ORGANIZING

Sameer Mughal [Type the company name] [Pick the date]

TABLE OF CONTENTS

Contents
Contents....................................................................................................................................2 Introduction..........................................................................................................................4 The Base Maintenance Division (Karachi).........................................................................4

Acknowledgements
We are thankful to Almighty Allah whose Grace made it possible for us in the accomplishment of this report. We are also thankful to our Principles of Management course instructor, Saadiyah Saeed who made this course an enjoyable journey of learning and experience and also guided us in our project throughout. Without her help, it would have been impossible for us to work on this project as well as to develop the basic understanding of the course. We would also like to thank Mr. K.B Jadoon, General Manager Industrial Relations Pakistan International Airlines, who entertained us despite his busy work schedule and provided us with sound information that helped us in making this report. And lastly, thanks to all the group members for the collaboration in completing this report.

THE MISSION STATEMENT

 s a symbol of national pride, Pakistan International must strive to be an airline of choice operating profitability on modern commercial concepts, capable of competing with the best in it entire International and domestic market consistently exceeding customer expectations. It should be a choice employer deploying modern technology in all spheres of its activities.
SLOGAN

Great People to Fly With

Introduction
Pakistan International Airlines has had an operative fleet for the last 50 years. This airline has the distinction of having one of the oldest and one of the most technically sound aircraft engineering and maintenance setup in this region. This setup consists of heavy aircraft maintenance (Base Maintenance), light maintenance (Line Maintenance), component overhaul, servicing and repair (Back Shops). This setup has not only been the backbone of this airlines but has also served as an incubator for the setup of other engineering facilities in this region like that of Qatar Airways and the Emirates Airlines. However, even though it is a proven fact that this Department is one of the best technically, there is a major lack of proper management systems that can help propel this department into the 21st Century. Currently the problem stands as follows: Engineering and Maintenance is acting as a cost center within Pakistan International Airlines. The system outlined in this report removes some major hurdles that are faced by this departments heavy maintenance division (Base Maintenance), and can help it evolve from being a pure cost center to a revenue center, as well as manage the human resources of this division in a proper manner.

The Base Maintenance Division (Karachi)

The main stay of Pakistan International Airlines is its heavy maintenance division, labeled Base Maintenance. This Division is entrusted with the responsibility of managing and accomplishing the heavy maintenance checks on narrow and wide body aircraft. Along with this capability, this division has a Structure Repair Shop, which deals with the major structural issues of the entire fleet. Currently, this division has become the focus of the Engineering management since it is here that most of the revenue generating capabilities lies. The reason for assuming that is one of the major Third World assumptions, i.e. cheap, unskilled /skilled labor can make us competitive in the world market. The problem with that assumption is that most of the time

the most critical point is left out is that without proper management practices; no amount of skilled labor can guarantee market success, let alone market domination.

However, one thing came up with the cross sectional analysis of other aircraft maintenance organizations, and that was that they were rolling out aircraft in a time period which was half the time period available to this division, and they were doing it with less manpower. Keeping in mind that aircraft maintenance is an extensively labor based business option, this fact pointed out some serious draw backs that were occurring as far as the management of heavy maintenance was concerned. The facts that were outlined here were: 1. There had never been a proper standard cost developed for the aircraft checks. 2. There was no system to monitor and determine the deviations in these costs. 3. There was no system and no training to determine how to combine the outputs from the different trades, map them onto different aircrafts on checks , and then reallocate them back to the trades so as to determine the over/ under application of labor on the aircraft. This over /under application of labor working on the aircraft was a necessary issue due to safety aspects and the requirements of the regulatory bodies (Civil Aviation Authority Pakistan, Joint Airworthiness Authorities).

PLANNING

PERFORMANCE OF PIA IN THE RECENT YEARS

Pakistan International Airline is growing with a fast pace. After the 9/11 incident, the aviation industry was in jeopardy. Many airlines had gone bankrupt and had to close down their operations. Even during this period, PIA has continued to fly smoothly and has performed satisfactorily. The new management at PIA has created a team of experienced and dedicated professionals, and has managed and operated the national airline as a commercial organization, which succeeded in PIA on standing on its own feet, and since then, PIA has started to earn profits.

PLANNING FOR THE STRICT COMPETITION 5

In our opinion the services that PIA is providing both, in the air and on the ground are their main strength. In fact, they are working towards the refinement of their service pattern which is becoming more apparent. The improvement is slow and steady. As we have also learnt, Proper training programs are frequently launched for the cabin crew and ground staff etc, which has resulted in improvement of services to the passengers. PIA faces tough competition with other airlines, both on international and domestic routes. Lately, with the emergence of new airlines on domestic routes, PIA seems to have successfully faced the competition and its load factor seems to be extremely satisfactory. We trust that competition is always a healthy sign, and is a source of motivation and guarantees quality at a reasonable price. ********** The new management immediately initiated a series of radical measures to save the airline from any further damage and embarked on a well worked out plan to turn the airline around and once again make it a profitable and self-sustaining organization.
SCHEDULING THE ROUTES ACCORDING TO THE NETWORK

Pakistan International Airlines caters to 2.5Million passengers on its international network annually. The major routes are as follows: United Kingdom North America Europe Saudi Arabia Gulf Pakistan

Fig: International routes of PIA

THE NEW PLANS FOR THE PIA MANAGEMENT

PIA has embarked upon product upgrade projects necessary to support its growth strategies: 1) PIA has planned to buy new aircrafts and upgrade it its current fleet to expand its operations. 2) New routes will be opened to gain more customers. 3) Improve In-flight service and increase flight profitability. 4) Cargo flights have been introduced to Oslo, Paris and Frankfurt in addition to London.

ORGANIZING

ORGANIZATION CHART PIA has an enormous workforce of approximately 20,000 employees. These include a diverse workforce ranging from aircraft crew (Pilots, cabin crew, flight engineers), ground crew (Ground engineers, baggage handlers etc) and other personnel (Drivers, maintenance personnel, administration officials etc). The differing activities of all these people reflect work specialization, which is the degree to which the work necessary to achieve organizational goals is broken down into various jobs.
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LEADING

THE CHANGE MANAGEMENT IN PIA FOR JAR -145

The change management has taken place distinctively at PIA. The change was for procuring a JAR 145, a quality certificate in an Aviation Industry. This change is not only applicable for the engineering department that is Wide Body Hangar but also on divisions like Line Maintenance and Overhaul systems. As per our report our team has analyzed some of the vital points that will be important to judge the change management and how the entire fleet of PIA have provided change resistance moreover what has inculcated in them such a low tolerance for change.
1. GAIN RECOGNITION OF THE PROBLEM.

It was not easy at PIA to recognize the exact problem due to which this massive organization is loosing its market share internationally, especially in operating flights in the Middle East and South Asia pacific regions.
FLAWS IN PLANNING

Study shows that the task cards handed over to planning 15 to 30 days before the aircraft docks in to the wide body hanger. Planning section sort these task cards with respect to trades and locations of the aircraft and make an assumed time line chart which never reflect the actual time taken by the production on an aircraft which leads to time delays, false HR consumption and cost factors. These kinds of problems lead to bigger problems when schedule of one check is disturbed because of the previous check. Another important issue which higher authorities should take under consideration is that the existence of planning does not means performing activities which they are actually performing, but to find ways and procedures through which they can effectively utilize the HR as well as to minimize cost factors.
OVERALL FLAWS OF THE SYSTEM

The primary problem with the current system is the attitudes of employees in Base maintenance. It is evident by the study that most of the employees hide their own misconducts by blaming others or the system.

These types of conflicts are often seen and occur between planning and production of the same trade OR between the trades of similar functions. Because of this behavioral problem, the efficiency of work is not being applicable and is under estimated. So there is an urgent need of a system which not only changes the attitudes and motivates them but also have the capability to keep check and balance with the performance of the employees.
2. LINING UP THE POWERFUL SPONSOR(S)

After the detail study of the PIA as system, it is difficult to say that these so called powerful sponsors will actually implement and change the entire system and improve efficiency. However, there are certain management personnel who are focused to bring about the changes in the organizations and maintain the positioning statement which hold invalid for the last 5 years or so. PIA, with out any doubt has been the biggest airline in Pakistan in the Aviation Industry but due to lack of attention and proper leading behavior of the Top management it has a decreased its market share and moreover a step down in the international flight services when compared to its major competitor Emirates.
3. DEVELOPING AND COMMUNICATING THE VISION

The above strategic position holders have passed on the vision of improving the system down the management line. The focal point of the entire vision was to cut down costs. In view of the fact that, the airline industry in Pakistan has been on a rise with different airlines emerging, such as Air Blue, Shaheen, (locally) and internationally, Emirates, Gulf Air and being a major threat to the organization, therefore it was important to cut down the cost to increase the profit margin. Since, the passengers will be reluctant to pay more just because the airline has increased the fares due to increase their own profit. The main and the foremost area of reducing the entire cost are the Abul Isphani Hangar and the Aircraft Engine Overhaul. This is so because; the maintenance of the aircrafts is an expensive service but vital and takes away more than 60 % of the entire PIA costing. The channel of communicating the vision was gushed down the entire organizational structure, each head communicating horizontally and vertically. To give you a feel of the structure refer to the Organization Structure of PIA and view an example below.

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Fig: Communicating the vision to the sub-ordinates (horizontally & vertically) 4. EMPOWER OTHERS TO ACT OUT THE VISION

The Chief Engineer of all the departments (Planning & Projects / Aerospace / Avionics / Radio & Structure) has provided their team with enough resources (human, financial, personal assistance and the technical aspects such as testing equipments and computer peripherals). Human Resource has been recruited on contractual basis for analyzing the requirements and determining the needs of the new apparition. This fresh contracted force is designated with every of the aircraft engineer and assists in overcoming the obstacles. The team has come up with some documents which will assist the aircraft engineers of the concerned division. Refer the attachment below.

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Attachment: Screen snap shot of the MS Project plus Software. (Radio & Avionics) 5. PREPARE TO OVERCOME RESISTANCE

This is one area where the managers need to focus a lot, more than normal. PIA is on its own for the last 50 years, and so are most of the employees. Their vast work experience of 40 to 45 years makes them a valuable asset to the company, but also a major change resistant. Since, Information Technology has been creeping up the requirement list; they fear that it might diminish their importance in the working arena. Yet, it is important for the upper management to over come this change resistance as they are not left with many choices if they use coercive power to implement changes as these experienced personnel hold with in a lot of experience and problem rectification solutions. Using such powers will make the situation worst and the ball will no more be in the managements court. A very interesting fact,
6. PLAN FOR AND REWARD VISIBLE PROGRESS

It has been 4 years since this strategic plan is being tried on the entire PIA divisions. No positive results as yet, or to keep it on another way, it is not possible for the management to reward any visible progress. What we have determined, is that the ball is finally rolling and as per the targets (six months) it is expected that PIA will be synchronize their short term operational goals with the plan issued to the team.
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7. CONSOLIDATE IMPROVEMENTS AND FACILITATE FURTHER CHANGE

& 8. MONITOR AND INSTITUTIONALIZE CHANGES

It has been duration of good four years but yet the management is not definite about improving the changes or refreezing as the changes is yet liquid in stability. Any how, after freezing the alterations in the maintenance, what PIA will target next will be improving the online passenger seat reservation, which is under some observations with new software(s) named Amadeus and training personnel. However, it is too early to express comments on this subject.

CONTROLLING

Keeping in line with the overall PIA policy of providing maximum services and facilities to the travailing public, controlling of the important areas such as Information System Department has further extended automation coverage. In addition to improving existing computerized services, new functions and applications are being automated on an on-going basis, which enable the managers to compare the actual performance with the expected performance. The controlling units in PIA varies Latest technology mainframe, mini and micro computers and communication facilities are acquired and utilized to stay up-to-date with the Industry. Almost all functional areas/departments of the airline are benefiting from the computerized systems. Automation is also being used for MIS in PIA for effective monitoring and control over performance of operational, financial and administrative functions.
CENTRAL RESERVATION CONTROL

Automation of reservation systems was introduced in PIA in 1980 with the sole idea of central control of all PK flights on the entire network, as such; Repak was introduced with a central control system at Karachi, and with an airline address of KHIRMPK which was assigned by IATA.

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A separate section, CRC was established and assigned the job to achieve the desired result concerning centrally controlled reservation system in order to provide fast, accurate, and fool-proof airline reservation facility to the passengers. CRC work in accordance with IATA prescribed procedures and is associated with other major Reservations Systems such as SABRE, ABACUS, GALILEO, etc. to cover global access on to Repak, where this automation facility is not available. The entire PIA network is monitored and controlled by CRC. Information regarding the space-control of all PIA flights, spanning over the 4-continents, are fed and stored in the system, which in turn, is centrally controlled by Information Systems Department (ISD). (ISD also assists PIA in General Accounting, Revenue Accounting, Payrolls, Personnel and Engineering).
FLIGHT MONITORING (FREPAK)

A new online system (FREPAK) connecting all the major airports and operational departments have been installed for monitoring flight regularity and aircraft movement. Same system has been set up at PIA telephone exchanges in the major cities for providing flight enquiry services.
DEPARTURE CONTROL SYSTEM (DEPAK)

Automation at airports including computerized check-in has further been expanded in scope and locations. A recent development has been the interfacing of our DEPAK system with CUTE - an international passenger handling system of SITA at London airport. Some other airlines are showing interest in acquiring this system. To define the control methods as studied in the semester, we have framed the controlling as per the block diagram mentioned in our book Management by Kathryn M. Bristol
DETERMINE AREAS OF CONTROL

The Managers at PIA must first have to decide which major areas that has to be controlled. While controlling, the Manager usually base their controls on the overall organizations goals and objectives developed during the planning process. The sensitive areas of control include: 1. Base Maintenance. 2. Line Maintenance The above are the main cost driving factors, therefore discussed in detailed. However, there is other control areas which the strategic management is focusing on which are mentioned below. 3. Planning & Projects
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4. 5. 6. 7.

Quality Systems Logistics Power Plant Overhaul Information Technology & Finance

1. BASE MAINTENANCE

The Base Maintenance is headed by the chief engineer who is accountable for all the controlling checks and balances for the Base Maintenance Department as a whole. The Base Maintenance id logically split into two working areas. Bay 1 and Bay 3 combined for Boeing Aircraft and Bay 2 for Air Bus. In each bay, four trades are applicable. Aerospace, Avionics, Radio and Structure and Repair Modifications Group. As depicted in the table below, where a tick indicates types of check(s) implemented on a particular type of Aircraft i.e. Boeing and Airbus.

2. LINE MAINTENANCE:

Line Maintenance is a controlling process that consists of the routine checks conducted on the arrival and departure of the aircrafts. The checks are performed on operational functions and confirm the standing of the plane as checked i.e. ready to go for the next flight. The checks are done after every landing on every airport, especially during connecting-flights. ESTABLISH STANDARDS In the control process standards are essential because they spell out specific criteria for evaluating performance. These standards are followed as per defined in the JAR 145, a quality certificate scheme that defines hows and whens of the entire operational plan in the maintenance division. Few of them would be outlined as follows: Outlining and defining the tasks for each trade for a particular check(s).
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 Defining work methods and maintaining task cards for each task. Providing work slips at the start of every week by the shift in charge to the team leader, this does not imply on Structure repair and Modification Group.
MEASURE PERFORMANCE

In our survey, we came across numerous methods where the managers kept on measuring performances based on tangible and intangible units. E.g., working hours per employee, number of seats registered per booking agent, number of seats reserved per traveling agent.
COMPARE PERFORMANCE AGAINST STANDARDS

The methodology defined in the earlier paragraph is how the managers measure the performance. For each example mentioned above, the standards are bulleted as follows. Not all methods have been defined, only to exclude the technical data. However, the vital ones would entail: Measuring hours consumed per employee. This is done by dividing a project (a work break down structure of the entire plan) into hours to be consumed per task. The figure below depicts the measurement of the performance vs. the standards.

The above diagram shows the small fragments of work spread over 14 days with different working hours required per task. Managers compare these performance with respect to the standards set weekly or fortnightly.
TAKE CORRECTIVE ACTION AS NECESSARY

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To be very clear about the corrective actions, the management at PIA has not really focused on taking corrective actions on the plans that they impose on the sub-ordinates. Since the employees are not involved in the decision making to a great deal, therefore they dont take the responsibility of not attaining the goals in due time. To over come this, the management has come up with providing them with monetary incentives or out of the routine holidays. For the last 7 to 8 months it has been observed that this strategy has improved the timings and the over all performance.

CONCLUSION

To keep the entire report in a nutshell it will be true to say that PIA is still going under an entire change as per the new advancements in the technology and the service trends in the Aviation Industry. To keep up with the plan. The Chairman Ahmed Saeed has asked the Board of Directors to join heads and revolutionize the entire system. Since PIA being a massive organization in terms of human resources and the infrastructure, therefore it will neo be easy to say that the change will be overnight. Over night in this context relates to 1 year. Anyhow, the management is struggling and trying to improve the overall competence of the system so that they can attain the organizational goals effectively and efficiently. As per our view we strongly deem that there should be a visible change in the controlling phase of the managers. The plans are being developed and being put on for the implementation. The major area where the management looses grip is on controlling. However, we have mentioned in our report the ways in which they can improve the situation. However, how to exactly control, will be a never ending discussion as management is not a set of rules applicable in each situation. To control and monitor this diverse work force is the true management and this is what the Managers at PIA are being tested for. We sincerely, acknowledge their hard work and efforts. Moreover, also wish them all the best for ahead.

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