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Theory of Constraints and Quality Control for JetBlue Airlines JetBlue Airways

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Added on  2019-09-26

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Discussion 2 2.1 The critical success factors 2 2.2 Goals of Constraints 3 2.3 Balanced scorecard 4 2.4 Relevant activities of the value chain 8 2.5 The concept of customer delivered value 9 2.6 Cost of controlling quality 10 3. Introduction JetBlue Airways Corporation is an American airline known for its low-cost and is the 5th largest airline in the United States. Discussion 2.1 The critical success factors The critical success factors of the company are indicated as given below: Low-cost advantage – JetBlue is a domestic low

Theory of Constraints and Quality Control for JetBlue Airlines JetBlue Airways

   Added on 2019-09-26

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Theory of Constraints and Quality Control for JetBlue Airlines JetBlue Airways_1
JetBlue AirlinesTable of Contents1. Introduction..................................................................................................................................12. Discussion............................................................................................................................22.1 The critical success factors........................................................................................22.2 Theory of Constraints...................................................................................................32.3 Balanced scorecard......................................................................................................42.4 Relevant activities of the value chain...................................................................82.5The concept of customer delivered value.........................................................92.6Cost of controlling quality..............................................................................................103.Conclusion.............................................................................................................................104.References.............................................................................................................................111
Theory of Constraints and Quality Control for JetBlue Airlines JetBlue Airways_2
JetBlue Airlines1. IntroductionJetBlue Airways Corporation is an American airline known for its low-cost and is the 5thlargest airline in the United States. The company has its headquarters in the Long Island City andhas its main base at the John F. Kennedy International Airport and maintains their corporateoffice in Cottonwood Heights, Utah.The airlines serves it destination within the United States and also has flight to Bermuda,Colombia, The Bahamas, Costa Rica, Barbados, Dominican Republic, Mexico, Peru, Grenada,Jamaica, Tobago, Trinidad etc. the company serves 97 destinations in the U.S., Mexico, theCaribbean, South America and Central America. JetBlue is one of the two airlines in the UnitedStates having four-star rating from Skytrax, another being its competitor Virgin America. It is the largest carrier in Boston and is also the leading carrier in Hollywood, Los Angeles,Orlando, New York and San Juan. The flight is known to carry around 30 million passengersevery year to approximately 80 cities in the United States, Latin America and Caribbean witharound 850 flights daily. The airlines has low fares, new planes, effective business and non-unionized labor, JetBlue hascaught the off-guard big carrier. A coherency and consistency has been seen in the brandideology of the company so as to put a human element back into flying which has helped inresonating with the passengers deeply. 2
Theory of Constraints and Quality Control for JetBlue Airlines JetBlue Airways_3
JetBlue Airlines2. Discussion2.1 Thecritical success factors The critical success factors of the company are indicated as given below:1.Low-cost advantage – JetBlue is a domestic low-cost carrier flighttherefore it is one of the cheapest airlines in the United States. Theaim of the company was to create a low fare supporting cost structurewithout lowering the standards of the services being provided to thecustomers. This low-cost structure has helped the company to venturein to the territory of big companies in the airlines industry andtherefore generates industry leading margins. Various innovativemeasures have been adopted by the company on their flights in orderto become a cost leader. For example, no meals are served on theflight in the trip irrespective of the distance covered and the durationof the routes. For supporting the decision on order to become a costleader (JetBlue Airways Corporation, 2016). Therefore the low costadvantage has expected JetBlue for delivering leading margins in thenear future. The firm has been exercising the low-cost carrier system when therecent plunge in the crude oil prices had further reduced the cost ofthe fuel. However, this reduction in fuel prices cannot be considered asa sustainable option for the long run and these prices can shoot upwhenever the market recovers (Gittell, J. H., & O'Reilly, C. A, 2001). 3
Theory of Constraints and Quality Control for JetBlue Airlines JetBlue Airways_4

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