Schiphol International Hub Case Study [PDF]

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NAME OF COURSE: MANAGEMENT INFORMATION SYSTEMS NAME OF LECTURER: PRINCE K. SENYO STUDENT ID: 10551139



CASE STUDY 2 SCHIPHOL INTERNATIONAL HUB



Question 1 How many levels of complexity can you identify in Schiphol’s Baggage Conveyor Network? Answer There are at least four layers of complexity. Each of them is intermingled with others. The layers include the following: System complexity – the first layer of complexity is System Complexity which is the systems is rigged to enact a co-operation between many technological layers both at software and hardware levels (e.g. conveyor bwlts, scanners, security checkers, etc); Physical complexity – the conveyor network is large and complicated or detailed. 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, and Social complexity – the systems 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 network). Question 2 What are the management, organisational and technology components of Schiphol’s Baggage Conveyor Network? Answer Management components comprise at least the following: governance of people; storage and inventory management; down-time management; priority management, safety management; Organisation components comprise at least the following: scheduling and allocation of moveable hardwrae (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: transport trackers, check-in machines; automated check-in, security scanners; safety screeners, storage capacitors; dynamic coldbaggage buffers, baggage make-up units, sensors, actuators, destination-coded vehicles (DVCs) automatic bar code scanners, radio-frequency identification (RFID) and sorting machines.



Question 3 What is the problem that Schiphol is trying to solve? Discuss the business impact of this problem. Answer Schiphol is trying to increase the revenue stream by optimizing customer experience while reduing costs per baggage without increasing wait-times. Achieving this goal has a great impact on Schiphol revenue stream for two reasons: 1. Schiphol ia an international transit hub – flight transfers are more likely to take pace at Schiphol if its efficiency and customer experience increase; 2. Schiphol serves a large user base (about 51 million passangers) – increasing direct customer experience increases traffic of people. Increase efficiency in baggage handling in the Schiphol International Airport in Amsterdam, the Netherlands. Mishandled baggage causes the industry $2.5 billion every year and this phenomenom is estimated to affect 51 million passenger using the Schiphol Airport alone. With the new baggage control system, the management of Schiphol estimate a 99.99% operation times while minimising loss and damage in that 0.01% of time. The system is very expensive, however when implemented successfully, it can save $0.25 billion (0.1% of $2.5 billion).



Problem and business impact PROBLEM Mishandled baggage



BUSINESS IMPACT -Loss of $2.5 billion revenue every year. -About 51 passengers affected annually.



Question 4 Think of the data that the network uses. What kinds of management reports can be generated from the data? Answer Data items of circulation across Schiphol Conveyor Network comprise of four items; namely scheduling data; hit/failure reports; dalays; usage information. All of this data was designed to allow plotting of cost per baggage reduction progressions. Schiphol constantly uses the reports to steer completion of the project described. DATA NETWORK Number of baggage Total Loss Defect system-minimum loss and damage



REPORTS Total number of business handling every year. Profit and Loss report Risk management report / improvement



Capacity of the baggage Automatic data scanner



system Actual capacity for the baggage Efficiency of the data scanner