National Air Essay

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The Case of National Air Express Dayna Simms-Faulk MBA 630 – Operations Management Michael Hammoud The Case of National Air Express Overview National Air Express, a service business, provides overnight door-to-door, air-express delivery across the United States. As a service sector company, leadership is aware that much of its success weighs heavily on output. Inputs are also and integral element to a company’s success (Heizer, p.14). The National Air station in Chattanooga, TN has come up against challenges during the first quarter raising the concerns of the site manager, Frank Smith. One of his concerns is justifying rising costs against first quarter productivity results in an upcoming meeting. Smith, along with field services supervisor, Martha Lewis have analyzed their first quarter capital expenses and discover the drivers from their site have not met customer requests for scheduled pick-ups during this period, which in turn has affected overall efficiencies. Improving Productivity and Increasing Efficiency The company’s drivers appear to be the face of the company and often the only one-on-one interaction the customer receives with National Air. With high expectations placed on quality customer service, drivers may feel obligated to spend more time than necessary at any one scheduled or dispatched service. The result of extended time spent at any location has an effect on the productivity and ultimately the budget. The question for the management team then becomes where and how efficiencies can be met without eliminating other important aspects of the operation, such as labor. National Air measures productivity using labor-hours per day per truck. Essentially, this method is a single-factor productivity measure, indicating the ratio of one resource to the goods and services produced (Heizer, p.15). This method could still be
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