System and Operation Management of Airbus - Case Study Example

Operation and system management Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Airbus case study Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course instructor Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date submitted Table of Contents Table of Contents 2 Introduction 3 Role of system and operation management and its integration within business 4 Operation management 4 System management 5 Ways in which Airbus information system and operation management improve efficiency 7 Information system 8 Operation management 9 Analysis of people, technology and organizational issue that assist operation in Airbus 13 People 13 Technology 13 Organizational issues 14 Conclusion 15 References 17 Introduction The Airbus Industry was formed in 1970 as a joint effort between England, France and Germany as part to come up with a high volume twin jet transport. Initially it was referred to as A3XX where it later changed to A380 which become the largest aircraft to ever been built. The first test that accompanied this passage airline was on April 27, 2005 where it departed from Toulouse to France. Before commencing with the A380 project, both Airbus and Boeing had come up with the idea of cornering very wide airliner market. It is from this idea that these two industries decided to investigate a six hundred very large commercial transport but this cooperation was not to last for too long. It is clear that although these two manufacturers issued several statements regarding their split, it is evident that their split was foreseen as a split in a niche market (Global Oneness 2010). After years of trials which were usually accompanied by with certain difficulties here and there, today airbus industry has become the world second largest manufacture of civil airlines with a capacity of over 100 passengers. Since its entering into the world market, airbus has sold over two thousand aircrafts having established more than one thousand services worldwide (Global Oneness 2010). Currently, its headquarters are in Southwest France and it is owned by Europe four leading aero companies that is Daimler-Benz aerospace airbus of Germany, Casa of Spain, Aerospatiale of France and British aerospace. This study will widely focus on the role of systems and operations management at Airbus and its major integration within business, it will further explain how Airbus information systems and operation management should be updated to support and improve their efficiency businesswise, in addition the study will try and evaluate the role and significance of soft systems methodology in analyzing and defining of what is entailed in business requirements in Airbus and finally analyzing people , technology and organizational issues and how they affect Airbus (Effy 2009). Role of system and operation management and its integration within business It is evident that for Airbus to be termed as the best manufacturer worldwide, it must have incorporated its system and operation management within its functions. This is not only important in the daily running of this company but also in its future projections of next generation involved in Airbus products especially in early faces of its designs. Clearly, for Airbus to be termed as the second largest manufacturers in aircrafts, its work and organization suited those who are in system and operation management with an understanding in its manufacture, design and operation (Global Oneness 2010). Operation management Based on its operation management, Airbus has widely defined its overseeing, designing and redesigning its business operation so as to ensure best aircrafts are produced. In its quest to ensure that it remain as the key market in aircraft across the globe, Airbus has put up measures whereby it ensures that it business operations are efficient both in term of meeting customer satisfaction and utilizing all its resources to its maximum. For instance, in 1996 Airbus came up with “Large Aircraft Division” and due the size of required engine, it was essential for it in developing a strategically designed engine other than adapting an already existing model. It is evident that this industry does not carry out its operation at the same time rather it focuses on different time sets clearly setting out a significant operation management (Slack et al 2010). For example it is observed that on February 2004 Airbus engines are delivered to the assembly plant and later in may the same year assembling process begins. This widely defined role of operation management of Airbus as both the managing and directing aspect can be observed especially those in relation to production, development and manufacturing. In summary, operation roles within Airbus entails; conducting research when launching of new products and services, analyzing potential competitors through ensuring you have a strong competitive advantage and creative marketing, production and customer related services. System management In Airbus, system management is referred to as an enterprise-wide direction of distributed systems usually those that involve computers. It has widely divided its system management into safety management system, security management system, quality management system and environmental safety management system. All the named types of system management are effective in defining airline policies and accountabilities that are usually important in assessing any hazards that may result to risk within an airline operation. Airbus system management roles includes; provision of engineering output to widely define the Airbus product policy which is considered as the main business strategy especially when focusing on product development, recognizing need for research through integration and assessing effect of new technologies especially on potential products that are linked to aircraft (Slack 2010). For instance, in April 2004 after the first Airbus wings were completed, the Heathrow airport was redeveloped its main facilities as part of accommodating the new aircraft. Also several testing are carried out on A380 as part to ensure that all systems are intact before commencing on the certification process. The above graph gives a summary on how information and operation roles are distributed in airbus airlines. Ways in which Airbus information system and operation management improve efficiency It is evident that efficiency in information system and operation management is a key issue to any defined airline success. In airbus, information system is considered to be an integrated set of entities which are usually required to interact positively as part of achieving the airline goals and mission. This is widely defined by use of computers and other technological systems in the provision of information in relation to activities been carried out such as assembling of parts in an aircraft (Slack et al 2010). Information system within Airbus aware of its critical advantage, the airline has optimize its way in developing new computer systems has created a new interest in finding aeronautic data. Information system The airbus A380 information system is widely involved in the collection, centralization and compiling of data in relation to flight ensuring that there is circulation of communication. Evidently, this central system acts as a unique application not found in many airlines which accompanies airline operation and effective service delivery to passengers. Here, information system is categorized into four components namely, Network Server System (NSS) which is the overall system backbone further, this system is one which is securely maintained and strictly left to avionic field (Airbus 2011). The Secure Communication System (SCI) is a unique system which is normally is related to avionic world and open world. Its main function is to guarantee secure information is being communicated thus increasing efficiency within the airline. The third system is Central Data Acquisition Module (CDAM) which is effective in generating various maintenances reports and issuing of reports whenever there is failure in the aircraft. Finally, A380 is also fitted out with Data Loading and Configuration System (DLCS) which is an application software used in downloading and managing configuration of all computer software (Airbus 2011). This is how information systems are managed within Airbus Airline Operation management Based on operation management, Airbus is known to have the best airline operation across Europe and also globally. Formidable challenges been experienced by many organization across the globe have placed pressure to the Airbus airline to come up with the best operation management services. It is through realizing that proper operation management automatically results to meeting up customer demand and beating all potential competitors in the airline industry. Clearly, aviation requires the attention of bringing people from different cultures and this can only be achieved through establishing an effective and well organized operation management. Although we have defined proper information system within Airbus, it is essential to create a human to human dimension so as to encourage strong customer and company relationship. Efficacy in Airbus operation system has assured engineers in this company to come up with innovative ideas which are effective especially in the future projection of the airline. Clearly their suitable design in their operation ideas is an effective way of combating with future challenges especially like the current fuel crisis. Operation management ensures that new approaches are created so as to understand all lifecycles of aircrafts especially when dealing with environmental impacts. Recycling is one of fundamental factor which creates or build efficacy in operational services within Airbus Company as it is essential in production services. Soft System Methodology The Soft System Methodology (SSM) developed by Peter Check land has been viewed as an instructional and meaning advancement tool. The tool constrains ones thinking thus enabling the user to expand his level of thinking. It enables us view the idea of system thinking as not being always expensive. The structure is intended to shape intercession in the challenging situations. This involves the formation of methodologies that are aimed at searching for solutions to problems that are difficult or hard to difficult to makeup or solve. The SSM can be used to solve problematic situations that are well defined have clear requirements as well as those with clear objectives but with user requirements that are not certain. In addition, the SSM can be used to solve problems which have unclear objectives but are unstructured in nature and situations that require the high user interaction system. Lastly the system can be of great use on solving complex problems that require two or more classes of a contingency approach to the development of informational systems (Patching 1990, 145). In the Airbus business setting, the SSM is essential in the analyzing and understanding of problem situations at the early investigation stages. This can be done through the 7 stage. Firstly, the problem has to be defined by identifying the thing that we are to explore. This is the point where the general areas of interest are assessed. For example if the problem in the Airbus industry is lack of passengers, the main area of interest would be to identify the routes that have frequent travelers if not the SWOT analysis of the services the airline is providing. This could include the assessing of a firm for practices that are sustainable (Presley et al 1997, 111). Secondly, the situation needs to be expressed in relation to its structures that are needed to attain the expansion, processes that will be involved in the expansion, people who will be required for the expansion process, environmental climate where business is to be ventured, issues of concern and the anticipated resistance or conflicts (Rose2002, 242-245). Thirdly, the problem or situation has to be explicitly defined. The right holons have to be defined to be able to draw a real picture of the situation. This is where the evaluative ness of the SSM comes is much needed. Each of the holons will provide a split base of value onto which the condition is to be evaluated. This is an essential stage as it will determine the customers’ satisfaction with the services offered by the Airbus. This is the point that twill requires the identification of the needed resources for the smooth running of the activity. The fourth stage involves the designing of the conceptual model for the problem using the system conventions. This includes the identification of the activities to be conducted. If the Airbus has identified venturing into other traveling territories as the main possible solution, it has to lay down activities into identifying the bumper destinations. This will be through a survey or a tour to the regions. The developed model should have a purpose that is ongoing, a means of evaluation, a well-defined decision making process, structural components, an environment where the system is to interact, mobilization of resources and a level of continuity. The fifth stage of the SSM involves the putting of the test of reality (Checkland 1999, 34-56). This will include cases of improvements where leaks are realized and the comparison of the model with other likeminded ones. Four possible ways are identified in doing this which includes: having unstructured discussions, structured questions utilizing the matrix approach, having a dynamic modeling and trying to model the real world by using the theoretical form. In addition, the sixth stage would involve the development of feasible interventions that would have the problem rectified and lastly the implementation of the action plan that is aimed at improving the situation. The final stage is where the methodology is fully put in to effect and full use. It is a prerequisite to avail feedback channels that will enable the evaluator realize possible solutions to any problems that might occur along the way (Avison1997, 75-78). The methodology is also essential in the developmental process of problem solving. The methodology is essential in the identification of areas with weaknesses. This would include the identification of areas in the air bus company that require input to increase the efficiency in the registration and bookings for the air ticketing. The tool will also be useful in identifying the possible areas that the airline needs to collaborate with the other airlines to cover a wider customer network in terms of destination routes. This can be done through a SWOT analysis. Analysis of people, technology and organizational issue that assist operation in Airbus Every organization requires people, technology and organizational issues as part of their management program. Without any of the mentioned three aspect an organization cannot be able to work effectively especially in its service delivery therefore lack of customer satisfaction (Hewson 2000). People Airbus has incorporated the need of understanding people as part of their design, operation, development and management of its aircraft. People are factors that are perceived to be everywhere. It is evident that the issue of people revolved in all transport sectors at all defined cultures and times. Due to improved technology has resulted to increased people functions whereby issues in relation to airlines are more complex as compared to the past. It is evident that human encompasses loads of activities which up to date are not simplified. Initially, Airbus was widely incorporating people need as part to increase efficiency in its operation hence customer satisfaction and competitive advantage. People as defined by Airbus are those individuals who either board their aircraft or buy their commercial aircraft. It is through family concept that Airbus has been termed as key issue in incorporating people who in turn become potential customers. Technology Innovation and improved technology has been the major driver in the success of Airbus whereby they have been in the forefront of guiding various companies’ aspects. Clearly, these two aspects play a crucial role in shaping up of what is known today as Airbus. Technology has contributed to development of new aircrafts, designs, processes and techniques which is a key focus in growth of business (Hewson 2000). As part to stay ahead in its innovation curve, Airbus has over three thousand individuals working either directly or indirect on more than a thousand technology and research as part to improve its operation management. The establishment of proper technological balance within Airbus is dedicated in improving air transport hence increasing overall efficacy thus giving it a competitive advantage to its competitors. Over ninety percent of annual Airbus budget is widely connected to innovation and improved technology. It is evident that engaging in new technology is greatly directed towards maximizing benefit for both current and future customers. As part to meet its predesign goals, mission and vision, Airbus has focused on its technology and innovation as a requirement toward the delivery of substantial improvement within its operation. Organizational issues It is evident that all major organizations especially those related to transport sector have certain compiling issues which are very essential in improving operations within the organization. Airbus is not exceptional from this, the airline has widely engaged in various organizational issues to increase efficacy to their customers and people within. For instance, proper operation activities entail engaging in environmental friendly activities which a benefit to its customers and passengers. Due to increase global influence, Airbus has a developed and designed a life cycle whereby environment is kept safe from any kind of hazard. Airbus believes that engaging in this organizational issue enable the manufacture of alternative fuels so as to stabilize future emission of carbon dioxide into the air. Other than ecological niche, Airbus has a unique concept of what a plane is. As part to assist in its operation expert in this airline have and are constantly coming up with unique engines as way of meeting future expectation for its customers. It is obvious a good business and organization is one which focuses in its future through proper strategies so as to continuously withhold its success. Conclusion In conclusion, role of the system management is not only vital in the day to day running of this company but also in its future projections of next generation involved in Airbus products especially in early faces of its designs. Clearly, for Airbus to be termed as the second largest manufacturers in aircrafts, its work and organization suited those who are in system and operation management with an understanding in its manufacture, design and operation. Of significance to the process is the SSM which is relevant in identification of the existing and unforeseen problems in the Airbus business. The models have to be well implemented and evaluated in order to attain meaningful results in the organization. Formidable challenges which are experienced by many organizations across the globe have placed pressure to the Airbus airline to come up with the best operation management services. It is through realizing that proper operation management automatically results to meeting up customer demand and beating all potential competitors in the airline industry. Relevant analysis of the available technology is of great help as it forms a basis of implementing innovative techniques that are aimed at lifting the organization to greater heights of attaining the formulated goals. References Airbus, 2011, Research and technology, retrieved from April 11th 2011 from http://www.airbus.com/innovation/future-by-airbus/research-technology/ Avison, D & Taylor, V 1997 ‘information systems development methodologies: a classification according to problem situation’, Journal of information technology 12(1): 73-81 Checkland, P 1999 Systems thinking, systems practice : a 30 year retrospective, Chichester: Wiley. Effy, O. 2009, Management information systems, Boston, Mass.: Thomson/Course Technology. Global Oneness, 2010. Airbus A300-technology, retrieved from April 11th 2011 from http://www.experiencefestival.com/a/Airbus_A300_-_Technology/id/4759723 Hewson, R, 2000, Airbus A320, Osceola, WI: MBI Pub. Patching, D 1990 Practical soft systems analysis, London: Pitman. Presley, A et al 1997 “a multi-criteria justification methodology,” Journal of engineering valuation and cost analysis (1:2), 1997, pp. 111-123. Rose, J 2002 ‘Interaction, transformation and information systems development – an extended application of soft systems methodology’, information technology and people 15(3): 242-268 Slack, N et al, 2010, Operation management. Harlow: Pearson Read More