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Benchchmarking for Best Practices, a Case Study: What Does Etisalat Have in Common with Dubai Internationl City?

Mohammed Ibrahim Al Hosani, Mohamed Ahmed Al Hosani , Abdulla Sulaiman Ahmed, Khalifa Abdulla Al-Habsi, and Keenan Crane, Hamdan Bin Mohmmed eUniversary, Dubai, UAE

Abstract This example and case studyof the application of a Benchmarking process at the Dubai International Airport was selected for a graduate project. Prior to this project, there was nothing written that elaborated the detailsof the benchmarking method used for selecting the right Technical Help Disk system for Dubai Airport, this Help Desk system being core to the Airport's business success. This paper shows the benchmarking processes used in selecting the right system for the technical help desk with support of both primary data such as questionnaires and secondary data; textbooks, journals and online resources. The project analyzed the information gathered and points out the strengths and weaknesses of the benchmarking processes used at Dubai International Airport.In addition, the many benefits, challenges and limitations are shown and discussed. Key Words: Benchmarking, Dubai International Airport, Help Desk, Etisalat

square meters. It is the operator of Dubai International (DI) which attained a recordbreaking growth when it placed itself as the 10th top airport worldwide having carried 37.4 million passengers in 2008, a 35.67% increase from 2005. The growth in 2006 positioned Dubai as the second-fastest growing major international airport after Tokyo, which grew by 25%. In 1997 DIA commenced an AED 15 billion expansion program, which incorporated two terminal upgrades, the construction of a third, two new concourses and a cargo mega terminal, by 2010. It aims to reach a 60 million-passenger capacity and to become the world's largest A380 hub by 2010, with more than 20 double-deck contact gates. Dubai Airport has become very much more commercially oriented and has adopted a much more businesslike management philosophy as it is moving from the government sector to the private sector in Dubai. This transformation away from the view of airports as public utilities towards being considered as commercial enterprises has naturally led to Dubai Airport seeking ways to gain insights into their operations and to improve their performance by benchmarking themselves against others.

Introduction Dubai Airports Company (DAC) is one of the leading airports operators in the world managing a total area of about 2.03 million

Department of Civil Aviation (DCA) Government Entity Dubai Airports Company does not see their role as merely providing infrastructure. Instead they see themselves as industry that require a wide range of business competencies and skills together with the adoption of effective management and business techniques including benchmarking which was done in the Engineering Services Unit for the Technical Help Desk (THD) to achieve effectiveness in the daily operation tasks. Dubai Airports did benchmarking with Etisalat to use the CMMS system Technical Help Disk and CMMS System This section will reveal the CMMS package that will be used in Dubai Airports and its features to have insight of the new package and how DA developed a model to benchmark their practices with Etisalat to end up using the same system which they are using that is called the CMMS system. DA new CMMS software package will maintain a computer database of information about an organization's maintenance operations, i.e. CMMS - computerized maintenance management system. This information is intended to help maintenance workers do their jobs more effectively (for example, determining which storerooms contain the spare parts they need) and to help management make informed decisions (for example, calculating the cost of maintenance for each piece of equipment used by the organization, possibly leading to better allocation of resources). The information may also be useful when dealing with third parties; if, for example, an organization is involved in a liability case, the data in a CMMS database can serve as evidence that proper safety maintenance has

Dubai Airports Company (DAC) Semi-government Entity (Computerized Maintenance Management System) that will play a major role in DA daily operational activities and the overall performance indicators. DA founds that it is feasible to do the CMMS system in there environment based on a number of different aspects of an airport's business. Lemaitre (1998) explained how we can measure the airport performance based on three common management perspectives: these are financial, marketing and operational perspective. been performed. CMMS packages may be used by any organization that needs to perform maintenance on equipments, assets and property like Dubai Airports. Some CMMS products focus on particular industry sectors (e.g. the maintenance of vehicle fleets or health care facilities). Other products aim to be more general and for DA needs it was decided to customize it as per their requirements to match the daily operational needs. Different CMMS packages offer a wide range of capabilities and cover a correspondingly wide range of prices. A typical package, as shown in figure 1 below, deals with some or all of the following: Work orders: Scheduling jobs, assigning personnel, reserving materials, recording costs, and tracking relevant information such as the cause of the problem (if any), downtime involved (if any), and recommendations for future action

Preventive maintenance (PM): Keeping track of PM inspections and jobs, including step-by-step instructions or check-lists, lists of materials required, and other pertinent details. Typically, the CMMS schedules PM jobs automatically based on schedules and/or meter readings. Different software packages use different techniques for reporting when a job should be performed. Asset management: Recording data about equipment and property including specifications, warranty information, service contracts, spare parts, purchase date, expected lifetime, and anything else that might be of help to management or maintenance workers. The CMMS may also generate Asset Management metrics such as the Facility Condition Index, or FCI.

Inventory control: Management of spare parts, tools, and other materials including the reservation of materials for particular jobs, recording where materials are stored, determining when more materials should be purchased, tracking shipment receipts, and taking inventory. Safety: Management of permits and other documentation required for the processing of safety requirements. These safety requirements can include lockout-tag out, confined space, foreign material exclusion (FME), electrical safety, and others. CMMS packages can produce status reports and documents giving details or summaries of maintenance activities. The more sophisticated the package, the more analysis facilities are available.

Figure 1- Maximo Packages

Significance of the Study The significance of this study is to find a mechanism to sustain DA annual growth and to ensure that DA customers are satisfied from the services. It is also important because no such study could be found. The results will be used as part of DA continuous improvement process and to see where they are standing at present and to observe if they are close to the strategic objectives of the company. DA main focus points that they strive to achieve are: Increase Asset Reliability Performance And

of the total situation in the Technical Help Disc and they can be misleading if only selected indicators are chosen which do not give the full picture of the situation. Maximo Selection Benchmarking Model Etisalat (Telecommunication Company) and Dubai Airports are using the benchmarking techniques for their non core business activities that are not related to their main business directly, however, it has a big budget impact from the total overall budget and by sharing the partial performance measures in the area related to the Facility Management (Where CMMS is implemented) they both are making extensive use of the information for their continuous improvement, so it is a Win-Win situation for both parties to improve their practices and processes. The system has performance indicators that target areas for the integral part of the senior management incentive bonus scheme in Etisalat and the same will be implanted in the Engineering Services Unit at Dubai Airports. DA Benchmarking type is Functional or Generic Benchmarking as DA and Etisalat try to improve on similar functions or work processes and they are both from different business sectors. The advantages that we both gained are Discovery of innovation practices and breakthrough in some of DA operational processes. Development of professional network. Stimulating results. The difficulty of transferring practices to different environment. the

Lower Operational Costs Drive Business System Consolidation Improve Risk Management Drive Higher Service Levels

Scope & limitation The scope of this project includes terminal 1, 2 and 3 with concourse 1 and 2 and the facilities at Dubai International Airport. The scope also includes some of our partners in which we analyzed through benchmarking model to asses their capabilities of handling our requirements through a systematic benchmarking approach. Some of the major limitations are the model that is described is not based into intentional benchmarking model and it was developed based on the analysis that is required to see where it stands and how it wants to be in future to achieve its vision. Thus, the data that are used for the benchmarking are part

The disadvantages are

Certain information is not transferable.

Time consuming as it took DA more than one year to get the CMMS running at DA.

Resource Management Materials and Tools) Deficiency, Hazard Inspection Tracking Work Flow Project Management Interface Document Management Document Capabilities) Standardized Reports ERP Standard Integration and

(Labor, Safety

Key Features for our benchmarking model are based on the following activities Work Order Management (Job Plans, Safety Plans) Preventive and Predictive Maintenance Management Fleet Maintenance Management Inventory Management Purchasing Management

(Linked

Mobile (Inspection, Work Order) Web Architecture

CMMS Benchmarking Model in DA

Phase 1 CMMS System Benchmark Phase 2 Best Practices Phase 3 Implementation & Improvement

Start

Agree on System Benchmarking for the CMMS

Site Visit Preparation and arrangements

Setting work plan for best practices

Make and Finalize Scope , measures and budget

Collecting Data from the site visit

Implment the Plan

Data Collection (Systems , performance .. etc)

Sharing Findings

Monitor the results

Airport Location Structure to be divided into zones

Standardized systems Business Process and Work Flows

Periodic Control (Daily, weekly , monthly and annually ).

End

Figure 2- DA Benchmarking Model

The figure indicates three phases, these are: 1. CMMS System Benchmark. 2. Best Practices. 3. Implementation and Improvement. Benchmarking Implementation Process: There are fourteen steps in implementing the CMMS system at Dubai Airport. They are as follows: 1. Vendor Selection. 2. Systems Data Collection 3. Airport Location Structure. 4. Asset & Item data collection in approved template. 5. Cataloging of data. 6. QC process. 7. Data upload to Maximo. 8. Stream lining business process. 9. Gap analysis. 10. Creating workflow in Maximo. 11. Hardware/Software configuration. 12. User training. 13. Creating customized reports. 14. Roll out Maximo. The fourteen points were summed up to produce our own benchmarking model which DA used for the benchmarking process as indicated in figure 2 below: installation &

Phase one: CMMS System Benchmark In this phase DA defined the purpose of their benchmarking and they set the main objectives to have the CMMS system in place and utilize its features effectively. DA also defined the scope of their project in details with the time and budget that are required for the completion of the project. Data collection from the old system (JDEdwards) was essential for DA to utilize the assets history in the new CMMS and other data that will help DA in implementing the CMMS system to suit their operational requirements. Due to the huge size of the airport area the managements at DA decided to divide the airport into zones which will follow standard format for naming to make it easier to identify each location and ease the operational requirements. Phase Two: Best Practices The management decided to do site visit to Etisalat as Etisalat already have the CMMS system in place and DA has a relation with them to share information related to the CMMS system implementation. DA planned for the visit to get the required data and share the findings with Etisalat. Phase three: Improvement Implementation and

In this phase DA set the working plan for the CMMS system implementation and best practices and they got a list of different vendors who can implement the system, so the managements at DA decided to invite the companies who are the leaders in this field and rate their capabilities of fixing the system in the airport and meet DA operational requirements to achieve effectiveness in the daily operations. DA implemented the plan after selecting the vendor and they kept monitoring the results through weekly meeting of the executers and monthly meeting for the top managements in the engineering Services Unit to see the

progress of the project. Then, the executers team standardized the business processes and work flows (where applicable) in the

daily activities with periodic control to get the best results and improve.

DA selected the vendor for implementing our CMMS system based on the 18 criteria shown below in table 1:

Invensys

Seimens

No.

1

Age of the company's operation in Dubai Nature of Business of the Company

Serco

Description of Criteria

Max Points 10

eSolutio ns E Manag 8 6 10 6 0 0 5 0

Emcor

Dalkia

Measurement Guidelines 2 marks on average per year Emphasis on THD, then FM, then rest @@@@@@@ @ @ @@ @ @ @ @ @ @ @ @ @@ @@@@@@@ @ @@ @ @ @ @ @ @ @ @ @@ @ @@@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@@ @@@@@@@ @ @ @@ @ @ @ @ @ @ @ @ @@ @@@@@@@ @ @@ @ @ @ @ @ @ @ @ @@ @ @@@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @

10

10

6

10

8

2

15

15

10

12

15

10

3

Certification by 3rd party as THD or and CMMS operator

10

2

2

0

2

0

4

MNC

10

10

10

10

10

10

@@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@@ @@@@@@@ @ @ @@ @ @ @ @ @ @ @ @ @@ @@@@@@@ @ @@ @ @ @ @ @ @ @ @ @@ @ @@@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@@ ISO 2 points and Dubai Quality Group 3 points E Manag did not submit Financial Report- Overall Turnover is considered for review Siemenns, Emcor & Esolutions did not submit Professional Liability and Emanagement did not submit Public

5

Disqualified anywhere

10

10

10

10

10

10

10

10

6

Third Party Certification for Company on quality Assurance

10

5

10

8

2

8

0

2

7

Financial Status/Turnover

15

15

13

11

9

15

11

2

8

Credibility of Insurance

10

5

10

0

10

8

4

3

Liability

9

Similar Projects executed Airport Work Experience Airport Work Experience in Similar Project

10

5

5

8

10

6

6

2

Priority 1 to THD, then THD in their own FMcontracts, etc

10

10

10

10

10

10

10

10

0 Priority 1 to THD, then THD in their own FMcontracts, etc Subcontracting of all those non-core business to its own specialist is of higher points Resources at all levels available locally, Details of methodology are looked at Popularity of the CMMS proposed Connectivity development to other systems such as GRP. Openness of the system @@@@@@@ @ @ @@ @ @ @ @ @ @ @ @ @@ @@@@@@@ @ @@ @ @ @ @ @ @ @ @ @@ @ @@@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@

11

15

0

0

12

10

0

8

0

12

Subcontracted items

15

10

10

12

5

8

10

4

13

Deployment Capability and methodology

15

15

15

15

15

5

5

5

14

IT Strength

10

10

10

6

5

6

8

8

15

Openness of the technology

10

5

8

6

10

8

8

6

16

Launch Data of Commercial Version of requested technology

5

5

5

5

@@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@@ 17 18 Local Technical Resources Overseas Support 15 5 5 5 5 5 15 5 10 5 12 5 8 4 4 0 At each level and their credentials Availability for fallback @@@@@@@ @ @ @@ @ @ @ @ @ @ @ @ @@ @@@@@@@ @ @@ @ @ @ @ @ @ @ @ @@ @ @@@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@@ @@@@@@@ @ @ @@ @ @ @ @ @ @ @ @ @@ @@@@@@@ @ @@ @ @ @ @ @ @ @ @ @@ @ @@@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @

Total Score

200

142

148

146

153

129

115

58

Percentage

100

71

74

73

77

65

58

29

@@@@@@ @@ @ @ @ @ @ @ @ @ @@ @ @ @@@@@@@

1. Identify your problem areas - Because benchmarking can be applied to any business process or function, a range of research techniques may be required. They include: informal conversations with customers, employees, or suppliers; exploratory research techniques such as focus groups; or in-depth marketing research, quantitative research, surveys, questionnaires, re-engineering analysis, process mapping, quality control variance reports, or financial ratio analysis. Before embarking on comparison with other organizations it is essential that you know your own organization's function, processes; base lining performance provides a point against which improvement effort can be measured. 2. Identify other industries that have similar processes - For instance if one were interested in improving hand offs in addiction treatment he/she would try to identify other fields that also have hand off challenges. These could include air traffic control, cell phone switching between towers, transfer of patients from surgery to recovery rooms. 3. Identify organizations that are leaders in these areas - Look for the very best in any industry and in any country. Consult customers, suppliers, financial analysts, trade associations, and magazines to determine which companies are worthy of study. 4. Survey companies for measures and practices - Companies target specific business processes using detailed surveys of measures and practices used to identify

business process alternatives and leading companies. Surveys are typically masked to protect confidential data by neutral associations and consultants. 5. Visit the "best practice" companies to identify leading edge practices - Companies typically agree to mutually exchange information beneficial to all parties in a benchmarking group and share the results within the group. 6. Implement new and improved business practices - Take the leading edge practices and develop implementation plans which include identification of specific opportunities, funding the project and selling the ideas to the organization for the purpose of gaining demonstrated value from the process."*1 Sherri Dumford (2008) mentioned that there are nine types of benchmarking, these are: 1. Process benchmarking - the initiating firm focuses its observation and investigation of business processes with a goal of identifying and observing the best practices from one or more benchmark firms. Activity analysis will be required where the objective is to benchmark cost and efficiency; increasingly applied to back-office processes where outsourcing may be a consideration. 2. Financial benchmarking - performing a financial analysis and comparing the results in an effort to assess your overall competitiveness and productivity.

3. Benchmarking from an investor perspective- extending the benchmarking universe to also compare to peer companies that can be considered alternative investment opportunities from the perspective of an investor. 4. Performance benchmarking - allows the initiator firm to assess their competitive position by comparing products and services with those of target firms. 5. Product benchmarking - the process of designing new products or upgrades to current ones. This process can sometimes involve reverse engineering which is taking apart competitors products to find strengths and weaknesses. 6. Strategic benchmarking - involves observing how others compete. This type is usually not industry specific, meaning it is best to look at other industries. 7. Functional benchmarking - a company will focus its benchmarking on a single function in order to improve the operation of that particular function. Complex functions such as Human Resources, Finance and Accounting and Information and Communication Technology are unlikely to be directly comparable in cost and efficiency terms and may need to be disaggregated into processes to make valid comparison. 8. Best-in-class benchmarking - involves studying the leading competitor or the company that best carries out a specific function. 9. Operational benchmarking - embraces everything from staffing and productivity to office flow and analysis of procedures' performance. Conclusions All in all, Dubai Airports did a very good job in its benchmarking process and covered almost all the points in a typical process of

benchmarking. Without a doubt, there have been considerable developments within the area of Dubai Airport benchmarking in recent years and the sector no longer lags so much behind other industries, including airlines, in the knowledge and practical use of performance indicators. There is a growing collection of literature related to the subject and there is also evidence that many airports, are making much greater use of benchmarking techniques, so it is very crucial for DI to use it to compete with them in order to achieve excellence. However, the fundamental difficulties associated with inter-airport comparisons and with dealing with problems of comparability, arising largely from the diversity of inputs and outputs (Like Dubai Airports and Etisalat), still remain and have yet to be resolved effectively. Relatively few benchmarking studies have made a truly international comparison of performance. This seems to be out of line with the fact that both the airport and airline industry are becoming increasingly international or global in nature. Further research is needed. Interest in this area will undoubtedly increase as more fruitful results become obvious and go through the commercialization and privatization stages in the evolutionary cycle of Dubai Airport References Kaiser Associates (1988). Beating the competition: a practical guide to Benchmarking. (p. 176) Washington DC. Nah, F & Lau, J (2001). Critical factors for successful implementation of enterprise systems, Business Process Management Journal, 7 (3), 285-296.

O'Leary, D (2000). Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce and Risk, New York, Cambridge University Press,. Turban, E, Leidner, D, Mclean, E, and Wetherbe J (2006). Information Technology for Management: transforming organizations in the digital age, 5th ed, John Willy & Sons. *1. http://www.economicexpert.com/a/Benchma rking.htm *2. http://www.scribd.com/doc/14561822/Benc h-Marking

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