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 - P13D142P
2. Hj Zulkifflee Bin Hj Sofee - P13D136P
3. Chong Min Fatt - P13D154P
Lecturer: Professor Dr Rusli Bin Abdullah

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Case Study 2- Schiphol International Hub
Background
Officially 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.

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.
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Schiphol International Hub

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 where
the 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

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’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 16
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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Continue

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 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.
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Continue

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

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 23

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 -
P13D142P
Haji Zulkifflee Bin Hj Sofee -
P13D136P 25

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

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