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Файл:Transport services in tourism logistics = Транспортное обслуживание в туристической логистике. Учебное пособие
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Now is the time for managers to stand back and take a long, hard look at
existing supply chain arrangements. We need to face up to what many consider to be almost unthinkable: our current business assumptions may no
longer be valid. The conditions we are now facing are significantly different
from those when many supply chains were first put together. For many businesses this dawning may well be a painful reality. As of today, we must recognise that many supply chains may no longer be fit for purpose. No business can afford to ignore this challenging message.
2. New words and expressions to learn:
Boardroom
Vertical supply chain
Core competence
Outsourcing
Strategic decision
3. Discuss the following with your partner:
– What will the future of the supply chain look like?
– What is the key message of the author of the text to his colleagues?
4. Answer the questions:
a) What has changed in supply chains?
b) How do transportation costs change?
c) What should supply chains become?
Unit 1.5. Total Quality Management
Topic 1.5.1. The concept and principles of Total Quality Management
1. Read and translate the text:
I. Total Quality Management (TQM) is a cyclical process that involves
quality improvement of products and all associated sectors so as to increase
the overall satisfaction of customers, in turn increasing or boosting sales.
The process is closely associated with the logistics and supply chain components of a business, but will affect almost every other facet of a company.
TQM is not a single idea of concept rather the culmination of multiple
ideas and facts that drive businesses to improve their quality of production
and overall customer satisfaction.

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Started many years back in Japan, TQM has today become the standard
for a successful business enterprise. There are eight principles of quality
management:
1) «customer-focused organization» – organizations depend on their customers and therefore should understand current and future customer needs,
meet customer requirements and strive to exceed customer expectations;
2) «leadership» – leaders establish unity of purposes, direction and the
internal environment of the organization. They create the environment in
which people can become fully involved in achieving the organization’s objectives;
3) «involvement of people» – employees at all levels are the essence of
an organization and their full involvement enables their abilities to be used
for the organization’s benefit;
4) «process approach» – a desired result is achieved more efficiently
when related resources and activities are managed as a process;
5) «system approach to management» – identifying, understanding and
managing a system of interrelated processes for a given objective contributes
to the effectiveness and efficiency of the organization;
6) «continual improvement» – continual improvement is a permanent
objective of an organization;
7) «factual approach to decision making» – effective decisions are based
on the logical and intuitive analysis of data and information;
8) «mutually beneficial supplier relationships» – mutually beneficial relationships between the organization and its suppliers enhance the ability
of both organizations to create the value.
II. TQM offers both short term benefits and long term benefits. The long
term pros of TQM, however, outweigh the near-sighted advantages. Because
this process can take years to perfect and implement, most organizations are
concerned with the long term gains.
Some of the pros of TQM in the long run include higher moral, decreased costs, increased customer loyalty and trust, better market penetration
and increased productivity. Practicing TQM decreases the chance of committing mistakes and producing inferior products that can damage the name and
fame of a company. It also increases the popularity and status of an organization in society while saving it money and time in the long run. Resources are
saved that can be utilized for better projects.

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Overall, TQM enhances employee satisfaction and creates an air of enthusiasm and welcomes professional attitude to jobs. Probably the most beneficial of all short term gains is its potential to increase team work and spread
camaraderie in a production unit.
Total Quality Management does suffer from some drawbacks. First
of all, its complexity exposes the organization to potential decision bottlenecks and overall bureaucracy. Ideas that are worthy may get dumped in favour of greater incentives and better market penetration. Improvement in
a company’s TQM can be at the cost of jobs and employment as technology
plays an important role. The fact TQM has the capacity to replace jobs with
technology is both an exciting and scary possibility, and the ramifications
of it must be considered.
Focusing too much on the end result and customer satisfaction may
sometimes cause a project to run into excess costs without any possible sign
of returns. Moreover, it can result in the lack of confidence of the management in the floor workers and think tank.
2. New words and expressions to learn:
Total quality management
Objective
Create value
Loyalty
Drawback
Ramification
Mutual
Permanent
Leadership
Achievement
3. Discuss the following with your partner:
– Why is quality management related to logistics?
– Why does quality management increase employee satisfaction?
4. Answer the questions:
a) What are the principles of quality management?
b) What is a systematic approach to management?
c) What is a mutually beneficial relationship with suppliers?

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Topic 1.5.2. ISO 9000/9001 Standards
1. Read and translate the text:
Increases in the international trade created a need for the development
of universal standards of quality. Universal standards were seen as necessary in order for companies to be able to objectively document their quality practices around the world. Then in 1987 the International Organization
for Standardization (ISO) published its first set of standards for quality
management called ISO 9000. The International Organization for Standardization is an international organization whose purpose is to establish
agreement on international quality standards. It currently has members
from 91 countries. The standards are applicable to all types of companies
and have gained global acceptance. In many industrial spheres ISO certification has become a requirement for doing business. Also, ISO 9000
standards have been adopted by the European Community as a standard
for companies doing business in Europe.
In December 2000 the first major changes to ISO 9000 were made, introducing the following three new standards:
1) ISO 9000:2000 – Quality Management Systems-Fundamentals and
Standards. Provides the terminology and definitions used in the standards.
It is the starting point for understanding the system of standards;
2) ISO 9001:2000 – Quality Management Systems-Requirements. This
is the standard used for the certification of a firm’s quality management system. It is used to demonstrate the conformity of quality management systems
to meet customer requirement;
3) ISO 9004:2000 – Quality Management Systems-Guidelines for Performance. Provides guidelines for establishing a quality management system.
It focuses not only on meeting customer requirements but also on improving
performance.
These three standards are the most widely used and applied to the ma-
jority of companies.
To receive ISO certification, a company must provide extensive documentation of its quality processes. This includes methods used to monitor
quality, methods and frequency of worker training, job descriptions, inspection programs, and statistical process-control tools used. High-quality documentation of all processes is critical. The company is then audited by

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an ISO 9000 registrar who visits the facility to make sure the company has a
well-documented quality management system and that the process meets the
standards. If the registrar finds that all is in order, certification is received.
Once a company is certified, it is registered in an ISO directory that lists certified companies. The entire process can take 18 to 24 months and cost anywhere from $10,000 to $30,000. Companies have to be recertified by ISO
every three years. One of the shortcomings of ISO certification is that it focuses only on the process used and conformance to specifications. In contrast
to the Baldrige criteria, ISO certification does not address questions about
the product itself and whether it meets customer and market requirements.
2. New words and expressions to learn:
International trade
International Organization for Standardization
Certificate
Worker training
Universal standards of quality
3. Discuss the following with your partner:
– What are the advantages of ISO certification?
– What are the disadvantages of ISO certification?
4. Answer the questions:
a) What does the International Organization for Standardization do?
b) What does a company need to do to get an ISO certificate?
c) Name the three main ISO standards?
Unit 1.6. Intellegent Transport Systems
Topic 1.6.1. What is its architecture
1. Read and translate the text:
Efficiency and safety of operation of transportation networks of modern
cities is performed with the help of extensive use of Intelligent Transport
Systems (ITS). Transport policy of all developed countries of the world has
been based on developing and promoting intelligent transport systems, as
well as creating a common information space, for over 45 years.
The term ITS refers to a group of innovative tools based on information
and communications technologies applied in the transport sector. The main part

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of ITS is the information. The term ITS involves the collection, processing, integration and/or supply of information. Whether offering real time information
about current conditions of a network or on-line information for journey planning, these tools provide a way of improving the management of mobility. The
objective of ITS tools is to increase traffic efficiency, enhance safety and also
reduce the environmental impacts of transport.
The principle of primacy of developing ITS architecture implies a systematic approach, which allows avoiding possible difficulties in development
of Intelligent Transport Systems. The design of the system ensures consistency of operation of traffic management subsystems of any level.
The ITS architecture comprises all tools to solve the issues of traffic flow
management.
The objective of this paper is to develop a methodology for determining
the risks associated with introduction of ITS facilities. The subject of the
study is the risk affecting efficiency of introducing Intelligent Transport Systems facilities.
Informal Definition
An Intelligent Transport System Architecture is a set of high level
viewpoints that enable plans to be made for integrating ITS applications and
services. It normally covers technical aspects, plus the related organizational,
legal and business issues.
ITS Architectures can be created at national, regional or city level, or relate to specific sectors or services. They help to ensure that the resulting ITS
deployment:
– can be planned in a logical manner;
– integrates successfully with other systems;
– meets the desired performance levels;
– has the desired behavior;
– is easy to manage;
– is easy to maintain;
– is easy to extend;
– satisfies the expectations of the users.
Formal Definition
An ITS architecture is the conceptual design that defines the structure
and/or behavior of an integrated Intelligent Transport System.

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An architecture description is a formal description of a system, organized in a way that supports reasoning about the structural properties of the
system. It defines the system components or building blocks and provides
a plan from which products can be procured, and systems developed, that
will work together to implement the overall system. This may enable one to
manage investment in a way that meets business needs.
Technical Definition
Thus an ITS Architecture is:
– a top-level framework;
– a strategic plan for designs;
– non-deterministic;
– it states «What is needed» and not «How it is to be implemented»;
– it is technology independant;
– the life-time of an ITS Architecture is normally longer than any par-
ticular technology;
– a set of top-level assumptions;
– the minimun necessary not the maximum possible.
2. New words and expressions to learn:
Intelligent Transport System
Applications
Deployment
Life-time
Top-level framework
3. Discuss the following with your partner:
– What do you know about ITS?
– What do you know about ITS Architecture?
4. Answer the questions:
a) Give the informal definition of ITS.
b) Give the formal definition of ITS.
c) Give the technical definition of ITS.

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Topic 1.6.2. Algorithm for risk assessment
in the introduction of Intelligent Transport Systems facilities
1. Read and translate the text:
Risk management, including development of risk prevention plans and
risk mitigation programs, is one of the most important stages in introducing
intelligent transport systems facilities. The risk management system is required for identification, grouping and analysis of major risks of ITS, as well
as for developing the ways to mitigate possible risks.
Therefore, it is reasonable to include the following steps of designed
risk assessment algorithm into the ITS architecture:
The first step: planning introduction of an ITS facility. This step includes actions aimed at risk elimination and minimization of its consequences: threat assessment, risk analysis and risk treatment. Often, errors
made at this stage lead to irreversible negative consequences. For example, estimates of growth in demand for the route Greenway Dallas (USA)
was assumed at 14 % in the first six years according to specialists’ esti-
mates during development of the route project. But, the initial assessment
of 34,000 vehicles per day proved to be too optimistic, since the actual
daily average intensity totaled 11,500 vehicles, which led to considerable
financial losses of the project.
The second step: selection of risks. It is impossible to manage risks as
long as they are not clearly defined. This step involves identification of risks
in order to determine real threats. These risks may include failure of data
transfer, increase in the cost of services, violation of traffic safety level, social instability of the society, lagging development of the region, adverse impact on the environment.
The third step: risk analysis. Once all possible risks of the project are
identified, detailed analysis aimed at identification of most probable and
dangerous risks is required for further work with them.
The fourth step: dealing with risks. The step includes identification
of measures necessary to deal with problems identified during the risk assessment. One of the methods of risk preventing may be online control,
which would require equipment of highways with means of monitoring and a
team of highly skilled operators. The purpose of online management is increase of efficiency and quality of the ITS.

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The fifth step: selecting a mitigation strategy. The step implies classification of risks included into the database, in accordance with conditions
leading to these risks. Developing a strategy of accident management should
contribute to decrease of time spent to help victims. For this reason, online
control tools based on comprehensive monitoring of the network must be developed, which would reduce the need in additional tools and human intervention. These tools should also include different scenarios of accidents, taking into account locations and response measures.
The sixth step: designing scenarios for mitigation of risk consequences.
There are 4 crucial aspects for designing mitigation scenarios:
time frames;
cooperation of public and private sectors;
main trends in development of ITS;
aspects of the territory.
One of the methods of scenario grouping is division of risks on that depending on the time period and independent of it. After initial classification,
it should be identified if the ITS (or only some specific service of the ITS) is
fully supported by the authorities, or if the private sector only is involved in
development and operation of the ITS.
Several data sources would increase efficiency of the system. But multiple data sources should not impede operation of the system; they should be
used as a way of expanding information and attraction of new users. Introduction of personal data would allow highway control centers obtaining new
information for traffic configuration. In their turn, traffic participants can access information on traffic conditions on the highways. Expansion of the
network of data exchange is possible following settlement of administration
issues related to cooperation, distribution of responsibilities between various
operators that usually operate independently. Also, introduction of a great
number of data sources would increase competitiveness of the ITS.
The most effective way to solve the problems of the transportation system
(such as reduction of the travel speed of vehicles, regular traffic jams and numerous traffic accidents) is introduction of intelligent transport systems.
Effective introduction of ITS facilities is impossible without careful analysis of all possible risks which should be identified at initial steps of developing
the architecture of intelligent transport systems. The developed methodology
of risk analysis allows challenging this issue with maximum efficiency.

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2. New words and expressions to learn:
Facilities
Risk assessment
Planning introduction
Consequences
Failure
Violation
Dealing
Measures
Preventing
Mitigation strategy
3. Discuss the following with your partner:
– Give an example of ITS objects.
– What advantages of ITS implementation could you mention?
4. Answer the questions:
a) What is architecture of ITS
b) Why architecture of ITS is so important?
c) Define the main steps of ITS risk assessment.
Unit 1.7. Using Big Data in tourism logistics
Topic 1.7.1. The digitalization process
1. Read and translate the text:
Nowadays new technologies are injected in resident’s lives. Smartphone
became a source of information: public transport routes, traffic jams, safety
alerts and different news. The researches show that the Smart city
transformation starts not with technologies, but with people for making good
quality of their life. If we are talking about Smart cities we mean that the city
use citizen’s data for developing infrastructure that will meet their real needs.
Therefore, for the transformation to the Smart city Big Data management is
in priority. Citizen’s data generated from different sources: smartphones,
detectors, cameras and so on. The value of this data is very big.
The process when enterprises or the economic field use new business
models, Internet of things, Big Data, cloud storage and so on is the process
of digitalization. Digitalization is the innovate technologies combination.
The digitalization allows providing physical indicators in digital form.
This gave users the opportunity to track the process of service at any stage
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