| Amidst all the turmoil of failing financial markets, | | | | on ground time is unproductive as far as revenue |
| skyrocketing energy prices and gloomy economy, | | | | is concerned and should be kept to a minimum. |
| Southwest Airlines is still surviving very well and in | | | | The same concept can be used whether you are |
| fact continuing on its leadership in the airline | | | | a bus operator or a furnace operator. Furnaces |
| business. This success in the highly competitive | | | | are usually loaded with parts to be processed and |
| airline business is being accomplished simply by | | | | time to unload parts and reload the next batch |
| following basic principles of business profitability | | | | needs to be kept as low as possible. |
| and customer satisfaction that have been the | | | | Purchase raw materials in advance at the best |
| foundation of successful businesses for decades. | | | | prices. Southwest purchases fuel in bulk when |
| While it is virtually impossible to deal with all of | | | | market prices are low. This allows them to |
| these lessons in great detail in one article like this, | | | | compete very effectively. Similar strategies were |
| we can still at least touch on a few of these here | | | | used by Proctor and Gamble seventy years ago |
| and now that you could potentially use in your | | | | as far as purchasing raw materials. Similar |
| own business to increase profitability and | | | | concepts can be used whether you are in the |
| customer satisfaction. | | | | steel component manufacturing business or in the |
| Control your costs. Southwest controls its costs | | | | business of making plastic bottles. Raw materials |
| very effectively. Their pay rates for pilots, flight | | | | purchasing is one of the weakest links usually in |
| attendants, mechanics and baggage handlers is on | | | | organizations and lots of expensive mistakes |
| the low rung of the pay scale in comparison to | | | | occur in this one step. |
| others in the same business. Southwest controls | | | | Empower employees. This is the single biggest |
| its maintenance costs by having a limited number | | | | lesson that every organization large or small can |
| of variations of models and makes of their | | | | learn from Southwest Airlines. Employees at |
| engines and airplanes. This allows for | | | | Southwest do not even have an employee |
| interchangeability of spare parts whose inventory | | | | manual. Instead they are given an employee |
| levels can be kept fairly low. Additionally, pilots and | | | | guideline with instructions to violate it if needed to |
| maintenance personnel do not have to learn about | | | | keep a customer happy. This high level of |
| a million different pieces of equipment to learn and | | | | empowerment allows employees in all levels of |
| training costs can be reduced. This same concept | | | | the company to really concentrate on customer |
| can be used in other businesses as far as | | | | satisfaction which is the key to revenue growth |
| attempts to keep costs under control. | | | | and increased profitability. Most companies have |
| Keep down times to a minimum. Southwest | | | | centralized decision making and rigid controls on |
| Airlines has a lowest turnaround time of all major | | | | employee powers and that is counterproductive |
| airlines as far as time between unloading a plane | | | | many times in todays fast paced world of |
| and reloading for subsequent takeoff. This aircraft | | | | business. |