Case study 2 schiphol international hub-is & ec- gst5083- hj zul

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Case Study 2- Schiphol International Hub

INFORMATION SYSTEMS & ELECTRONIC COMMERCE - GST 5083

GROUP 13 Matrix No:1. Hj Nasseruddin Bin Hj Abdul Jabar -

P13D142P2. Hj Zulkifflee Bin Hj Sofee - P13D136P3. Chong Min Fatt - P13D154P

Lecturer: Professor Dr Rusli Bin Abdullah

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Case Study 2- Schiphol International Hub

BackgroundOfficially known by the name Amsterdam Airport Schiphol, this airport is of great importance in Europe. It is an international airport found in the Netherlands and is located twenty minutes from Amsterdam city and approximately nine miles south-west of the center of Amsterdam in Haarlemmermeer municipality. This is an international airport connecting to many notable European airports. It is the home base for many intercontinental airlines such as KLM, Arkefly, Transavia, Amsterdam Airlines and Martinir.The name of the airport, Schiphol, was derived from a former fortification called Fort Schiphol which was part of the Stelling van Amsterdam defense works. Before 1852 there was a large lake at the Haarlemmermeer polder where the airport now lies. The shallow waters of the lake would often experience sudden violent storms which claimed many ships. Indeed this was the reason why the lake was reclaimed. Schiphol translates to ‘Ship grave’ in English, referring to the many ships that were lost in the area.

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Amsterdam Airport started operating back in 1916 and it was initially used as a local airbase for the military. The airport only had a few barracks and a field that used to serve both as the platform and a runway. The civil airports started using the facility in December 1920. Today the airport has been built as one large terminal where all its facilities are located under one roof. This terminal has been split into three large departure halls. There are plans in place to expand the terminal further and to build other separate new terminals between the Zwanenburgbaan and Polderbaan runways thus bringing to an end the one-terminal concept that the airport has long been known for.

Amsterdam Airport has regularly appeared in Europe’s top five airports list in terms of traffic and number of flights as the airport serves almost 50 million passengers per year. There are many intercontinental airlines that operate from this airport. The airport also ranks as the 6th largest in terms of international traffic.

Schiphol International Hub

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Amsterdam Airport has six runways and one is mainly used by general aviation aircraft. There are plans in place to construct a seventh runway. This airport has made Amsterdam a cheap and easy destination to reach for many travelers as one can book a flight at the last minute because there are approximately 100 airlines that operate from this airport. Due to intense traffic coupled with high landing fees, some of the low budget carriers decided to move their flights to smaller airports. However, there are still many low cost carriers operating from the airport.•Plans for further terminal expansion exist, including the construction of a separate new terminal between the Zwanenburgbaan and Polderbaan runways that would end the one-terminal concept•The most recent of these was completed in 1994, and expanded in 2007 with a new section, called Terminal 4, although it is not considered a separate building•The airport is built as one large terminal (a single terminal concept), split into three large departure halls, which connect again once airside•Since 1980, the airport has won some 200 international awards and is recognized as one of the best airports in Europe and the world at large


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•Located in a polder reclaimed between 1848 and 1852 at 4.5 meters below sea level•One of the lowest lying airports in the world•Oldest international airport in the world located at the original site of first aircraft•Number four in transport movements and third in terms of cargo volume•Fourth largest airport in term of passenger number


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Layout of Amsterdam Airport Schiphol

In order to gain a good understanding of baggage handling, it is necessary to understand the layout of Amsterdam Airport Schiphol. The national airport is a city in its own right.

Amsterdam Airport Schiphol has three levels. The departure halls are situated on the first floor. The arrival halls and Schiphol Plaza with its shops and restaurants are situated one level lower – on the ground floor. The baggage halls are situated even lower, mainly underground.


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The piers where aircraft are parked can be found behind the departure and arrival halls. The inside back cover of this leaflet shows a diagram of Departure Halls 1, 2 and 3, which are connected to Piers B, C, D, E, F and G.

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Layout of Amsterdam Airport Schiphol

The baggage basements

Amsterdam Airport Schiphol has a total of five baggage areas, which are also referred to as sorting or handling areas. The diagram at the back of the leaflet shows where these baggage areas are situated. The halls are referred to as Hall E, Hall D, the Central Hall, Hall South and Hall West. The letter refers to the part of the terminal or pier wherethe area is situated. The baggage-handling process in each of the halls is basically the same. However, there are a number of differences

in terms of the technology applied and the layout of each area. It also relates to the year the baggage areas were built and the views held on baggage at the time. It is also related to the type of user. One hall, for instance, handles many scheduled flights with transfer baggage whereas another hall handles mainly charter flight baggage. The latter has fewer sorting arrangements between the check-in desks and assembly points.


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Airport Layout


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Passengers and their baggage


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Passengers and their baggage

The diagram below shows the routes baggage can take at the airport. The node is situated in the baggage areas where all baggage arrives and is sorted. Part of the baggage is sourced from the check-in desks. Another part of the baggage is sourced from the aircraft that have just arrived, some of which will make its way to a connecting flight together with the baggage that has been checked in.Further baggage will go to the arrival halls, via the basements, where arriving passengers can collect theirsuitcase or bag from the baggage belt


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Baggage control information system


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Q1: How Many Levels Of Complexity Can You Identify In Schiphol’s Baggage Conveyor Network?

Q2: What Are The Management, Organization And Technology Components Of Schiphol’s Baggage Conveyor Network?

Q3: What is the problem that Schiphol is trying to solve? Discuss the business impact of this problem.

Case Study Questions


Q4: THINK OF THE DATA THAT THE NETWORK USES. WHAT KINDS OF MANAGEMENT REPORTS CAN BE GENERATED FROM THAT DATA?

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There are at least four layers of complexity each of them is intermingled with others.The layers are given as below:Physical complexity – the conveyor network is large and intricate. It must therefore envision specific logic to track, maintain, store and retrieve location of items, people and actions.Business complexity – there are many companies fixed to operate with the network in its own peculiar way. The conveyor network must be able to cope with the presence of different baggage governance policies. Also, the conveyor network is an effort of three large industrial corporations. Each of these companies has its own agenda in terms of revenue from the conveyor network;Social complexity – the system must be ready to support and aid the work of humans (e.g. human baggage handlers) and also human-to-human relations (e.g. security officer with conveyor technician);System complexity – The first layer of complexity is System Complexity which is the system is rigged to enact a co-operation between many technological layers both at software and hardware levels (e.g. conveyor belts, scanners, security checkers, etc.);

Q1: How Many Levels Of Complexity Can You Identify In Schiphol’s Baggage Conveyor Network?


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MANAGEMENT Jointly work Advanced technology

Manager has estimated the budget for renewing the baggage control system is amounting $1.0 billion over a period of about 10 years


Q2: What Are The Management, Organization And Technology Components Of Schiphol’s Baggage Conveyor Network?

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Management components comprise at least the following: governance of people; storage and inventory management; down-time management; priority management; safety management;Organization components comprise at least the following: scheduling and allocation of movable hardware (e.g. trolleys); scheduling and allocation of flight-unloading units; scheduling and allocation of transit areas to flights; scheduling of trolley traffic; scheduling of robotic units;Technology components comprise at least the following: physical conveyor belts; check-in machines; automated check-in units; security scanners; safety screeners; storage capacitors; dynamic cold-baggage buffers; baggage make-up units; motor trolleys; robotic units;

Continue


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Q3: What is the problem that Schiphol is trying to solve? Discuss the business impact of this problemSchipol is trying to increase the revenue stream by optimizing customer experience while reducing costs-per-baggage. Achieving this goal has a deep impact on Schipol’s revenue stream for two reasons:1. Schipol is an international transit hub – flight transfers are more likely to

take place at Schipol if its efficiency and customer experience increase;2. Schipol serves a large user basin – increasing direct customer

experience increases traffic of people.Increase efficiency in baggage handling in the Schiphol International airport, in Amsterdam, the Netherlands. Mishandled baggage is a $2.5 billion problem for industry every year and this problem may annually affect about 51 million passengers traveling through Schiphol airport alone. With the new system, the manager of Schiphol estimated this system operate 99.9%of times while being able to minimize loss and damage in that 0.01% This system is extremely expensive, but if implemented successfully it can save 0.1% of $2.5 billion.


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Increase efficiency in baggage handling in the Schiphol International airport, in Amsterdam, the Netherlands.

Mishandled baggage is a $2.5 billion problem for industry every year and this problem may annually affect about 51 million passengers travelling through Schiphol airport alone.

With the new system, the manager of Schiphol estimated this system operate 99.9%of times while being able to minimize loss and damage in that 0.01%

This system is extremely expensive, but if implemented successfully it can save 0.1% of $2.5 billion.

Continue


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Problem and business impact


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Problem and business impact - continue


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Q4: THINK OF THE DATA THAT THE NETWORK USES. WHAT KINDS OF MANAGEMENT REPORTS CAN BE GENERATED FROM THAT DATA?

Data items of circulating across Schipol Conveyor Network comprise of four items are scheduling data; hit/failure reports; delays; usage information. All of this data was designed to allow plotting of cost-per-baggage reduction progressions. Schipol constantly uses the reports to steer the completion of the project described.

Data Network and Reports


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Enterprise systems

The above mention reports can be done through Enterprise systems: ES is the need to coordinate activities, decisions, and knowledge across the firm’s different levels, functions, and business units. Enterprise systems use a single central data repository in order to supply all users with a consolidated view of employees, customers, suppliers, and vendors. The key to effectively using enterprise systems is to eliminate redundancy and duplication, not just in the information systems but also in business processes.•Supply chain management systems•Customer relationship management systems•Knowledge management systems•Intranets and extranets:•E-business, e-commerce, and e-government


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Based on this case study we can conclude that the management of Schiphol International airport has driving the major effort to increase baggage processing efficiency and capacity on the strength of intelligence routing and optimization.

CONCLUSION


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Thank You

Group Member Name:Haji Nasseruddin Bin Hj Abdul Jabar - P13D142PHaji Zulkifflee Bin Hj Sofee - P13D136PChong Min Fatt - P13D154P

Date post:	06-Aug-2015
Category:	Business
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