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the way we do it




Collaborative Decision
Making in Aviation
In an uncertain world there is reasonable certainty in
stating that air travel will increase in the future. How
airlines and airports will work together to address
this increase is less certain but it is a necessity if they
intend to deal with the cost implications that are the
legacy left behind from decades of fragmentation,
inefficiency and uncoordinated operations.


The activities of airlines and airports   work together more efficiently and
are complementary in nature but the       transparently with the common goal of
industry is in need of better coordina-   improved overall performance, bring-
tion between all the aviation partners,   ing a common situational awareness
i.e., Airport Operations (Airport         between all partners involved as
Operators, Ground Handlers), Airlines     well as refining the processes
and Air Traffic Controllers if op-        and information flows.
erational efficiency is to be expected.   Figure 1 illus-
Collaborative Decision Making (CDM)
enables the partners to share
information and
the way we do it




Figure 1:                  CDM Triad

                                  AIRPORT                                                      ā€¢ Optimize the use of airport infrastructure
                                 OPERATIONS                    ā€¢ Airport Operations            ā€¢ Reduce congestion

                                                               ā€¢ Ground Handling               ā€¢ Reduce ground movement cost
PARTNERS INVOLVED IN CDM




                                                                                               ā€¢ Optimize the use of ground handling
                                                                                                 resources
   & THEIR OBJECTIVES




                                                   COLLABORATIVE
                                                      DECISION
                                                      MAKING

                                                                                      AIR TRAFFIC CONTROL
                                                                                                       ā€¢ Flexible pre-departure planning and
                                                                                      ā€¢ ATC              reduction in slot wastage
                                                                                                       ā€¢ Reduce Apron and taxiway
                             AIRLINES                                                                    congestion
                                                                                      ā€¢ CFMU           ā€¢ Improve Predictability
                              ā€¢ Improve On-time performance                                            ā€¢ Real time updates to network
                              ā€¢ Higher turnaround

Sources: Distribution Lab Analysis, Eurocontrol



                                                        trates the key objectives of each of the      sales forecasts and inventory turnover
                                                        partners involved in the CDM Triad.           through information sharing between
                                                                                                      retailers and vendors. Similarly, the
                                                         CDM in Aviation aims to improve              efficiency of the supply chain in the
                                                        operational efficiency at airports by re-     courier industry is empowered by the
                                                        ducing delays, improving the predict-         quality of hand-offs between different
                                                        ability of events during the progress of      entities, e.g., consolidators, 3PL, on-
                                                        a flight and optimizing the utilization       board carriers and agents/contractors.
                                                        of resources. To accomplish this the          But can this type of approach work in
                                                        CDM Partners need to share accurate           the aviation industry with its unique
                                                        and timely information and adopt              set of challenges?
                                                        coordinated operational procedures,
                                                        automatic processes and user friendly         Challenges of the Aviation
                                                        tools                                         Industry
                                                                                                      There are many, including:
                                                        This coordinated and collaborative
                                                        approach has proven to work well in           Increase in Air Traffic - The European
                                                        other industries, like retail, where Ven-     airspace has experienced continual
                                                        dor Management Inventory and Busi-            growth in traffic over the last half cen-
                                                        ness Intelligence tools have improved         tury, with a doubling of traffic over the
                                                                                                      past 20 years. The aviation industry
                                                                                                      needs to prepare for a future of high
                                                                                                      levels of congestion in the air traffic
                                                                                                      network.
the way we do it




Regulatory Compliance - The Single                    and information flows between each of
European Sky initiative was launched                  the areas are in need of improvement.
in 2004 to provide a unified regulatory               There is a pressing need for transition
framework for implementing solutions                  to a process-centric approach, with the
to absorb the traffic increase while                  focus on different functions working
ensuring a high level of security. The                together to create a smooth air-to-air
deployment phase of the Single Euro-                  transitional flow.
pean Sky ATM Regulation will start in
2014 and will require implementation                  Underutilization of capacity ā€“ The
of a new air traffic management infra-                more delays there are at an airport the
structure, composed of fully harmo-                   more it appears that all resources are
nized and interoperable components                    being utilized but in fact delays mean
across European airports.                             inefficient use of airport infrastructure,
                                                      limited airport throughput, poor slot
Lack of coordination in the Air Traffic               compliance, and frequent late stand
Management (ATM) Network - The                        and gate changes, all of which stretch
aviation industry is highly fragmented                the airportā€™s capacity to its limits.
and coordination, not just between
partners but also between various air-                Simply optimizing the use of current
ports, is lacking. Problems at a single               available capacity through technical
airport can affect the entire network.                solutions will not be sufficient to ac-
                                                      commodate market developments in
As illustrated in Figure 2, decades of                the years to come. The solution is not
function-centric operations in the air-               just to create new capacity but also to
to-air process have achieved reason-                  ensure that the available capacity is
able operational efficiency within indi-              utilized to its maximum.
vidual functional areas but hand-offs



 Figure 2:               Air to Air Processes


                                                AIR                                                                                 AIR
 AIRLINE


 ATC

                                                                                          Turn Around
                                                                       Cleaning - Catering - Water - Fuel - De-icing
                        GROUND HANDLING
   AIRPORT OPERATIONS




                                                       GATE                                                               GATE




                        AIRPORT                                                 sid
                                                                                     e                    Bo
                                                                                                               rde
                                                                             Air                                  r
                                                                                                          Re
                                                                                   rity                     cla
                                                                               cu                                im
                                                                          Se
                                                                                                          Cu
                                                                                    n                          sto
                                                                               k-i
                                                                          ec                                         ms
                                                                        Ch

                                                      Kerb                                                                 Kerb




 Sources: Distribution Lab Analysis
the way we see it




                                                  How Aviation partners benefit                      Airports
                                                  from CDM                                           Airport revenues come primarily from
                                                  The Airport-CDM (A-CDM) program                    servicing incoming and outgoing
                                                  was designed and developed by Euro-                flights. Lack of air traffic coordination
                                                  control* to improve overall efficiency             can lead to fewer flights being pro-
                                                  of operations through better coordina-             cessed and that in turn means loss of
                                                  tion and information sharing within                income. It can also result in penalties
                                                  as well as between airports. It serves             and delay costs, affecting the airport
                                                  as a means of optimizing and improv-               organizationā€™s bottom line, not to
                                                  ing collaboration and operational                  mention the loss of reputation and im-
                                                  efficiency throughout the air travel               age from disgruntled passengers and
                                                  value chain globally. Applied initially            unhappy customer airlines.
                                                  in the en-route environment, the CDM
                                                  approach has evolved into a compre-                Also, on the performance dimension,
                                                  hensive solution for improving global              irregular and inconsistent coordination
                                                  air traffic management.                            leads to reduced operational efficiency
                                                                                                     and asymmetrical capacity utilization
                                                  But how do you assess the benefits                 and allocation of flights.
                                                  that A-CDM can bring to each of the
                                                  aviation industry players? And how                 How CDM Helps
                                                  do the benefits stack up against the               By implementing the CDM principles,
                                                  challenges inherent in the industry?               airports stand to benefit most in
                                                  We apply three commonly recognized                 the Performance Improvement area
                                                  business objectives - Margins Improve-             (Figure 3). They are able to improve
                                                  ment, Performance Improvement,                     the performance of their processes as
                                                  and Quality Optimization - to see                  well as their reaction times, leading to
                                                  how each player within the air travel              increased ability to deal with air traffic
                                                  value chain stands to be impacted by               without compromising on quality.
                                                  aviation industry challenges and to see            Also, airports will be able to reduce
                                                  where growth is possible.                          delays and the drop in service levels
                                                                                                     of their functions, without the need
                                                                                                     for extended investment in quality
                                                                                                     assurance.

                                                                                                     Air Traffic Controllers (ATCs)
                                                                                                     ATCs could face loss in revenues from
                                                                                                     their inability to pass additional traffic
                                                                                                     through an already congested airport.
                                                                                                     Lack of coordination could lead to a
                                                                                                     decrease in air traffic predictability,
                                                                                                     impacting the operational efficiency
                                                                                                     of an ATC as well as a slower response
                                                                                                     rate for any adverse situation.




Note: *Eurocontrol is the European Organization for the Safety of Air Navigation and working for seamless, pan-European air traffic management.
the way we see it




Figure 3:      Challenges Facing Airports



                                                             KEY BUSINESS OBJECTIVES
                                                 MARGINS                         PERFORMANCE                             QUALITY
                                              IMPROVEMENT                        IMPROVEMENT                           OPTIMIZATION

                                                       HOW AIR TRAVEL VALUE CHAIN CHALLENGES
                                                          POSE BOTTLENECKS TO AIRPORTS
                                         ā€¢ Loss of income from fewer        ā€¢ Reduced runway, taxiway,           ā€¢ Inability to maintain high
                                           flights processed                  airfield and aircraft processing     quality standards without
     INCREASE IN AIR TRAFFIC             ā€¢ Reduced bargaining power           efficiency                           incurring additional costs
                                         ā€¢ Higher cost of coordination
                                           between functions
                                         ā€¢ Higher regulatory and            ā€¢ Inability to accommodate           ā€¢ Reduced quality when
                                           compliance costs                   regulatory requirements into         accommodating regulatory
     REGULATORY                          ā€¢ Reduced image and reputation       processes                            requirements into processes
     COMPLIANCE                            of airport in case of non-
                                           compliance

                                         ā€¢ Higher delay penalties           ā€¢ Increasing delays in throughput    ā€¢ Quality of individual functions
     LACK OF COORDINATION                ā€¢ Higher Operating and               of flights                           is hit as workflow is not
                                           Maintenance costs                ā€¢ Dissatisfied passengers              coordinated
     IN THE ATM NETWORK                  ā€¢ Underperforming staff            ā€¢ Reduced predictability of
                                                                              functions
                                         ā€¢ Improper asset utilization and   ā€¢ Inefficient allocation and         ā€¢ Reduced asset and
                                           management                         sorting of flights                   infrastructure quality
     UNDER UTILIZATION OF                                                   ā€¢ Inability to build capacity
     CAPACITY


Sources: Distribution Lab Analysis




How CDM Helps                                    Congestion at runways, taxiways
Using CDM, Air Traffic Controllers               and airfields affect flight timeliness.
would be able to manage not only                 Airlines also face schedule disruptions,
more but also more varied flight types           increase in waiting time for planes
within a complex airport infrastruc-             and passengers due to apron conges-
ture, improving the overall capacity of          tion, rise in baggage handling errors/
the air travel value chain.                      passenger complaints and difficulty
                                                 maintaining same service quality
Airlines                                         across all flights. The result is reduced
Airlines are faced with reduced flex-            brand appeal and image problems for
ibility and increasing congestion at             the airlines.
airports, leading to lost business and
higher costs.                                    How CDM helps
                                                 CDM smoothes out the flow of air
Airlines are impacted on margins by              traffic and flight management tasks
cost factors such as increase in fuel            between various travel chain players.
consumption as air time is increased,            It enables airlines to focus more on
penalties from cancellation and delays           business improvement and service lev-
and additional allocation of manpower            els, which helps improve their margins
due to nonalignment of services. All of          and efficiency.
these lead to an increase in operating
costs.
the way we see it




Figure 4:         CDM Roadmap


                                                              PHASES
              I                      II                 III                    IV                    V
                    STREAMLINING           TURNAROUND                                 DYNAMIC             BUSINESS
                                                               TRANSPARENCY
                    INFORMATION           PERFORMANCE                                 TAKE-OFF           CONTINUITY
                                                               IN SEQUENCING
                      SOURCES             IMPROVEMENT                               PREDICTABILITY        PLANNING




                                                     BUSINESS PROCESS
STREAMS




                                             TECHNICAL/ARCHITECTURE LINK


                                                     INFORMATION FLOW


                                                   CHANGE MANAGEMENT



                                            UNIFIED PROJECT MANAGEMENT

Sources: Distribution Lab Analysis




                                              How to become CDM                          The key phases are as follows:
                                              compliant: Capgeminiā€™s CDM
                                              Implementation Roadmap                     Phase I: Streamlining Information
                                              Capgemini proposes implementing            Sources
                                              CDM across the air-to-air process in a     This phase looks at integrating and
                                              phased manner. For this, Capgemini         centralizing Information Flows within
                                              has designed a roadmap based on            the air travel value chain.
                                              Capgeminiā€™s DELIVER set of methods
                                              and methodologies, which form the          Key tasks revolve around defining a
                                              real core of Capgeminiā€™s consulting        Data Integration Strategy and conduct-
                                              work. Set across five phases and im-       ing an AS-IS analysis of existing IT
                                              pacting four key streams, Capgeminiā€™s      systems in order to create a stream-
                                              CDM Roadmap (Figure 4) follows a           lined, integrated IT foundation.
                                              bottom-up approach in organizational
                                              and process transformation. Each           Phase II: Turnaround Performance
                                                                                         Improvement
                                              phase is divided into a large number
                                                                                         Here the focus is on improving the ef-
                                              of tasks but Capgemini proposes man-
                                                                                         ficiency of the Turnaround Process.
                                              aging the Roadmap implementation
                                              through a Unified Project Management
                                                                                         Key tasks for this phase include
                                              approach.
                                                                                         mapping the AS-IS turnaround
                                                                                         process, identifying key milestones
                                                                                         and assigning timing and priority of
                                                                                         updates along key milestones.
the way we see it




Phase III: Transparency in                                                                                    times. This information is shared with
Sequencing                                                                                                    the Central Flow Management Unit
This phase promotes a more efficient                                                                          (CFMU).
and egalitarian sequencing process for
flight management.                                                                                            Phase V: Business Continuity
                                                                                                              Planning
Key activities areas are mapping AS-IS                                                                        The final phase focuses on preparing
taxi time calculation and sequencing                                                                          for contingencies and/or emergencies
process and at the same time identify-                                                                        by building a business continuity plan.
ing various parties and factors that
influence taxi time and sequencing.                                                                           The key task for this phase is to es-
There may also be a need to evaluate                                                                          tablish disaster recovery and business
software solutions that can analyze all                                                                       contingency plans for all IT and infor-
influencing factors to calculate more                                                                         mation sharing platforms at an airport.
accurate taxi times.
                                                                                                              The benefit to clients of our overall
Phase IV: Dynamic Take-off                                                                                    bottom-up strategy is that it offers
Predictability                                                                                                broader operational coverage in the
Next we look to improve take-off pre-                                                                         early phases and gives higher visibility
dictability both at the current airport                                                                       to organizational changes.
and in the broader air travel network.
                                                                                                              Capgemini has created a Transforma-
Priority activities during this phase                                                                         tion Map (Figure 5) that depicts the
include building data flows from                                                                              key tasks/activities required for follow-
turnaround and sequencing processes                                                                           ing the Roadmap to complete CDM
to calculate more accurate take-off                                                                           compliance

      Figure 5:                             Transformation Map


                                                                                                                                                                 Establish Disaster recovery and
TECHNICAL/ARCHITECTURE LINK




                                AS-IS analysis of                                                                                                              Business Contingency plans for all IT
                                                                                                                                                                                                            Full CDM
TECHNICAL/ARCHITECTURE LINK




                                                                                                                          Deploy software solution
                               existing IT systems                                                                        for capturing data points             and information sharing platforms
                                                                                                                                                                    in case of emergencies
                                                                                        Evaluate the need for
                                                                                                                       from functions as well as airlines
                                                                                                                           to determine and display                                                       compliance
                                                                                         a software solution              accurate take-off times
                                  Build TO-BE                                              that can analyze
                                based on master                                         all influencing factors                                                               Document each
                               data management                                            to calculate more                  Share take-off time with CFMU                   process in detail,                          Create
                                                       Enable Automation of               accurate taxi-time                                                                                                          contingency
                                 and real-time        Flight Progress Update                                                                                                identifying process
                                                                                                                                                                                                                          plans
                                                                                                                                                                                                                                        V. BUSINESS
                                   updates                                                                                                                                  owners and KPIs
                                                                                                                                                                                                                    for emergencies        CONTINUITY
                                                                                                                                                                                            Map information
                                                                                                                                            Establish process for utilization                  flows and    Train key personnel            PLANNING
                                                                                                                                            of output from previous phases                   priorities and    on emergency
                                      Build                                                                                                                                                    document
                              Data Integration Plan      Build adequate display points                                                         for take-off predictability                                       scenarios
                                                          for exhibiting flight status                                                                                                                        and respective
                                                                 updates along                                       Map AS-IS taxi-time                                                                    contingency plans
                                                                                                                       calculation and                                      Build data flows from
                                                          the Turn-round process                                                                                               turn-round and
                                                                                                                    sequencing process
                                    Execution and                                                                                                                           sequencing process
                              Post Integration Support                                                                                                                     to calculate take-off                                        IV. DYNAMIC TAKE-OFF
                                    Plan & implement
                                                                                                                           Identify various parties                                                 Generate stakeholder buy-in             PREDICTABILITY
                                                                         Map AS-IS Turn-round process                    and factors that influence                                                on the cost and environmental
                                data linkage with CFMU                    and identify key milestones                     taxi-time & Sequencing                                                  benefits of take-off predictability

                                                                                                                                                        Build algorithm for
                                                                                    Define each milestone in                                       variably calculating taxi-time
                                                                                   detail & identify alert points                             based on air traffic, status of functions,   Conduct interviews with functional
                                                                                                                                              weather conditions, historical data, etc,     experts across ground functions
                                    Process mapping of                                                                                                                                        to identify high impact areas
                                   established procedures                                  For each milestone,                                                                                  for taxi-time and delays
                                   for information sharing                          define performance benchmarks,
                                 between various functions                           ownership & decision-makers
                                                                                                                                                                                                                                        III. TRANSPARENCY
                                                                                                                                                                                       Engage key functions impacting taxi-time
                                                                                                                                                                                                                                             IN SEQUENCING
BUSINESS PROCESS
BUSINESS PROCESS




                                                                                                                                                                                          to collaboratively devise strategies
                                                                                                                            Ensure consistent data quality                                       for reducing taxi-time
                                                                                                                            along the Turn-round Process
                                              Impact Analysis of gaps and
                                           delays for identifying priority areas
                                                                                                                                    Assign timing & priority of              Identify and assign responsibilities for updating
                                                                                                                                  updates along key milestones                 flight status information along the process              II. TURNAROUND
                                                                                                                                   in the Turn-round Process
                                                                                                    Define Data
                                                                                                                                                                                                                                            PERFORMANCE
                                                                                               Integration Strategy                                                                    Gather stakeholder consensus on                      IMPROVEMENT
                                                                                                                                                                                     what processes need to be improved
                                         Establish information sharing                                                                                                               for Turn-round Process Improvement
                                          protocol with the CFMU

                                                                                                          Identify Scope of data integration and
                                                                                                          responsibilities for all involved parties            Focus group workshops for leadership and stakeholders                     I. STREAMLINING
                                                                                                                                                                 for agreement on standards for message exchange
                                                                                                                                                                                                                                            INFORMATION
                                                                                                                                                                                                                                            SOURCES
                                                                                             INFORMATION
                                                                                             INFORMATION                                                                  CHANGE MANAGEMENT
                                                                                                                                                                          CHANGE MANAGEMENT

      Sources: Distribution Lab Analysis
the way we do it




If you would like to learn more about
Capgeminiā€™s CDM Implementation
Roadmap and how it can help your
organization, please contact:

Hikmat Mahawat Khan
Center of Excellence Aviation
Tel: +31 30 689 5300
Mob: +31 6 15 030 946
hikmat.mahawatkhan@capgemini.com




               About Capgemini and the
               Collaborative Business Experienceā„¢

              Capgemini, one of the       The Group relies on its global
            worldā€™s foremost providers    delivery model called RightshoreĀ®,
 of consulting, technology and            which aims to get the right balance
 outsourcing services, enables its        of the best talent from multiple
 clients to transform and perform         locations, working as one team to
 through technologies. Capgemini          create and deliver the optimum
 provides its clients with insights       solution for clients. Present in
 and capabilities that boost their        more than 30 countries, Capgemini
 freedom to achieve superior              reported 2009 global revenues of
 results through a unique way of          EUR 8.4 billion and employs 90,000
 working, the Collaborative Business      people worldwide.
 Experienceā„¢.
                                          More information is available at
                                          www.capgemini.com




                                         Rightshoreā€Š ā€Šā€Šisā€Šaā€Štrademarkā€Šbelongingā€Štoā€ŠCapgemini.ā€Š
                                                   Ā®
                                             Copyrightā€Š ā€Š2010ā€ŠCapgemini.ā€ŠAllā€Šrightsā€Šreserved.
                                                        Ā©

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Collaborative Decision Making in Aviation

  • 1. the way we do it Collaborative Decision Making in Aviation In an uncertain world there is reasonable certainty in stating that air travel will increase in the future. How airlines and airports will work together to address this increase is less certain but it is a necessity if they intend to deal with the cost implications that are the legacy left behind from decades of fragmentation, inefficiency and uncoordinated operations. The activities of airlines and airports work together more efficiently and are complementary in nature but the transparently with the common goal of industry is in need of better coordina- improved overall performance, bring- tion between all the aviation partners, ing a common situational awareness i.e., Airport Operations (Airport between all partners involved as Operators, Ground Handlers), Airlines well as refining the processes and Air Traffic Controllers if op- and information flows. erational efficiency is to be expected. Figure 1 illus- Collaborative Decision Making (CDM) enables the partners to share information and
  • 2. the way we do it Figure 1: CDM Triad AIRPORT ā€¢ Optimize the use of airport infrastructure OPERATIONS ā€¢ Airport Operations ā€¢ Reduce congestion ā€¢ Ground Handling ā€¢ Reduce ground movement cost PARTNERS INVOLVED IN CDM ā€¢ Optimize the use of ground handling resources & THEIR OBJECTIVES COLLABORATIVE DECISION MAKING AIR TRAFFIC CONTROL ā€¢ Flexible pre-departure planning and ā€¢ ATC reduction in slot wastage ā€¢ Reduce Apron and taxiway AIRLINES congestion ā€¢ CFMU ā€¢ Improve Predictability ā€¢ Improve On-time performance ā€¢ Real time updates to network ā€¢ Higher turnaround Sources: Distribution Lab Analysis, Eurocontrol trates the key objectives of each of the sales forecasts and inventory turnover partners involved in the CDM Triad. through information sharing between retailers and vendors. Similarly, the CDM in Aviation aims to improve efficiency of the supply chain in the operational efficiency at airports by re- courier industry is empowered by the ducing delays, improving the predict- quality of hand-offs between different ability of events during the progress of entities, e.g., consolidators, 3PL, on- a flight and optimizing the utilization board carriers and agents/contractors. of resources. To accomplish this the But can this type of approach work in CDM Partners need to share accurate the aviation industry with its unique and timely information and adopt set of challenges? coordinated operational procedures, automatic processes and user friendly Challenges of the Aviation tools Industry There are many, including: This coordinated and collaborative approach has proven to work well in Increase in Air Traffic - The European other industries, like retail, where Ven- airspace has experienced continual dor Management Inventory and Busi- growth in traffic over the last half cen- ness Intelligence tools have improved tury, with a doubling of traffic over the past 20 years. The aviation industry needs to prepare for a future of high levels of congestion in the air traffic network.
  • 3. the way we do it Regulatory Compliance - The Single and information flows between each of European Sky initiative was launched the areas are in need of improvement. in 2004 to provide a unified regulatory There is a pressing need for transition framework for implementing solutions to a process-centric approach, with the to absorb the traffic increase while focus on different functions working ensuring a high level of security. The together to create a smooth air-to-air deployment phase of the Single Euro- transitional flow. pean Sky ATM Regulation will start in 2014 and will require implementation Underutilization of capacity ā€“ The of a new air traffic management infra- more delays there are at an airport the structure, composed of fully harmo- more it appears that all resources are nized and interoperable components being utilized but in fact delays mean across European airports. inefficient use of airport infrastructure, limited airport throughput, poor slot Lack of coordination in the Air Traffic compliance, and frequent late stand Management (ATM) Network - The and gate changes, all of which stretch aviation industry is highly fragmented the airportā€™s capacity to its limits. and coordination, not just between partners but also between various air- Simply optimizing the use of current ports, is lacking. Problems at a single available capacity through technical airport can affect the entire network. solutions will not be sufficient to ac- commodate market developments in As illustrated in Figure 2, decades of the years to come. The solution is not function-centric operations in the air- just to create new capacity but also to to-air process have achieved reason- ensure that the available capacity is able operational efficiency within indi- utilized to its maximum. vidual functional areas but hand-offs Figure 2: Air to Air Processes AIR AIR AIRLINE ATC Turn Around Cleaning - Catering - Water - Fuel - De-icing GROUND HANDLING AIRPORT OPERATIONS GATE GATE AIRPORT sid e Bo rde Air r Re rity cla cu im Se Cu n sto k-i ec ms Ch Kerb Kerb Sources: Distribution Lab Analysis
  • 4. the way we see it How Aviation partners benefit Airports from CDM Airport revenues come primarily from The Airport-CDM (A-CDM) program servicing incoming and outgoing was designed and developed by Euro- flights. Lack of air traffic coordination control* to improve overall efficiency can lead to fewer flights being pro- of operations through better coordina- cessed and that in turn means loss of tion and information sharing within income. It can also result in penalties as well as between airports. It serves and delay costs, affecting the airport as a means of optimizing and improv- organizationā€™s bottom line, not to ing collaboration and operational mention the loss of reputation and im- efficiency throughout the air travel age from disgruntled passengers and value chain globally. Applied initially unhappy customer airlines. in the en-route environment, the CDM approach has evolved into a compre- Also, on the performance dimension, hensive solution for improving global irregular and inconsistent coordination air traffic management. leads to reduced operational efficiency and asymmetrical capacity utilization But how do you assess the benefits and allocation of flights. that A-CDM can bring to each of the aviation industry players? And how How CDM Helps do the benefits stack up against the By implementing the CDM principles, challenges inherent in the industry? airports stand to benefit most in We apply three commonly recognized the Performance Improvement area business objectives - Margins Improve- (Figure 3). They are able to improve ment, Performance Improvement, the performance of their processes as and Quality Optimization - to see well as their reaction times, leading to how each player within the air travel increased ability to deal with air traffic value chain stands to be impacted by without compromising on quality. aviation industry challenges and to see Also, airports will be able to reduce where growth is possible. delays and the drop in service levels of their functions, without the need for extended investment in quality assurance. Air Traffic Controllers (ATCs) ATCs could face loss in revenues from their inability to pass additional traffic through an already congested airport. Lack of coordination could lead to a decrease in air traffic predictability, impacting the operational efficiency of an ATC as well as a slower response rate for any adverse situation. Note: *Eurocontrol is the European Organization for the Safety of Air Navigation and working for seamless, pan-European air traffic management.
  • 5. the way we see it Figure 3: Challenges Facing Airports KEY BUSINESS OBJECTIVES MARGINS PERFORMANCE QUALITY IMPROVEMENT IMPROVEMENT OPTIMIZATION HOW AIR TRAVEL VALUE CHAIN CHALLENGES POSE BOTTLENECKS TO AIRPORTS ā€¢ Loss of income from fewer ā€¢ Reduced runway, taxiway, ā€¢ Inability to maintain high flights processed airfield and aircraft processing quality standards without INCREASE IN AIR TRAFFIC ā€¢ Reduced bargaining power efficiency incurring additional costs ā€¢ Higher cost of coordination between functions ā€¢ Higher regulatory and ā€¢ Inability to accommodate ā€¢ Reduced quality when compliance costs regulatory requirements into accommodating regulatory REGULATORY ā€¢ Reduced image and reputation processes requirements into processes COMPLIANCE of airport in case of non- compliance ā€¢ Higher delay penalties ā€¢ Increasing delays in throughput ā€¢ Quality of individual functions LACK OF COORDINATION ā€¢ Higher Operating and of flights is hit as workflow is not Maintenance costs ā€¢ Dissatisfied passengers coordinated IN THE ATM NETWORK ā€¢ Underperforming staff ā€¢ Reduced predictability of functions ā€¢ Improper asset utilization and ā€¢ Inefficient allocation and ā€¢ Reduced asset and management sorting of flights infrastructure quality UNDER UTILIZATION OF ā€¢ Inability to build capacity CAPACITY Sources: Distribution Lab Analysis How CDM Helps Congestion at runways, taxiways Using CDM, Air Traffic Controllers and airfields affect flight timeliness. would be able to manage not only Airlines also face schedule disruptions, more but also more varied flight types increase in waiting time for planes within a complex airport infrastruc- and passengers due to apron conges- ture, improving the overall capacity of tion, rise in baggage handling errors/ the air travel value chain. passenger complaints and difficulty maintaining same service quality Airlines across all flights. The result is reduced Airlines are faced with reduced flex- brand appeal and image problems for ibility and increasing congestion at the airlines. airports, leading to lost business and higher costs. How CDM helps CDM smoothes out the flow of air Airlines are impacted on margins by traffic and flight management tasks cost factors such as increase in fuel between various travel chain players. consumption as air time is increased, It enables airlines to focus more on penalties from cancellation and delays business improvement and service lev- and additional allocation of manpower els, which helps improve their margins due to nonalignment of services. All of and efficiency. these lead to an increase in operating costs.
  • 6. the way we see it Figure 4: CDM Roadmap PHASES I II III IV V STREAMLINING TURNAROUND DYNAMIC BUSINESS TRANSPARENCY INFORMATION PERFORMANCE TAKE-OFF CONTINUITY IN SEQUENCING SOURCES IMPROVEMENT PREDICTABILITY PLANNING BUSINESS PROCESS STREAMS TECHNICAL/ARCHITECTURE LINK INFORMATION FLOW CHANGE MANAGEMENT UNIFIED PROJECT MANAGEMENT Sources: Distribution Lab Analysis How to become CDM The key phases are as follows: compliant: Capgeminiā€™s CDM Implementation Roadmap Phase I: Streamlining Information Capgemini proposes implementing Sources CDM across the air-to-air process in a This phase looks at integrating and phased manner. For this, Capgemini centralizing Information Flows within has designed a roadmap based on the air travel value chain. Capgeminiā€™s DELIVER set of methods and methodologies, which form the Key tasks revolve around defining a real core of Capgeminiā€™s consulting Data Integration Strategy and conduct- work. Set across five phases and im- ing an AS-IS analysis of existing IT pacting four key streams, Capgeminiā€™s systems in order to create a stream- CDM Roadmap (Figure 4) follows a lined, integrated IT foundation. bottom-up approach in organizational and process transformation. Each Phase II: Turnaround Performance Improvement phase is divided into a large number Here the focus is on improving the ef- of tasks but Capgemini proposes man- ficiency of the Turnaround Process. aging the Roadmap implementation through a Unified Project Management Key tasks for this phase include approach. mapping the AS-IS turnaround process, identifying key milestones and assigning timing and priority of updates along key milestones.
  • 7. the way we see it Phase III: Transparency in times. This information is shared with Sequencing the Central Flow Management Unit This phase promotes a more efficient (CFMU). and egalitarian sequencing process for flight management. Phase V: Business Continuity Planning Key activities areas are mapping AS-IS The final phase focuses on preparing taxi time calculation and sequencing for contingencies and/or emergencies process and at the same time identify- by building a business continuity plan. ing various parties and factors that influence taxi time and sequencing. The key task for this phase is to es- There may also be a need to evaluate tablish disaster recovery and business software solutions that can analyze all contingency plans for all IT and infor- influencing factors to calculate more mation sharing platforms at an airport. accurate taxi times. The benefit to clients of our overall Phase IV: Dynamic Take-off bottom-up strategy is that it offers Predictability broader operational coverage in the Next we look to improve take-off pre- early phases and gives higher visibility dictability both at the current airport to organizational changes. and in the broader air travel network. Capgemini has created a Transforma- Priority activities during this phase tion Map (Figure 5) that depicts the include building data flows from key tasks/activities required for follow- turnaround and sequencing processes ing the Roadmap to complete CDM to calculate more accurate take-off compliance Figure 5: Transformation Map Establish Disaster recovery and TECHNICAL/ARCHITECTURE LINK AS-IS analysis of Business Contingency plans for all IT Full CDM TECHNICAL/ARCHITECTURE LINK Deploy software solution existing IT systems for capturing data points and information sharing platforms in case of emergencies Evaluate the need for from functions as well as airlines to determine and display compliance a software solution accurate take-off times Build TO-BE that can analyze based on master all influencing factors Document each data management to calculate more Share take-off time with CFMU process in detail, Create Enable Automation of accurate taxi-time contingency and real-time Flight Progress Update identifying process plans V. BUSINESS updates owners and KPIs for emergencies CONTINUITY Map information Establish process for utilization flows and Train key personnel PLANNING of output from previous phases priorities and on emergency Build document Data Integration Plan Build adequate display points for take-off predictability scenarios for exhibiting flight status and respective updates along Map AS-IS taxi-time contingency plans calculation and Build data flows from the Turn-round process turn-round and sequencing process Execution and sequencing process Post Integration Support to calculate take-off IV. DYNAMIC TAKE-OFF Plan & implement Identify various parties Generate stakeholder buy-in PREDICTABILITY Map AS-IS Turn-round process and factors that influence on the cost and environmental data linkage with CFMU and identify key milestones taxi-time & Sequencing benefits of take-off predictability Build algorithm for Define each milestone in variably calculating taxi-time detail & identify alert points based on air traffic, status of functions, Conduct interviews with functional weather conditions, historical data, etc, experts across ground functions Process mapping of to identify high impact areas established procedures For each milestone, for taxi-time and delays for information sharing define performance benchmarks, between various functions ownership & decision-makers III. TRANSPARENCY Engage key functions impacting taxi-time IN SEQUENCING BUSINESS PROCESS BUSINESS PROCESS to collaboratively devise strategies Ensure consistent data quality for reducing taxi-time along the Turn-round Process Impact Analysis of gaps and delays for identifying priority areas Assign timing & priority of Identify and assign responsibilities for updating updates along key milestones flight status information along the process II. TURNAROUND in the Turn-round Process Define Data PERFORMANCE Integration Strategy Gather stakeholder consensus on IMPROVEMENT what processes need to be improved Establish information sharing for Turn-round Process Improvement protocol with the CFMU Identify Scope of data integration and responsibilities for all involved parties Focus group workshops for leadership and stakeholders I. STREAMLINING for agreement on standards for message exchange INFORMATION SOURCES INFORMATION INFORMATION CHANGE MANAGEMENT CHANGE MANAGEMENT Sources: Distribution Lab Analysis
  • 8. the way we do it If you would like to learn more about Capgeminiā€™s CDM Implementation Roadmap and how it can help your organization, please contact: Hikmat Mahawat Khan Center of Excellence Aviation Tel: +31 30 689 5300 Mob: +31 6 15 030 946 hikmat.mahawatkhan@capgemini.com About Capgemini and the Collaborative Business Experienceā„¢ Capgemini, one of the The Group relies on its global worldā€™s foremost providers delivery model called RightshoreĀ®, of consulting, technology and which aims to get the right balance outsourcing services, enables its of the best talent from multiple clients to transform and perform locations, working as one team to through technologies. Capgemini create and deliver the optimum provides its clients with insights solution for clients. Present in and capabilities that boost their more than 30 countries, Capgemini freedom to achieve superior reported 2009 global revenues of results through a unique way of EUR 8.4 billion and employs 90,000 working, the Collaborative Business people worldwide. Experienceā„¢. More information is available at www.capgemini.com Rightshoreā€Š ā€Šā€Šisā€Šaā€Štrademarkā€Šbelongingā€Štoā€ŠCapgemini.ā€Š Ā® Copyrightā€Š ā€Š2010ā€ŠCapgemini.ā€ŠAllā€Šrightsā€Šreserved. Ā©