Collaborative Decision Making in Aviation


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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.

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Collaborative Decision Making in Aviation

  1. 1. the way we do itCollaborative DecisionMaking in AviationIn an uncertain world there is reasonable certainty instating that air travel will increase in the future. Howairlines and airports will work together to addressthis increase is less certain but it is a necessity if theyintend to deal with the cost implications that are thelegacy left behind from decades of fragmentation,inefficiency and uncoordinated operations.The activities of airlines and airports work together more efficiently andare complementary in nature but the transparently with the common goal ofindustry is in need of better coordina- improved overall performance, bring-tion between all the aviation partners, ing a common situational awarenessi.e., Airport Operations (Airport between all partners involved asOperators, Ground Handlers), Airlines well as refining the processesand 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 shareinformation and
  2. 2. the way we do itFigure 1: CDM Triad AIRPORT • Optimize the use of airport infrastructure OPERATIONS • Airport Operations • Reduce congestion • Ground Handling • Reduce ground movement costPARTNERS INVOLVED IN CDM • Optimize the use of ground handling resources & THEIR OBJECTIVES COLLABORATIVE DECISION MAKING AIR TRAFFIC CONTROL • Flexible pre-departure planning and • ATC reduction in slot wastage • Reduce Apron and taxiway AIRLINES congestion • CFMU • Improve Predictability • Improve On-time performance • Real time updates to network • Higher turnaroundSources: 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. 3. the way we do itRegulatory Compliance - The Single and information flows between each ofEuropean Sky initiative was launched the areas are in need of 2004 to provide a unified regulatory There is a pressing need for transitionframework for implementing solutions to a process-centric approach, with theto absorb the traffic increase while focus on different functions workingensuring a high level of security. The together to create a smooth air-to-airdeployment phase of the Single Euro- transitional flow.pean Sky ATM Regulation will start in2014 and will require implementation Underutilization of capacity – Theof a new air traffic management infra- more delays there are at an airport thestructure, composed of fully harmo- more it appears that all resources arenized and interoperable components being utilized but in fact delays meanacross European airports. inefficient use of airport infrastructure, limited airport throughput, poor slotLack of coordination in the Air Traffic compliance, and frequent late standManagement (ATM) Network - The and gate changes, all of which stretchaviation industry is highly fragmented the airport’s capacity to its limits.and coordination, not just betweenpartners but also between various air- Simply optimizing the use of currentports, is lacking. Problems at a single available capacity through technicalairport can affect the entire network. solutions will not be sufficient to ac- commodate market developments inAs illustrated in Figure 2, decades of the years to come. The solution is notfunction-centric operations in the air- just to create new capacity but also toto-air process have achieved reason- ensure that the available capacity isable 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. 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- organization’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. 5. the way we see itFigure 3: Challenges Facing Airports KEY BUSINESS OBJECTIVES MARGINS PERFORMANCE QUALITY IMPROVEMENT IMPROVEMENT OPTIMIZATION HOW AIR TRAVEL VALUE CHAIN CHALLENGES POSE BOTTLENECKS TO AIRPORTS • Loss of income from fewer • Reduced runway, taxiway, • Inability to maintain high flights processed airfield and aircraft processing quality standards without INCREASE IN AIR TRAFFIC • Reduced bargaining power efficiency incurring additional costs • Higher cost of coordination between functions • Higher regulatory and • Inability to accommodate • Reduced quality when compliance costs regulatory requirements into accommodating regulatory REGULATORY • Reduced image and reputation processes requirements into processes COMPLIANCE of airport in case of non- compliance • Higher delay penalties • Increasing delays in throughput • Quality of individual functions LACK OF COORDINATION • Higher Operating and of flights is hit as workflow is not Maintenance costs • Dissatisfied passengers coordinated IN THE ATM NETWORK • Underperforming staff • Reduced predictability of functions • Improper asset utilization and • Inefficient allocation and • Reduced asset and management sorting of flights infrastructure quality UNDER UTILIZATION OF • Inability to build capacity CAPACITYSources: Distribution Lab AnalysisHow CDM Helps Congestion at runways, taxiwaysUsing 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 planeswithin 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 qualityAirlines across all flights. The result is reducedAirlines are faced with reduced flex- brand appeal and image problems foribility and increasing congestion at the airlines.airports, leading to lost business andhigher costs. How CDM helps CDM smoothes out the flow of airAirlines are impacted on margins by traffic and flight management taskscost factors such as increase in fuel between various travel chain players.consumption as air time is increased, It enables airlines to focus more onpenalties from cancellation and delays business improvement and service lev-and additional allocation of manpower els, which helps improve their marginsdue to nonalignment of services. All of and efficiency.these lead to an increase in operatingcosts.
  6. 6. the way we see itFigure 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 PROCESSSTREAMS TECHNICAL/ARCHITECTURE LINK INFORMATION FLOW CHANGE MANAGEMENT UNIFIED PROJECT MANAGEMENTSources: Distribution Lab Analysis How to become CDM The key phases are as follows: compliant: Capgemini’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. Capgemini’s DELIVER set of methods and methodologies, which form the Key tasks revolve around defining a real core of Capgemini’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, Capgemini’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. 7. the way we see itPhase III: Transparency in times. This information is shared withSequencing the Central Flow Management UnitThis phase promotes a more efficient (CFMU).and egalitarian sequencing process forflight management. Phase V: Business Continuity PlanningKey activities areas are mapping AS-IS The final phase focuses on preparingtaxi time calculation and sequencing for contingencies and/or emergenciesprocess and at the same time identify- by building a business continuity various parties and factors thatinfluence 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 businesssoftware 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 overallPhase IV: Dynamic Take-off bottom-up strategy is that it offersPredictability broader operational coverage in theNext we look to improve take-off pre- early phases and gives higher visibilitydictability 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 theinclude building data flows from key tasks/activities required for follow-turnaround and sequencing processes ing the Roadmap to complete CDMto calculate more accurate take-off compliance Figure 5: Transformation Map Establish Disaster recovery andTECHNICAL/ARCHITECTURE LINK AS-IS analysis of Business Contingency plans for all IT Full CDMTECHNICAL/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 SEQUENCINGBUSINESS PROCESSBUSINESS 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. 8. the way we do itIf you would like to learn more aboutCapgemini’s CDM ImplementationRoadmap and how it can help yourorganization, please contact:Hikmat Mahawat KhanCenter of Excellence AviationTel: +31 30 689 5300Mob: +31 6 15 030 About Capgemini and the Collaborative Business Experience™ Capgemini, one of the The Group relies on its global world’s foremost providers delivery model called Rightshore®, 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. Experience™. More information is available at Rightshore    is a trademark belonging to Capgemini.  ® Copyright   2010 Capgemini. All rights reserved. ©