Southwest Airlines Operations Management

This assignment examines Southwest Airlines' operational management practices. It analyzes the airline's approach to labor unions, its strategy for handling frequent flyers (boarding priority and next flight access), and the economic implications of their turnaround time efficiency. The analysis should consider factors like revenue generation, customer satisfaction, and overall profitability within the context of competitive pressures in the airline industry.

8/30/2017
Services and Network Productivity with Data Analytics
Name
Insititution

Table of Contents
Introduction............................................................................................................................................2
Strategy Mapping...................................................................................................................................2
Over-met and under-met needs...........................................................................................................3
Un-Met Needs........................................................................................................................................3
Ecosystem Built on Orchestration..........................................................................................................4
Orchestrated Ecosystem Levels..........................................................................................................5
Big Data Analysis..................................................................................................................................5
Southwest Airlines Changes Within Last Five Years.............................................................................6
Mergers: SWOT Analysis......................................................................................................................6
Competitive Dimensions for Southwest Airlines....................................................................................7
Trade-Offs..............................................................................................................................................7
Culture....................................................................................................................................................7
Design of Union Relationships...............................................................................................................8
Airline Economics..................................................................................................................................8
Prioritizing Frequent Flyers for Boarding...........................................................................................8
Frequent Flyers Allowed to board the Next Flight.............................................................................8
References..............................................................................................................................................9

Introduction
This paper will evaluate and analyze the Southwest Airlines way of doing things from the bottom to
the top. The main idea being to examine and documenting the process for Southwest Airlines. Also
discussing the services offered as well as the impacts they have on the execution of the processes.
Orchestration effect and the business process compliance monitoring and resolution issues. This is
evaluating and analysing their strengths and weaknesses, the cultures, the people, the business
processes that are related to human resources.
The report also aims at reviewing all events that are significant and affects human resources, events
that synthesizes the concerns of the employee, provision of outcomes, delivering in terms of both
qualitative and quantitative, and lastly nationally and globally.
Strategy Mapping
The main idea brought about by strategy mapping of the existing service being offered by Southwest
Airlines and the strategy mapping proposed for the better services to be offered. For mapping
Southwest Airlines as an existing market, the opportunity or it as an industry one have to understand
the value drivers for mapping.
For easy mapping seeking of needs that were over, under and not served. Mapping a new product or
service offered against the industry. Most innovation always occurs when products are addressing the
needs which are under, over or even unserved. Through identification of the needs which are under,
over and unserved innovations will always take place making this to become a “blue ocean”. By

innovating we have understood what Southwest Airlines values and contrast and compare what the
company thinks is the best and valuable to them.
There is a need hierarchy in coming up with a good strategy map. Needs have to be examined and get
the solutions more carefully. To understand more a greater approach which is more fine and addresses
the strategy map as it is supposed to be. The approach follows as below:
 Under-met needs
 Over-met needs
 Un-met needs
 Undiscovered needs
Over-met and under-met needs
Over met needs are needs that provide more solutions or functionalities that are high or more
compared to what the customer needs. They provide more Offering than what is expected by the
customer hence over meeting. Under met needs are those needs that not fully met by what they are
offering currently or solutions they give does not satisfy the customer expectation fully. When both of
this instances are situations in Southwest Airlines hence innovation is possible and a must. The
following is a strategy map that was suggested by (margbourne, 2015).
A strategy map identifying the over met and undermet needs in southwest Airlines. Southwest
Airlines has identified some segments of a certain population that rarely cares about frequent meals,
the choices of seats and the meals they take. With this study there is a feeling that Southwest airline
industry is more and over-focusing on these issues but many clients don’t care. Also Southwest
Airlines identified some needs which were under met that they offered friendly service and with very
fast speed but they were not address by the existing Airline industry.
Un-Met Needs
It is good to note not only southwest airlines identified or un-met and undiscovered needs also
frequent departures were identified which is amongst the value driver’s southwest airlines delivered.
Southwest being built on the “fast turn” frequent departures that the majors are yet to understand about

it. Using a strategy map and proposed a solution considering opportunities by innovating an existing
market or the airline industry to discover the new opportunities (Mankins_M, 2013).
There are some actions actually four of them that must be considered when creating a new curve as
shown in the diagram above for the proposed mapping:
 Reducing the delivery or giving’s emphasis about a factor
 Raising factors that are well above Southwest Airlines
 Eliminating factors as a team
 Creating new factors that has never been offered.
In the case of southwest Airlines industry, Southwest has to choose to:
 Eliminating seat choices, meals and hubs
 Reducing price.
 Increasing Friendliness and the speed
 Creating many frequent departures.
Ecosystem Built on Orchestration
In Southwest airlines they will be need to build an open service ecosystem which is orchestrated. This
ecosystem will also require stewardship that is continuous. For this to be achieved in the right and
promising way where it can be understood by the majors and minors Southwest Airlines has re-
evaluate its old truths. This is indeed to all almost to all firms as crisis mostly from finance leads to
them re-valuating the model of the business they perform.
When the truths which are old and the methods which are proven are seen to not producing what is
expected then this will require the Southwest Airlines to look outwards and identify the opportunities
which are new and collaborate with partners who are key in ecosystem business.
There are some major five distinct levels that Southwest Airline will have to understand to know this
orchestrated ecosystem development progresses. This distinct levels are neither separated nor mutually
exclusive. The five levels that need to be understood by Southwest Airlines are as follows.

Orchestrated Ecosystem Levels
Level 1: Southwest Airlines should have an experience with the future. In this level the basic is need
to recognition in engaging in dialogues which are open with multiple stakeholders and make an
agreement on the views of the world and priorities of the future. Major tool for this is scenario
building.
Level 2: The second level is Southwest Airlines to set the priorities in to a context understood by the
customers and customers who are engaged deeply with these activities which are joint and those that
will assist in developing the new offerings. Innovation which are semi-open is a tool that can be
applied by southwest Airlines. Resources which are external are always needed in provision of
offerings that meets the customer wants fully.
Level 3: The new offerings representations is done by how the external resources In southwest
Airlines are combined with internal resources. A tool such as 3D offering can be applied
Level 4: This level is achieved when Southwest Airlines is able to make new collaborations of settings
institutionalized. Southwest Airlines is then orchestrating actively in a collaboration with partners who
are in a network that is semi-open. A capability map will be the tool that will be useful in defining the
roles and duties.
Level 5: The southwest Airlines after being institutionalized it may ask for many years to have
recognition in the market. If this is achieved the ecosystem is represented actively by the Orchestrator
who built it, for it to serve itself and its customers in the best possible ways. It is referred to as the
level of collaboration.
NB for Southwest Airline to have An orchestrated network they must give in and allow innovations
opportunities to take place (Synocus, 2015).
Big Data Analysis
Southwest Airlines of latest has been highlighted to be one of the Airlines that uses big data in
delivering services which are excellent to the customers.

Southwest Airlines is the one of the low-cost carriers from Dallas and very admired globally. It was
established in 1971. Southwest Airlines has employed over 45,000 workers and transports 0ver 100
million passenger per year who travels to over 97 destinations with over 696 Boeing jets. They are
known from their excellent services they offer to customers.
This has made them gain a lot of benefits and advantages which are very competitive with usage of
their core business data.
In recent updates Southwest Airlines has announced the heading to clouds with a suite that is new with
contacts of customers and their workforce optimized with solutions. The big data will be used to
provide air safety of the customers. It’s good also to note that the algorithm they apply has the
capability to analyse vast large amounts of data by finding anomalies. They do this with the help of
NASA.
If Southwest Airlines want to be more innovative then usage of latest technology and technicality have
to be applied in all dimensions for the improvement of the organisations by creating services which are
better, making customer more satisfied and improving the safety of the Southwest Airline (Rijmenam,
2016).
Southwest Airlines Changes Within Last Five Years.
In 2012 the change was that the merging with AirTran led to continuation of operations as they joined
the southwest route map. In February same year both merged airlines received an approval from
Federal Aviation Administration for single operating certificate.
In 2013 Southwest Airlines partners International firm known as points and announces that the
members can buy, gift and transfer the rapid rewards points to friends & families through the centre
created. In November same year use of Portable electronics devices was allowed in the airplane with
an airline on-board Wi-Fi (swamedia, 2017).
Mergers: SWOT Analysis
Strengths.
Great climate or the employees culture
Employees dedication (philips, 2016).
Employees who are strong following grievances procedures
Development of training and leadership
Travelling for free and sharing the price
Weaknesses

Cultural of the employees should be communicated
Resolving the history of grievances but not on time
Opportunities
For positive outcomes communications for labour relations should be increased
The value of the merged Southwest Airlines and AirTran should be demonstrated to all
employees
Reassuring all Employees of AirTran equal access to all southwest employment opportunities
Engaging AirTran employees in a timely that is comprehensive with all compensation and
concerns especially the one for benefits such as the seniority, vacation, salary etc.
Threats
Collective bargaining of union of similar nature
Some of the human resources issues that will be encountered (Maxton.T, 2011)by SouthWest Airlines
when extending globally will be as:
It should be compliant with the international law
Cultural diversity, Active programs which are affirmative
Benefits and compensation that promotes work and life balance
Development and training
Pensions offered and sharing profit
Language cultures overcoming and recruiting language barriers
Understanding the culture with reference to time, negotiations when conflicts arose and
agreements in contracts in collective bargaining (Bradley, 2014).
Competitive Dimensions for Southwest Airlines
The low-cost or it being not expensive make it compete globally as its size can handle such costs.
Quick or the low turn around which will be indicated by the plane type, the little variety available and
the uniform process. The short distance hauls or the point-to-point direct that allows people to board
direct planes from origin to destination. Another competitive dimension that southwest airlines will
enjoy the travelling between smaller airports which might be more convenient to some airports.
Southwest Airlines make it simple and is very consistent. Southwest Airline is Multi-tasking
employees by training them to fit in everywhere to offer the best services to the customers. The unions
that make the Southwest should have good relationships. The employees should be friendly and the
Southwest Airlines rewarding programs, hence making it to have a competitor with its unique
dimensions in all ways.
Trade-Offs
Southwest Airlines should give up on some things which include:
Assigning of seats to passengers travelling to different parts.
Flights to multitudes of multitudes for those locations in major airports
Offering of food and meals while on-board
The baggage transfer case
More upgrades
The variety that are prioritized with different timeline
Culture
In SouthWest Airlines never had layoffs,also the point of price.The other approach is the one indicated
as the Egalitarian Approach which deals with customers indicating that no customers who are on first

class will have employees serving them taking multiple roles. This idea of no multiple roles bring rare
cases where people are laid off.
On the simplicity, how decent and how friendly didn’t satisfy all people served or catered by
Southwest Airlines, hence this upfront to having no seats assigned. Another cultural thing to note in
SouthWest Airlines is the fun that is enjoyed while On-board as those customers who are involved in
selection of employees shows some team orientation, there is mutual care between the passengers on-
board and the attendants for the flight and this attendants approaches passengers in a friendly way. The
other thing is that the attendant dresses casually.
The issue on team work is another culture that exists in SouthWest Airlines as people may take
multiple roles and willing to help one another, hence rarely cases of people laid off. The customer
service is not only being external but has been extended to internal. The SouthWest Airlines is work
and family working place. SouthWest Airlines is focuses on sharing its goals because supervisors are
willing to complete any job assigned.
Design of Union Relationships
SouthWest Airlines permits no layoffs. Better relationships among the unions are allowed. The benefit
job design that is flexible is created. SouthWest Airlines should foster aircraft that are faster. There
should be higher profit that is sufficient and the utilization of the aircraft should be greater.
Airline Economics
This brings the term that frequent flyers are more important. The revenues raised from many
customers covers the cost of fixation. The other revenue raised from the other number of people who
are few is termed as the profit. Every minute used in saving turnaround is roughly equals to ten million
dollars of having saved over a year of interest.
Prioritizing Frequent Flyers for Boarding
There are no much charges incurred while boarding. The cost is low to make this frequent customer
happy and satisfied. This may lead to losing of customers if they don’t do that. In the other hand it is
against SouthWest Airlines customs as they could lose other customers. Its good to note that
customers are always cost sensitive. This will overall delay the process of boarding, making it less
efficient in terms of delivering, hence it will create turnaround times which are longer and finally
diminishing the competitive advantage in the central.
Frequent Flyers Allowed to board the Next Flight
This is very expensive to all the customer who are frequent and to the SouthWest Airlines as a whole.
SouthWest Airlines will lose a lot of revenue as customers will need to buy and also change tickets.
This will lead to people developing a behaviour of coming late, which will indeed lead to increment of
turnaround, time hence losing more money (Daniel_Chewl, 2017).

References
Bradley, j. (2014). International HR issues. Retrieved from Chron Small business:
http://smallbusiness.chron.com/international-hr-issues-61937.htm
Daniel_Chewl. (2017). Southwest case. Retrieved from Operations Management Mid-Term:
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Mankins_M. (2013). The defining elements . Retrieved from Winning culture harvard business review:
http://hbr.org/2013/12/the-definitive-elements-of-a-winning-culture/
margbourne, L. (2015). The concept seeks to map the “average” offerings in the industry on a
number of value segments to identify overmet, undermet and unmet needs or requirements.
Maxton.T. (2011). Retrieved from http://aviationblog.dallasnews.com/2011/11/southwest-airlines-
airtran-pil.html/
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