Thursday, June 25, 2015

Cracker Rage Costs United Airlines $550,000

(6/25/2015) Last week, United Airlines Flight 971 flying from Rome to Chicago made an emergency landing in Belfast. Around 270 passengers are forced to sleep in the airport terminal because Belfast has not enough hotel to handle so many passengers. This type of air traffic disruption became more common recently and most of them are caused by unruled behavior of passengers. This episode was the same. However, after investigation, we found that the cause was because a male passenger demanding extra crackers several times and become a safety concern. The cost of this landing is estimated to be around $550,000.





Wednesday, June 24, 2015

Amazon 'Improve' Product Reviews

(6/24/2015) Based on Dimensional Research’s survey in 2013, 90% of consumers say buying decisions are influenced by online reviews. Another survey also indicates that about 88% of consumers trust online review as much as personal recommendation. It's not surprising that many companies try to influence their own product or competitor's product review on the internet.

Amazon now announces their new updated review rating system. Amazon will give 'more recent,' 'more helpful' reviews higher weight to counter those illegitimate (complaint on shipping delay) or fake reviews that confuse consumers. But let's wait and see the mouse and cat chasing in the next round. Fake reviews won't die easily.


Saturday, June 6, 2015

Mulberry Harbor -- Evidence of the Importance of Operations Management

(6/6/2015) When I teach the first class of Operations and Supply Chain Management, I always ask students whether they play war game. The origin of modern operations and supply chain management is from warfares, especially from World War II. Watching some D-day special program on TV today, it mentioned Mulberry Harbor played a critical to the success of D-Day. In this site, you can see how Mulberry was constructed.



Tuesday, June 2, 2015

Airlines try to save time with speedier boarding process

(6/2/2015) If you fly with several different airlines, you will notice the processed that airlines use are very different. Southwest does not assign seats and board passengers by A/B/C groups that passengers compete (with extra payments) on their seats. Other airlines that assign seats normally have different boarding groups, among them some board passengers in the front first, some board passengers in the back first. You may wonder what is the operational logic behind their processes. Now, Southwest and Delta are trying new approaches to improve their boarding process. If you are their frequent flyer, check if their new process makes a difference.