to toilets to cars to about all humanitarian aspects will undergo an extraordinary
change in the coming 2020 and beyond (Booth, 2015). Being a well developed nation, Australia
largely undertakes various operational plan systems to build up capabilities and make effective
decisions. Despite of a certain level of risk, professionals immensely undertake reinforcements
and reconstruction of ideas.

A contact center is an organization formed to give contact service to customers and its
operations need to be fully managed for good results and reputation in the communication
industry (Brain, 2001).

As an operational manager in a contact center, effective operation management helps me to

evaluate the workers’ performances as related to the expected workload assigned to them. By
so doing, it becomes simple and easier to retain the best workers in an organization. At the
same time, it is easy to monitor the code of ethics of workers and the way they relate with each
other in the working place (Voss, Tsikriktsis and Frohlich, 2002). If a manager effectively
manages to monitor

Operational management is the main function in the modern organization. It contributes to the
production of services and goods for consumer consumption. It is the process that allows
organizations to meet its objectives by effective use and acquisition of resources. During the
individual and group project, I have learnt that operation management helps the organization
to coordinate and control its resources in the process of production of products and services. It
also contributes in the change of the business inputs such as information and raw materials into
finished products. It helps organization to arrange resources that change inputs to output in
order to achieve the customer’s needs.(wow essays ,2021).

The objective of operation management is to enhance the content of value added services in
any given process. These value added services should match the market opportunities, which
aim at maximizing organizational performance. This will require a production system, which will
transform the products into desired quality.

The capability level of product and service that the organization provides to a customer is a
significant marketing decision. Therefore, operation management helps the organization to
provide product capability levels that meet customer needs. This is so because ensures
customers obtains products with capabilities that are more than their requirements
(Mahadevan, 2010, PP. 127). It ensures organization have strategies that can overcome
logistical challenges in emerging markets. This is possible because it creates long-lasting
products for sustainable consumption.

Operations Management is an area of management which is concerned with the management

of the operations function of the organization. Operations management is the practice of
handling day-to-day operations of business functions in a manner that is efficient, and that
maximizes profitability. Operations management focuses on how best to use the organization's
production resources, capabilities, and competencies to efficiently, create and deliver value to
customers. Operations management involves business practices and decisions to create the
highest level of efficiency possible within an organization. The goal of operations management
is to maximize efficiency while producing goods and services that effectively fulfill customer
needs.

Operations management process is comprised of the following managerial functions: planning,

organizing, staffing, directing, coordinating and controlling the various aspects of an
organization's workflow in the production of goods and services, such as procurement,
manufacturing of goods, provisioning of services, distribution and marketing.

 Planning - Planning in operations management is the foundational function, and it

involves the development of plans and strategies that will allow a business to use its
resources and seize opportunities effectively to meet desired objectives efficiently. It
involves setting business objectives and monitoring to determine how best to
accomplish them. Operations planning establishes the basic objectives for work in each
of the major functions. It is based on the best trade-offs for the firm as a whole,
weighing sales and marketing objectives, manufacturing costs, scheduling and inventory
objectives, and the firm's financial objectives. All these must be integrated with the
strategic view of where the company wants to go.

 Organizing - The organizing function involves developing an organizational structure and

allocating human resources to ensure the accomplishment of objectives. The structure
of the organization is the framework within which effort is coordinated. Some examples
of organizing processes that organizations use include: creating new products, fulfilling
 customer orders, providing customer service, etc. This may include staffing which
involves the process of recruiting - attracting and screening potential candidates, and
hiring - offering selected candidates specific jobs.

 Directing - Directing or leading in operations management involves for example, setting

attainable goals, directing employees to complete certain activities to accomplish an
objective, thinking beyond their own self interests, showing empathy for others,
building relationships with those related to the success of the business.

 Controlling - Operational Control involves control over intermediate-term operations

and processes but not business strategies. Operational control systems ensure that
activities are consistent with established plans. Some examples of operational control
include: automated plants, production scheduling, inventory control, order processing,
payroll accounting, check handling, etc.

Operations management is a continuous decision-making process that takes place within the
context of the management functions of planning, organizing, leading, and controlling the
production of goods and services. The operations management is the practice of handling day-
to-day business functions in a manner that is efficient and maximizes profitability. It involves
operations managers overseeing the process of acquiring, developing, and delivering goods and
services to customers based on the needs of a target market, and the abilities of the
organization. Operations management is concerned with maintaining a steady workflow,
whether for producing your products or administration of operations function. Operations
management involves managing processes, resources (such as materials, machines, technology,
and funds), and people to produce products (goods and services) that the marketplace wants.
The types of operations management may include: production efficiency management, quality
management, inventory and supply chain management.

Operations management is the implementation of business practices to maximize the efficiency

of an organization. The process includes the planning, organizing, leading/supervising, and
controlling supply chain activities such as: procurement, production, product life-cycle
management, logistics, planning, order management, etc., and th delivery of goods and services
to customers. Teams often implement operations management by measuring and analyzing
internal processes for their efficiency and effectiveness.

Operations Function

The term, (business) operations, embraces all the value chain activities and tasks that
organizations use (or required) to produce - create and deliver - an organization's products
(goods and services) to its customers or clients. A company's business operations are the core
activities that businesses engage in, on a daily basis, to increase the value of the enterprise and
earn a profit. Business operations is comprised of a number of functional areas including:
strategy, marketing, finance, human resources, technology and equipment, and operations. The
whole chain of events must be well managed for a business to be competitive and profitable in
efficiently producing goods and services.

Operations function is the term used to describe how the core operation of the organization
design and functions. Operations functions refer to the departments in an organization that
keep the day-to-day activities that keep the business on track. The operations function focuses
on maintaining the efficiency of the value creation processes and helps the different functions
involved in the value chain make smart decisions. Companies have operations departments to
keep everyday functions on track. The operations department focuses on maintaining the
efficiency f the production processes and helps teams make smart decisions. Every organization
has an operations function, whether or not it is called operations or not, and it is mainly
responsible for producing goods and services. It however, needs support and input from other
areas of the organization such as: product management, supply chain, inventory, forecasting
(production/sales), scheduling, quality management, and facilities planning and management.

Operations Management Systems

Operations management system is a collection of processes and procedures that enables an

organization to effectively manage business practices and achieve the highest level of efficiency
with day-to-day operations. Operations management systems are geared towards improving
team performance and encouraging them to focus on tasks that are instrumental to their
organization's growth. There are different departments in an organization, and each of them
has its responsibilities and goals. An OMS generally serves as a guide that ensures thee various
departments work together to achieve a common business goals. Operations management
systems a framework that an organization uses to direct and control work to achieve its
objectives in an intentional and continuous manner.

The OMS includes the following components:

 sets goals and policies,

 establishes how we get there by describing the organization's approach to sound

operations,

 establishes the roles and responsibilities for conducting sound operations to meet the
goals,
  establishes processes to be followed in pursuit of improving the system - the
organization's operations goals,

 incorporates the appropriate operational controls,

 Provide periodic changes, audits, and assessments to improve and assess compliance
with the OMS.

The OMS establishes intentional, routine operational controls that are designed to maintain
compliance to performance, and strive to be better than competitors, and the organization's
own previous three (3) years of performance.

Operations management takes place within the context of of the broad policies and objectives
set out by strategic decision-making. It involves structured decision-making concerned with
how efficiently and effectively resources are utilized, and how well operations units are
performing. The direct responsibilities of operations management include managing both the
operations process, embracing design, planning, control, performance improvement of all
processes in an efficient way to transform resources into quality goods or services; and
managing development of operations strategy. The indirect responsibilities include interacting
with those managers in other functional areas within the organization whose roles have an
impact on operations, such as marketing, human resources, finance, etc. Operations managers
exercise control by measuring actual outputs and comparing them to planned operational
output.

There is limited specific literature available regarding the decision area of operations
management for Ethiopian Airlines. However, some general literature on operations
management in the airline industry can provide insights into the key decisions and strategies
that Ethiopian Airlines may employ.

 Fleet planning and management: Ethiopian Airlines would need to make decisions
regarding its fleet composition, including the number and types of aircraft in its fleet.
This involves considering factors such as passenger demand, route network, fuel
efficiency, and maintenance costs. Literature on fleet planning and management in the
airline industry can provide guidance on optimizing fleet size and composition to meet
operational requirements.

 Capacity planning: Ethiopian Airlines would need to make decisions regarding capacity
planning, including determining the number of flights, seat capacity, and flight
schedules. This involves considering factors such as passenger demand, competition,
and operational constraints. Literature on capacity planning in the airline industry can
 provide insights into forecasting techniques, demand management strategies, and
scheduling optimization.

 Supply chain management: Ethiopian Airlines would need to make decisions regarding
its supply chain management, including procurement of aircraft, spare parts, and other
equipment. This involves considering factors such as supplier selection, inventory
management, and logistics. Literature on supply chain management in the airline
industry can provide insights into best practices for managing the procurement process,
optimizing inventory levels, and ensuring timely delivery of critical components.

 Quality management: Ethiopian Airlines would need to make decisions regarding

quality management to ensure the safety and reliability of its operations. This involves
implementing quality control measures, conducting audits and inspections, and
continuously improving processes. Literature on quality management in the airline
industry can provide guidance on implementing quality assurance systems, conducting
safety audits, and managing regulatory compliance.

 Risk management: Ethiopian Airlines would need to make decisions regarding risk
management to mitigate potential risks and disruptions to its operations. This involves
identifying and assessing risks, developing contingency plans, and implementing risk
mitigation strategies. Literature on risk management in the airline industry can provide
insights into risk assessment methodologies, crisis management strategies, and business
continuity planning.

While there may not be specific literature available on the operations management decisions of
Ethiopian Airlines, the general literature on operations management in the airline industry can
provide valuable insights and best practices that can be applied to Ethiopian Airlines'
operations.

3. Operations management practices of Ethiopian airlines

Product and Service design
Ethiopian Airlines, also known as Ethiopian, is the national flag carrier of Ethiopia. As an airline,
its operations management practices play a crucial role in ensuring efficient and effective
service delivery. One key area of focus for Ethiopian Airlines is product and service design.

Product design refers to the process of creating new or improved products that meet customer
needs and preferences. In the context of Ethiopian Airlines, product design involves designing
aircraft cabins, amenities, and services that provide a comfortable and enjoyable travel
experience for passengers.
Ethiopian Airlines has invested in modernizing its fleet with state-of-the-art aircraft, such as the
Boeing 787 Dreamliner and the Airbus A350. These aircraft are designed to enhance passenger
comfort and reduce fuel consumption, thus contributing to sustainability efforts. The cabin
layout and seating arrangement are carefully designed to optimize space and provide a
pleasant environment for passengers.

In terms of amenities, Ethiopian Airlines offers a range of services to cater to different customer
segments. For example, in its long-haul flights, the airline provides passengers with individual
entertainment systems, offering a wide selection of movies, TV shows, and music. Passengers
can also enjoy complimentary meals and beverages during their flight.

Service design focuses on the processes and procedures involved in delivering services to
customers. Ethiopian Airlines places great emphasis on providing high-quality service to its
passengers. The airline has implemented various practices to ensure smooth operations and
customer satisfaction.

One aspect of service design is the check-in process. Ethiopian Airlines offers multiple check-in
options, including online check-in, mobile check-in, and self-service kiosks at airports. These
options reduce waiting times and provide convenience to passengers.

Another important aspect is the in-flight service. Ethiopian Airlines trains its cabin crew to
deliver excellent customer service and ensure passenger comfort throughout the flight. The
crew members are attentive, friendly, and well-trained to handle various situations that may
arise during the journey.

Additionally, Ethiopian Airlines has implemented technology-driven solutions to enhance its

service design. For example, the airline has introduced a mobile app that allows passengers to
manage their bookings, check flight status, and access other travel-related information. This
digital platform enhances the overall customer experience and provides convenience and
flexibility.

Process Selection and capacity planning

One key area of emphasis for Ethiopian Airlines in operations management is process selection
and capacity planning. Process selection refers to the decision-making process of choosing the
most appropriate methods and techniques to produce goods or deliver services. Capacity
planning, on the other hand, involves determining the optimal level of resources needed to
meet customer demand.

Ethiopian Airlines carefully selects its processes to ensure efficient and effective service
delivery. For example, the airline has implemented online check-in, mobile check-in, and self-
service kiosks at airports to streamline the check-in process and reduce waiting times for
passengers. These processes help to optimize resource allocation and improve overall
operational efficiency.

Capacity planning is also a crucial aspect of Ethiopian Airlines' operations management. The
airline carefully assesses customer demand and adjusts its capacity accordingly to meet that
demand. This includes factors such as fleet size, number of flights, and seat availability. By
accurately forecasting demand and managing capacity, Ethiopian Airlines aims to provide a
seamless travel experience for its passengers and avoid overbooking or underutilization of
resources.

Overall, process selection and capacity planning are key operations management practices that
Ethiopian Airlines focuses on to ensure efficient and effective service delivery. By carefully
selecting processes and managing capacity, the airline aims to meet customer demand while
maintaining high operational efficiency.

Facility location decision

One key area of emphasis for Ethiopian Airlines in operations management is facility location
decision. Facility location decision refers to the process of determining the most suitable
location for the airline's facilities, such as airports, maintenance centers, and offices.

Ethiopian Airlines carefully considers various factors when making facility location decisions.
These factors include proximity to major markets and customer demand, availability of skilled
labor, transportation infrastructure, local regulations and policies, and cost considerations.

The airline strategically selects locations that are geographically advantageous to serve its
target markets efficiently. For example, Ethiopian Airlines has strategically positioned its hub in
Addis Ababa, Ethiopia, which serves as a convenient connecting point between Africa, Europe,
Asia, and the Americas. This central location allows the airline to offer convenient flight
connections for passengers traveling between these regions.

In addition to considering geographical factors, Ethiopian Airlines also evaluates the availability
of skilled labor in potential locations. The airline requires a highly trained workforce to operate
and maintain its aircraft and facilities. Therefore, it seeks locations with access to a pool of
qualified and experienced aviation professionals.

Transportation infrastructure is another important consideration in facility location decisions.

Ethiopian Airlines looks for locations with well-developed transportation networks, including
highways, railways, and airports. This ensures efficient movement of passengers, cargo, and
aircraft to and from the facilities.
Local regulations and policies also play a role in facility location decisions. Ethiopian Airlines
considers factors such as government support for the aviation industry, tax incentives, and ease
of doing business when selecting locations for its facilities.

Finally, cost considerations are crucial in facility location decisions. Ethiopian Airlines evaluates
factors such as land and construction costs, labor costs, and operating expenses when choosing
facility locations. The airline aims to minimize costs while maintaining high operational
standards.

Overall, facility location decision is an important operations management practice for Ethiopian
Airlines. By strategically selecting locations that consider factors such as market demand, skilled
labor availability, transportation infrastructure, local regulations, and cost considerations, the
airline aims to optimize its operations and provide efficient and effective services to its
customers.

Layout decision
One key area of emphasis for Ethiopian Airlines in operations management is layout decision.
Layout decision refers to the arrangement of facilities, equipment, and resources within the
airline's facilities to optimize efficiency and productivity.

Ethiopian Airlines carefully considers various factors when making layout decisions. These
factors include the flow of passengers, cargo, and aircraft within the facilities, the utilization of
space, safety and security considerations, and the ease of communication and coordination
among different departments.

The airline strategically designs its facilities to ensure smooth and efficient flow of passengers,
cargo, and aircraft. For example, the layout of passenger terminals at airports is designed to
minimize walking distances and provide easy access to various amenities such as check-in
counters, security checkpoints, and boarding gates. This helps to enhance the overall passenger
experience and reduce congestion.

In addition to passenger flow, Ethiopian Airlines also considers the layout of its maintenance
centers and hangars. The layout is designed to optimize the use of space and ensure efficient
movement of aircraft during maintenance and repair operations. This helps to minimize
turnaround times and maximize aircraft availability.

Safety and security considerations are also taken into account in layout decisions. Ethiopian
Airlines ensures that facilities are designed in a way that promotes safety and security for both
passengers and employees. This includes measures such as clearly marked emergency exits,
secure access control systems, and designated areas for handling hazardous materials.
Effective communication and coordination among different departments is crucial for smooth
operations. Ethiopian Airlines designs its facilities to facilitate easy communication and
collaboration among various teams. This may include open office layouts, designated meeting
spaces, and the use of technology for real-time information sharing.

Overall, layout decision is an important operations management practice for Ethiopian Airlines.
By carefully considering factors such as passenger flow, space utilization, safety and security,
and communication and coordination, the airline aims to optimize its facility layouts and
enhance operational efficiency.

Quality management
Quality management is another key area of emphasis for Ethiopian Airlines in operations
management. The airline recognizes the importance of delivering high-quality services to its
customers and strives to continuously improve its processes and systems to meet and exceed
customer expectations.

Ethiopian Airlines implements various quality management practices to ensure the delivery of
excellent services. One of these practices is a strong focus on employee training and
development. The airline invests in training programs to enhance the skills and knowledge of its
employees, including pilots, cabin crew, ground staff, and maintenance technicians. By ensuring
that employees are well-trained and competent, Ethiopian Airlines aims to provide a high level
of service quality.

Another quality management practice employed by Ethiopian Airlines is the use of quality
control measures throughout its operations. The airline has established quality control
procedures and standards for various processes, including aircraft maintenance, passenger
handling, cargo handling, and in-flight services. These procedures and standards are regularly
monitored and audited to ensure compliance and identify areas for improvement.

Ethiopian Airlines also emphasizes customer feedback and satisfaction as part of its quality
management approach. The airline actively seeks feedback from its customers through surveys,
feedback forms, and other channels. This feedback is carefully analyzed and used to identify
areas where improvements can be made to enhance the customer experience.

Furthermore, Ethiopian Airlines has implemented a Total Quality Management (TQM)

approach, which involves the participation of all employees in continuous improvement efforts.
The airline encourages employees to identify and address quality issues, suggest improvements,
and contribute to the overall quality management process. This collaborative approach helps to
foster a culture of quality within the organization.
Ethiopian Airlines also places importance on compliance with international quality standards
and regulations. The airline holds various certifications and accreditations, such as the
International Air Transport Association (IATA) Operational Safety Audit (IOSA) certification,
which demonstrates its commitment to maintaining high standards of safety and quality.

In summary, quality management is a significant focus for Ethiopian Airlines in operations

management. Through employee training and development, quality control measures,
customer feedback, a TQM approach, and adherence to international standards, the airline
strives to deliver excellent service quality and continuously improve its operations.

Material management
While the provided information does not specifically mention material management as an area
of emphasis for Ethiopian Airlines, it is safe to assume that the airline also places importance on
effective material management practices as part of its overall operations management strategy.

Material management involves the efficient and effective procurement, storage, and utilization
of materials and resources needed for the airline's operations. This includes everything from
aircraft parts and components to consumables such as food and beverages for in-flight services.

To ensure effective material management, Ethiopian Airlines likely employs various practices
such as:

1. Supply chain management: The airline would have a well-established supply chain network to
ensure the timely and reliable delivery of materials and resources. This may involve
partnerships with suppliers and distributors, as well as the use of technology to track inventory
levels and optimize procurement processes.

2. Inventory management: Ethiopian Airlines would implement inventory management

techniques to control and optimize stock levels. This may include regular stock monitoring,
forecasting demand, and implementing just-in-time (JIT) inventory practices to minimize
holding costs while ensuring availability when needed.

3. Vendor management: The airline would have established relationships with vendors and
suppliers, ensuring they meet quality standards and adhere to agreed-upon delivery schedules.
Regular performance evaluations and audits may be conducted to monitor vendor performance
and identify areas for improvement.

4. Cost control: Ethiopian Airlines would likely implement cost control measures to minimize
material-related expenses. This could involve negotiating favorable pricing agreements with
suppliers, implementing cost-saving initiatives, and monitoring material usage to reduce waste.
5. Maintenance planning: Effective material management would also involve proper planning
for aircraft maintenance. This includes ensuring the availability of necessary spare parts and
components, coordinating with maintenance teams, and optimizing maintenance schedules to
minimize aircraft downtime.

By implementing these material management practices, Ethiopian Airlines can ensure the
availability of necessary resources, reduce costs, minimize disruptions to operations, and
ultimately deliver high-quality services to its customers.

Planning scheduling
While the provided information does not specifically mention planning and scheduling as areas
of emphasis for Ethiopian Airlines, it is safe to assume that the airline places importance on
effective planning and scheduling practices as part of its overall operations management
strategy.

Planning and scheduling involve the coordination and organization of various activities and
resources to ensure smooth and efficient operations. In the context of Ethiopian Airlines, this
would include flight planning, crew scheduling, maintenance planning, and resource allocation.

1. Flight planning: Ethiopian Airlines would have a dedicated team responsible for planning
flight routes, considering factors such as fuel efficiency, airspace restrictions, and customer
demand. This involves analyzing data, utilizing flight planning software, and coordinating with
air traffic control to optimize flight paths.

2. Crew scheduling: The airline would have systems in place to efficiently schedule and allocate
crew members for each flight. This involves considering factors such as crew availability,
regulatory requirements, and crew fatigue management. Crew scheduling software may be
utilized to automate and optimize this process.

3. Maintenance planning: Ethiopian Airlines would have a comprehensive maintenance

planning system to ensure timely inspections, repairs, and maintenance activities for its aircraft
fleet. This involves scheduling routine maintenance checks, coordinating with maintenance
teams, and optimizing maintenance schedules to minimize aircraft downtime.

4. Resource allocation: The airline would allocate resources such as aircraft, ground handling
equipment, and facilities effectively to meet operational requirements. This involves analyzing
demand patterns, considering capacity constraints, and optimizing resource utilization to
maximize efficiency.

5. Operational contingency planning: Ethiopian Airlines would have contingency plans in place
to address unforeseen events or disruptions that may affect operations. This includes
developing alternative flight routes, implementing backup crew scheduling procedures, and
having spare aircraft available if needed.

By implementing effective planning and scheduling practices, Ethiopian Airlines can optimize its
operations, improve resource utilization, minimize disruptions, and enhance customer
satisfaction.

Maintenance management
Maintenance management is a critical aspect of operations management for Ethiopian Airlines.
The airline would have a dedicated maintenance management team responsible for ensuring
the safety, reliability, and airworthiness of its aircraft fleet. Here are some key aspects of
maintenance management for Ethiopian Airlines:

1. Maintenance planning and scheduling: The airline would have a comprehensive system in
place to plan and schedule routine maintenance checks, inspections, and repairs for its aircraft.
This involves creating maintenance schedules based on manufacturer recommendations,
regulatory requirements, and operational needs. The team would coordinate with maintenance
crews, ensure the availability of necessary equipment and spare parts, and optimize
maintenance schedules to minimize aircraft downtime.

2. Preventive maintenance: Ethiopian Airlines would prioritize preventive maintenance to

identify and address potential issues before they become major problems. This includes regular
inspections, component replacements, and system checks to ensure the continued
airworthiness of the aircraft fleet. The maintenance management team would develop
preventive maintenance plans based on industry best practices and manufacturer guidelines.

3. Corrective maintenance: In addition to preventive maintenance, Ethiopian Airlines would

have procedures in place for addressing unexpected maintenance issues or failures. The
maintenance management team would coordinate with maintenance crews to diagnose and
repair aircraft defects or malfunctions promptly. This involves prioritizing urgent repairs,
coordinating with suppliers for spare parts, and minimizing aircraft downtime.

4. Maintenance documentation and record-keeping: Ethiopian Airlines would maintain detailed

records of all maintenance activities, including inspections, repairs, and component
replacements. This documentation is essential for regulatory compliance, warranty claims, and
tracking the overall health of the aircraft fleet. The maintenance management team would
ensure accurate and up-to-date records are maintained in accordance with industry standards.

5. Continuous improvement: Ethiopian Airlines would continuously evaluate its maintenance

practices to identify areas for improvement. This includes analyzing maintenance data,
monitoring key performance indicators (KPIs), and implementing corrective actions to enhance
the efficiency and effectiveness of maintenance operations. The maintenance management
team would also stay updated with industry advancements and best practices to incorporate
them into their operations.

By effectively managing maintenance operations, Ethiopian Airlines can ensure the safety and
reliability of its aircraft fleet, minimize disruptions due to maintenance issues, and optimize the
utilization of its resources. This ultimately contributes to the overall success of the airline's
operations management strategy.

4. Summary and Recommendations

4.1 Summary
Ethiopian Airlines is known for its efficient and effective operational management. The airline
has implemented various strategies and practices to ensure smooth operations and customer
satisfaction.One key aspect of Ethiopian Airlines' operational management is its focus on safety.
The airline has a strong safety culture and maintains a high level of compliance with
international safety standards. It invests in modern aircraft and regularly conducts maintenance
checks to ensure the safety of its fleet.It also emphasizes punctuality and on-time performance.
It has implemented robust scheduling and planning systems to minimize delays and disruptions.
The airline closely monitors flight operations and takes proactive measures to address any
potential issues that may affect its schedule.

Ethiopian Airlines' operational management is its efficient ground handling services. The airline
has dedicated teams and advanced equipment to handle baggage, cargo, and other ground
operations. This ensures quick turnaround times and smooth transitions between flights.It
focuses on cost management and optimization. It implements fuel-efficient practices, such as
using modern aircraft with advanced engines and optimizing flight routes. The airline also
invests in training programs for its staff to enhance their skills and productivity.Furthermore,
Ethiopian Airlines has a strong customer service orientation. It strives to provide a seamless
travel experience for its passengers, from booking to arrival. The airline offers various amenities
on board, such as comfortable seating, in-flight entertainment, and quality meals. Ethiopian
Airlines' operational management is characterized by its emphasis on safety, punctuality,
efficient ground handling services, cost management, and customer service. These practices
have contributed to the airline's reputation as a reliable and well-managed carrier in the
aviation industry.
4.2 Recommendation
1. Continuously invest in safety measures: Ethiopian Airlines should continue to prioritize safety
and invest in the latest technologies and equipment to ensure the highest level of safety for its
passengers and crew. This includes regular maintenance checks, training programs for staff, and
compliance with international safety standards.

2. Enhance operational efficiency: The airline should focus on streamlining its operations
further to minimize delays and disruptions. This can be achieved through continuous
monitoring of flight operations, proactive measures to address potential issues, and efficient
scheduling and planning systems.

3. Improve ground handling services: Ethiopian Airlines should strive to further enhance its
ground handling services to ensure smooth transitions between flights and quick turnaround
times. This can be achieved by investing in advanced equipment, providing comprehensive
training for ground handling staff, and implementing efficient processes.

4. Optimize cost management: The airline should continue to focus on cost management and
optimization to improve its financial performance. This can be achieved by implementing fuel-
efficient practices, optimizing flight routes, and investing in training programs to enhance staff
productivity.

5. Enhance customer service: Ethiopian Airlines should continuously work on improving its
customer service to provide a seamless travel experience for its passengers. This includes
offering quality amenities on board, improving communication with passengers, and addressing
customer feedback promptly.

Overall, Ethiopian Airlines should strive for continuous improvement in all aspects of its
operational management to maintain its reputation as a reliable and well-managed carrier in
the aviation industry.
 5. References List

Crandall, R. E. (2014) Principles of Supply Chain Management, 2nd edn, CRC Press.

Harlow, UK: FT/Prentice Hall.19Bové, A-T. & Swartz, S. (2016). Starting at the Source: Sustainability in
Supply Chains. [web log comment]. Retrieved from
https://www.mckinsey.com/business-functions/sustainability/our-insights/ starting-at-the-source-
sustainabilityin-supply-chainsCouncil of Supply Chain Management Professionals (CSCMP) Glossary.
[web log comment].

Hayes, R. H. and Wheelwright, S. C. (1984) Restoring Our Competitive Edge, New York, John Wile

Mahadevan, B. 2010, Operations management: theory and practice, Upper Saddle River, Pearson.

"Operational Management Report Samples." WowEssays, 28 Apr. 2021,

https://www.wowessays.com/free-samples/operational-management-report-samples/. Accessed 19
September 2023.

Slack, N., Chambers, S. and Johnston, R. (2007) Operations Management, 5th edn, Harlow, Pearson
Education Limited.

Slack, N., Chambers, S., Harland, C., Harrison, A., & Johnston, R. (2013). Operations Management(7th
Edition).

Walley, P. (2017) ‘Introduction to operations management’, in The Open University (2017) B207
Readings Block 1: Big ideas in Organisations, Milton Keynes, The Open University.

WowEssays. (2021, April, 28) Operational Management Report Samples. Retrieved September 19, 2023,
from https://www.wowessays.com/free-samples/operational-management-report-samples/y.