Design of the input and output cargo flows for a Fast-Track at Amsterdam Airport Schiphol Master Thesis K.M. Schuppener Design of the input and output cargo flows for a Fast-Track at Amsterdam Airport Schiphol Master Thesis by K.M. Schuppener inpartialfulfillmenttoobtainthedegreeofMasterofScience inTransport,InfrastructureandLogistics attheDelftUniversityofTechnology, MondayDecember12,2016 Author: KatherinMarieSchuppener StudentNumber: 4406192 E-Mail: [email protected] GraduationCommittee: Prof.dr.ir.A.Verbraeck TUDelft,FormalChair Dr.J.Rezaei TUDelft,FirstSupervisor Ir.M.B.Duinkerken TUDelft,SecondSupervisor Ir.H.Ritsema SchipholGroup,ExternalSupervisor Graduation Committee FormalChair Prof.Dr.ir.A.Verbraeck ProfessorsSystemsandSimulation DelftUniversityofTechnology FacultyofTechnology,PolicyandManagement Section:SystemsEngineering [email protected] FirstSupervisor Dr.JafarRezaei AssistantProfessor DelftUniversityofTechnology FacultyofTechnology,PolicyandManagement Section:TransportandLogistics [email protected] SecondSupervisor Ir.M.B.Duinkerken DelftUniversityofTechnology FacultyofMechanical,MaritimeandMaterialsEngineering DepartmentofMaritimeandTransportTechnology Section:Transport,EngineeringandLogistics(TEL) [email protected] ExternalSupervisor Ir.H.Ritsema DirectorStrategicDevelopmentCargo SchipholGroup [email protected] Preface ThisthesisisthefinalstepforthedegreeofMasterofScienceinTransport,InfrastructureandLogistics(TIL) atDelftUniversityofTechnology. Thepurposeofthemasterthesisprojectistoapplythetheoryandknowl- edgegainedinthetwoyearprogrammetoareallifeproblem. Atthemomentofchoosingacompanyand topic there was little doubt: It needed to be at a key logistics hub. Having moved from Costa Rica to the Netherlandstocompletemymasterstudiespreciselybecauseofitsleadingroleinlogistics,Ifeelextremely blessedandgratefultohavehadtheopportunitytoperformmyresearchatAmsterdamAirportSchiphol. ThisresearchhasbeenconductedfortheCargoDepartmentofSchipholGroupfromMarchuntilDecember of2016.Duringthisperiod,theairsideandlandsidedistributionprocesseswerestudiedinordertopropose asetofdesignsthatwouldfacilitateaseamlessflowforaFastTrack. Thesedesignsweretestedmakinguse ofasimulationmodelanditsresultsanalysed.Asastrategicproject,therewereseveraldifficultiesregarding dataavailabilityandinparticular,designingforsuchuncertainscenarios. Additionally,thelearningcurve ofthesimulationsoftwareprovedtobechallengingandtestedmypatience. Ibelievethesechallengeswere successfullyovercomeandasaconsequence,Iamnowabetterengineer.Iamproudofthefinishedproduct andbelievethat,bytestingthedifferentvariablesandoptimalpointbetweenapushandpullsystem,valu- ableknowledgehasbeencreatedforSchipholbutalsoforotherpartiesinthesupplychain. IwouldliketospeciallythankmysupervisoratSchiphol,HendrienaRitsema,forhersupportandtrustin thisperiod. Sheallowedmetofigureoutmywaywhilealwaysprovidingvaluableadviceandguidance. The Cargoteamalsomademyinternshiptimeextremelypleasantandwithoutrealizingit,allowedmetolearn fromtheDutchcultureaswell. Iamalsothankfultomycommitteeandthehelpeachoneofitsmembers provided. Alexander,forteachingmehowaskingtherightquestioncanchangeeverything;Jafarforhisen- thusiasmandadvicesandfinally, Markforhiscommitmentandthoroughfeedback. Thisworkcouldnot havebeencompletedwithoutyou. ThishastrulybeenanamazingexperienceandIappreciateeverysinglepersonwhotookthetimetoanswer myextensiveandfrequentquestions,givemeatourorsimply,allowmetogiveintomycuriosity.Havingan airsidetour,walkingnexttothebaggageconveyorsystem,exploringacargohandler’swarehouseandbeing allowedonafreighteraremomentsIwillneverforget. Lastly,Iwouldliketothankmyfamilywhoinspiteofbeingfar,arealwayspresentinmylifethroughtheir messages, prayers and love. This achievement is for you and your unconditional support throughout the difficulttimesandyoursincerejoyinthegoodones. Therearenowordsthatcanexpressmygratitudeand debttoyou.Christian,forbeingtherealways,enduringthelongnightsandintenseweekends.Thankyoufor encouragingmetotheendandbeingpartofthisadventurewithme. Andmyfriends,forbeingmyfamily awayfromhomeandgivingmemoresanitythanyouwilleverknow. K.M.Schuppener Schiphol,December2016 iii Executive Summary TheeconomyintheNetherlandsisshapedbylogisticsandspecifically,twomajorhubs:thePortofRotterdam andAmsterdamAirportSchiphol. Assuch,Schipholisofvitalimportancebothonanationalandregional level. WiththeambitionofbecomingEurope’scargopreferredairport, theairportisfocusedonachieving operationalexcellenceonground. However, pastresearchhasshownthattherearekeyissuespreventing itfromreachingthisgoal. Someofthesearetruckwaitingtimes,longthroughputtimesforshipmentsand warehousingefficiencyatthe1stline. Inadditiontothese,theneedtohavesparecapacityforfuturegrowth compelsSchipholCargotorevisethecurrentbusinessmodel.TheconceptofaFastTrack(FT)orcrossdock facilityisoneoftheresearchtopics,however,certainknowledgegapsremain. Thesearerelatedtohowthe transportprocessandactorconfigurationatairsideandthetruckschedulingandplanningatlandsidecan contributetoahigherthroughput.Currentresearchgoesintothespecificsofeachfactor,notgoingindepth intheinter-dependenciesamongthese.Thisleadstothefollowingresearchquestion: Howcantheinputandoutputdistributionprocessesofafasttrack(FT)atAmsterdamAirportSchiphol facilitateaseamlessflowinthecontextofamulti-actorenvironment? ThescopeisthatofimportcargoflowsthatarriveasBuild-Up-Pallets(BUP)andconfigurationvariables pertainingtothedistributionsandtheFTinterface.First,adistributionprocessanalysisisperformedforthe threemainprocesses:airside,handlingandlandside.Throughit,thecriticalcharacteristicsoftheprocesses aredefinedandabetterunderstandingofthesystemanditsinter-dependenciesreached. Subsequently,a literaturereviewisconductedinordertodefinethecriticaldesignvariables. Theseare: arrivalanddepar- turepatternatairsideandlandside, thenumberofdockdoors, temporarystorageandairsidehandlercon- figuration.Havingcompletedthepreviousassessment,thetheoreticallyviablealternativesarecreatedand assessed.AsTable1showsthereare4designsbasedontheexistenceofstorageandsystemconfiguration.In additiontothis,theairsideconfigurationisconsideredinitstwoalternatives: Multiplehandlersandsingle 3rdpartyhandler. Itisatthispointthatthedeparturepatternislinkedtothepush/pullconfigurationandto theabilityoftheFTtoperformthetruckallocation.Inthisway,aFTwithanon-restricteddeparturepattern willbehaveinapushway, creatingtruckshipmentsbasedondestinationgroupsandoptimizingthusthe truckload.Onthecontrary,arestrictedonewillbehaveasapullsystem,respectingtheoriginalshipmentsof theRoadFeederNetwork(RFN)evenincasesofLow-Truck-Loads(LTL). Table1:ExperimentalPlan-FTdesigns TheperformanceevaluationofthedifferentFTdesignscanbeaccomplishedthroughtheuseofaverified andvalidatedsimulationmodel. Theconfigurationvariablesare: AirsideandLandsidedockdoors,storage size,storagesizeutilization,handlerconfigurationandtheTruckNoticeTime(TNT).Theseareusedinorder tocreatethedifferentdesignswhiletheKPIsserveasameasureofthesuccessinmeetingtherequirementsof thedesign.TheKPIsaresplitintoairside,FTandlandside.AirsidecriterionisAirsideLeadTime,whereasfor theFTitisThroughput(TP)andLeadTime(LT).Atlandsidethecriteriaare:TruckLoadFactor,Turnaround time,WaitingtimeandTruckreduction. Thoroughverificationandvalidationtestsareperformedtoensure thatthemodelisabletoabletorespondtoreallifequestions. Thesimulationisexecutedwitharunlengthof672hoursand25replicationsinordertoensureunique statisticalresults.Theconfigurationofthevariablesthatarefixedacrossthedesignsis:10airsidedockdoors, 5landsidedockdoorsand2hoursTNT.TheexperimentalplanpresentedinTable1willbefollowedwiththe goalofunderstandingwhetherdifferentdesignsarestatisticallyequivalentornot. Inadditiontothis,itis v vi ExecutiveSummary necessarytounderstandhowlargethedifferencestrulyaresince"findingthataneffectissignificantdoesnot tellyouabouthowlargeorimportanttheeffectis"(Lane,2015).Inordertodoso,hypothesistestingisusedas partofanextensivestatisticalanalysis. Inallcases,thenullhypothesisH isthatmeansareequalandthere 0 isnoeffectofthedesignsontheKPIs. 1)HandlerConfigurationatAirside DesignAisselectedasthe"basecase"andtestedinbothhandlerconfigurationsforthethreedemandscenar- ios(i.e. currentdemand,conservativeandoptimisticgrowth). Intotal,6runsareperformedandahandler configurationisselected. TheanalysisshowsthatLeadTime(LT)resultsasoneofthecriticalKPIs,improv- ingbetween0.32and0.65hoursandreducingthevariabilitysignificantly.TheeffectontheotherKPIsisnot relevantornon-existentatworse.Basedonthis,theconfigurationthatyieldsbetterresultsanddrawsnearer tothepremiseoffacilitatingaseamlessflowtotheFTisthatofamultiplehandlerconfiguration. 2)FastTrack(FT)DesignAlternatives The remaining FT designs are run (i.e. B, C and D) on the conservativedemandscenario. The resultsshowthatLTandLT Figure1:LTAnova Airsideareaffectedbytheexistenceofstorage.Bothdesignswith storage(AandB)arestatisticallyequivalent. AsFigure1shows, theexistenceofstoragegreatlyreducesvariability. Anothertake awayisthefactthatthecurrentsystemconfiguration(i.e.storage size75)isnotabletocopewitha50%increaseindemand. Asa matteroffact,theLTincreasesfromapproximately1.6hoursfor thebasedemandtoaround4.Throughput(TP)alsoshowedthat storageisanassetsinceitincreasestheoutputbyatleast10BUPs perhour.Thepush/pullconfigurationdoesnotaffecttheTP. Thelandsideindicatorsshowthatthetruckturnaroundtime increasesasthetruckloaddecreases.Thisisexpectedsincemore trucksneedtobecalledinordertoexpeditethesameBUPs.The pullconfigurationgeneratessmallertruckloadsthantheirpushcounterparts, whichislogicalsincetruck loadingisnotmaximized. Thisprovestoberelatedwiththestoragesizeaswell,astheresultsfromDesign Ashow. Inthiscase,whenthesystemmovestopush,thenumberoftrucksrequiredtoexpeditetheexist- ingcargogeneratescongestionandincreasesthusturnaroundtime. Alldesignsachieveareductioninthe amountoftrucksofatleast50%.Thedockdoorsalsoshowastatisticallysignificantdifferencebetweenstor- ageconfigurations. ThedockutilizationvariabilityforFTdesignswithstorageisconsiderablylower. Based onthis, thedistributionalternativethatisrecommendedisFTDesignB.Thebenefitsofthisdesignare relatedtoanoverallreductioninvariability,anincreasedthroughputandtheimprovementonlandsideop- erations. Theshortcomingsarerelatedtosomeofthemodelassumptionsandthefactthatitisnotableto copewithasubstantialdemandincrease. Inconclusion,theinputanddistributionprocessesofaFTneedtobedesignedinawaythatvariability isreducedandissuesordisturbancesarisinginoneendofthechaindonotpermeateinotherareas.Infact, airsideoperationsprovedtostronglymodulateLT,whichiswhyastorageareaisconsideredamust. Air- sideoperationsneedtobeasfast,leanandstableaspossible. Itisconsideringthisthatamultiplehandler configurationisadvised. Nonetheless,iftheengagementofthecargohandlersisnotsubstantial,a3rdparty configurationshouldbeimplemented.Onthelandsideprocess,itisvitaltoensurethatthetimetrucksspend atthedockiscomposedonlyofloadingtime.Aslimitedresources,dockdoorsserveasthelastregulatorsof flow,whichiswhytheircapacityoughttobespentonlyonvalueaddedactivities. Currently,cargohandlers havemostlynosayinthetruckallocation,however,fortheFTtobesuccessfulthatneedstochange. The decision-makingpowerneedstorestintheFToperatorsothatthedynamismofthepush/pulllogiccanbe sustained.Inthisway,thestorageutilizationlimitcanbefinetunedaccordingtotheneedsoftheoperation. Thisadjustmentdeterminestheensuingperformanceintermsoftruckloadandturnaroundtimes.Forlarger storageareas,thisthresholdshouldbelowerinordertopreventcongestionduetoalargenumberoftrucks beingcalledinthese"peak"moments.Theseimprovementswouldcontributenotonlytoaseamlessflowbut alsotothesustainabilityofthecargooperationsatSchiphol. ItisrecommendedforSchipholCargotoim- plementthisconceptbyengagingwiththerelevantstakeholdersandusingthisresearchasavalidationofthe possiblegainsofapush/pullFTwithcollaborativetrucking. Thiscanleadtheconversationandnegotiation withthepartiestowardstheplanningandimplementationofapilot.
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