Operational Excellence

• GlobeGround Berlin is the largest ground handling provider at the airports of Berlin
• 1,800 employees
• Certified to ISO 9002 and ISO 14001 quality standards

Project duration

• Apr - Jun 2004

Services provided by Lufthansa Consulting

• Analysis of cost and revenue, SLA and services structure 
• Identification of cost and revenue drivers on products and processes
• Definition of determinants, algorithms for trend analysis and early warning indicators
• Definition of cost allocation and aggregation levels for the annual result and business planning simulation / automation
• Development of a simulation model including the requirement specification for interfaces for data retrieval (airline schedules, OAG data, resource allocation, cost and revenue, human resources, contracting)
• MIS reporting structure 
• IT specification, cost effectiveness study, vendor analysis and recommendation for an IT provider
• IT test case development

Project description

The market environment for ground handling is growing volatile and competitive. The complexity of the service portfolio rises with more than 400 services for different aircraft types and customers. At the same time airlines put enormous pressure on prices, on time performance, reference models and SLAs. Especially the large customers optimize their direct operating cost by 12h notice equipment and frequency changes making resource planning an art.

To stay competitive and flexible GlobeGround Berlin asked LCG to design a Business Intelligence concept for:

• profitability, performance and cost management for all services and customers
• trend analyses and simulations
• business impact analysis
• pricing scenario evaluation
• SLA and customer profitability analysis
• automated profit and loss forecast

To make complexity and profitability easy to manage GlobeGround targeted an IT solution with interface, calculation and reporting automation.

The overall concept also covered an IT specification for the performance model. The design was based on the idea of the business intelligence philosophy to empower controlling and management with integrated data from across the company.

For a test case model the area of passenger handling was chosen. The BI model was programmed in SAS, (SAS is a leading BI provider. With the model LCG proved that shorter response and lead times for reporting, analytics, data and text mining, forecasting and optimization are feasible. At the same time simulation and prediction of business situations were an integral part of the solution.