100%(1)1 out of 1 people found this document helpful
This preview shows page 2 - 4 out of 5 pages.
Lost and mishandled baggage is a major expense for airlines and reducing the incidence oflost and mishandled baggage creates significant yearly savings.
Technology: Baggage handling systems are among the most complex systems because theyinvolve a wide variety of sensors, actuators, mechanical devices, and computers. The systemsuse over three million lines of software program code. Advanced technology used in thesesystems include destination-coded vehicles (DCV), automatic bar code scanners, use of radiofrequency identification (RFID) tags, and high-tech conveyors equipped with sortingmachines. Because DCVs move at high speed and do not come to a full stop to receivebaggage, the conveyors must be extremely precise, depositing bags where they are needed atjust the right time for maximum efficiency.3.The problem baggage handling systems are trying to solve is customer dissatisfaction and topromote customer goodwill as well as reduce costs.Business impact: Overall the airline industry rate for lost luggage has improved by 38 percentover similar figures from two years ago when nearly 2.5 million bags were lost or delayed.Lost and mishandled baggage is a major expense for airlines. Reducing the problem createssignificant yearly savings. The global airline industry price tag for mishandled baggage is$2.5 billion per year.Today’s baggage handling systems do appear to be a solution to the problem. US Airwayslost nine bags for every 1,000 travelers in 2007. After implementing a new system, thatnumber dropped to three bags for every 1,000 travelers. Even though the company spent $16million on the system, the airline saved $25 million a year and boosted customer satisfaction.Between 2008 and 2010, Delta Airlines installed optical scanners to read baggage tag barcodes, widened and extended its system of baggage conveyor belts, and installed a centralcontrol room to monitor conveyor belts and baggage carousels in Atlanta and most of itsother airport terminals. The airline recorded a top-notch baggage handling record of just 2.93mishandled bags per 1,000 passengers. Bags now take less than 10 minutes to travel fromterminal to terminal. The process used to take as long as 30 minutes with the older system.
You've reached the end of your free preview.
Want to read all 5 pages?
Customer relationship management, Management of Information Systems