Gst5083 mis w1 a2 schiphol

LECTURER : Prof. Dr. Rusli Abdullah

Team Members:§Cherry Linda Keripin (P14D393P)§Elina Tiu Chai Hui (P13D160P)§Alexander Mathew Kana (P14D384P)§Gesna Michael Jepus (P14D400P)§Teo Chiat Huat (P14D395P)

GST5083 : INFORMATION SYSTEMS AND E-COMMERCE

Week 1 (Assignment 2 – SCHIPHOL INTERNATIONAL HUB)



Brief IntroductionAmsterdam Schipol International Airport is the

Netherlands’ main international airport, located 9 km southwest of Amsterdam. This airport has grown to become one of the largest airports in the world.

Schiphol is an important European airport, ranked as the 4th busiest and the world’s 14th busiest, by total passenger traffic in 2013. Total passenger traffic of 51 million passengers passed through in 2012 and handling about 1.5 million tons of cargo.

Schiphol’s main competitors in-term of passenger traffic and cargo throughput are London Heathrow Airport, Frankfurt Airport, etc.

This airport is built as one large terminal, split into three large departure halls, which are inter-connected and is equipped with 6 operational runways, approximately 165 boarding gates available. The airport occupies an area of 13 sq km.



Brief Introduction

Most of the job involved Schiphol’s gigantic baggage conveyor network:• 21 km of transport track• 6 robotics units• 9,000 storage capacitors interfaces to each others as 1-system

According to 2009 IATA CATS survey, efficient baggage handling is the 2nd most important factor in having a pleasant trip. This statement shows the important of “Baggage Handling Processes” as yearly the airport lost about $2.5 billion to mishandled baggage which is affecting 51 million passengers.

Goals to achieve:“The right bag must be at the right place at the right time” ~ this can only be achieved by ensuring bags from check-in area are properly

transported to the correct departure gate, bags moving from gate to gate for transit passengers are correctly transported to the departure gate, and bags from arrival gate correctly transported to baggage claim area. All these activities have to be synchronized to ensure tasks are completed within the précised time period allowable to avoid bags been left behind and airplanes departed.



Brief Introduction

In 2004, IBM Corporation and Vanderlande Industries together with Grenzebach Automation Systems jointly develop the “Baggage Control System” with an investment of about $1 billion over a period of about 10 years for continuous enhancement for an efficient and effective information systems.This renewed “Baggage Control System” implementation

are for the achievements of:(a)Able to realize a maximum monumental 1% on loss of

transfer baggage (early years, the initial lost baggage is about $122 million)

(b)Able to increase capacity from 40 to 70 million bags(c)Able to reduce cost per bag without increasing wait time.


Week 1 (Assignment 2 – SCHIPHOL INTERNATIONAL HUB) Brief IntroductionThe new Baggage

Control Information System assisting in automating the movement of baggage from its current location to its destination minimizing on mishandling & errors:

FUNCTIONS OF THE NEW “BAGGAGE CONTROL INFORMATION SYSTEM”DCVs FRID Automatic bar code

scannerHigh tag conveyor

Unmanned carts that load and unload bags , moving at high speed without stopping movement to receive bag

The conveyors are precise in depositing bags where they are supposed to be at right time for maximum efficiency

Buffers and hot/cold storage areas are used to avoid overcrowding

To keep track of the location of each bag, it’s destination and the time it is required to be at designated location.

To make sure that bags are not lost, the system reconciles information on the bag tag against it’s owner whereabouts when the passenger check-in/out of the airport.

To scan all bags once bags reach the respective gates.

System to optimize the routes taken by DCVs and to sort the bags needed most urgently to the designated gate especially for departure.



Q1. How many levels of complexity can you identify in Schiphol’s baggage conveyor network?There are 4 levels of complexity in Schiphol’s baggage conveyor network from the various baggage handling points ie bags check-in, moving bags to gate for departure/arrival besides storage areas for bags for transit:

1. Physical complexity: (service, logistics & transport

management)• The network system needs to track,

maintain, store and retrieve location of bags as well as the owner of the bags for the system to efficiently manage the flow of bags to it’s destination.

• Challenges faced are such as unreadable tag, mis-tagged or flight schedule changes which the information network system needs to automatically tracked and managed the baggage optimal routes efficiently to avoid mishandling of bags



Q1. How many levels of complexity can you identify in Schiphol’s baggage conveyor network?2. Business Complexity:• The baggage conveyor network are used by many airlines and they are

many different business processes to handle as each business unit might have differences of their processes

• The baggage conveyor network must be able to cope with different baggage governance policies and taking interest to ensure positive business feasibilities at all times.

3. Social Complexity:• The information system must be user-friendly to enable easy handling

of passengers bags so as to maintain an efficient and effective baggage network conveyor network system that helps passengers having pleasant travelling trips, reducing mishandling/lost of bags.

4. System (hardware & software) Complexity:2. For the different technologies to work cohesively together (software &

hardware such as conveyor belts, unmanned carts, scanners, security checkers, storages areas, etc) the infrastructure must be very flexible and scalable to handle the huge amount of workloads, transporting passengers bags with such high accuracy ie 99% accuracy)



Q2. What are the management, organization, and technology components of Schiphol’s baggage conveyor network?1. Management components:• These consists of management of various airline companies

governance policies, storage and inventory management, processes in handling mishandling of baggage, baggage transportation priority management besides the safety management.

• Human resource management in working towards the same goals as employees belongs to different airline companies working together handling different tasks in the baggage processing,

2. Organization components:• Involves in the scheduling and allocation of various hardwares in

transporting baggage from check-in point to departure gates/ arrival of baggage to baggage claiming areas besides handling transit baggage at cold/hot storage areas.ü Tag passengers bags at check-in desk which consists of flight

information/bar code/FRID that allows the baggage control information system to read and handle the baggage appropriately.


Week 1 (Assignment 2 – SCHIPHOL INTERNATIONAL HUB) Q2. What are the management, organization, and

technology components of Schiphol’s baggage conveyor network?

ü Baggage are scanned once and information system will redirect it based-on 3 parameters:1. Time of its flight2. Priority3. Size

ü This is a unique business process which helps to increase baggage processing capacity efficiently and effectively based-on the intelligent outing and optimization function in-built in the Baggage Control Information System.

3. Technology components:• Ensuring cohesive integration of the various technologies such as

physical conveyor belts, check-in machines, automated check-in units, security scanners, safety screeners, storage capacitors/dynamic cold/hot-baggage buffers/unmanned carts/robotic units.ü System handles 3 million lines of source code with wide variety of

sensor, actuators, mechanical devices and computer

Continue…


Week 1 (Assignment 2 – SCHIPHOL INTERNATIONAL HUB) Q2. What are the management, organization, and

technology components of Schiphol’s baggage conveyor network?

ü This advance baggage-handling system which includes DCVs (destination-coded vehicles) automatically read the information through bar code scanners, using radio-frequency identification (RFID) tags and high-tech conveyors equipped sorting machines handles the flow of baggage through the conveyor belts automatically reaching it’s designated locations within the allowable time-frame.

Continue…



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

1. Mishandled baggage which costs the industry $2.5 billion yearly, annually affecting 51 million passengers travelling through Schiphol.

2. Through survey done in 2009 by IATA CATS, baggage handling is the 2nd most important factor in having a pleasant trip. Schiphol has a challenge to improve the efficiency in baggage handling as dissatisfied customers might re-route to other neighboring airports bring a drop to Schiphol revenue stream.

With the new Baggage Control Information System, Schiphol estimated that their operations will improved through a throughput of 99.9%, minimizing loss and damage by 0.01% which is a substantial saving to Schiphol Airport Management.



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

PROBLEM BUSINESS IMPACTMishandled baggage Loss $2.5 billion problem for Schiphol yearly and this problem annually impact about 51

million passengers who travel through this airport alone.Increase efficiency in baggage handling

Sensors track the baggage of connecting flights, enabling real-time traceability at all points of the connection routes

Estimated that this system operate at 99.9% most of the times with this new system, which enable minimizing of loss and damage to 0.01% and a successful implementation of this system will save the airport operations by 0.1% of $2.5 billion per annum.

It is projected that the new system will takes about 10 years for full implementation, and throughout this period, there’ll be upgrading and enhancement to take care and a good thing is the new system is an integrated system which is scalable, meaning that upgrading or enhancement will not cause a total down-time as system can be separately maintain.

Do not have interconnected system and intelligent system

A seamless fully integrated data solution for Schiphol’s own system and 3rd party ground service providers system from various airline companies

The in-built intelligent integrated system is able to compare a bag’s locations with underlying routing optimization routes of the bag(s) and the owner of the bag(s) allows Schiphol Baggage Control Management System to identify potential problems and keep bags from missing from their owners’ connecting flights/flights.

Date post:	15-Aug-2015
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Gst5083 mis w1 a2 schiphol

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