The Aspect of Operation and Project Management in Oman Air - Case Study Example

OPERATIONS AND PROJECT MANAMENT Name: Course: Tutor: University: City and State: Date: Quality Management Theory in Operation and Implementation in Oman Air Introduction Project management is the process of organizing, motivating, planning and controlling procedures, protocols and resources to achieve goals in daily or scientific problems. A project is a provisional attempt deliberate to produce a distinctive result, product or service with a clear foundation and completion (usually time and fund-constrained) carried out to meet unique objectives and goals. This is naturally done to bring about added value or organizational change. The provisional nature of projects is different from business, which are permanent, semi-permanent or repetitive purposeful activities to yield products or services. In practice the management of these two systems is usually quite distinct, and as such needs the increase of different management strategies and technical skills. The main goal of operation and project management is to achieve all organizational goals within the given time. Operation management on the other hand focuses on managing all aspects of an organization`s operation. Companies carry out different functions as part of their operations. Dividing the activities of a company in functional categories occurs on its onset even when it is operated by a single person. Companies must also carry out accounting function, administrative function, sales and marketing function to manage the business and the employees as a whole. Operation management emphases on the purpose of providing a product or service to fit different consumer needs. Their job is to guarantee the production of a quality good and service. They use technologies and ideas to assure a safe workplace for all employees, help reduce costs and increase productivity, increase flexibility to meet rapidly changing customer needs, and to assist in assuring high-quality customer service. This paper will focus on discussing the aspect of operation and project management in Oman air (an aviation company with more than 17 years of experience) by majorly discussing the quality management theory in its management and operation. Literature Review According to a report produced by International Air Transport Association (IATA) IN 2009, Oman is predicted to be the fastest growing airline company for international traffic. Between 2007 and 2010, growth was estimated to be around 6.9% annually which was above the 4.8% world average (Bamford, & Forrester, P. 2010, 45). The airline growth in current years has been in the extensive body section, unswerving with the focus of the competitive gulf airlines to grow their long haul network and increase their production by offering quality services to all clients. The company anticipates le to expand by 5.5% per year till 2025. Airbus is more optimistic in its prediction a growth of 6.2% annually until 2025. According to the International Civil Aviation organization the forecast of the Middle East passenger traffic is estimated grow at an average yearly rate of 6.4% until 2015 (Bamford, & Forrester, P. 2010, 47).Oman is currently running at an estimate of 7.5 million passengers, which is a vast growth over the last few years. The company is averaging somewhere between 15%-20% growth yearly. This is a remarkable growth. The company may be smaller compared to its neighbors (Doha and Dubai) but is swiftly catching up and it will not be long before they meet the 12m standard for the new airport (Stinchcombe, & Heimer, C. 2005, 86). Oman Airlines Oman Airports Management Company (OAMC) is a property of the Sultanate of Oman government. The company is responsible for the operation and management of Oman airports. They include Salalah and Muscat international airports and the future airports Ras Al Hadd, Sohar and Ad Duqm. Oman air offers a valuable blend of negotiation, strategies, standards and quality management thus driving business expansion and shaping the strategic direction of airport ground handling and global cargo handling (Greasley, A. 2009, 44). The airline professional offers services like Cargo quality management, ground operation management, airport operation, safety management systems, cargo handling, standards and procedures, documents for ground handling among others. The airline is a very good negotiator with the ability to handle a variety of projects and navigate complex challenges (Bamford, & Forrester, P. 2010, 51). Quality Management Theory in Operation and Implementation With a clear mission statement which is to maintain, mange, operate airports and business related activities with a focus on profitability, security and safety to deliver high quality services to business partners and customers while fostering an innovation culture and valuing human resources, the company is focused on ensuring that its operations and project management is up to their standards to ensure a continued achievement of goals. Oman`s 2020 vision includes delivering $1 billion of tourism revenues, which is 3-5 % of the Gross Domestic Product, generating a new marketing strategy, mobilizing the foreign and private sector to promote and develop a dependable and sustainable tourism and establish an Omanisation rate of 50% within the organization. The company plans to grow adventure tourism markets and as part of their regional expansion, Oman will add two Boeing 737-8—s and introduce flights from Damascus to Lucknow (Greasley, A. 2009, 51). The central concern of Oman Air's top management is to amalgamate the company gains and to guarantee sustained profitability and development over the long term. The airline has faced challenges from emerging and existing competitors operating on low-cost and full-service business models. In addition, the existing strategic decision of Oman Government is to pull out of the much larger Gulf Air made Oman Air the only national airline of Oman. Oman Air now wishes to transpose itself from a major regional airline to a developed international airline to serve the long-haul markets (Mahadevan, B. 2010,31). The acting CEO of Oman Airports Management Company(OAMC0 is responsible for the operations and project management of Salalah and Muscat airports as well as the other future regional airports such as Sohar, Ras Al Haad, Ad Duqm and Adam. Oman is focused on implementing new initiatives to improve the country`s overall air transport infrastructure, the opportunities that the future projects of the airline will carry out for the downstream segment of the aviation section and the actions being considered to ensure that operation for the new project to open the Muscat Airport this year. Their motive will help them increase competitiveness in the aviation industry to ensure that they stay ahead of other companies producing the same products. For quality management of operations and project management OAMC carries out the following functions-; Development of procurement procedures and policies Terminal, firefighting management, airfield and flight information Administration and human resource support for corporate company Managing all financial aspects such as fuel farm, car park, retail, airport space adverting, airline marketing and corporate communication Managing and facilitating security Managing communication, technology and Information at the airports Managing airport facilities, projects, infrastructure, maintenance plans and airport assets and Managing compliance and aerodrome certificate , capacity management, customer services and emergency planning Carrying out safety, environmental and health management for all organizations operating within the airport boundaries (Greasley, A. 2009, 51). The Oman Airport Management Company plays an important role in the overall development of Oman`s aviation sector in that it puts into consideration the projects meant to improve the operation of its activities to see to it that there is continued growth and development in the industry. The new project of opening Muscat International Airport will be a major achievement for the company as it will be a gateway airport to Oman. The company`s facilities are 40 years old and the company is looking forward to opening more airports. The company has four regional airports opening in the few next years(World of Information & International Chamber of Commerce, 2003, 1). According to a report produced by the WEF Global Competitiveness, Oman was ranked 40th in the world with regards to quality of airline transport infrastructure. Oman is implementing new initiatives in order to improve the overall quality of air transport infrastructures. The strategy is meant to start a network of six airports(government project). Before, four of these airports were going into regional areas where there is less demand for travel. That has however changed and has been moved to the tourism sector. The projects might take a long time to be implemented but the intended results are very positive. The airline is now improving the existing facilities with the expertise from Muscat`s architecture which is a wonderful mix between Omani and modern international style. The company is also looking forward to the development Salalah AirPort’s cargo facilities. They want to develop sea to air fright in the Dhofar and Salalah regions. The company sees the airport as major tourism destination and it is hoped to be the second tourism gateway to Oman. The new terminal project at Muscat International Airport will be completed this year and is estimated to have the capacity to handle 12 million passengers annually. The new Muscat International Airport is capable of enlargement up to 48 million passengers yearly. As a result, Oman airlines have plenty of projections for growth. One of the biggest opportunities that the company has is the establishment of the airport city concept. The philosophy is that, if infrastructures are built around an airport, the interactions will allow remarkable economic growth for the country. Muscat is seen as a big new settlement center, new hotels, transfer of head business offices, and additional developments. It will undoubtedly provide contemporary economic growth for the country by leveraging the aviation and airport business (Mahadevan, B. 2010, 34). Oman has major competitors such as Doha, Abu Dhabi and Dubai, which are considered as major airport hubs. The company`s main aim is not to compete and become a global airport center but to help its government achieve its objectives one of which is to make Oman a major tourist destination. Oman is trying to grow at a measured rate. For instance it is based on the diversification of the economy in the industrial arena in which tourism falls in realm. The nature of Oman itself is a competitive strategy (Stinchcombe, & Heimer, C. 2005, 94). It is one of the friendliest in the Middle East and has lovely scenery (seas, deserts, and mountains). The country has a lot to be explored, that is why Oman airline is geared towards the establishment of a unique aspect, in both new and existing airports. Currently OAMC has 28 airlines servicing 55 diverse destinations. This is a noticeable achievement over the past few years and it is has been caused majorly by the fact that Oman Air has been introducing new travel routes(Oman, 2000, 4 ). Many people enter and leave Oman via Doha, Abu Dhabi and Dubai but this is slowly diminishing s the company is establishing more direct flights to Muscat (Mahadevan, B. 2010,16). Oman Airport Management Company (OAMC) is currently following the philosophy of the government by supplying to a niche, market and trying to pull more high-end tourists in Oman. OAMC is concentrating on facilitating the growth of the national career Oman Air, which is very vital for the growth and development of the country(Walker, J. 2010, 91).The other thing to note is that it is not just about passenger traffic but cargo is to be considered as well. At the moment, a large quantity of airfreight comes into Muscat via Dubai and it is trucked into Oman. Presently, Oman facilities are not enough to survive with that kind of demand, but with the new airport project, the company forward to an amazing growth in airfreight. These are the aspects in which the company is focusing on at the moment rather than getting in new airlines and unswervingly moving into new markets(Price Water House Coopers. 2000, 5). One of the OAMC`s major role is to ensure that the organization is fully prepared, equipped and manned to operate all of the new airports. Actions are being taken to ensure that operations for the new airport project begin as early as possible and that programs are being instigated to appeal more Omani`s to the aviation industry(Price Water House Coopers. 2000, 6). The company is in the process of recruiting and training new staff members especially young Omani graduates and enrolling them through training courses to ensure that they gain more knowledge and skills related to the services offered by the organization(Tan, & Matthews, R.2009, 11). The country is in need to provide employment opportunities for all young educated people. The aviation and airport sector can help in providing the job opportunities. Many people fail to realize the fact that one must rely on many employees for every one million passengers that have to enter the airport(Walker, J. 2010, 97). They are not only focused on providing employment for young people but to also introduce new contracts to other local companies. Contracts are being offered for all sorts of things such as maintenance services, operations and equipment thing opportunities for all business men in both small and large businesses. The company is also taking a major technological leap as the first airport was built in early 1970s and they are currently implementing new Information and technology and technological innovation. This will help Oman become a modern world class airport (Panneerselvam, R.2012, 88). OAMC is working with other companies to ensure that the Muscat international Airport project is completed on time (Mahadevan, B. 2010, 38).New contracts have been awarded to companies such as Al Matar Company, Raytheon, Desert Line Projects, Ghafari associate among others. The contracts are soil reclamation and dredging, supply, design, install and commission new radar, relocation of security fences and water pipelines and construction and design supervision for repair, maintenance, cargo facilities and Overhaul Hangars and the construction of rock fill for new taxiway and runway (Heizer, & Render, B. 2004, 67). Oman Air has put up a repute of excellence on meeting prospects, and the company is better organized than ever to offer a great travel experience. The company owes its achievement to its determined human resource management and to the efforts of a great team, people who each and every year show an extremely high level of professionalism and dedication. The Efficient organization operations of Oman are a vital tool in achieving competitive advantage in the daily contest for clients (Heizer, & Render, B. 2004, 67). For most airline services, quality, price, product variety, features, product performance, product variety, and availability of the product are important. All these factors are considerably prejudiced by actions taken in operations. For example, when production is high, product costs then declines and product price can be abridged. Correspondingly, as the company develops better production methods then the variety and, quality increases (Stinchcombe, & Heimer, C. 2005, 102). By linking operating strategies and operations with the general approach of the organization (including financial, engineering, information system strategy and marketing) collaboration can result. Operations become an influential factor when facilities, equipment, and employee training are viewed as a means to accomplish organizational purposes, rather than as barely concentrated on departmental objectives(Project Management Institute . 2004, 10). In acknowledgment of this growing viewpoint, the principles for arbitrating operations are changing from cost control to international performance dimensions in such areas as variety, operational flexibility, delivery time, product quality, product performance and variety and customer service(Oxford Business Group, 2007, 13). In today`s market, a significant constituent of operational tractability in many industries is technical knowledge. Improvements in technology make it easier to establish improved products using fewer resources(Project Management Institute.2004, 11). As technology primarily changes a product, its quality and performance often increases radically, making it a valued product in the marketplace. But the advance in high-tech business applications has formed new competitors as well, making it significant for companies to attempt to catalog advantages in all areas of operations and project management(Panneerselvam, R.2012, 102). Conclusions Over time, project and operations management has developed in scope and increased in its importance. Today, it has components that are deliberate, it depends on engineering and behavioral concepts, and it controls management operations research techniques and tools for efficient problem-solving and decision-making. As project and operations management continues to progress, it will progressively conjoin with other operative areas within the company to develop integrated answers to multifaceted interdisciplinary issues. Certainly, such collaboration is extensively viewed as important to abiding business achievement for small business formations and worldwide corporations. References Bamford, D. R., & Forrester, P. L., 2010. Essential guide to operations management: concepts and case notes. Hoboken: NJ, John Wiley & Sons Greasley, A., 2009. Operations Management in Business. Cheltenham, S. Thornes. Heizer, J. H., & Render, B. ,2004. Principles of operations management. Upper Saddle :River, N.J., Pearson/Prentice Hall. International Business Publications, USA. 2012. Oman Investment and Business Guide Strategic and Practical Information. Intl Business Pub: USA. Mahadevan, B., 2010. Operations management: theory and practice. Upper Saddle River: Pearson. Mahadevan, B.,2010. Operations and Project Management. Upper Saddle River: Pearson. Oman,2000. Oman 2000: Thirty Years of Dedication. Muscat, Sultanate of Oman :The Ministry. Oxford Business Group,2007. Who's Who in the Arab World, 2007-2008. John Kennedy Street: Publitec Publications Panneerselvam, R., 2012. Production and Operations Management.Cambridge:Belknap Press. Price Water House Coopers (Firm) 2000. Doing Business and Investing In Oman. New York: Pricewaterhousecoopers. Project Management Institute. , 2004. A Guide to the Project Management Body Of Knowledge (Pmbok Guide). Newtown Square:Project Management Institute. Stinchcombe, A. L., & Heimer, C. A., 2005, Organization Theory and Project Management: Administering Uncertainty in Oman. Oslo: Norwegian University Press. Tan, K. H., & Matthews, R., 2009. Operations Strategy in Action: A Guide to the Theory and Practice of Implementation. Cheltenham, UK: Edward Elgar. Walker, J., 2010. Oman, UAE& Arabian Peninsula. Footscray: Vic, Lonely Planet World of Information (Firm), & International Chamber OfCommerce, 2003. Middle East Review 2003/04: The Economic and Business Report. London: Kogan Page. Read More