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POWER OF QUALITY SPIRITS CORPORATE RE-ENGINEERING IN AIRLINES INDUSTRY

TOWARD THE PREFERRED AIRLINE

AUGUST 2002

PQS - POWER OF QUALITY SPIRITS

Contents
A. Background B. Quality Definition C. Quality Policy D. Quality Objective E. Quality Value F. Quality Planning G. Quality System H. Critical Point
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A.

BACKGROUND

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A. Background
1. The Vision & Mission * Long Term Profit * Maximize Revenue * Minimize Cost 2. The Quality Concept * Quality Definition * Quality Policy

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3. References: * Total Quality Management Total Quality Control * Business Process Re-engineering * ISO 9000 * KAIZEN * 5R5S * Organization Design Mintzberg * Six Sigma * Lean - Sigma

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Example of Company Vision & Mission
Company Vision: To build together an IMAGE of the Airlines as the PREFERRED AIRLINE in Indonesia with the BEST PEOPLE, each committed to GIVE THE BEST for company and SERVE THE BEST for customer. Company Mission: The people of the Airlines are committed to survive for company by provides air transportation services in high standard of SAFETY, CUSTOMER SATISFACTION and EFFICIENCY in order to achieve company vision.
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B.

QUALITY DEFINITION

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B. Quality Definition
1. To conform the Products/Services Specification

2.
3.

To achieve the Customer Satisfaction


To achieve the Company Vision & Mission

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C.

QUALITY POLICY

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C. Quality Policy
Quality Value: CVCD, HRR & HRD

Quality Planning: Business, Aircraft & Resources


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Quality Objective: Long Term Profit Maximize Revenue & Minimize Cost

Quality System: Organization, Process & Administration


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D.

QUALITY OBJECTIVES

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D. Quality Objectives
D.1 Long Term Profit
1. 2. 3. 4. 5. 6. 7. Long Term Business Plan Increase Company Value Develop Company Image & Market Brand Develop Maximize Safety & Best Quality Positive Operating Profit Develop Related Business Differentiation Reduce Business Risk

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D.2 Maximize Revenue:
1. 2. 3. 4. 5. 6. 7. Increase A/C Utilization Maximize Pax Load Factor Maximize Pax Ticket Price Maximize Pax Service & Quality Maximize Cargo Load Factor Maximize Cargo Ticket Price Maximize Cargo Service & Quality

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D.3 Minimize Cost:
1. 2. 3. 4. 5. 6. 7. Aircraft Cost Aircraft Maintenance & Operation Cost Aircraft Parts Inventory Cost Non-Aircraft Parts Inventory Cost Organization System Cost Organization Overhead Cost Marketing Cost

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E.

QUALITY VALUE

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E. Quality Value
Corporate Values & Culture Development:
1. The way of Intending (Honesty, Integrity & Trustworthy) 2. The way of Thinking (Conceptual, Systematic & Traceability) 3. The way of Acting (Effective, Efficient & Flexible) 4. The way of Working on Team (Cooperative, Professional & Committed) 5. The way of Working on Environment (Orderliness, Cleanliness & Beauty) 6. The way of Treating the Customer (Awareness, Kindliness & Politeness)

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Human Resources Recruitment & Development (CASR Part 65, 121.377) Recruitment :
1. Education/Training Record 2. Experience/Track Record 3. Psycho test Record (Emotional, Intelligent & Motivation)

Development :
1. Education, Training & Socialization 2. Carrier Planning 3. Reward & Penalty

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F.

QUALITY PLANNING

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F. Quality Planning
1. Commercial Planning: Environment Analysis, Marketing Analysis, SWOT Analysis, Customer Relation, Feasibility Study, Competitor Analysis, Resources Analysis, Flight Route & Schedule, Financial Planning & Control

2.

Technical Planning: Aircraft Availability, Aircraft Selection, Aircraft Condition, Aircraft Provisioning, Operations & Maintenance Specification, Operations & Maintenance Planning, Operations & Maintenance Records, Operations & Maintenance Manual, Data & Information, Aircraft Routing, Safety & Quality Planning & Control, Cost Planning & Control Resources Planning: Air Crews, Mechanics, Officers, Spare Parts, Facilities, Tools & Equipment, Resources Records, Resources Manual, Data & Information, Cost Planning & Control

3.

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G.

QUALITY SYSTEM

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G. Quality System
1. Organization (Vertical Coordination): Business Environment, Business Model, Organization Structure, Task & Responsibilities, Key Personnel, Location & Facilities Process (Horizontal Coordination): Project Management, Project Team, Management Commitment, Process Evaluation, Process Measurement, Process Requirement, Process Mapping, Process Duration, Process Value, Process Cost & Work Instruction Administration (Recording & Filling): Forms & Reports Design, Data Base Design, Data Entry, Data Processing, Data Storing (Library), Data Updating Control, Data Maintenance, Data Security

2.

3.

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AIRLINES BUSINESS MODEL
QUALITY CONTROL PROCESS

MARKETING PLANNING & SCHEDULING PROCESS

DELAY/AOG/ ACCIDENT/INCIDENT PROCESS

CUSTOMER NEED FOR AIR TRANSPORTATION

BUSINESS PLAN DEVELOPING PROCESS

MAINTENANCE PLANNING, SCHEDULING & IMPLEMENTATION PROCESS

PRE-FLIGHT PROCESS

IN-FLIGHT / IN A/C PROCESS

POST-FLIGHT PROCESS

AIR TRANSPORTATION SERVICES TO CUSTOMER

PRODUCTION PHASE
OPERATION PLANNING & SCHEDULING PROCESS

DEVELOPMENT & PLANNING PHASE

FINANCIAL CONTROL PROCESS

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INDONESIAN AIRLINES BUSINESS MODEL
CASO (SAFETY & QUALITY PLANNING & CONTROL)
BUSINESS MODEL DEVELOPMENT ORGANIZATION STRUCTURE DEVELOPMENT POLICY MANUAL DEVELOPMENT PROCEDURE MANUAL DEVELOPMENT

ACCOUNTING (FINANCE PLANNING & CONTROL)


CHART OF ACCOUNT DEVELOPMENT INFORMATION SYSTEM DEVELOPMENT ACCOUNTING POLICY DEVELOPMENT ACCOUNTING PROCEDURE DEVELOPMENT ACCOUNTING FORM DEVELOPMENT ACCOUNTING SYSTEM TRAINING

FUND DEVELOPMENT

MARKETING & SALES

AIRCRAFT MAINTENANCE

FLIGHT OPERATIONS

AIRPORT & IN-FLIGHT SERVICES

PRE-FLIGHT SERVICES

POST-FLIGHT SERVICES

OCC

CUSTOMER RELATION

FEASIBILITY STUDY

MARKET RESEARCH

AIRCRAFT SELECTION & PROVISIONING

AIRPRT LEASE PLANNING & CONTROL AIRPORT FEE PLANNING & CONTROL AIRPORT PASS PLANNING & CONTROL IMMIGRATION PLANNING & CONTROL GRD HANDLING PLANNING & CONTROL GRD HANDLING AGENT SELECTION AIR CREW ACCOMODATION SELECTION AIR CREW TRANSPORTATI ON SELECTION CATERING AGENT SELECTION CATERING PLANNING & CONTROL CABIN CREW PLANNING & CONTROL IN-FLIGHT ENTERTAINMENT PLANNING & CONTROL PAX & BAGGAGES CHECK-IN IRREGULARITY PLANNING & CONTROL

CAPITAL / FUND DEVELOPMENT

MAINTENANCE PROGRAM DEVELOPMENT MAINTENANCE PLANNING & CONTROL JOB CARD PLANNING & CONTROL MATERIAL PLANNING & CONTROL GRD ENG'ER PLANNING & CONTROL REPAIR STATION SELECTION MATERIAL SUPPLIER SELECTION

INSURANCE AGENT SELECTION INSURANCE PLANNING & CONTROL C'PIT CREW PLANNING & CONTROL

FLIGHT ARRIVAL

PRODUCT DEVELOPMENT

CARGO LOADING

PAX & BAGGAGES UNLOADING PAX & BAGGAGES TRANFER

FLIGHT DELAY CONTROL

FORM MANUAL DEVELOPMENT

PROMOTION

FUEL UP-LIFT

FLIGHT CANCELLATION CONTROL FLIGHT INCIDENT CONTROL FLIGHT ACCIDENT CONTROL FLIGHT HIJACK CONTROL

SAFETY & QUALITY SYSTEM TRAINING

TRAVEL AGENT SELECTION

FOO PLANNING & CONTROL

CATERING UP-LIFT

CARGO UNLOADING

SAFETY & QUALITY AUDIT

FINANCIAL AUDIT

CARGO AGENT SELECTION

FUEL PLANNING & CONTROL FUEL SUPPLIER SELECTION LOADING CONTROL DEVELOPMENT FLIGHT DATA SUPPLIER SELECTION FLIGHT PLANNING & CONTROL

LOADING & TRIM CONTROL

CARGO TRANSFER

SAFETY & QUALITY CONTROL ACCIDENT & INCIDENT PLANNING & CONTROL

FINANCIAL CONTROL

PRICE DEVELOPMENT

AIR CREW TRANSPORTATION

AIR CREW ACCOMODATION AIR CREW TRANSPORTATION AIRCRAFT HANDLING / PARKING

TICKET SALES PLANNING & CONTROL

AIR CREW BRIEFING

TICKET SALES REFUND

AIRCRAFT ROTATION

AIRCRAFT RELEASE

CARGO SALES PLANNING & CONTROL

AIRCRAFT HANGAR MAINTENANCE AIRCRAFT LINE MAINTENANCE AIRCRAFT FLIGHT DATA RECORDING

AIRCRAFT HANDLING

CARGO SALES REFUND

FLIGHT DISPATCH

RESERVATION PLANNING & CONTROL

FLIGHT DEPARTURE

pks/301003

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INDONESIAN AIRLINES ORGANIZATION STRUCTURE (LEVEL 1)
PRESIDENT DIRECTOR

DIRECTOR OF SAFETY & CORPORATE AFFAIRS

DIRECTOR OF FINANCE & ADMINISTRATION

DIRECTOR OF TECHNICAL

DIRECTOR OF FLIGHT OPERATION

DIRECTOR OF MARKETING & SALES

DIRECTOR OF SERVICES

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INDONESIAN AIRLINES ORGANIZATION STRUCTURE (LEVEL 2)


PRESIDENT DIRECTOR (DZ)

DIRECTOR OF SAFETY & CORPORATE AFFAIRS (DH)

DIRECTOR OF FINANCE & ADMINISTRATION (DF)

MANAGER SAFETY & QUALITY (CASO) (HS)

MANAGER CONTRACT & HUMAN RESOURCES (HP)

MANAGER FUND DEVELOPMENT (FF)

MANAGER ACCOUNTING (FA)

MANAGER INFORMATION TECHNOLOGY (HX)

DIRECTOR OF TECHNICAL (DT)

DIRECTOR OF FLIGHT OPERATIONS (DO)

DIRECTOR OF MARKETING & SALES (DC)

DIRECTOR OF SERVICES (DS)

MANAGER AIRCRAFT ENGINEERING & PLANNING (TE)

MANAGER AIRCRAFT MAINTENANCE (CHIEF INSPECTOR) (TM)

MANAGER OPERATIONS ENGINEERING & PLANNING (OE)

MANAGER FLIGHT OPERATIONS (CHIEF PILOTS) (OF)

MANAGER MARKETING & PROMOTION (CM)

MANAGER SALES SALES &MANAGER DISTRIBUTION MANAGER SALES & & DISTRIBUTION DISTRIBUTION (CS)

MANAGER IN-FLIGHT SERVICES (CHIEF FLIGHT ATTENDANCE) (SI)

MANAGER AIRPORT MANAGER AIRPORT SERVICES MANAGER AIRPORT SERVICES SERVICES (SA)

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H.

CRITICAL POINTS

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H. Critical Points
1 2 3 4 5 Business & Fund Development Product & Quality Development Financial Control Aircraft Selection & Provisioning Pricing Strategy

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