Schiphol International Hub (Page 82)

1.How many levels of complexity can you identify in Schiphol’s baggage conveyors network?

There are four layers of complexity each of them is intermingled with others. The layers are given as below:

The first level of complexity with Schiphol’s baggage conveyors network is where the bags are moved from check in area to departure gate. There was less coordination between software and hardware levels.

The second level of complexity is at the level where the bags are moved gate to gate the place where the bag are handled by human support and aid the work  and also human-to-human relations.

Third level of complexity is at movement of the bogs from the arrival gate to the baggage claim where owner claim their bags from the security officers and conveyor technician.

The fourth and last level of complexity is to plan and control peripheral Hardwar and software handling area where the conveyor network is large and intricate.

2.What are the management, organization, and technology components of Schiphol’s baggage conveyors network?

Management 

Setting the goal: right bag must be at the right place on right time.

Allocating human resources: in every level of conveyor there must be available human resources to control,manage and handle the bags.

Allocating financial resources like they have invested over 1billinon in last 10 years.

New product development such they are going to introduce new baggage handling and controlling system to handle huge bags in every year.

Try to introduce new service offering and technology to give better services.

Organizational components:

Like every organization in Schiphol’s baggage conveyors network is made up of different department.  Each department contributes to the running of the business. The most common departments are:

Marketing & Sales

Finance

Human resource

Information Technology departments

Production Department

Technological Components

The networks involve variety of sensors, mechanical devices, actuators and computers. It also uses over 3 million lines of source code. As for the baggage-handling systems, it includes destination-coded vehicles (DCVs), automatic bar code scanners, radio-frequency identification (RFID) tags and high-tech conveyors equipped with sorting machines. All of these technologies are used for the normal operation which is to move bags from the check-in area to the departure gate, move bags from gate to gate, move bags from the arrival gate to the baggage claim and plan and control the peripheral hardware and software.

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

From the case study, I found that the most critical problem that Schiphol was facing is the mishandled baggage problem. Schiphol was trying to increase the efficiency in baggage handling in the airport. Mishandled baggage was bringing huge impact to the company, it is a $2.5 billion problem for industry every year and about 51 million passengers traveling through Schiphol alone may be affected annually. With an investment of around US$1 billion over a period of about 10 years, the Baggage Control System has been renewed. With the new system, the manager of Schiphol estimated that this system will be able to minimize 0.01% loss and damage when it operates 99.9% times. Although this system is expensive but if it is being implemented right, it can save 0.1% of $2.5 billion.

4.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; failure reports; delays; usage information. This data helps to prioritize baggage handling for immediate embarkation or for storage on later embarkation. Besides that, these data help in providing location and tracking of each bags, destination and time needed at the destination. Trends report and summary report can be generated from the data for management to understand the current performance on the conveyor network. Some example of the report as shown:

Data Network
Reports
Number of baggage
Total number of business handling by the airport every year
Total loss
Profit and loss report
Capacity of the baggage
Actual capacity for the baggage
Automatic data scanner
Efficiency of the data scanner
Defect system
Risk management report/ improvement system



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