airport authority for improvement

8/3/2019 airport authority for improvement

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ISE 538 andrew wood 0020-- HKAA improve performance with new initiatives Page

Abstract / Conclusion

Every year, Hong Kong airport deals with millions of business travelers / holiday makers,Hong Kong airport does leave an impression on visitor’s mind on the high efficiency of an

international renowned airport. TQM is the essence of continuous improvement. Criticalsuccess factors has to be laid out first and trying to measure various performanceimproved initiative that could bring about synergy to the airport operation, providesworld class services to all of its passengers.

Keywords

Airport , services , CSF , performance indicator , performance evaluation, logisticshub

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ISE 538 andrew wood 0020-- HKAA improve performance with new initiatives Page Table of Content -- Content page

Hong Kong international airport authority -- performance and

process analysis of its successful implementation of its new creativemarketable initiatives

Chapter Page

A 1à Background 3

3Hong Kong [AA]--- a renowned world city with an airport inLantau

3

B 2à Outlining the objective of Airport Authority 4Its objective is its Core values including 4

Safety

Security

Operational efficiency

And environmental concern

C 3à Critical success factor CSF for new initiatives 4

Stages in CSF creation 4Passengers are interested in comfort, expedite queuing time …. 4

D 4à Performance indicator and Performance Evaluation 8

Quantifiable performance indicators 8Few examples of implemented plans 8Performance Evaluation 11

E 5à Limit to these performance indicator and few viable way toresolve all those limitations

13

Improving Weather Forecast Accuracy to improve flight promptness 13

R References and Bibliography 15

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The objective of this individual assignment :It is to apply the framework and concept on performance measurement, onto a real lifesuccessful organisation example

A -- background

B -- outlining the objectives of the organization

C -- state the Critical successful factors, how to monitor the progress, how will it bemeasured

D -- Performance Indicator -- main topic

E -- Limit of these performance indicator and how to resolve all those limitationseventually

A

Background – the perception of the Hong Kong international airport will leave a

long-lasting impression for our industry’s international business partners which in returnwould affect how successful Hong Kong doing business with the rest of the world. Inaddition, a comfortable surrounding in the airport with superb efficiency would reinforcethe tourist’s awesome impression of Hong Kong --- a renowned world city. A clean,efficient and impressive airport would inevitably leave our visitor a good perception,Hong Kong international airport implements TQM in order to achieve an even higherground as an ongoing process to improve its facilitated services.

The new Hong Kong international airport is located on a piece of reclaimed land inLantau island of Hong Kong. International flight handling and its passenger facility isbeing run by Hong Kong Airport Authority.

abbreviation:

Hong Kong Airport Authority --

3




B

Objectives of the airport authority

The airport authority set up the following core values as their objectives in its service: Safety

Security

Operational efficiency

And environmental concern

Despite its success in serving the staff and passengers, it continues to seek higherground by encouraging its employees to make recommendation about raising its ownstandard and implement those ideas in a busy logistics hub in SE Asia.

Safety refer to1. Workplace safety2. Identifying potential risk and drafting a contingency plan for different scenario and

situation - BUILDING computer simulation model for the effect of major constructivework in the existing passenger terminal service -- to evaluate its impact during therefurbishment

COperational efficiency -- Critical Success Factors

The CSF – Critical success factors would define key areas of performance that have toaccomplish before declaration of a successful mission. Consultants with managersaddress these knowingly key areas when they set up their goals and they would directthe operational activities and task that would directly lead toward the goals. For a bigorganization like AA, these key areas for performance are made explicit, they provide a

transparent point of reference for the entire organization.

The first stage of CSF would be to1. Identify the key concerns of senior management2. identify focus areas in each stage of the project life cycle (and any possible causes

that would result in project failure)3. evaluate the reliability of the new initiatives -- assurance4. identify threats and opportunities5. Measure the productivity of the operation staff before/ during / after

implementation

Since there is an on-going preparation for the privatisation of the airport, therefore thefollowing CSF have been set up:

1. High inventory levels must be reduced although a delicate balance of spare partavailability has to be considered.

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ISE 538 andrew wood 0020-- HKAA improve performance with new initiatives Page2. extreme measure would be implemented after the impact of the 9-11 terrorist

attacks, that change the pattern of usage of the airport3. more regional airport co-operation since the emerge of the logistics air-hub;

barriers has to be reduced for regional co-operation: new dynamic has emergedand mutual complementary position is evolving

Brain-storming might not be the norm in many organization, in a big and articulateorganization such as AA; new idea, new initiative have to be encouraged because thereis always better idea out there:

Therefore, the AA has been encouraging HOME-GROWN innovation: local intelligence,local ideas To be more efficiency, people and organization are now expected to be better-perform>> to achieve more, to accomplish things at newly raised level, withvirtually the same resources or cut down unnecessary resource usage. By taking aninnovative approach, the AA has new idea / initiative being adopted.

Asking for the Basic Marketing skill that passengers would feel pampered

The ultimate customers of the airport would be the passengers, the aircraft and thecargo. AA have to ensure ultimate customer satisfaction with every staff focus on thebasic marketing skill to come up with new initiatives because they should know theircustomer well.

AA can Always Raise the bar -- currently, AA is already the best organization in

Hong Kong, but AA staff still able to find room for improvement to facilitate the airportoperation.

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ISE 538 andrew wood 0020-- HKAA improve performance with new initiatives PageWhen an idea is initiated, the AA staff must be THINKING ABOUT :

Respecting the target’s preferencethe AA staff must be THINKING ABOUT :

Fast , Efficient and reliable service.

Since the ultimate users of the airport are business travelers AND holiday makers,

therefore, they are more interested in >>1. Comfort : easy-access, perceived comfort level, intermodal transport linkage2. Cost : low cost airline has changed the landscape of the ticket price

structure fromthe traditional airline operators; will low-cost affect the choice of

publictransport by the money-for-value market segment?

3. Safety : utmost concern, thoroughly-checked plane is the safest type of transport

4. Travel time perception : No one love to stuck in traffic, therefore airport must dothe best to shorten the stay-in-queue duration, waiting time at the terminal,waiting-time for transfer passengers

5. Measures that will reduce perception of travel time : the airport will focus onEase of boarding as its affect the travelers whilst waiting to get on board

For public transport, there is a need for meticulous attention in the following areas:

• Frequency of the scheduled flight, punctuality, ease of access

• Quality , cost, personal comfort

The above points may not be quantifiable, therefore we have to carry out an IMPORTANTSTEP to translate it into measurable quantifiable :

Flexibility and access ease :

The flexibility is measured by satisfying excessive demand on airport service duringpeak hours and by the possibility of increase frequency of chartered flight during thefirst few hours of long holiday.

Reliability and punctuality :

• Airline reliability and punctuality depend on weather factors and

maintenance factors etc.

• Good organization of hanger maintenance team, Effective and Efficient

relay of weather information and weather forecast has direct impact onpunctuality.

Baggage service and tele-communication [commercial] service :An accurate and high tech baggage handling service allows all the baggage to bedelivered on board when the plane takes off. Commercial service, business travelers

always want to make last minute communication while they are doing business in HongKong. Therefore, the airport has to provide all common means of tele-communicationand providing appropriate level of internet / courier service.

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IT enhanced support for the swift change during the co-exist period of the current andnew practice The airport authority has used an enterprise project management solution to work outthe probable scenarios during the transition period.

The software could provide following features

• Powerful data analysis tools that provide insights of overall portfolio by identifying

simulated trends and problem area

• What-if scenario modeling for better understanding the impact of trade-offs for

strategies evaluation and mitigation of risks

Optimize resources across the authority for sustained competence

• Tracking of resources and workload across projects for better resource efficiency

• Staffing tools for optimized the production of each staff and for assigning an

optimized resource allocation

Streamline project management performance to add synergy

• With data analysis, capture and deploy best practices to achieve organization-wide

compliance

• Planning tools for creating reflect realistic schedules, resource requirements, so

that project teams can consistently meet project goals and attain customersatisfaction

• Project performance, issue and risk tracking capabilities for in-depth project

governance and control

Strengthen collaboration across the airport services for improved productivity• Real-time access to mission-critical project managers to make timely, informed

decision to ensure smooth operations through-out

• Email tools to enable team members easy to manage the project track and report

on the progress of their project activities

• Central documentation repository means of knowledge sharing between teams

members to

In many way, Airport Authority is a well-funded organization that achieve its own targetsand be praised by various judging organizations / magazines critique, while the civilservice of Hong Kong government do not have such initiative and high standard in itsyear-to-year appraisal by media and other organizations. It might be due to the AirportAuthority do have a “3M” company culture. 3M is an innovative company that invents alot of consumer products; it has a highly educated, well-disciplined work force that seeksfor unexplored marketing opportunity. Whilst in the Hong Kong Civil servants in thegovernment, they also do have a highly educated workforce but try too hard to balancethe interest of every stakeholders within the community in Hong Kong. Pretty much likeany other big civil services in the world, sometimes, the civil servants lose it hide-sight

when handling daily routine. Less adaptive to the ever-changing economic and politicalenvironment. As a conclusion, it strongly indicated that a delegated workforce withvarious contingency drills would prepare the staff to adapt better to the Global ever-changing environment in the new millennium and the new political landscape. Stability

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ISE 538 andrew wood 0020-- HKAA improve performance with new initiatives Pagedoes not come easy, but adaptability to the global issues, such as crude oilprice is going sky-high, environmental concern of the energy efficiency,political environment is constantly changing in the local region, operation costconcern, organizational structure and its politics, citizen and mediaexpectation, bio-hazard outbreak. Inevitably, the Hong Kong government’sdepartments and various units could acquire the knowledge that the airport authorityachieved during the last decade or so, pretty much like a young, vivid organization.

D

Performance Indicator of the airport would be>> Satisfaction of the

business and leisure travelers Arrival / Departure / landing / lift off punctuality and any occurrence of major

clutches

Passenger journey on time

Escalator / Lift / baggage handling service reliability

Handling passenger enquiry, response time, response quality, interpretation

availability

Temperature and ventilation

Cleanliness of the rest room facility, waiting area, passage way, planes, other

vehicles

Customer satisfaction level --- could be measured indirectly by how passengers

complaints is being handled, does it mitigate and resolve the concerned issue atthe end and how does the passengers response to the arrangement

Passenger / Staff injury rate

Response time for the emergency drill

Implemented schemes include• Airport Lightning Warning System – outdoor air field work

• Using computer modeling and simulation to demonstrate that airport facility

expansions and enhancements will not compromise the full set of safetyregulatory requirement.

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EXTRA -- air traffic cooperation with nearby airports

Air space congestion -- illustrate how keen is the competition betweennearby airport

Air space congestion has been single out as the most serious threat to the growth of trafficmovement in the region. Airspace congestion in the SE Asia area has caused frequentdelays of aircraft departures. There is a need for close co-ordination and cooperationamong countries along these corridors and the need to upgrade to high-techcommunication, navigation and surveillance – CNS and ATC advanced satellite facilities.

In recent year, the shortage of airport landing / take-off slots and congestion in air spacehave constrained the speed and extend of bilateral air transport liberalisation.

Hong Kong was ranked 23 among the world’s airports in terms of total passenger volume,but HK is the only pure international airport that could be the top 25 without domestic air traffic.

There are 4 Chinese airports in close proximity to Hong Kong, those are Guangzhou,Shenzehn, Zhuhai and Macau. For the future air traffic activities, it could be indirectlyaffected by the traffic in these airports and the Chinese Government directive in developingthese airports into a regional airport Hub.

For the fifth freedoms agreement issue

HK has negotiated more liberal arrangement with a large number of its bilateral partner onthe basis of exchange of balanced and reciprocal right. However, one of HK major concerns is in respect to fifth freedoms, Since HK airline do not have a protected domesticmarket, HK have to compete in international markets. Therefore, Hong Kong concern willbe Granting fifth freedoms to other competitive international airline, whether the realisedbenefits will compensate for losses on third and forth freedom rights. As a result, thegovernment position would be ‘to allow maximum scope for market competition’ and HK willtend to not regulate with respect to fifth freedom. However, HK could learn the lesson fromthe success of US-Canada open skies agreement.

In the short run, liberalisation may hurt inefficient carriers while being helpful to developingthe integrated logistic hub. If we broaden our vision and see the long term effect,competition might bring about improve efficiency when they have flexibility and freedom toaccess nearby market, less pollution may be made by reducing the distance of truck trafficon the road to their final destination.

Not only best service available to its passenger, but airport capacity is an important factor in the formulation of international aviation policies. At congested airport during peakseason, slot allocation at congested airport is a major issue; bilateral negotiations betweencompetitor airlines would be the way to resolve such slot allocation issue. Indirectly moreslot means that more time / resources that need to handle passengers or cargo that theairplanes bring along.

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City Airport Capacity shortage

Tokyo Narita Runway slots

BangKok Bangkok Terminal capacity, apron aircraft parkingcapacity and runway slots

Sydney Kingsford Runway capacity, gate capacity during peak

hours and noise pollution in the surroundingareas

Beijing Capital Runway slots and passenger processingcapacity

In order to improve the airport usage further, adding value to the airline users, andultimately building a successful international transportation and logistics hub, the followingarea has to be addressed during future development

1. base traffic level at the hub2. number of airports3. bilateral agreement and liberalised air transport regime, government commitment4. airport capacity5. Intermodal mode of co-ordination with shipping port, railway link, 3PL providers6. pro-business environment, like strong airline would prefer deregulation

of the transportation industry7. improvement on information and communication technology

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Performance evaluation

Even when performance indicators are in place, we still need a proper external auditing committee toevaluate the progress and performance.

In AA, there are various committees, management group that monitor the progress

1AA got the executive management team – team leaser : Chief Executive officer They will be accountable for managing Authority daily operation and assisting implementing thecorporate strategies.

The senior executives, as well as receiving reports and comments from VARIOUS PERSPECTIVES(facet of different form of perception) of the executive management.

In order to ensure management can carry out its duties in an effective and efficient manner, thewhole chain of command must have a clear delegation of authorities (decentralisation). The power centres with delegated authority are: the chief executive officer: daily activity, the business

development committee and the works committee.

2Accuracy of financial reportingThey must ensure that the financial reporting is accurate, transparent, timely and complete.

Project initiatives for improving service

It is vital to lay out the entire major project that would be rolled out in the airport

Here are the 10 key projects and ambitious initiatives1. Cargo Flow Enhancement

Becoming the cargo consolidation centres at PRDDHL express cargo terminal expansionPrecious Metal Depository -- i.e. storage point for precious metal

2. Enhancement of Apron Parking and Hangar CapacityGo ahead for HACEL to build a brand new aircraft maintenance hanger

3. Enhancement of Terminal Facility and ServicesTerminal facility improvements to cope with Apron and A380

4. SkyPlaza(Terminal 2), Asia-World Expo (beginning of 2006-completed)5. Privatization that is still on-going that expensive inventories re-audit is pre-realistic; lean stock-

keep is not EASY for a major international airport: as it has to balance the availability of service and accounting low-inventory cost requirement

All these project initiatives reflect AA determination to provide a constantly evolving platform of highquality services that truly merit HKIA’s reputation as their desire to be the best airport in the world –inspiration of the staff in the team.

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ISE 538 andrew wood 0020-- HKAA improve performance with new initiatives PageBesides, improving ourselves, it would be good have closer alliance with regional airports to see howthe competitors are doing – e.g. Shenzhen Futian has opened the first air cargo consolidation centre(ACCC) – a Joint Venture project between Shenzhen authority and HACTL.

e-channel for passport clearance (delivering high efficiency and utmost security – biometrics of usingfingerprint)For mainland-HK traveling, e-channel does look promising that will deliver a faster and more efficient

services, esp. during the peak season when the peak season / peak time want to take off for their holiday destination at once.

Visual Enhancement

In accounting audit and logistics warehouse stock-taking process; there are some simple,unsophisticated and low-cost ways to make dramatic improvement on Stock-taking process. I would

think of a color sticker coding system, for those boxes that are accounted for, say Green stickers oneach box that coincide with database records. This way, it is visually enhanced even when the boxesare in the top rack and during the next audit, some of the boxes don’t have to be counted again.Besides, the stock-taking process would be the side-kick process of daily routine where the normalroutine is un-interrupted.

Hong Kong Airport Authority also make boulevard visual enhancement to the extra capacity centralconcourse on the departures, it put some small trees to put along the sides of the “moving walkways”with benches put along sides.

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E

Limit of these performance indicator and how to adjust itaccordingly

The main issue would be OPERATION EFFICIENCY, for example, there are many factorsthat would affect the take-off time. Consequently, it might affect the arrival time of certain aircraft to the destination. Ultimately, it might shorten the time that a particularaero plane getting repair and maintenance after it has landed. That might jeopardise thelogistics arrangement and timing for the future take off.

The diagram of ATC weather information model

Of course, another factors that might affect the aero plane would be the Weatherforecast accuracy (that include cyclone, tsunami, wind movement etc)Paradoxically, most airlines also responsible to collect air temp, atmospheric Pressure

etc information to feed the local airport or local weather observatory.

Here is the diagram for the weather notification system, in order to mitigate thepotential weather abrupt changes that might cause deterioration of Operation Efficiencyto the major airport Hub, a better weather information system has been furtherenhanced.

Airborne Systems:Pre-flight forecast

Flight DataProcessing

Other weather sources

Weather Analysisreport Creation

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IN order to produce more forecast>>

We could use trajectory prediction by collecting more precise information of wind,temperature and cloud thickness

Identification of potential sudden change of atmospheric condition, the airport will useSIGMET

For better collaboration of the local airfield, the HKIA will use TAFs, METARs and SPECIsfor airfield-centred forecasts and reports.

On the other hand, the information gathering and supply is bidirectional. When theaircraft climb or descent, it could also gather vital real time information of theatmospheric condition and supply it to the airfield ( include cloud temperature : indirect

measurement of anti-icing spray required for the imminent take-off aircraft's in thewaiting area of the runway, as more anti-icing would increase the weight of the aircraftwhich in effect fuel-wasting )

====

The HK government together with the airport authorityGot the following initiative implemented

Initiative Target Current progress

To strengthen Hong Kongposition as a logistics hub

To commission andcomplete a strategic studyon logistics servicedevelopment

Study has completed

To progressively expand theair service market throughnegotiating more airservices agreements to

broaden the legalframework for thedevelopment of air links

To conduct negotiations onat least five new air serviceagreement

Conducted negotiation onfive new air serviceagreement and conductednegotiations or review on 18

traffic arrangement

To further strengthen HK’sair link with the Mainland

To commence reviewing theair services agreementbetween mainland and theHKSAR

We completed the review of the air servicesarrangement between themainland and the HKSARwhich resulted in anexpansion of capacity forairlines

To review the adequacy of runway capacity underdifferent modes of peakseason operation to meet

To complete a runwaycapacity review

The CAD has formulated anaction plan to furtherenhance the runwaycapacity to meet traffic

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ISE 538 andrew wood 0020-- HKAA improve performance with new initiatives Pagetraffic demand demand in the long term To improve passengerterminal facilities andprocedures for transfertransit passengers andbaggage

To identify and implementthe improvement measuresin conjunction with businesspartners

AA has improved theterminal facilities fortransfer passengers (enrichretail outlet variety andbaggage handling speed)

15




I Internet Research – SKIPPED , AS THE DIAGRAM FILE SIZE ARE BIG

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airport authority for improvement