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An official Air Cargo Standard Business Process Model

Michael Morey, Air Canada CargoJune 2014 Geneva

A reference for dialogue with stakeholders in the air cargo industry

in order to develop the most effective processes

and enhance the air cargo supply chain

The Master Operating Plan

IATA Recommended Practice 1683

Objective

Present the concept of enhancing the Value and Role of the MOP as an Industry Standard:

IATA Recommended Practice 1683 MOP versus Overlay Maintain consistency in process

sequence of events interfaces & handoff possession of goods, ownership of information

Vision(MOP as the Standard Business Process)

• Common reference of the end-to-end business process for the Air Cargo industry at large• Basis for discussions between supply chain participants on industry

process• Basis for discussion with regulators• Foundation to drive industry transformation and continuous

improvement• Quality and process management• Paperless transformation• Security & Customs compliance• SOP development• <Enter group name you are presenting to>

Past use and future MOP Value

Initially created as the business process mapping for C2K quality management specifications

Used as the business process mapping for e-freight

Interest manifested by WCO for further information and potential presentation (Doha March 2013)

Formal presentation to WCO in October 2013

Presented to the European Commission for purposes of discussion on EU PRECISE (Brussels April 2013)

Access to the MOP The MOP as a description of the industry/supply chain processes and key milestones

is accessible publicly to anyone from the IATA website http://www.iata.org/whatwedo/cargo/cargo2000/Pages/master-operating-plan.aspx

Overall vision MOP vs. ‘Overlays’

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Industry MOP

Overlays for specific areas

e-freight Operating Procedures (e-FOPs)

Customs overlay

MOP Change Control Board (CCB)

Security overlay

Overlayname

Governance and management of ‘Overlays’ by relevant industry groups and task forces

Governed by

e-freight central action group (eCAG)

• IATA CUSAG

• IFCAG

• IATA CSTF

• TIACA• FIATA

C2K - Quality management process specs, definitions, etc. Phase I/II/III

C2K boards and working groups

MOP as common industry model

Quality and process management

Paperless operation

Regulatory - Customs

Regulatory - Security

Others..

• Relevant group name

What is part of MOP and what is not

Generic description of the tasks performed by each supply chain participant

Key milestones within the supply chain process

Technical specifications for process control using the MOP as reference constitute a separate part of the C2K value proposition Access to the benefits of certification and quality

measurements All other C2K documents, rules, etc.

‘MOP’

PART OF QUALITY AND PROCESS MANAGEMENT (C2K) ‘OVERLAY’

How to use the MOP

MOP can be used generically for discussion with your own working group or task force to ensure consistency in the process sequence of events and process ownership interfaces & handoff possession of goods, ownership of information

An overlay can be created specific to a particular requirement It contains a view of activities or meaning to the relevant sub-

processes It communicates the nature of the process enhancement and the

role of different stakeholders

High Level MOP

Open this box to the next detailed level of activity

Step 1

Process P01 Detail

Activity

Sample use of MOP(advance cargo data example)

Sample use of MOP(e-freight example)

Proposed use of an Overlay(within your specific context)

Get the group together with relevant participants

Download the MOP (from the IATA website – specifics to be provided), read it.*

Identify the processes relevant to your group

Define the specific activities (milestones) your group would like to expand on

Notify the MOP Advisory Group that you are using the current published version of MOP as an overlay

Validate overlay with your key stakeholders

Publish and promote your overlay (optional)

* The MOP AG can explain and support

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AppendixBackground slides

References

Contacts: mop@iata.org

Links

IATA Website (to be defined)

MOP Advisory GroupTerms of Reference

The objective of the Air Cargo Industry Master Operating Plan Advisory Group (MOP AG) is to provide, and maintain, the reference description of the end-to-end air cargo industry business process as it was envisioned by the founders of Cargo 2000, and later further developed by the members. This document is called the Air Cargo Industry Master Operating Plan and is commonly referred to as the Industry Master Operating Plan, or Master Operating Plan (MOP). Among other information, the MOP describes the activities, tasks and milestones typically involved in transportation of cargo by air. Stakeholders in the air cargo industry have used, and intend to use, the MOP as the

reference document for a number of purposes, including the below (non-exhaustive list):  Description and development of cargo transportation procedures involving air cargo operators

– carriers, forwarders, handlers, shippers, road feeder operators, etc. Industry transformation and modernization initiatives where a description of the industry

business process is required. This can include paperless transportation, security, customs, operational improvement initiatives among others.

Any discussion with regulators or governmental authorities where a description of the industry process is required.

MOP Advisory GroupTerms of Reference

The MOP Advisory Group should consist of no more than (16) members and (5) Observers each being an expert in airfreight supply chain process operations within the scope of their own areas of responsibility. (ie Shipper, IT service provider, Ground Handler, Forwarder, Carrier).  

The MOP Advisory Group shall ideally include but not limited to members from each of the following stakeholders: Conventional Carriers Freight Forwarders Ground Handlers IT Service Providers Representative of C2K management team

Membership of the MOP Advisory Group should reflect as much as possible a fair geographical representation with a focus on operational expertise.

Other observers from industry stakeholders may attend the MOP Advisory Group meetings upon concurrence of the MOP Advisory Group chairman.

Origin of MOP Advisory GroupMOP “Rogue Group” 4 Sessions

January – September 2013

Revised C2K MOP (Master Operating Plan) release into public domain in 2012

Objective: discuss potential for using MOP to support various industry entities in discussions with regulators concerning changes and developments to various security programs.

Representatives from AEA/ IATA/ DHL Global Freight Forwarding/ Kuehne & Nagel/ Agility/ DB Schenker/ Air Canada/ Cargolux/ KLM/ Delta/ Swissport/ Champ & Cargologic

Subsequent meetings used to map in more detail activities related to general security as well as customs interface

Focus on main existing security regimes (US-ACAS, EU-PRECISE, CAN-PACT, EU-ACC3) and the E-CSD not excluding broader scope over time

Obtain official recognition of MOP as the Industry Standard Business model

MOP GovernanceStructure

Composition of the MOP Change Control Board (approval & coordination) Representative of C2K Representative of all industry representative associations who will

officially endorse the MOP as the Common model for the Industry Business Process description

Target members: IATA, TIACA, FIATA, GSF, ASA, possibly others.. Member entities of the board shall have endorsed the MOP by

means of a public statement Assign responsibility for representation on CCB to evaluate and

vote on any proposed change

Any represented organization can propose changes coming from their working groups or governing bodies to be reviewed by MOP Advisory Group and voted on by CCB