Explain the concept of lead time, the decision making process of planning and controlling, and the relationships between them with reference to ‘Air traffic control: a world-class juggling act’

Résumé du document

Nowadays, companies are very often in touch with customers, they have to answer to their needs. That is the reason why they do surveys: to know exactly what their customers need, what are their expectations … Accordingly, enterprises have to match the needs of their customers to deliver a product or a service that will satisfy them. They have to produce fast and well, and to understand and resolve problems quickly when dealing with services.
The key words are effectiveness, reliability and customer satisfaction; all of them depending on logistical planning.
In this work, we will begin to explain the concept of lead time (the different types). Next we will take an interest in the decision making process of planning and controlling. We will then use examples to illustrate the theory.

Extraits

[...] In the second case, there is a need to change the track's layout: it's necessary to make two tracks instead of one: one for landing and the other one for taking off, on the same base as La Guardia airport, with crossing roads. Once the layout done, the planning will have to be changed. As there are more take off than landing, a solution could be that two airplanes take off when one airplane lands. Effectiveness will be improved: it will let more time to take off, that will avoid bottle neck. [...]

[...] Pilots don't take decision alone, there is a special staff (air traffic controller) (annex number two) who help them do that. The reason why pilots can be stressed is that they know what they have to do only a few minutes before they have to do it. It would be better if pilots were able to have more information in real time: where are the others planes, what is the distance separating them from the others . With these kinds of information, pilots could avoid collision because they would be more in charge and able to change their route in case they feel the obligation to do it. [...]

[...] The prices are approximately the same for all customers; airplanes use the same routes at the same time for a specific flight: the service is standardised. Moreover, there are eight controllers checking a plane, there are responsible for different stations. Planes require a complex organisation because each department is connected to each other: the airplane traffic is a non expandable schedule (moreover, because people have to book to take a plane, it is possible to anticipate peaks in traffic and program queues). [...]

[...] Planes are a mean of transport which requires lots of controls and exact coordination. For instance, at New York airports (annex number one), each plane is controlled by 8 controllers. Each controller has to spend a specific time on each plane, a number of planes per hour (cycle time) (annexe number two). There is about one landing or taking off every 45 seconds. In this case, the lead time is: 8 controllers x 45 sec=360 seconds corresponding to 6 minutes. [...]

[...] Thanks these elements, they can do economies of scale with a high volume of standardised product because their fixed costs will go down. The strategy will be different if customers want customised product. In this case, companies can't do a process which allowed economies of scale and it's necessary there is a high variety for low volumes Performance objectives There are 5 generic performance objectives in relation with the market and the competitors of the company (annex number 4). The huge pressure brings a lot of stress to the controllers who have to manage queues of airplanes. [...]