Gst5083 mis w1 a2 schiphol

LECTURER : Prof. Dr. Rusli Abdullah
Team Members:
§Cherry Linda Keripin (P14D393P)
§Elina Tiu Chai Hui (P13D160P)
§Alexander Mathew Kana (P14D384P)
§Gesna Michael Jepus (P14D400P)
§Teo Chiat Huat (P14D395P)
GST5083 : INFORMATION SYSTEMS AND E-
COMMERCE
Week 1 (Assignment 2 – SCHIPHOL INTERNATIONAL HUB)

GST5083 : INFORMATION SYSTEMS
AND E-COMMERCE
Brief Introduction
Amsterdam Schipol International Airport is the Netherlands’ main
international airport, located 9 km southwest of Amsterdam.
This airport has grown to become one of the largest airports in
the world.
Schiphol is an important European airport, ranked as the 4th
busiest and the world’s 14th busiest, by total passenger traffic
in 2013. Total passenger traffic of 51 million passengers
passed through in 2012 and handling about 1.5 million tons of
cargo.
Schiphol’s main competitors in-term of passenger traffic and cargo
throughput are London Heathrow Airport, Frankfurt Airport, etc.

AND E-COMMERCE
Brief Introduction
Most of the job involved Schiphol’s gigantic baggage conveyor network:
• 21 km of transport track
• 6 robotics units
• 9,000 storage capacitors interfaces to each others as 1-system
According to 2009 IATA CATS survey, efficient baggage handling is the 2nd most important factor in
having a pleasant trip. This statement shows the important of “Baggage Handling Processes” as
yearly the airport lost about $2.5 billion to mishandled baggage which is affecting 51 million
passengers.
Goals to achieve:
“The right bag must be at the right place at the right time”
~ this can only be achieved by ensuring bags from check-in area are properly transported to the
correct departure gate, bags moving from gate to gate for transit passengers are correctly
transported to the departure gate, and bags from arrival gate correctly transported to baggage claim
area. All these activities have to be synchronized to ensure tasks are completed within the précised
time period allowable to avoid bags been left behind and airplanes departed.

AND E-COMMERCE
Brief Introduction
In 2004, IBM Corporation and Vanderlande Industries together with
Grenzebach Automation Systems jointly develop the “Baggage
Control System” with an investment of about $1 billion over a
period of about 10 years for continuous enhancement for an
efficient and effective information systems.
This renewed “Baggage Control System” implementation are for the
achievements of:
(a)Able to realize a maximum monumental 1% on loss of transfer
baggage (early years, the initial lost baggage is about $122
million)
(b)Able to increase capacity from 40 to 70 million bags
(c)Able to reduce cost per bag without increasing wait time.

AND E-COMMERCE
Brief Introduction
The new Baggage Control
Information System
assisting in
automating the
movement of
baggage from its
current location to its
destination
minimizing on
mishandling &
errors:
FUNCTIONS OF THE NEW “BAGGAGE CONTROL INFORMATION SYSTEM”
DCVs FRID Automatic bar code
scanner
High tag conveyor
 Unmanned carts that load and
unload bags , moving at high
speed without stopping
movement to receive bag
 The conveyors are precise in
depositing bags where they are
supposed to be at right time for
maximum efficiency
 Buffers and hot/cold storage areas
are used to avoid overcrowding
 To keep track of the location of
each bag, it’s destination and the
time it is required to be at
designated location.
 To make sure that bags are not
lost, the system reconciles
information on the bag tag
against it’s owner whereabouts
when the passenger check-
in/out of the airport.
 To scan all bags
once bags reach
the respective
gates.
 System to optimize
the routes taken by
DCVs and to sort the
bags needed most
urgently to the
designated gate
especially for
departure.

AND E-COMMERCE
Q1. How many levels of complexity can you
identify in Schiphol’s baggage conveyor
network?There are 4 levels of complexity in Schiphol’s baggage conveyor
network from the various baggage handling points ie bags
check-in, moving bags to gate for departure/arrival besides
storage areas for bags for transit:1. Physical complexity:
(service, logistics & transport
management)
• The network system needs to track, maintain,
store and retrieve location of bags as well as the
owner of the bags for the system to efficiently
manage the flow of bags to it’s destination.
• Challenges faced are such as unreadable tag,
mis-tagged or flight schedule changes which the
information network system needs to
automatically tracked and managed the baggage
optimal routes efficiently to avoid mishandling of

AND E-COMMERCE
Q1. How many levels of complexity can you
identify in Schiphol’s baggage conveyor
network?2. Business Complexity:
• The baggage conveyor network are used by many airlines and they are many
different business processes to handle as each business unit might have
differences of their processes
• The baggage conveyor network must be able to cope with different baggage
governance policies and taking interest to ensure positive business feasibilities at
all times.
2. Social Complexity:
• The information system must be user-friendly to enable easy handling of
passengers bags so as to maintain an efficient and effective baggage network
conveyor network system that helps passengers having pleasant travelling trips,
reducing mishandling/lost of bags.
2. System (hardware & software) Complexity:
1. For the different technologies to work cohesively together (software & hardware
such as conveyor belts, unmanned carts, scanners, security checkers, storages
areas, etc) the infrastructure must be very flexible and scalable to handle the

AND E-COMMERCE
Q2. What are the management, organization, and technology
components of Schiphol’s baggage conveyor network?
1. Management components:
• These consists of management of various airline companies governance policies,
storage and inventory management, processes in handling mishandling of
baggage, baggage transportation priority management besides the safety
management.
• Human resource management in working towards the same goals as employees
belongs to different airline companies working together handling different tasks in
the baggage processing,
1. Organization components:
• Involves in the scheduling and allocation of various hardwares in transporting
baggage from check-in point to departure gates/ arrival of baggage to baggage
claiming areas besides handling transit baggage at cold/hot storage areas.
ü Tag passengers bags at check-in desk which consists of flight information/bar
code/FRID that allows the baggage control information system to read and
handle the baggage appropriately.

AND E-COMMERCE
ü Baggage are scanned once and information system will redirect it based-on 3
parameters:
1. Time of its flight
2. Priority
3. Size
ü This is a unique business process which helps to increase baggage
processing capacity efficiently and effectively based-on the intelligent outing
and optimization function in-built in the Baggage Control Information System.
3. Technology components:
• Ensuring cohesive integration of the various technologies such as physical
conveyor belts, check-in machines, automated check-in units, security scanners,
safety screeners, storage capacitors/dynamic cold/hot-baggage buffers/unmanned
carts/robotic units.
ü System handles 3 million lines of source code with wide variety of sensor,
actuators, mechanical devices and computer
ontinue…

AND E-COMMERCE
ü This advance baggage-handling system which includes DCVs (destination-
coded vehicles) automatically read the information through bar code
scanners, using radio-frequency identification (RFID) tags and high-tech
conveyors equipped sorting machines  handles the flow of baggage through
the conveyor belts automatically reaching it’s designated locations within the
allowable time-frame.
ontinue…

AND E-COMMERCE
Q3. What is the problem that Schiphol is trying to solve?
Discuss the business impact of this problem.
Key problem that Schiphol is trying to solve are:
1. Mishandled baggage which costs the industry $2.5 billion yearly,
annually affecting 51 million passengers travelling through
Schiphol.
2. Through survey done in 2009 by IATA CATS, baggage handling
is the 2nd most important factor in having a pleasant trip.
Schiphol has a challenge to improve the efficiency in baggage
handling as dissatisfied customers might re-route to other
neighboring airports bring a drop to Schiphol revenue stream.
With the new Baggage Control Information System, Schiphol
estimated that their operations will improved through a
throughput of 99.9%, minimizing loss and damage by 0.01%

AND E-COMMERCE
Q3. What is the problem that Schiphol is trying to solve?
Discuss the business impact of this problem.PROBLEM BUSINESS IMPACT
Mishandled baggage Loss $2.5 billion problem for Schiphol yearly and this problem annually impact about 51
million passengers who travel through this airport alone.
Increase efficiency in
baggage handling
 Sensors track the baggage of connecting flights, enabling real-time traceability at all
points of the connection routes
 Estimated that this system operate at 99.9% most of the times with this new system,
which enable minimizing of loss and damage to 0.01% and a successful implementation
of this system will save the airport operations by 0.1% of $2.5 billion per annum.
 It is projected that the new system will takes about 10 years for full implementation, and
throughout this period, there’ll be upgrading and enhancement to take care and a good
thing is the new system is an integrated system which is scalable, meaning that upgrading
or enhancement will not cause a total down-time as system can be separately maintain.
Do not have
interconnected system
and intelligent system
 A seamless fully integrated data solution for Schiphol’s own system and 3rd party ground
service providers system from various airline companies
 The in-built intelligent integrated system is able to compare a bag’s locations with
underlying routing optimization routes of the bag(s) and the owner of the bag(s) allows
Schiphol Baggage Control Management System to identify potential problems and keep
bags from missing from their owners’ connecting flights/flights.

Gst5083 mis w1 a2 schiphol

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