Question

In: Operations Management

Problem 2 Incheon International Airport (ICN) is the entrance to South Korea as well as a...

Problem 2

Incheon International Airport (ICN) is the entrance to South Korea as well as a connection hub for many cities in South Korea and other Asian countries. The airport’s top management is considering several proposals to expand the capacity of the check-in process. To better evaluate these proposals, the management asks you to identify passenger composition and the main resources in order to compute the current capacity at the airport. There are four groups of passengers as described below:

• Group A (international passengers with luggage check-in): 50% of the passengers

• Group B (international passengers without luggage check-in): 5% of the passengers

• Group C (domestic passengers with luggage check-in): 30% of the passengers

• Group D (domestic passengers without luggage check‐in): 15% of the passengers

There are four resources: self-service kiosks, kiosk agents, ID/Passport check, and security check. All passengers first need to check-in at the self-service kiosks. Then all international passengers continue to the kiosk agent to have their passport scanned and to check their luggage (if any). Any domestic passenger who needs to check luggage also proceeds to the kiosk agent to get the luggage tag and complete the check-in process. All the passengers then proceed to the ID/Passport check point and finally go through the security check before proceeding to the boarding gate.

However, the time required for each of these activities varies depending on the group of the passenger. All of the following activity times are expressed in minutes per passenger (assume the information is steady throughout the day):

Resources (min/passenger)
Passenger Group Self-service kiosk Kiosk agent

ID/Passport check

Security check
A 7 4 2 5
B 7 2 2 6
C 2 1 1 3
D 2 0 1 3

• There are 10 self-service kiosks.

• There are 5 kiosk agents working to help the passengers.

• At the ID/Passport checkpoint, there are 3 airport personnel.

• In the security check area there are 6 security checkpoint agents with metal detectors and security screening.

You are asked to find the capacity of the system in passengers per day. Please assume that the selfservice kiosks and all employees work 8 hours per day. a

a. What is the average capacity for each of the four resources at the airport in total number of passengers per day assuming the stated mix of different groups of passengers given above? Which of the four resources is the bottleneck? What is the system capacity in total number of passengers per day?

b. Passengers are complaining that the check-in process takes too long. Compute the resource utilization for each of the steps assuming the stated mix of different groups of passengers given above.

c. To resolve passengers’ complaints, the management is planning to add three new security checkpoint agents. With this modification, what will be the bottleneck resource and the total system capacity? Again, compute the resource utilization for each of steps assuming the stated mix of different groups of passengers given above.   

Solutions

Expert Solution

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Resources (min/passenger)

Passenger Group

10 Self-service kiosk

5 Kiosk agent

3 ID/Passport check

6 Security check

A 50%

7

4

2

5

B 5%

7

2

2

6

C 30%

2

1

1

3

D 15%

2

0

1

3

Weighted avg based on %

4.75 min

2.4

1.55

4.15

per hr

(60min/4.75) x 10 kiosks= 126 passengers

(60/2.4) x 5 = 125 passengers

(60/1.55) x 3 = 116.13

(60/4.15) x 6 = 86.75

Per day

126.315 x 8hrs = 1,010

1,000

929

694

a. What is the average capacity for each of the four resources at the airport in total number of passengers per day assuming the stated mix of different groups of passengers given above? Which of the four resources is the bottleneck? What is the system capacity in total number of passengers per day?

Average capacity for each of the four resources is equal to: Self-Service Kiosk = 1,010 passengers per day, Kiosk Agent = 1,000 passengers per day, ID/Passport Check = 929 passengers per day, Security Check = 694 passengers per day.

The security check process is the bottleneck.

The system capacity is 694 passengers per day.

b. Passengers are complaining that the check-in process takes too long. Compute the resource utilization for each of the steps assuming the stated mix of different groups of passengers given above.

The resource utilization is as follows: Self-Service Kiosk = 68.7%, Kiosk Agent = 69.4%, ID/Passport Check = 74.7%, Security Check = 100%.

c. To resolve passengers’ complaints, the management is planning to add three new security checkpoint agents. With this modification, what will be the bottleneck resource and the total system capacity? Again, compute the resource utilization for each of steps assuming the stated mix of different groups of passengers given above.   

The new bottleneck resource will be the ID/Passport Check.

The new total system capacity will be 929 passengers per day (equal to the capacity of the bottleneck).

The new resource utilization would be: Self-Service Kiosks = 92.0%, Kiosk Agent = 92.9%, ID/Passport Check = 100%, Security Check = 89.2%.

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