Airline Business Process Modeling

Goran.Stojkovic@jeppesen.com

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Presentation Plan

Introduction Problem definition Proposed approach Benefits Conclusion

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Introduction

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"Difficult Crossing" Puzzles

AKA: Fox, goose and beans; wolf, goat and cabbage; cannibals and missionaries

Input

The story
Once upon a time a farmer went to market and purchased a fox, a goose, and a bag of beans. On his way home, the farmer came to the bank of a river and hired a boat. In crossing the river by boat, the farmer could carry only himself and a single one of his purchases - the fox, the goose, or the bag of the beans. If left alone, the fox would eat the goose, and the goose would eat the beans. The farmer's challenge was to carry himself and his purchases to the far bank of the river, leaving each purchase intact. How did he do it?

Rules & Enablers

Output

Solution
Bring goose over Return Bring fox or beans over Bring goose back Bring beans or fox over Return Bring goose over Thus there are seven crossings, four forward and three back.

Process/ Algorithm

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Literature Review

An Analytic Method for the "Difficult Crossing" Puzzles Benjamin L. Schwartz Mathematics Magazine, Vol. 34, No. 4 (Mar. - Apr., 1961), pp. 187193 (article consists of 7 pages) Published by: Mathematical Association of America Dynamic Programming and "Difficult Crossing" Puzzles Richard Bellman Mathematics Magazine, Vol. 35, No. 1 (Jan., 1962), pp. 27-29 (article consists of 3 pages) Published by: Mathematical Association of America Graphical Solution of Difficult Crossing Puzzles Robert Fraley, Kenneth L. Cooke and Peter Detrick Mathematics Magazine, Vol. 39, No. 3 (May, 1966), pp. 151157 (article consists of 7 pages) Published by: Mathematical Association of America

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ABPM
Airline Business Process Modeling (ABPM) is an important part of understanding and structuring the activities and information an airline uses to achieve its business goals. Whether an airline operates as a non-scheduled or scheduled carrier, an international, domestic, regional or private operator, success depends upon having complete, positive operational control over their planning and operations. In order to achieve this level of control, processes, procedures and systems must be developed and put in place which would maximize safety, profitability and customers satisfaction.

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Problem Definition

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Problem

Most airlines are organized in functional silos Each silo has processes, procedures, and systems in order to maximize safe and efficient planning and operations Complex processes and company regulations are put in place Silos sometimes have contradicting goals and rules Resulting fragmented processes proves suboptimal: costly, slow and fragile

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Solution
From Planning to Operations and Vice Versa

EQUIPMENT EQUIPMENT Itineraries Maintenance

PLANNING SOLUTIONS PLANNING SOLUTIONS STAFF STAFF Duties Rosters __________________ __________________

PAYLOAD PAYLOAD Reservations Revenue management

DISRUPTION DISRUPTION

Flight schedule Aircraft routes Crew rotations Passenger itineraries OPERATIONS SOLUTIONS OPERATIONS SOLUTIONS STAFF STAFF Extended duties Swaps Reroutings

EVENTS EVENTS

EQUIPMENT EQUIPMENT Extended rotations Swaps Reroutings Jeppesen Proprietary

PAYLOAD PAYLOAD Accommodations Reroutings Rebookings

Global Scope

Americas Europe/Central Asia Middle East/Africa Asia/Pacific South/Southeast Asia

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Proposed Approach

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Methodology What/How/Why

Identify generic business functional groups (the what) Analyze high level business processes (the how) Map business processes against existing and future solutions (the why)
Solutions X Processes X X Gaps X
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X X

What

Multilayered view
Top-down functional groups decomposition Right balance between depth and complexity Deep enough to capture necessary info Simple enough to allow clear view/understanding Allows de-spaghettisation of complex business process diagrams

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Airline Business Functional Groups

Holistic View Example

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How

Transparency
Flexibility Modularity Traceability, top-down and bottom-up Allows different levels of details Allows both, cross-functional and per-silo process views

Analysis
Associates metrics with processes Enables simulation Identifies bottlenecks Compares against best practices Maps against software applications

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Case 1: Maintenance Short Term Planning

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Case 2: Maintenance Tracking

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Case 3: Day of Ops Tracking

Mainten. Mainten.

Maintenance

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Why Comprehensive
Allows a holistic approach instead of tunnel vision Captures commonalities as well as specifics Provides the visibility of required functions and their status all the way through the solution development lifecycle Empowers the service oriented architecture with an understanding of required modules and their dependencies Enables optimization through the process enhancements and mathematical modeling Helps in making future investment decisions
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Process Optimization - Example

Midterm Planning MidtermPlanning Short Term Planning

Original Process Flow Jeppesen Process Flow

Flight Plan Flight Plan Tracking Tracking

Manual Input

Data Report Manual Input

Faxed/re-typed transmission Emails

Manual Input

Manual Input

Manual Inputs

Printed Reports Report

Legacy

Legacy

MS Excel

Jeppesen Applications Jeppesen Applications

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Optimization of Processes - Examples

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Benefits

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Benefits
Documentation. Capture business processes so that airlines can understand how they work, who is involved, and how activities flow from beginning to end. Transparency. Improving safety, efficiency and customers service through increased transparency. Best Practices. Comparing with industry best practices and doing gap analysis. Measurement. Identify operations performance metrics allowing process simulation and evaluation. Technology. Identify the technology that improves airlines operational efficiency and profitability.
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Benefits (cont.)
Optimization. Identify and document processes within a business, and identify the opportunities for enhancement. Integration. Cross-functional views link functional groups together and shows potential integration opportunities. Requirements. Create a framework for mapping requirements from a very high level business needs down to the detailed technical requirements. Redesign. Process designs and models can be used to drive process re-structuring and software development. Leadership. Holistic approach allows the competitive advantage.
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Conclusion

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Summary ABPM captures airlines business processes allowing to understand how an airline works, who is involved, and how activities flow from beginning to end.
Better transparency allows the processes streamline and enhancement

ABPM is the first step to achieve an optimized operational setting that is crucial for airlines survival
Optimization helps to build robust and integrated solutions

ABPM allows to become the benchmarking pillar for its clients and for airline industry in general
It is also an important step in realizing the complete end-to-end solution

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