Industry Insights

Times are tough in the aviation and distribution industries.

In the Winter 2008 / 2009 issue of our newsletter Delivering Results, T&L looks at how Operational Research and Industrial Engineering techniques can help our client industries to make cost reductions and improve performance in a difficult climate.

O.R. techniques play an important role in T&L’s work in identifying improvement opportunities and developing efficient operations for the aviation and distribution industries. We combine these techniques with industrial engineering disciplines to fully realise improvement potential in a live operating environment. This article focuses on the O.R. techniques of Optimisation and how they can be used to improve check-in desk planning.

Optimisation: A Definition
Before we start, lets define what we mean by optimisation. Optimisation is the technique of finding the best solution to a problem out of all feasible solutions. As an Operational Research method, the process involves mathematically modelling or structuring a problem to identify possible solutions and establish an optimal solution.

This insight demonstrates an O.R. approach to providing an optimised solution to a typical check-in desk planning issue.

Would you like to understand more about how O.R. techniques are relevant to current aviation industry challenges?

Through a series of ‘bite-sized’ articles, T&L will provide a taste of the broader, practical use of O.R. skills and the benefits they bring in aviation and logistics operating environments. Distributed on an adhoc basis over the next few months, this collection of mini insight texts will demonstrate how T&L applies O.R. techniques, using real life industry examples.

Before we begin to focus on specific techniques and their application in future Insights, this first article briefly discusses what Operational Research is and what it means to T&L in aviation and logistics environments.

Airlines are routinely posed with the challenge of queues, congestion and dissatisfied passengers at their airport ground operations during peak travel periods. Such issues are often caused by capacity constraints that may be in the form of insufficient capacity or inefficient use of available capacity.

We look at how Transport & Logistics Consultancy (T&L) applied Operational Research techniques to help bmi optimise its check-in capacity and improve the check-in experience from a passenger perspective, at its Heathrow Airport operation.

Airline punctuality has been a much discussed topic for many years and continues to be so, even at the White House. Punctuality is clearly a key performance measure for airlines; but in many cases not enough progress is being made to improve it.

We will explore one of the reasons for the late departure of aircraft: ground handling delays. We discuss the key considerations in identifying the root causes of ground service delays and taking actions to provide for a consistently punctual turnround process.

The Olympic Games pose a major logistics, security and infrastructural challenge, particularly during peak periods. Whilst the peaks of transport and sports facilities differ in scale, there is a clear area of commonality: if managed ineffectively, the outcomes of the peak period are queues, congestion and dissatisfied customers.

And unfortunately, in the current security climate such crowds are a target. We highlight some of the key considerations of transport and facility operators in preparing for the Olympic period.

The aviation industry is currently faced with an array of challenges: departing on time, delivering bags to the right place on time, managing the passenger experience and making profit are priorities for aviation operators. Many industry players turn to external expertise, aviation consultancy, to assist in achieving these goals.Aviation consultancy: a phrase that has different meanings to different suppliers and users.

In the following paper, T&L describes its approach in delivering this service to clients worldwide. We look back at some of the ‘events’ of 2006 and apply an operations perspective to consider some of the global challenges the industry, and aviation consultants, may face in 2007.

The passenger security screening process is typified by congestion, queues and delays during peak periods at many airports. This is often caused by an imbalance between capacity and demand, which may be intensified by increased aviation security measures, and leads to disruption for operators and dissatisfaction for passengers.

Transport & Logistics Consultancy applies process engineering and demand-driven planning techniques to assist airport operators in maximising the use of available capacity and providing a regulated passenger flow through the airport.

The parcel delivery driver day, starting with package sort and ending with the unloading of collected items, may appear to be maximised. However, driver time may not be used in the most efficient manner; this may be negatively affecting the operations performance.

As fare competition intensifies, airlines continuously look to other revenue sources to improve profitability. Whilst excess baggage fees are actively charged by many airlines, their potential is often not maximised.

Airlines and ground handling agents require solutions that optimise revenues without negatively impacting check-in transaction rates.

Careful and accurate advanced planning is important to operate effectively. However, in a fluctuating environment, to achieve efficiencies it is important for the airline to avoid waste caused by allocating resource at the wrong time.

By balancing the effects of production areas in the end-to-end departures and arrival processes, the airport operator is able to produce one planned, lean production chain. To achieve this, it is important to understand the interdependencies between processes.