CHAPTER VII: RECENT PROCESS IMPROVEMENT INITIATIVES FOR AIRPORT

MANAGEMENT

7.1 Introduction

There has been increasing pressure for improvements in airport performance through

efficient and sustainable management of existing airport resources. But in order to improve

performance, one should first be able to assess the present status. This has stimulated vigorous

research efforts aimed at modeling all aspects of airport operations and evaluating quantitatively

their impacts on delays and congestion, safety, the environment and the economy at large.

The airport performance assessment is a complex task that requires thorough

understanding of the numerous aspects of airport operations and processes. By definition, a large

variety of performance measures (e.g. capacity, delays, and level of service, safety, security,

emissions, noise, economic costs and benefits) should be considered along with their

interdependencies and trade-offs. The airport decision making process is further complicated by

the diversity of entities processed (passengers, baggage, cargo and aircraft) and the range of

strategic, tactical, and operational considerations that need to be addressed throughout the

airport, from ground access to the terminal airspace.

7.2 Historical Developments in Process Axis.

Since the dawn of industrialization there have been continuous efforts by managers to

maximize productivity by improving processes. In pursuit of better management systems

primitive approach was to focus on man behind the machine. Most initiatives were aimed to

motivate the worker and train him better to increase productivity. As the complexity grew, these

efforts reached saturation and couldn’t produce desired results. Focus thus shifted on the

processes to increase efficiency and productivity. Early initiatives were very basic and

highlighted need for clear job description and performance monitoring systems. Slowly they

evolved into complex computer aided systems which controlled and monitored all the activities

and were the binding soul of an enterprise. Some of the most common Process Improvement

Initiatives being used world over by Airports to enhance their productivity are as given below:

i) Best Practice Benchmarking

ii) Total Quality Management (TQM)

iii) Balanced Scorecard

iv) Business Process Reengineering

i) Quality Management Systems (e.g. ISO9000/BS5750or similar)

ii) Business Excellence Model / EFQM

iii) Value Based Management

iv) Malcolm Baldridge Award

7.2.1 Best Practice Benchmarking

It is the process of comparing the performance of any airport, measured in several ways,

with that of the best in the Region. It is a relatively new process, which was developed to help

manufacturing industries increase their productivity. With the globalization of the airport

industry, individual airports are increasingly being compared on a worldwide basis. It is time to

apply benchmarking to airports to improve their processes and also compare their performance

objectively. The Benchmarking Process involves four basic process steps as given:

1. Identification of key indicators of performance or capacity;

2. Selection of comparable facilities worldwide;

3. Collection of the relevant data;

4. Objective Analysis of the data and the consequent ranking of the facilities worldwide.

Benchmarking is easy to comprehend, but difficult to implement. Data are difficult to

obtain, and are often not fully comparable when available. Physical characteristics which one

might think are obvious and easy to count or measure requires much effort and time. More subtle

characteristics of airports, while potentially more interesting, are likely to be much more

difficult.

7.2.2 Total Quality Management (TQM)

In the mid 1940s, Dr. W. Edward Deming developed Total Quality Management. It is

defined as a continuous effort by the management as well as employees of a particular

organization to ensure long term customer loyalty and customer satisfaction. Guidance to

management under Total Quality management can be divided into four categories:

Plan

Do

Check

Act

It is also referred to as PDCA cycle.

Planning Phase

Planning is the most crucial phase of TQM. In this phase process owners have to come up with

their problems and queries which need to be addressed. They need to come up with the various

difficulties they face in their day to day operations. Process owners are required to do necessary

research and collect relevant data which would help them find solutions to all the problems.

Doing Phase

In the doing phase, process owners develop a solution for the problems defined in planning

phase. Strategies are devised and implemented to overcome the challenges faced by them. The

effectiveness of solutions and strategies is also measured in this stage.

Checking Phase

Checking phase is the stage where people actually do a comparison analysis of before and after

data to confirm the effectiveness of the processes and measure the results.

Acting Phase

In this phase process owners document their results and prepare themselves to address other

problems and continue this process all over again.

7.2.3 Balanced Scorecard

It is a strategic planning and management system which is used extensively in business

and industry worldwide to align business activities to the vision and strategy of the organization.

It improves internal / external communications, and monitor organization performance against

strategic goals. It was originated by Drs. Robert Kaplan (Harvard Business School) and David

Norton as a performance measurement framework that added strategic non-financial

performance measures to traditional financial metrics to give managers and executives a more

'balanced' view of organizational performance.

It has evolved from its early use as a simple performance measurement framework to a

full strategic planning and management system. It transforms an organization’s strategic plan

from an attractive but passive document into the "action plan" for the organization on a daily

basis. It provides a framework that not only provides performance measurements, but helps

planners identify what should be done and measured.

7.2.4 Business Process Reengineering (BPR)

It is the practice of rethinking and redesigning the way work is done to better support an

organization's mission and reduce costs. Reengineering starts with a high-level assessment of the

organization's mission, strategic goals, and customer needs. Basic questions are asked, such as

validity of the existing mission and its strategic goal alignment. During the process of rethinking

customer focus is maintained. An organization may observe that it is operating on questionable

assumptions and may not be aligned to the wants and needs of its customers. Only after the

organization rethinks what it should be doing in the light of changed business environment, does

it go on to decide how best to do it

BPR is suited for organizations, whose business processes are usually fragmented into

sub-processes and tasks that are carried out by several specialized functional areas within the

organization. Often, no one is responsible for the overall performance of the entire process.

Many a times it so happens that results are not achieved, but individually all the sub processes

were satisfactory. Reengineering maintains that optimizing the performance of sub-processes can

result in some benefits, but cannot yield dramatic improvements if the process itself is

fundamentally inefficient and outmoded. For this reason, re-engineering focuses on re-designing

the process as a whole in order to achieve the greatest possible benefits to the organization and

their customers by synergizing the whole process repeatedly. This initiative for realizing

improvements by fundamentally re working how the organization's work should be done,

distinguishes it from process improvement efforts that focus on functional or incremental

improvement.

7.2.5 Quality Management System (QMS)

It is a process-oriented quality and operations-management system. It assists in all

Airport operations, from the handling of lost & found and deviation reporting to how to conform

to the Regulator’s rules and regulations.QMS ensures a process-oriented way of working, by

providing optimal conditions for quality assured operations.

The ISO 9001:2000 standard deals with Quality Management System (QMS). It

emphasizes commitment from the Management to enhance customer satisfaction by meeting the

applicable regulatory requirements and to continuingly improve its performance in this regard.

The ISO does not regulate or authorize certification bodies but are left to the States. In India,

Quality Council of India (QCI) has been entrusted with the responsibility of accreditation of

Certification Bodies (CB) as Auditors' and also Training for this scheme. The Bureau of Indian

Standards (BIS) is a member of the Technical Committee for developing the ISO standards. The

Quality Council of India has different Boards under it, namely, National Accreditation Board for

Certification Bodies (NABCB) and National Accreditation Board for Auditors' and Training

(NABAT) for the purpose. All airports which use the guidance material of ISO to enhance the

overall quality of operation and exhibit it periodically to the auditors gets ISO-9001-certified

airports tag.

7.2.6 European Foundation for Quality Management (EFQM)

The EFQM Excellence Model offers a holistic view of the organisation, highlighting its

strengths and opportunities to improve. It is often used as a benchmarking tool and shows how

an organisation compares to its competitors and other leading Airports. It can also be used as a

management tool; it will help set the performance and competency objectives of the organisation.

The EFQM Excellence Model, consists of 9 criteria and 32 sub-criteria, which break down

organizational management into fragmentation that may result in self-assessments lacking

integration and focus. It can be used as a strategic evaluation tool as well.

The 4 result areas focus on what's important to the 4 key stakeholder groups (Business,

Customer, People, Society).At the simplest level, the Model is a cause and effect diagram. If we

want to achieve a different result, we need to change something we do within the organisation.

This Model provides a framework for understanding which actions we need to initiate in order to

achieve the results we want. Standards considered excellent today will only be considered as

adequate tomorrow, there is a continual improvement loop, feeding back the learning from the

results achieved and using creativity and innovation to drive increased value for all the

stakeholders.

7.2.7 Value Based Management.

VBM is different from other traditional planning systems. It is not a staff-driven exercise,

but focuses on better decision making at all levels in an organization. It recognizes that top-down

command-and-control structures alone cannot work well, especially in large multi business

corporations of today. Instead, it propagates managers to use value-based performance metrics

for making better decisions. It values managing the balance sheet as well as balancing long- and

short-term business perspectives.

VBM can best be understood as a convergence between a value creation mindset and the

management processes and systems that are necessary to translate that mindset into action. In

isolation, either element is insufficient, taken together; they can have a sustained positive impact.

A value creation mindset means that ultimate business financial objective is to maximize the value;

that managers have clear rules for deciding when other objectives (such as employment or

environmental goals) outweigh this imperative; and that they have a solid analytical understanding of

which performance variables drive the value of the company. Managers must know, whether more

value is created by increasing margins or by improving revenue growth, and they must ensure that

their strategy focuses resources and attention on the right option.

7.3 Recent Developments in Airport Process Improvement

Last couple of decades has seen tough competition amongst Auto manufacturers. Auto

companies like Toyota and Honda have significantly increased their market share at the cost of

American Auto makers. This has led to much focused campaign in American and European

academia to highlight the causes for the same. Many of these studies have flooded the process

improvement domain with Japanese terms. These studies have also produced many

“copy approaches” in the shape of Six Sigma approach and Lean Management. Some of the

most popular process improvement applicable specific to airport industry are as given below.

7.3.1 Total Airport Management (TAM)

Introduction

Total airport management is the operational process-control of the whole complex of

aircraft-related ground management. Main stake holders are thus all types of support

organisations operating on the airports' air side functions which are involved in handling the

aircraft during arrival, departure and on the ground. In the beginning, the land side functions of

an airport (e.g. passengers, cargo etc.) are not included, although they could be included

subsequently when its implementation matures. TAM Performance-based airport operations are

required for a future performance-based ATM system as prescribed by SESAR for EURO

CONTROL. Similar systems are being proposed in Asian region and KLIA (the Kualalampur

International Airport) has already implemented the salient subsystems of TAM.

The concepts of TAM aim at an integrated airport management, where all stakeholder

processes - landside and airside - are conducted using a common data set. Furthermore, an option

for increasing the throughput is to optimise the airport operations. Nowadays operational

improvements concentrate mostly on single solutions, consider short term planning and are

implemented in a piecemeal manner. Stakeholders at the airports often do not realise the impact

of their actions on other stakeholders in an integrated environment. And quite often they do not

know how other stakeholders react in a given situation. These uncertainties and complex

interactions, especially in highly specialized and isolated aviation environment, have negative

impact to the efficient overall use of stakeholder’s resources. TAM basically provides a holistic

approach towards optimisation of Airport assets by better coordination of process improvement.

The process

TAM concentrates on the planning phases of the day of operations using the most

accurate information available. The spatial scope of TAM is the entire airport, while taking into

account additional information available through communication networks and also surrounding

airports. TAM is introducing an environment wherein stakeholders are given the possibility to

maintain an Airport Operations Plan (AOP) by having access to all related information in layered

architecture. The AOP will be created through different planning systems depending upon the

scope and density of operations at the target Airport. The flight plans, airport parameters, key

performance indicators, stakeholder preferences, agreed goals and dynamic and static constraints

are all integrated for access by different stakeholders in holistic view and automated rules can be

created alerts for intervention.

The core element of the TAM management layer is the AOC (Airport Operation Center).

AOC enables various stakeholders to jointly organise and coordinate their activities under the

full situational awareness and impacts of joint decisions on their own and others’ operational

plans. The AOC can be either a centralised physical control room or a distributed solution,

connecting stakeholder representatives by existing and new means of supporting IT tools for

joint collaborative decision making.

Benefits and improvements of implementing TAM12

Implementation of TAM invariably results in increased efficiency and productivity of the

airport operations because of proactive reaction on upcoming bottleneck situations and

restrictions and better coordination of all the stockholder activities. As TAM is a system of

systems its implementation leads to better decision making by stakeholders based on increased

situational awareness .It also leads to enhanced predictability of the traffic flow at the airport

which results in optimum capacity utilization of capacity.

7.3.2 Airport Collaborative Decision Making (A-CDM) 13

Airports suffer from having a limited number of stands from queues on the runway, late

or inaccurate information to passengers and insufficient use of capacity during adverse

conditions and taking a long time to recover from these conditions. The problem is getting worse

due to ever increasing growth in traffic demands and inability and difficulties faced by airports to

enhance capacity.

12 Total Airport Management by Dr. Henning Hartmann at https://www.eurocontrol.int/eec/public

/standard_page/proj_CARE_INO_I_Total_Airport.html

13 http://www.euro-cdm.org

Airport Collaborative Decision Making (A-CDM) is one of the solutions developed to

overcome these problems by improving the predictability of events and optimising the use of

resources. Its foundation is based on cooperation between the many partners involved in flight

operations at an airport. It helps in resolving unstructured problems of heterogeneous groups.

The Airport CDM concept is divided in the following significant Elements:

(i) Information Sharing

(ii) Milestone Approach

(iii) Variable Taxi Time

(iv) Pre-departure Sequencing

(v) Adverse Conditions

(vi) Collaborative Management of Flight Updates

Benefits

A-CDM is the concept which aims at improving Air Traffic Flow and Capacity Management

(ATFCM) at airports by reducing delays, improving the predictability of events and optimising

the utilisation of resources. It brings shared advantages for the air traffic management (ATM)

network as a whole.

Network Manager at such airports have access to more up to date and accurate

information leading to better network planning whereas the airport operator gain by improved

use of stands/gates. More accurate arrival times and planning leads to Better use of resources for

the ground handling agents and the aircraft operator get improved awareness about the

status and location of the aircraft, more accurate fleet predictions. Thus by achieving overall

efficiency because of collaboration the passenger benefit due to reduced delays and probability

of missed connections, better reliability on flights meaning improved customer satisfaction

7.3.3 SITA Day of Operations BI 14

SITA (Business Intelligence) solution provides a dynamic view of your airport

ecosystem at a strategic and operational level. Using this unique, cloud-based BI portal,

managers can view critical data to monitor, measure, and predict daily airport operations. This

software solution can turn data into knowledge to improve operational efficiency and the

customer experience Focus on what matters: business drivers and their performance. Various

components of this proprietary solution are:

i) Operations Analyzer. It provides Analytics to measure airport operational

performance and insight into flight-related operations, including planned versus actual

arrivals and departures, resource utilization, on-time performance, and operations trends.

Powerful and fully customizable, it offers enhanced statistics and historical analysis.

Operations Analyzer provides vital decision-making support for airport management

teams that have to maintain service standards while managing continuous growth,

deviations from plan, and frequent irregular operations

ii) Flow Predictor. It provides highly accurate passenger flow forecasts for the

next 24 hours, enabling proactive management of the airport environment and provides

real-time predictions of operational flow challenges. Forecasts are generated

continuously, always using the current situation in the airport, and reflecting any change

within minutes when updating forecasts.

iii) Common Use Analyzer. Its primary function is to collect and analyse

common use data. Airport management’s ability to implement improvement initiatives is

restricted due to lack of access to daily operations and historical data. With Common Use

Analyzer, airport operators can analyze report and benchmark passenger movements,

getting a deep understanding of relevant activities.

14 Overview 3/30/2016 SITA 2/4 at www.sita.aero/solutions-and-services/solutions/day-of-

operations-bi

iv) Queue Analyzer. Passenger comfort and convenience is adversely impacted

with long queues at security and bag carousels. Queue Analyzer monitors and predicts

queue-times at key airport chokepoints, allowing airport operators to proactively allocate

resources and staff to improve operational efficiency and the passenger experience.

Combining historical and real-time data with powerful algorithms, Queue Analyzer

delivers highly accurate wait-time predictions for future. It also provides automated

metrics for performance, trending, and service level reporting. The results can be

displayed in real-time to passengers on screens, websites, and mobile applications.

v) Flow Analyzer. It analyzes passenger flows by departures, arrivals,

transfers, and visits across all facets of the airport. Leveraging historical and near real-

time data, Flow Analyzer uses powerful algorithms to deliver accurate flow patterns,

dwell times, and path analysis reports and statistics. Combined with flight data, Flow

Analyzer can also segment passenger flow by airline, extending brand and digital signage

value by path.

vi) Data Explorer. It provides fast access to data so that airport managers can

make more informed and faster decisions. Data can be explored from many angles,

analyzed with different query types, and displayed using various graphical

representations.

Various Benefits of this proprietary solution are improved decision making and

operational performance and improved airport experience for all stake holders. It also Increases

non-aeronautical revenues and helps management achieve reduced wait-times.

7.4 ICAO guidance on performance management.

ICAO has provided guidance on airport performance management in two documents listed

below. In these documents, ICAO recommends that States ensure that airports have performance

management systems in place, and that those systems include one or more performance

indicators in four specified key performance areas.

ICAO’s Policies on Charges for Airports and Air Navigation Services (Doc. 9082). It states that

“performance management is an important management tool for providers, users and regulators”

and recommends that States ensure that providers develop and implement appropriate

performance management systems that include:

i) defining performance objectives with the purpose, as a minimum, to continuously

improve performance in four key performance areas (KPAs), i.e., safety, quality of

service, productivity and cost effectiveness, it being understood that States may choose

additional KPAs according to their objectives and their particular circumstances;

ii) Selecting and reporting at least one relevant performance indicator and its target for

each of the KPAs selected;

iii) Using the results to evaluate and improve performance; and

iv) Undertaking consultations with users and other interested parties to achieve a mutual

understanding and consensus, where appropriate, on performance objectives, level of

performance targets and plans to achieve the targets.”

ICAO’s Airports Economics Manual (Doc. 9562) 6, currently being revised, includes guidance

on establishing a performance management system, descriptions of the four KPAs listed above, a

list of several Performance indicators (PIs) for each of the four areas (without a detailed

description of the individual PIs), and a discussion of benchmarking.