Growth and Scalability in Operations
Critical Analyses
Employee scheduling is undoubtedly the most common and one of the most well known problems that managers face. In most cases the problems arise due to changing shifts, no scheduling template suited to specific needs, and high turnover rate. The problem that Netjets face in similar in nature but the root cause is a bit different. Sudden changes in flight schedules can be closely attributed with changing shifts and scheduling conflicts can be understood as no standard scheduling template which suits both Netjets objectives and the union's objectives. Since no information is provided about the turnover rate, I would assume a turnover rate higher than the industry average because of the tough work life balance and uncertain monthly schedules.
Given the current scheduling issues Netjets face, it is surprising that the nation's fourth largest domestic air carrier working on flexible flight scheduling, is still able to meet customer requirements and be profitable. But, is this model sustainable in the future is the question. With other fractional ownership companies ramping up their businesses, such competitive threats coupled with the employee scheduling problems can create difficulties for Netjets going forward. Netjets does not operate on a standard airline model of having centralized crew members with fleet operating on high-demand areas as hubs. The company makes more than 35.000 hotel room bookings and more than 130,000 airline tickets each month for its employees. This is a significant cost and therefore the primary objective of maximizing 'productivity' in the employee scheduling process seems justifiable.
Customer experience of flying in a Netjets plane is the main value proposition Netjets has alongside ease and time savings. The crew, including the pilots therefore has several duties with respect to picking up passenger luggage, replenishing on board provisions, cleaning the compartments, engaging the customers etc. in addition to their
Employee scheduling is undoubtedly the most common and one of the most well known problems that managers face. In most cases the problems arise due to changing shifts, no scheduling template suited to specific needs, and high turnover rate. The problem that Netjets face in similar in nature but the root cause is a bit different. Sudden changes in flight schedules can be closely attributed with changing shifts and scheduling conflicts can be understood as no standard scheduling template which suits both Netjets objectives and the union's objectives. Since no information is provided about the turnover rate, I would assume a turnover rate higher than the industry average because of the tough work life balance and uncertain monthly schedules.
Given the current scheduling issues Netjets face, it is surprising that the nation's fourth largest domestic air carrier working on flexible flight scheduling, is still able to meet customer requirements and be profitable. But, is this model sustainable in the future is the question. With other fractional ownership companies ramping up their businesses, such competitive threats coupled with the employee scheduling problems can create difficulties for Netjets going forward. Netjets does not operate on a standard airline model of having centralized crew members with fleet operating on high-demand areas as hubs. The company makes more than 35.000 hotel room bookings and more than 130,000 airline tickets each month for its employees. This is a significant cost and therefore the primary objective of maximizing 'productivity' in the employee scheduling process seems justifiable.
Customer experience of flying in a Netjets plane is the main value proposition Netjets has alongside ease and time savings. The crew, including the pilots therefore has several duties with respect to picking up passenger luggage, replenishing on board provisions, cleaning the compartments, engaging the customers etc. in addition to their