Business AOS 3 Case study applications

Qantas (service) + Yakult (manufacturing)

Qantas – OM & BO objective

Objective: increase market share

• offering improved comfort through premium wellness considerations such as stretching zones

Objective: fulfil a market need

• addressing the need for long haul flights (post-pandemic) through industrial change through tech dev, allowing for the creation of the Airbus A350-1000

Qantas – Inputs

• specialised aircraft w/ extra fuel tank space

• fuel, labour, capital, research (data, tests, flights)

Qantas – Processes

• long-haul flight planning

• aircraft design

• engineering/maintainence

• trial flights

Qantas – Outputs

• Airbus A350-1000

• Long haul direct flights

• Quality customer service

Qantas – Characteristics

intangible service, high customer involvement, customised premium experience

Qantas – Technology

AI: 

• predict flight planning and maintenance

• weather planning

• fuel efficiency

Online services:

• online check in, reducing waiting lines

• book flight online

Qantas – Materials management

Forecasting

• demand for long haul flights

Materials requirement planning: 

• required for the supply of parts and maintenance materials

• fuel requirements

Master production schedule:

• schedule arrivals and departures

• aircraft availability

• cabin crew rosters

Qantas – Quality management

TQM: heavy proactive scrutiny

• constantly improving processes through mutliple trial runs to obtain data

• customer focus on improving experience - testing lights to reduce jet lag

• 2x checking of all processes - 2024 1.25 tool inside engine incident

Qantas – Waste minimisation

Reduce

• Lightweight materials to reduce fuel wastage

Recycle

• Uniform recycling

Qantas – Lean management

• Pull: Flight capacity and scheduling are driven by passenger demand for ultra-long-haul routes, reducing empty seats and overproduction of flights.

• One-piece flow: Passenger and operational processes (check-in → boarding → flight → arrival, plus turnaround activities like cleaning and maintenance) are streamlined to reduce delays and bottlenecks.

• Takt time: Flight frequency, aircraft usage, and crew scheduling are planned to match expected demand for long-haul services, ensuring efficient use of aircraft without over/under supply.

• Zero defects: Strict maintenance, repeated safety checks, and regulatory compliance (CASA) aim to eliminate errors due to the high-risk nature of aviation operations.

Qantas – CSR

Environmental sustainability of inputs:
Sustainable Aviation Fuel:

• made from non-fossil sources, waste and recycled carbon sources

Qantas – Global considerations

Overseas manufacturing: 

• PS is manufactured overseas in France

Global sourcing of inputs:

• Import sustainable fuel from Malaysia

Yakult – Inputs

• natural resources: sugar, water, milk, bacteria

• physical resources: factory, conveyor belt, equipment

• human resources: quality control personnel, employees

Yakult – Processes

• mixing

• fermenting

• quality control

• packaging

Yakult – Outputs

fermented probiotic milk drink

Yakult – Characteristics

tangible, consumable, perishable, standardised product

Yakult – Technology

Automated production line

• labelled → filling → sealed

• increases efficiency as yakult produces up to 450,000 bottles per hour

Robotics

• used to transfer milk solution to tanks

• increases e+e, due to precision, increasing quality

Computer-aided Manufacturing (CAM)

• used to create the bottle packaging

Yakult – Materials management

JIT

• skim powder and sugar are ordered and delivered at the time they are needed to be used in the yakult drink

• bottles are produced, being moulded once yakult is ready to be filled

Yakult – Quality management

Quality control

• samples, tests and inspects products, bottles and packaging

• for each batch, around 100 tests are conducted

Quality assurance

• ISO9001 accreditation

• QA measures for:

  • personnel and factory hygiene standards

  • equipment cleaning

  • processing methods

  • food hygiene training for staff

Yakult – Waste minimisation

Reduce

• off-peak electricity usage → less pollution

• heating exchange plates so energy is not lost or wasted

Reuse

• cleaning water is processed using an on-site water treatment facility, release back into the water supply

Recycle

• bottles are recyclable

Yakult – Lean management

• Pull: Production is based on consumer demand, with raw materials and packaging supplied as needed (JIT-style coordination) to avoid overproduction and excess inventory.

• One-piece flow: Products move through the production line in a continuous sequence (mixing → fermenting → filling → sealing → packaging), reducing bottlenecks and improving efficiency.

• Takt time: Production speed is adjusted to match consumer demand (e.g. up to 45,000 bottles per hour), ensuring output aligns with market needs without waste.

• Zero defects: Strict quality control systems and hygiene standards ensure defective products are identified early and eliminated to maintain consistent product quality.

Yakult – CSR

Environmental sustainability of inputs/Production of outputs

• packaging is recyclable and therefore can be recycled into other goods such as rulers in Japan

• removal of plastic straws in Aus

enables them to work towards goal of reducing single use plastic to 30% by 2030

Amount of waste generated from processes:

• The boiler uses natural gas and is run for short periods as required (therefore, no pollution is emitted).

Yakult – Global considerations

• Globally sources the strain of bacteria, Lactobacillus casei Shirota, which is the proprietary strain used in Yakult's probiotic drinks. 

• The strain is sourced from Yakult's central research and development facility in Japan

• Globally sourcing this strain ensures consistency and allows Yakult Australia to produce probiotic drinks with the same high-quality standards as other Yakult products globally. 

Computer-Aided Design (CAD) – BMW

uses CAD software to design and digitally model vehicle components such as chassis and interiors, simulate performance (e.g. aerodynamics and crash safety), and rapidly adjust designs before production, improving accuracy, speed, and reducing the need for physical prototypes