Wednesday, March 6, 2013

Productivity - Creating a Productive Work Environment

Many people are incredibly unproductive when working. Why is this? The main reason is because people do not "work" when they "work." What I mean is that just sitting in your office or place of work doesn't mean you are working, anymore than sitting in a garage makes you a car. Most people let constant interruptions and annoyances steal time from them throughout the day.

Whether it is the phone ringing, emails popping up every second, someone coming into your office, or something else, every interruption steals your time and makes you less productive. Depending on different studies and research it is shown that when a person is fully engaged and working on something it takes minutes, up to sometimes 20 minutes, for someone to be re-engaged in the project after being interrupted.

The brain really works best when it can work on a project and is not constantly being hammered with outside information or interruptions from everywhere. Yet people, all the time, do not setup an environment to where they can be extremely productive.

Productivity - Creating a Productive Work Environment

Here are some things I do that really help me. I do not have my email system open to read incoming emails. Emails have a daily time to which they are read, processed, and then replied to or deleted. I do this twice a day.

Phone calls, unless scheduled in advance, are normally not taken. There are some exceptions to this, of course, but I also budget in time for phone calls throughout the day.

Now, your business may be a bit different, but there are things you can do and strategies you can adapt to make sure you are utilizing your time effectively. I have weekly items I need to focus on and get done, and daily items that I get done every day. Make a list of the daily items you need to get done, and then the weekly items.

It is like going to the grocery store or brushing your teeth. The more systematized you get, the more success you will have. The other strategies I utilize are time blocking. For example, billing and paying bills has its own time and day on the calendar marked out. Education, writing, reading, returning calls, processing mail, sending mail, emails, and every thing else also have time set aside for them. This allows me to be much more productive instead of jumping from item to item.

Lastly, I am constantly working on my office. I am putting up pictures, quotes, getting the lighting right, the temperature right and more so I can be in the best mood possible. The better mood you are in while in your office, the more productive you can be. If you have a boring atmosphere you may find yourself falling asleep or have difficulty concentrating. Or if you use the wrong color you may be setting yourself up for failure. For example, did you know that different colors in your environment can stimulate creativity or cause more depression? Being aware of these factors can go a long ways in setting up the best work environment for yourself.

Why make it hard on yourself? You need motivation, inspiration, discipline, creativity, and good work habits to succeed. I want to give myself the best environment and best chance of success. If you implement the above, I can assure you that you will find success and be more productive. And as the phone rings I let it go to voice mail this time.:)

Productivity - Creating a Productive Work Environment
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Tuesday, February 26, 2013

How Time Metrics Contribute to Employee Productivity

Metrics, also called key performance indicators (KPIs), are designed for use as business metrics, implementation metrics, or as time metrics. These are tools widely used for assessing and evaluating the impact or effect of any project or activity to an employee's productivity. These metrics may be given different labels depending on how they are used and what they are meant to measure.

Metrics are generally considered to be most powerful and effective when they are used to measure desired business results. Management of organizations that are metrics-driven usually applies metrics in every functional unit -- from product development to marketing to sales and customer service. Recently, many business organizations have already seen the wisdom behind using metrics to assess employee performance and productivity.

As many textbooks and management experts contend, the workforce of a company is its most valuable asset. This is because the success or failure of a company hinges on the amount of effort that employees exert as they perform the tasks expected of them. So, when employees are performing below standards, the company is not able to efficiently utilize its resources. This translates to waste, and as we all know, waste decreases profitability.

How Time Metrics Contribute to Employee Productivity

For this reason, many HR practitioners see the need to inculcate upon their employees good time management skills. When employees are able to effectively manage their time, they not only accomplish everything they need to do, but they will also cultivate a positive outlook of their jobs. What is even better is that good time management is also a solution to the problem of stress and burnout. In fact, time management and stress management are often addressed together because of their interrelatedness.

Obviously, time management is a skill that positively affects employee productivity. Good employee performance is often viewed as a manifestation of an employee's effectiveness in managing his or her time at work. To measure this aspect of performance, many companies make use of time-driven metrics. Naturally, these metrics would greatly depend on the nature and focus of the company's operation. In call centers, for example, some of their most critical metrics are average handle time, average hold time, arrival rate, and after call time. On the other hand, relevant metrics of time for sales and distribution firms include sales generated per hour, or sales contracts closed in a week.

Nevertheless, an important skill that employees should learn, regardless of the type and nature of the organization they belong to, is the skill of budgeting time. To do this, they should first define basic categories of time utilization according to the tasks they have to perform. Once these are defined, they can now decide how much of their time they will allocate for each task. By using this method, they will concentrate much of their efforts and resources on things that really matter. While time management is not a skill that employees would be able to learn and practice overnight, the regular use of time management tools will help accelerate this. Lastly, the integration of time metrics in employee performance evaluation will also reinforce the importance of acquiring this specific skill.

How Time Metrics Contribute to Employee Productivity
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Tuesday, February 19, 2013

Productivity, Personal Appearance and Performance - A Success Triangle?

Is there a connection between productivity, success and the way you dress? According to Human Resource professionals, 95% of the workforce dresses inappropriately for their jobs. They wear clothing that undermines their credibility, masks their capabilities and significantly reduces their income.

In a survey of professional career advisers by Just for Men, almost 70 percent said appearance affects salary. Almost 65 percent revealed that "at least one male client had lost out in a job hunt because he looked too old." As Baby Boomers age, the men's category in personal care items has exploded in answer to their demand for products to help them retain their youthful appearance.

When it comes to women, society definitely does judge you by the way you look and the clothes you wear. A Cornell University study found that when white females put on an additional 64 pounds, her wages drop 9%. The U.S. Bureau of Labor Statistics found that there is a statistically significant "wage penalty" for overweight and obese white women - and the overall obese category takes has a wage loss of 12%.

Productivity, Personal Appearance and Performance - A Success Triangle?

Is Performance Dead

Since perception is reality, be aware of how you are perceived in the workplace, at meetings and with clients. While performance, knowledge and experience are necessary and often ensure continued employment, the new economy criteria for being hired, advancement and prosperity often rest as much on personal appearance as performance.

Through your appearance and clothing, you teach others how to treat you. Does your clothing and your personal grooming habits reveal a person that is responsible, self-respecting, honest and dependable or carelessness, indifferent and unreliable? You also reveal your self-esteem, education and income level and social status.

People spend huge amounts of time and money going to the right schools, getting the right training, getting into the right networking organizations, putting together a perfect resume and preparing for job interviews; but never put into their success formula any thought about the role their appearance plays in landing and keeping the job, getting a promotion or increasing your long term prosperity.

Package Yourself for Success

The biggest appearance negative other than un-cleanliness and poor grooming is your clothing where comfort and personal choice take precedent over appropriateness and function - the result, a lower paycheck and fewer opportunities. Learn to package yourself for success, not just your resume.

Wear Appropriate Clothes. Most organizations and businesses have a basic written or unspoken "appropriate dress code." The rule of thumb for advancement is - always dress better than the dress code suggests or almost as well as your boss. If the normal workday requires business or formal business attire do not dress down. You will be noticed - negatively.

If the dress code is business casual, determine the definition for business casual. Does that mean a t-shirt and blue jeans with holes or does that mean khaki slacks and casual shirts or country club casual which is great in the field of real estate? While jeans are the norm in some workplaces if you question the appropriateness of ones with holes or that are too tight, don't wear them.

For female business professionals at any level, wearing something pretty that could double for a dinner date after work is not appropriate attire in the workplace. The message being sent is that you are a lightweight, not always dependable and up to being fully productive. If you add to that heavy perfume, a skirt that is too short or a plunging neckline, the message can change to something that could even become disrespectful. In today's economy, inappropriate attire is often number one over performance at lowering your chances for future opportunities and receiving the full income potential of your next raise.

Make a statement. The only statement you should be making in the workplace, with clients and at meetings is the one you and your organization want remembered. You should always be in the appropriate attire or slightly better for the event when on the job. This statement reveals dependability, trustworthiness and promotion material.

It is never appropriate in such locations when representing your workplace to make personal statements whether they are political, environmental or social causes; or your love for a favorite sports team or entertainer. Save those for a weekend picnic with family and friends.

If you love "trendy" styles and want to change with the seasons, do it with your social attire but not for work. Following the trends closely can be interpreted as being indecisive, undependable and lacking self-confidence. If you must bring a few trends into your working wardrobe, do it with the accessories; a scarf, tie, even a shirt. They represent a contemporary splash of style on a very confident person which will be reflected positively in the future.

Is there a Missing Link? In the field of Feng Shui, surrounding yourself with positive energy is vital to productivity and prosperity and one of the keys to success. What is often overlooked is that your clothing is a big part of your personal environment. Your clothing must provide you the energy to meet your needs and goals on any given day at work. Clothing that provides supportive energy for success should be thought of in the following terms.

If it doesn't fit you, look great on you and make you feel like a million dollars wearing it, either don't buy it or if it is already in your closet, get rid of it.

To package yourself for productivity and success, the following guidelines will help you decide what to wear based upon your energy needs for that day.

Neutral colors are great for staying focused and limiting interruptions Bright colors are good for being upbeat and on the go all day Fitted clothes in darker colors help you be in total self-control Loose fitting lighter colored clothes are better for chaotic days or when creativity is essential Black is great when you want to absorb the energy of the moment Red, in small or large amounts and when appropriate, is great when you want to be noticed or empowered Earth tone colors work well for endless phone conversations, lots of computer time and good relationship connections Blue provides calming energy if you are in a high stress situations

Stop working harder than you need to; work smarter by creating an environment that enables, encourages and involves you in generating more opportunities and promotions. Begin in your closet at home. Make sure what you wear immediately identifies you as a success oriented trustworthy and dependable person ready to take on any opportunity that comes your way. The missing link in the triangle of success is: Personal Appearance Matters in the new economy.

© Pat Heydlauff, all rights reserved 2010

Productivity, Personal Appearance and Performance - A Success Triangle?
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Pat Heydlauff, president of Energy Design, speaks from experience. She works with organizations that want to create an environment where employees are engaged, encouraged and involved, and with people who want to be in control, anxiety-free and confident. Her new book, "Feng Shui: So Easy a Child Can Do It," provides change that leads to success and prosperity. Contact Pat for consulting, speaking and programs: http://www.Energy-by-Design.com or call: 561-799-3443 - Feng Shui Music for meditation, relaxation and energizing http://www.energy-by-design.com/HealingMusic.html

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Thursday, January 31, 2013

Productivity and Productivity Analysis

Productivity analysis refers to the process of differentiating the actual data over the estimated data of output and input measurement and presentation.

In economics, productivity is the ratio of the output production per unit of input. It may also refer to the technical efficiency of production relative to the allocation of resources of enterprises.

If the goal is to increase productivity, enterprises must produce more with the same level of input. The goal can also be done by maintaining the same level of output using fewer inputs. The drive to increase productivity can be caused by various factors, but perhaps the most apparent is the aspiration of an enterprise to increase profitability.

Productivity and Productivity Analysis

There are certain factors affecting the productivity of entities. General categories of the factors concerning productivity include the labor force, product, quality, process, capacity, and external influences. Resources are also important to consider in assessment of productivity of an entity.

Measuring the production level of an entity may take certain processes that include data acquisition, data summary, and comparison. In obtaining data, documenting the activities of an entity helps in creating tangible reports of certain group transactions. Documents and files can be extremely valuable, particularly during the performance evaluation.

Productivity analysis may be seen as an evaluative activity of the performance of an entity. The purpose of it being employed is to provide the appropriate solution to a problem that hinders the attainment of production goals in the present and future of the company. The findings from productivity analysis being undertaken are indeed of great help in providing an entity the necessary changes to be implemented for the realization of its production goals.

How can productivity analysis be executed?

The process of productivity analysis involves conducting detailed comparisons on production reports and the checking of each source used in the creation of the report. In other words, the process does not only occur from distinguishing the items found on the report, but also determining the data and documents which are relative to the items and elements of production report.

Budgeted and actual time sheets, materials requisition forms, purchase orders, and material withdrawal slips are some of the documents that may have certain values in productivity analysis.

Reports may not be adequate in the provision of findings and recommendations in analysing the productivity of an entity. Random examination of the workplace can also be undertaken as part of the analytic process.

How important is productivity analysis?

An entity that is aiming for increased profitability should focus on the improvement of the aspect of productivity. Productivity analysis can be an important tool to employ to determine the things that need changes or improvement.

Who executes the productivity analysis?

Productivity analysis may be a part of performance evaluation exercise of an entity. It may be conducted after the production report is made and finalized. This activity may be undertaken by someone from the management level or an expert production analyst.

A third party analyst may also be hired to conduct productivity analysis. Expert analysts independent from the entity could provide professional findings and effective recommendations using the proven formula.

Productivity and Productivity Analysis
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Saturday, January 26, 2013

Southwest Airlines Operations - A Strategic Perspective

Background:

Southwest Airlines is the largest airline measured by number of passengers carried each year within the United States. It is also known as a ‘discount airline’ compared with its large rivals in the industry. Rollin King and Herb Kelleher founded Southwest Airlines on June 18, 1971. Its first flights were from Love Field in Dallas to Houston and San Antonio, short hops with no-frills service and a simple fare structure. The airline began with one simple strategy: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline.” This approach has been the key to Southwest’s success. Currently, Southwest serves about 60 cities (in 31 states) with 71 million total passengers carried (in 2004) and with a total operating revenue of .5 billion. Southwest is traded publicly under the symbol “LUV” on NYSE.

Facts:

Southwest Airlines Operations - A Strategic Perspective

* The first major airline to fly a single type of aircraft (Boeing 737s)

* The first major airline to offer ticketless travel system wide including a frequent flier program based on number of trips and not number of miles flown.

* The first airline to offer a profit-sharing program to its Employees (instituted in 1973).

* The first major airline to develop a Web site and offer online booking. In 2001, about 40 percent (.1 billion) of its passenger revenue was generated through online bookings at [http://www.southwest.com]. Southwest's cost per booking via the Internet is about , compared to a cost per booking through travel agents of to .

Key competitive advantages:

* Low Operational costs / High Operational Efficiency

* Award winning customer service

* Human Resource practices / Work culture

Operations Analysis – Competitive Dimensions:

Southwest clearly has a distinct advantage compared to other airlines in the industry by executing an effective and efficient operations strategy that forms an important pillar of its overall corporate strategy. Given below are some competitive dimensions that will be studied in this paper.

1. Operational Costs and Efficiency

2. Customer Service

3. Employee/Labor Relations

4. Technology

1. Operational Costs and Efficiency

After all, the airline industry overall is in shambles. But, how does Southwest Airlines stay profitable? Southwest Airlines has the lowest costs and strongest balance sheet in its industry, according to its chairman Kelleher. The two biggest operating costs for any airline are – labor costs (approx 40%) followed by fuel costs (approx 18%). Some other ways that Southwest is able to keep their operational costs low is - flying point-to-point routes, choosing secondary (smaller) airports, carrying consistent aircraft, maintaining high aircraft utilization, encouraging e-ticketing etc.

Labor Costs

The labor costs for Southwest typically accounts for about 37% of its operating costs. Perhaps the most critical element of the successful low-fare airline business model is achieving significantly higher labor productivity. According to a recent HBS Case Study, southwest airlines is the “most heavily unionized” US airline (about 81% of its employees belong to an union) and its salary rates are considered to be at or above average compared to the US airline industry. The low-fare carrier labor advantage is in much more flexible work rules that allow cross-utilization of virtually all employees (except where disallowed by licensing and safety standards). Such cross-utilization and a long-standing culture of cooperation among labor groups translate into lower unit labor costs. At Southwest in 4th quarter 2000, total labor expense per available seat mile (ASM) was more than 25% below that of United and American, and 58% less than US Airways.

Carriers like Southwest have a tremendous cost advantage over network airlines simply because their workforce generates more output per employee. In a study in 2001, the productivity of Southwest employees was over 45% higher than at American and United, despite the substantially longer flight lengths and larger average aircraft size of these network carriers. Therefore by its relentless pursuit for lowest labor costs, Southwest is able to positively impact its bottom line revenues.

Fuel Costs

Fuel costs is the second-largest expense for airlines after labor and accounts for about 18 percent of the carrier's operating costs. Airlines that want to prevent huge swings in operating expenses and bottom line profitability choose to hedge fuel prices. If airlines can control the cost of fuel, they can more accurately estimate budgets and forecast earnings. With growing competition and air travel becoming a commodity business, being competitive on price was key to any airline’s survival and success. It became hard to pass higher fuel costs on to passengers by raising ticket prices due to the highly competitive nature of the industry.

Southwest has been able to successfully implement its fuel hedging strategy to save on fuel expenses in a big way and has the largest hedging position among other carriers. In the second quarter of 2005, Southwest’s unit costs fell by 3.5% despite a 25% increase in jet fuel costs. During Fiscal year 2003, Southwest had much lower fuel expense (0.012 per ASM) compared to the other airlines with the exception of JetBlue as illustrated in exhibit 1 below. In 2005, 85 per cent of the airline’s fuel needs has been hedged at per barrel. World oil prices in August 2005 reached per barrel. In the second quarter of 2005 alone, Southwest achieved fuel savings of 6 million. The state of the industry also suggests that airlines that are hedged have a competitive advantage over the non-hedging airlines. Southwest announced in 2003 that it would add performance-enhancing Blended Winglets to its current and future fleet of Boeing 737-700’s. The visually distinctive Winglets will improve performance by extending the airplane’s range, saving fuel, lowering engine maintenance costs, and reducing takeoff noise.

Point-to-Point Service

Southwest operates its flight point-to-point service to maximize its operational efficiency and stay cost-effective. Most of its flights are short hauls averaging about 590 miles. It uses the strategy to keep its flights in the air more often and therefore achieve better capacity utilization.

Secondary Airports

Southwest flies to secondary/smaller airports in an effort to reduce travel delays and therefore provide excellent service to its customers. It has led the industry in on-time performance. Southwest has also been able to trim down its airport operations costs relatively better than its rival airlines.

Consistent aircraft

At the heart of Southwest's success is its single aircraft strategy: Its fleet consists exclusively of Boeing 737 jets. Having common fleet significantly simplifies scheduling, operations and flight maintenance. The training costs for pilots, ground crew and mechanics are lower, because there's only a single aircraft to learn. Purchasing, provisioning, and other operations are also vastly simplified, thereby lowering costs. Consistent aircraft also enables Southwest to utilize its pilot crew more efficiently.

E-Ticketing

The idea of ticketless travel was a major advantage to Southwest because it could lower its distribution costs. Southwest became electronic or ticketless back in the mid-1990s, and today they are about 90-95% ticketless. Customers who use credit cards are eligible for online transactions, and today Southwest.com bookings account for about 65% of total revenue. The CEO Gary Kelly thinks that this idea would grow further and that he wouldn't be surprised if e-ticketing accounted for 75% of Southwest’s revenues by end of 2005. In the past, when there was a 10% travel agency commission paid, it used to cost about a booking. But currently, Southwest is paying between 50 cents and per booking for electronic transactions that translate to huge cost savings.

2. Employee and Labor Relations

Southwest has been highly regarded for its innovative management style. It maintains a relentless focus on high-performance relationships and its people-management practices have been the key to its unparalleled success in the airline industry.

Mission Statement

To Our Employees
“We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.”

The Southwest mission statement shows that the company has a strong commitment to its employees. The company affords the same respect to its employees that is provided to its customers. The Southwest mission statement is unique in that it recognizes the importance of its employees within the broader business strategy, which emphasizes superb customer service and operational efficiency. The employees reciprocate the respect, loyalty and trust that Southwest demonstrates. Southwest employees are known for their loyalty, dedication, attitude and innovation. The employees are the distinguishing factor between Southwest and the rest of the airline industry.

Hiring

Southwest hiring policy is unique not only within the airline industry, but also more broadly, and revolves around finding people with the right attitude that will thrive in the Southwest culture. Extensive procedures are employed to hire for positive attitude and dedication. Those who do not posses those qualities are weeded out. Colleen Barrett, a non-operational officer at Southwest, states that

“Hiring is critical, because you cannot institutionalize behavior. Instead, you must identify those people who already practice the behaviors you are looking for. Then you can allow Employees to be themselves and make decisions about Customer service based on common sense and their natural inclinations.” 1

Recruiting and interviewing at Southwest is a two-step process. The first step is a group interview, conducted by employees, where communication skills of potential candidates are evaluated. The next steps in this process are one on one interview, where the candidates' attitudes and orientation toward serving others are evaluated. These hiring criteria apply to all job functions since all Employees at Southwest play a customer service role. A critical part of Southwest operational strategy is that every job at Southwest is a customer service position, whether it directly applies to the customer or whether it is internal.

The table below shows that even though Southwest is the most heavily unionized airline, at approximately 80%, that contract negotiations between the unions and Southwest are much shorter in duration than of the other major carriers. This shows the quality of relationship that Southwest has with its employees and with the unions that represent them.

Culture

Southwest was created as a different kind of company and from its beginnings a unique culture was nurtured. In 1990 Colleen Barrett formed the Southwest Culture Committee. This is unique within the industry and among all large companies. The committee also has a mission statement:

“This group's goal is to help create the Southwest spirit and culture where needed; to enrich it and make it better where it already exists; and to liven it up in places where it might be "floundering". In short, this group's goal is to do "whatever it takes" to create, enhance, and enrich the special Southwest spirit and culture that has made this such a wonderful Company/Family.”

It is this unique approach to company values that has created a culture that differentiates itself from others. Southwest’s culture is the reason why it is successful.

3. Customer Service

The Mission of Southwest Airlines
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

Approach

Herb Kelleher, founder of Southwest, has been quoted as saying that "We're in the Customer service business; we just happen to provide airline transportation".2 Award winning customer service is a distinguishing characteristic of Southwest and it is referred to internally as “Positively Outrageous Service”. It means that from the top to bottom everyone does whatever he or she can to satisfy the customer. This includes Herb Kelleher, who has been known for helping out baggage handlers on Thanksgiving. It is through emphasizing the customer and employee that Southwest is able to differentiate itself from others in the airline industry. On a more technical level, each employee or group within Southwest has his or her own customer. This means that every employee ‘serves’ in one way or another despite not being directly involved with the passenger. The mechanic’s customer is the pilot and the caterer’s is the flight attendant.

Results

It can be said that the "Positively Outrageous Service" that is unique to Southwest “is not the result of a department, or a program, or a mandate from management. It is not secondary to the product; it is the product.” This approach creates the conditions where Employees are more likely to treat customers in ways that distinguish the company from others. There are numerous accounts of passengers who have received exceptional treatment from Southwest employees.

The question that needs to be answered is how Southwest’s customer service is different and why? Is it common for customers of other airlines to rave about their special service? The answer is that it is not. While Southwest does not have a monopoly on people who are kind and who are willing to go above and beyond to satisfy a customer, such behavior is nurtured at Southwest to a much greater extent.

It can then be concluded that the customer service that is inherent to Southwest is a part of its culture. This culture is supported through employee encouragement to do the extra to satisfy the customer. This approach inspires people who would ordinarily only on occasion go out of their way to help someone, to become consistent performers that offer exceptional service all the time. Southwest employees are what differentiate its customer service from the other airlines.

4. Technology

Southwest utilizes technology in many ways to fulfill its business objectives and maintain its efficient operations. According to its CEO, technology equals productivity. Launched in 1996, ticketless travel was first introduced by Southwest. On May 1st 2000, Southwest Airlines introduces "SWABIZ," a portal that assists company travel managers in booking and tracking trips made through its web site [http://www.southwest.com]. There are many new technology initiatives being undertaken currently and some are in the pipeline.

Bar codes in Boarding Passes

Southwest Airlines has invested million during the past three years to standardize corporate and terminal operations on about 10,000 Dell OptiPlex desktop and Latitude notebook computers according to its company executives. Southwest wanted to replace its well known, brightly colored plastic boarding passes with an electronic system with bar-code paper boarding passes. So it installed about 350 touch screen ticket readers powered by Dell OptiPlex desktops. The bar code gives Southwest more information to automatically reconcile the number of boarding passes with the number of passengers that actually board the plane.

Although the technology will help Southwest Airlines remain efficient by consolidating passenger information for the company's 3,000 daily flights, there were concerns it could lengthen the time to get travelers on board. However it was found that scanning each bar code on the boarding passes didn't increase or shorten boarding schedules, but it did take minutes from administrative processes, such as looking up customer records. The new paper bar code system is giving Southwest ticket agents the ability to match a customer record within having to scroll through and log into multiple software screens. The process is much more automated. Once the bar code on the boarding pass is scanned at the terminal gate it checks off the person from the passenger list in real time.

The old process was manual that involved finding the information, scrolling through several software screens from reservations to check-in to boarding. The bar code hardware to scan the boarding passes has been deployed. The company is in the process of replacing customer service back-office equipment at airports including at its headquarters in Dallas.

Software Upgrades

Software applications, such as those used by clerks to check in passengers, are being replaced. Southwest Airlines' internally written "Airport Application Suite" is expected to rollout next year as the company transitions from green screens to Window-based user interface. Similar to Wal-Mart Stores Inc., Southwest Airlines believes in developing in-house the software that runs its operations. The company uses very little off-the-shelf software. There are between 75 and 100 projects in the works each year supported by approximately 900 IT employees.

RFID

Radio frequency identification technology, a favorable alternative to bar-coding for luggage identification, is also on Southwest's radar. It plans to test RFID technology sometime in 2006. Even though, Southwest is playing a little catch-up with other airlines such as Air Tran, Alaska and Champion Airlines, in many cases they are able leapfrog to more sophisticated applications easily having waited longer.

Challenges:

Southwest has emerged very successful, despite the most troubled times in the airline market. However, it faces new challenges in the face of increasing competition from other low fare airlines such as JetBlue, ATA airlines, America West.

Reserved Seating

Due to increasing security guidelines since September 2001, Southwest would need to prepare for assigned (reserved) seating to track its in-flight passengers. This change will involve large technology investments and may impact its gate operations negatively since the current way of unassigned seating has helped in quick gate turnarounds.

Passenger Demand

The keep-it-simple philosophy has served Southwest well. But as its own business grows and grows more complex, with plans to purchase dozens of new aircraft and an expected upsurge in passenger traffic to about 80 million boarding’s a year, the simplicity strategy that has been reflected in the airline's IT philosophy is evolving. The CIO Tom Nealon says that "It's time to adapt our business processes for efficiency. As our airline scales for us to provide the same kind of high-touch customer service, we have to automate a lot of things we've been able to do without technology previously. The challenge is doing that without conceding the customer touch." Southwest is also aggressively pursuing customer relationship management (CRM) techniques and has applications to get insight into customer’s wants and dislikes. According to an interview with its CEO Gary Keller, Southwest has its focus on improving in two areas - customer’s airport experience and in-flight experience.

In-Flight Entertainment

In an overall effort to improve customer’s in-flight experience, in-flight entertainment is something that Southwest is currently evaluating and which JetBlue has been very successful at already because of its introduction in its long-haul flights. In comparison, Southwest has 415 airplanes to consider and that represents an investment decision at a whole new dimension. Additionally, Southwest has to consider how things may fit into their environment. At this point, 60% of its service is still very short haul. Southwest needs to be mindful of the fact that a certain approach that has been successful for its competitor may not be necessarily work to its advantage.

Summary:

Southwest has long been regarded as a benchmark in its industry for operational excellence. Southwest Airlines is a fine example of a company that is committed to its core competencies - efficient operations to drive its low cost structure, outstanding delivery of customer service and innovative HR management practices. We hope this paper provided a good insight into Southwest operations, as part of its overall strategy, to achieve success and gain competitive advantage.

References:

1. [http://www.southwest.com] (Southwest airlines official web site)

2. “Southwest keeps it simple” - Air Transport World, April 2005, Pg 36

3. “Around the World on (or So): How High Can Discount Airlines Fly?“ Strategy Management - Knowledge@ Wharton Newsletter Oct 5, 2005

4. TechWeb - [http://www.techweb.com/wire/ebiz/173601227]

5. “Southwest's Strategy for Success: Consolidate!” - Oracle Magazine (Sept/Oct 2004 edition) http://www.oracle.com/technology/oramag/oracle/04-sep/o54swest.html

6. “Southwest Airlines: High Tech, Low Costs” - Eweek.com, April 2005

7. “Jet Fuel Hedging Strategies: Options Available for Airlines and a Survey of Industry Practices” – Kellogg School of Management Research Paper, Spring 2004

8. Winning Behavior: What the Smartest, Most Successful Companies Do Differently, Terry R. Bacon and David G. Pugh, 2003

9. Time Magazine, Oct 28th 2002 issue, Vol. 160 Issue 18, p. 45

10. “Wings Of Change”,Information Week, March 28, 2005,

11. Labor Contract Negotiations in the Airline Industry, Monthly Labor Review, July 2003, page 24

Southwest Airlines Operations - A Strategic Perspective
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Wednesday, January 23, 2013

The Significance of Productivity Analysis

Productivity is very important in any existing company or organization today. This is precisely why the concept of productivity analysis is something that all companies and organizations have to be very familiar with. In its very basic form, productivity analysis is just a comparison between the estimated and the actual when it comes to manpower expenses.

To determine this comparison, there are actually two items that the company would need. A detailed estimate and accurate time sheets. To get this detailed estimate, research is inevitably needed to avoid any semblance of subjectivity in the matter. Each and every aspect pertaining to manpower expenditures should be considered to get this detailed estimate. As for the time sheets, they should contain all aspects related to work, whether they be coded or indexed. These should then be placed against the correct work order.

A popular misconception regarding productivity analysis is that spot checking is effective. Spot checking is indeed effective to some extent. But the results of spot checking can be misleading at times. This is why trends have to be determined so that the levels of productivity can then be measured more accurately. One way of determining such trends is to develop a chart, so that the results and figures can be seen clearly.

The Significance of Productivity Analysis

The chart should then contain the scheduled tasks an ordinary work day would entail. These figures should then be placed against the actual manpower that is needed to finish off the daily workload. This way, the comparison would be fitting enough to show you the trends that exist in the performance of the employees and their rate of productivity.

In productivity analysis, it is actually important to notice ongoing trends early on. This is to give way to implement corrective measures, should they be needed. The usual corrective measures companies undertake include adding work schedules and increasing or decreasing the workforce for a particular work schedule.

It is also important to recognize the fact that the productivity of your workforce is not something that you can observe in the visual sense. Visual observation would just give way for subjectivity to arise, and this is something companies have to avoid for the purpose of productivity analysis here would just be defeated. There would be inevitable times when employees would appear idle at the job. Now, some employees are indeed being idle here. However, there are some who are actually working, although they seem to be not. An employee could just be waiting on an order to be signed, for instance. The employee cannot do anything but just stand around while the order is being signed, thus, appearing idle for a few minutes. This is why visual observation is not really reliable when it comes to productivity analysis.

But why the need for productivity analysis? This is primarily because once the figures are determined, there would then be an avenue for needed changes to be implemented right away. With these changes implemented, then the company's rate of productivity would then improve significantly. And this is indeed the ultimate goal any existing company has on top of their list of priorities.

The Significance of Productivity Analysis
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Monday, January 21, 2013

Production and Productivity - Factors Affecting Productivity

Production:

Production refers to the volume value or quantity of goods and services produced during a given period by a worker plant firm or economy. It is the sum total of results achieved by the various factors used together.

Productivity:

Production and Productivity - Factors Affecting Productivity

Productivity is not concerned with the volume of production. It is the ratio of output and input factors of an enterprise. It shoes the efficiency of production or the efficiency levels of input factors.

Factors Affecting Industrial Productivity:

Productivity is defined to be some ratio between output and input those all factors which affect output and inputs will also affects the measure of productivity. The following factors affect the productivity.

a) Technological Development:

Technological factors including the degree of mechanization, how raw materials, layout and the method and techniques of work determine the level of technological development in any industry. The principal factor in technological development affecting productivity is

b) The Size of the Plant:

The size of the plant and the capacity utilization has direct bearing on productivity. Production below or above the optimum level will be uneconomical and will tend towards lower level of productivity.

b) Research and Development:

Investment in research and development may yield better method of work and better design and quality of products.

c) Plant and Job Layout:

The arrangement of machines and position in the plant and the setup of the wore-bench of an individual worked will determine how economically and efficiently production will be ferried out.

d) Machine and Equipment Design:

Whether design of machinery and equipments is modern and in keeping with the limitations and capacities of the workers will also determine the production efficiently and level of productivity.

e) Production Processes:

Advanced Production processes involving the use of modern integrated and automatic machinery and semi processed material have been known to help in raising levels of productivity.

f) Power Raw Materials:

Improved quality of raw materials and increased use of power have a favorable effect on productivity.

g) Scientific Management:

Scientific management techniques such as better planning of work simplifications of methods time and modern study emphasis for reduced wastage and spillage have positive effects on productivity.

2. Individual Factors:

Individual factor such as knowledge skill and attitude also affect the productivity of industry. Knowledge is required or acquired through training education and interest on the part of lecturer. Skill is affected by aptitude, personality, education, experience, training etc.

a) Organization Factors:

Organization factor include various steps taken by the organization towards maintaining better industrial relations such as delegation and decentralization of authority. These factors also influence motivation likewise the existence of group, with higher productivity as their goal is likely to contribute to the organization objectives.

Production and Productivity - Factors Affecting Productivity
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I am Sathish Kumar Bala Completed my UG Degree, now i am Working in Bangalore.

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