Log202 Managing Operations|Sustainability Assessment Answer
Singapore Airlines (SIA) is the flag carrier airline of Singapore with its hub at Singapore Changi Airport. It has been ranked as the world's best airline by Skytrax four times and topped Travel & Leisure's best airline rankings for more than 20 years. (a) Describe in your own words SIA’s value chain using one (1) of the three value chain frameworks: input-output, pre- and postproduction service, or hierarchical supply chain framework. You should include a relevant sketch of the selected framework that is contextualised to SIA’s value chain to support your answer. (b) Due to the Covid-19 situation, SIA is planning to further automate passenger check-in to minimise human interactions. Automation can help to check in 5,000 passengers per week. The automation machine costs S$15,000 and will remain productive for five years. Automation will also reduce the total labour cost from S$90,000 to S$30,000 per year. Every year has 52 weeks. (i) From the perspective of productivity, should SIA consider purchasing this equipment? (ii) From the perspective of sustainability, do you think SIA should automate passenger check-in?
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