Improving luggage handling operations Carl Schueller is a managing partner of Schueller Consulting Services, a company specialised in performance management systems. He is asked to advise the management of a large European airport who wants to improve the luggage handling system. When Schueller enters the office of the airport manager responsible for luggage handling, he finds him looking out of the window and down on the airport platform. ‘Please join me, and look what is happening out there.’ When Carl looks at the platform he sees seven planes having their cargo off-loaded.

‘Now look closely what happens next’ the manager warns, and he points his finger at a lorry that is returning at high speed to the terminal, carrying on it only one bag. ‘That is not very economical,’ Schueller comments, ‘to make a ride for delivering just one bag to the terminal.’

The manager responds: ‘And that is not all, it happens all the time. We want to improve our luggage handling system, by making sure we will have the luggage delivered as quickly as possible at the conveyor belt. And we want to reduce the percentage luggage that is lost, as well as the percentage luggage damaged. In order to speed up our luggage handling time and we decided to give a bonus to the team that gets the first bag of a plane to hit the conveyor belt within fifteen minutes after complete standstill of the airplane. So what happens now is that passengers see the first suitcase arriving very quickly and after that piece it takes a while before other bags start coming in. And we waste time and fuel because personnel make little rides with only one bag in their lorry.’
1. What is the fundamental problem here?
2. What causes this problem: the bonus system, the performance measurement system or the personnel’s attitude? Or perhaps all three?
In the discussion that follows, Schueller suggests changing the performance measurement system: ‘Perhaps you should consider not measuring the time between the plane’s standstill and the first bag hitting the conveyor belt, but between the plane’s standstill and the last bag delivered on the belt. In that way you assure that all bags are delivered on time.’
3. What do you think of this suggestion? What are the advantages and disadvantages of Schuller’s solution?
4. Suggest a performance system that supports all luggage handling system objectives:
fast delivery at the conveyor belt, a minimum number of pieces missing and luggage being treated with sufficient care.