Title: A case study on measuring the performance of a network of service providers for an international airline

Authors: Keith T.K. Ho, Ka Wing Lee, Walter W.C. Chung

Addresses: Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong. ' Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong. ' Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hung Hom, Hong Kong

Abstract: The traditional Performance Measurement System (PMS) generally focuses on the performance of one single entity, such as at the firm level. Airlines outsource most engineering functions to a number of experienced service providers. The developed PMS is referred to as |Individual PMS| and cannot be directly applied to a collaboration network. The Individual PMS mainly takes care of the performance of an individual company and may overlook the ultimate network performance. The |Aggregate PMS| approach, capable of assessing and managing the network performance, is difficult to develop. This paper articulates a research method for deploying Aggregate PMS in the airline with a number of service providers as the partners within the collaboration network. The method is validated with a prototype. Early results indicate that the method shows promise. It has relevance to local aviation authorities for measuring the safety performance of airlines.

Keywords: performance measurement systems; outsourcing; collaboration network; aggregate PMS; key performance indicators; KPI; international airlines; service providers; collaboration networks; local aviation authorities; safety performance.

DOI: 10.1504/IJVCM.2007.015092

International Journal of Value Chain Management, 2007 Vol.1 No.4, pp.344 - 361

Published online: 13 Sep 2007 *

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