The fuel crisis is global. And because most, if not all, of our activities depend on fuel, we are now feeling the crunch.
The hottest issue of the day in the country is the impending increase of fuel. Different sectors have different views on how to peg the increase: in one go or in small amounts. So far, I have not heard of any company closures, or companies retrenching their workforce to cope with the crisis. What we’re experiencing though are increases of basic commodities.
Already two locally based airlines, PAL and SEAIR, are seeking regulatory nod for fuel surcharge increase.
The fuel crisis however has a different effect on other companies outside of the Philippines. In the airlines industry for example, many American airlines have regrouped, increased charges, put charges where there weren’t before, and cut down on flights and employees. AirTran is to cut 180 pilot jobs, 300 flight attendant jobs.
A Six Sigma company is actually doing those cuts. Jazz Air LP has implemented several cost-saving measures to cope with the rising fuel cost. Although Jazz is already a lean company, yet they have to let some of their people go.
According to Joseph Randell, President and CEO of Jazz:
While Jazz is already a lean organization and is in a reasonable position to manage its current challenges, every effort is being made to reduce our costs and to prepare for what may lie ahead.
Jazz has already established a number of fuel-saving initiatives, recently froze all hiring and non-critical staff overtime, and instituted a number of other cost-saving programs. Being a Six Sigma organization has made Jazz a more efficient airline and the focus to ensure we remain competitive is constant.
This incident made me ask, can Six Sigma protect companies from crisis?
Source:
iSixSigma News
