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

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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 ofgreat importance in Europe. It is an international airport found in theNetherlands and is located twenty minutes from Amsterdam city andapproximately nine miles south-west of the center of Amsterdam inHaarlemmermeer municipality. This is an international airport connecting tomany notable European airports. It is the home base for manyintercontinental airlines such as KLM, Arkefly, Transavia, Amsterdam Airlinesand Martinir.The name of the airport, Schiphol, was derived from a former fortificationcalled Fort Schiphol which was part of the Stelling van Amsterdam defenseworks. Before 1852 there was a large lake at the Haarlemmermeer polderwhere the airport now lies. The shallow waters of the lake would oftenexperience sudden violent storms which claimed many ships. Indeed thiswas the reason why the lake was reclaimed. Schiphol translates to ‘Shipgrave’ in English, referring to the many ships that were lost in the area.

Amsterdam Airport started operating back in 1916 and it was initially used asa local airbase for the military. The airport only had a few barracks and a fieldthat used to serve both as the platform and a runway. The civil airportsstarted using the facility in December 1920. Today the airport has been builtas one large terminal where all its facilities are located under one roof. Thisterminal has been split into three large departure halls. There are plans inplace to expand the terminal further and to build other separate newterminals between the Zwanenburgbaan and Polderbaan runways thusbringing to an end the one-terminal concept that the airport has long beenknown for.

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

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Schiphol International Hub

Amsterdam Airport has six runways and one is mainly used by general aviationaircraft. There are plans in place to construct a seventh runway. This airport hasmade Amsterdam a cheap and easy destination to reach for many travelers asone can book a flight at the last minute because there are approximately 100airlines that operate from this airport. Due to intense traffic coupled with highlanding fees, some of the low budget carriers decided to move their flights tosmaller airports. However, there are still many low cost carriers operating fromthe 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 departureand arrival halls. The inside back cover of this leaflet shows a diagram ofDeparture 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 alsoreferred to as sorting or handling areas. The diagram at the back of the leafletshows where these baggage areas are situated. The halls are referred to asHall E, Hall D, the Central Hall, Hall South and Hall West. The letter refers tothe part of the terminal or pier wherethe area is situated. The baggage-handling process in each of the halls isbasically the same. However, there are a number of differences

in terms of the technology applied and the layout of each area. It also relatesto the year the baggage areas were built and the views held on baggage at thetime. It is also related to the type of user. One hall, for instance, handles manyscheduled flights with transfer baggage whereas another hall handles mainlycharter flight baggage. The latter has fewer sorting arrangements between thecheck-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 takeat the airport. The node is situated in the baggage areaswhere all baggage arrives and is sorted. Part of thebaggage is sourced from the check-in desks. Anotherpart of the baggage is sourced from the aircraft thathave just arrived, some of which will make its way to aconnecting flight together with the baggage that hasbeen checked in.Further baggage will go to the arrival halls, via thebasements, where arriving passengers can collecttheirsuitcase or bag from the baggage belt


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.

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Case Study Questions


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

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’sBaggage Conveyor Network?

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MANAGEMENTJointly work Advanced technology

Manager has estimated the budget for renewing the baggagecontrol system is amounting $1.0 billion over a period of about10 years

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

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;

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

Schipol is trying to increase the revenue stream by optimizing customerexperience while reducing costs-per-baggage. Achieving this goal has a deepimpact 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 billionproblem for industry every year and this problem may annually affect about51 million passengers traveling through Schiphol airport alone. With the newsystem, the manager of Schiphol estimated this system operate 99.9%oftimes while being able to minimize loss and damage in that 0.01% Thissystem is extremely expensive, but if implemented successfully it can save0.1% of $2.5 billion.

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Increase efficiency in baggage handling in the SchipholInternational 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.

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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 Networkcomprise of four items are scheduling data; hit/failure reports;delays; usage information. All of this data was designed toallow plotting of cost-per-baggage reduction progressions.Schipol constantly uses the reports to steer the completion ofthe project described.

Data Network and Reports


Enterprise systems

The above mention reports can be done through Enterprisesystems: ES is the need to coordinate activities, decisions, andknowledge across the firm’s different levels, functions, andbusiness units. Enterprise systems use a single central datarepository in order to supply all users with a consolidated view ofemployees, customers, suppliers, and vendors. The key toeffectively using enterprise systems is to eliminate redundancyand duplication, not just in the information systems but also inbusiness processes.•Supply chain management systems•Customer relationship management systems•Knowledge management systems•Intranets and extranets:•E-business, e-commerce, and e-government 23


Based on this case study we can concludethat the management of SchipholInternational airport has driving the majoreffort to increase baggage processingefficiency and capacity on the strength ofintelligence routing and optimization.

CONCLUSION

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Thank You

Group Member Name:

Haji Nasseruddin Bin Hj Abdul Jabar -P13D142P

Haji Zulkifflee Bin Hj Sofee -P13D136P

Chong Min Fatt -25

Date post:	18-Jul-2015
Category:	Business
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