Performance Measurement System (PSM) and Balanced Scorecard (BSC) Strategies Used in the Process related with Ramp Handling Services of Ground Handling Management

Year 2018, , 1 - 9, 26.06.2018

Tüzün Tolga İnan

https://doi.org/10.30518/jav.401511

Cited By: 1

Abstract

In civil aviation
sector, the design of airports is divided into two as air side and ground side.
The latter part of second security gate in terminal building at the airports is
defined as air side in the literature (which is defined as customs area). The
air side is also divided into; ground service and airspace. In this research,
the concept of ramp services which constitutes basic content of ground service
management process is examined. One of the two most important causes of delays
in civil air traffic is that ramp services can not be planned effectively (the
other reason is that airport capacity is extremely dense), so this concept
needs to be well analyzed and evaluated. The performance measurement system
(PMS) and balanced scorecard (BSC) methods in this review are examined in terms
of the conceptual background within design, measurement and implementation phases
for effective ramp services process in ground handling management.

Keywords

Performance measurement system (PMS), balanced scorecard (BSC), conceptual background, ground handling management, ramp handling services

Performance Measurement System (PSM) and Balanced Scorecard (BSC) Strategies Used in the Process related with Ramp Handling Services of Ground Handling Management

Abstract

In civil aviation sector, the design of airports is divided into two as air side and ground side. The latter part of second security gate in terminal building at the airports is defined as air side in the literature (which is defined as customs area). The air side is also divided into; ground service and airspace. In this research, the concept of ramp services which constitutes basic content of ground service management process is examined. One of the two most important causes of delays in civil air traffic is that ramp services can not be planned effectively (the other reason is that airport capacity is extremely dense), so this concept needs to be well analyzed and evaluated. The performance measurement system (PMS) and balanced scorecard (BSC) methods in this review are examined in terms of the conceptual background within design, measurement and implementation phases for effective ramp services process in ground handling management.

Keywords

Performance Measurement System (PMS), Balanced Scorecard (BSC), Conceptual Background, Ground Handling Management, Ramp Handling Services

References

• Air Transport Association, ‘’ATA Economic Report 2006’’, Air Transport Association of America, Washington, DC., 2006.
• A. Schwolgin, ‘‘Stand und Entwicklungsperspektiven des Controllings von Logistikdienstleistern. In: Schneider, C. (Ed.)’’, Controlling für Logistikdienstleister: Konzepte, Instrumente, Anwendungsbeispiele, Trends. Deutscher Verkehrsverlag, Hamburg, 17-50, 2004.
• A. Neely, J. Mills, K. Platts, M. Gregory, H. Richards, ‘‘Performance measurement design: Should process based approaches be adopted?’’, International Journal of Production Economics, 46-47, 423-431, 1996.
• A. Neely, J. Gregory, K. Platts, ‘‘Performance measurement system design: A literature review and research agenda’’, International Journal of Operations and Production Management, 15(4), 80-116, 1995.
• A. Neely, J. Mills, K. Platts, R. Huw, M. Gregory, M. Bourne, M. Kennerley, ‘‘Performance measurement system design: Developing and testing a process-based approach’’, International Journal of Operations and Production Management, 20(10), 1119-1145, 2000.
• A. Stainer, ‘‘Logistics: A productivity and performance perspective’’, Supply Chain Management, 2(2), 53-62, 1997.
• ATRS, ‘‘Airport Benchmarking Report. Air Transport Research Society’’, University of British Columbia, Vancouver, 2003.
• B. Graham, C. Guyer, ‘‘Environmental sustainability, airport capacity and European air transport liberalization: Irreconcilable goals?’’, Journal of Transport Geography, 7, 165-180, 1999.
• C. Bernabai, ‘‘Airports: An integral part of the air traffic management system’’, Air and Space Europe. 3(1/2), 25-27, 2001.
• C. Caplice, Y. Sheffi, ‘‘A review and evaluation of logistics metrics’’, The International Journal of Logistics Management, 5(2), 11-28, 1994.
• C. Gonnord, F. Lawson, ‘‘Airports: A precious resource of the aviation network’’, Air and Space Europe, 2(5), 33-39, 2000.
• Civil Aviation Authority, ‘‘The use of benchmarking in airport reviews’’, Civil Aviation Authority, London, 2000.
• C. Murillo-Melchor, ‘‘An analysis of technical efficiency and productivity changes in Spanish airports using the malmquist index’’, International Journal of Transport Economics, 26(2), 271-292, 1999.
• C. Rafele, ‘‘Logistic service measurement: a reference framework’’, Journal of Manufacturing Technology Management, 15(3), 280-290, 2004.
• C. Templin, ‘‘Deregulation of ground handling on six European airports’’, Paper presented at the German Aviation Research Society Workshop, Bremen, 2005.
• C. Tyler, ‘‘Pleasing the passenger’’, Airport World, 5(3), 19-22, 2000.
• D. Gillen, A. Lall, ‘‘Developing measures of airport productivity and performance: An application of data envelopment analysis’’, Paper presented at the Aviation Transport Research Group Conference, Vancouver, 1997.
• C.-H. Yeh, Y.-L. Kuo, ‘‘Evaluating passenger services of Asia-Pacific international airports’’, Transportation Research E, 39, 35-48, 2003.
• D. Parker, ‘‘The performance of BAA before and after privatization. Journal of Transport Economics and Policy’’, 33, 133-145, 1999.
• D. Wyld, M. Jones, J. Totten, ‘‘Where is my suitcase?, RFID and airline customer service’’, Marketing Intelligence and Planning, 23(4), 382-394, 2005.
• E. Pels, P. Nijkamp, P. Rietveld, ‘‘Inefficiency and scale economics of European airport operations. Transportation Research Part E’’, 39, 341-361, 2003.
• European Commission, ‘‘Ground handling market at community airports (revision on the directive 96/67/EC)’’, 2003, http://ec.europa.eu/transport/air_portal/consultation/2003_06_01_en.htmS., Date of Access 21.02.2018.
• F. Chan, H. Chan, H. , Lau, R. Ip, ‘‘An AHP approach in benchmarking logistics performance of postal industry’’, Benchmarking: An International Journal. 13(6), 636-661, 2006.
• G. Chow, T. Heaver, L. Henriksson, ‘‘Logistics performance: Definition and measurement systems’’, International Journal of Physical Distribution and Logistics Management, 24(1), 17-28, 1994.
• G. Francis, I. Humphreys, J. Fry, ‘‘An international survey of the nature and prevalence of quality management systems in airports’’, TQM and Business Excellence, 14(7), 819-829, 2003.
• G. Francis, I. Humphreys, J. Fry, ‘‘The benchmarking of airport performance’’, Journal of Air Transport Management, 8(4), 239-247, 2002.
• G. Francis, , I. Humphreys, J. Fry, ‘‘The nature and prevalence of the use of performance measurement techniques by airlines’’, Journal of Air Transport Management, 11(4), 207-217, 2005.
• H. Bredrup, ‘‘Background for performance management. In: Rolstadas, A. (Ed.), Performance Management: A Business Process Benchmarking Approach’’, Chapman & Hall, London, 61-87, 1995.
• H. Hegendorfer, C. Tyler, ‘‘Who’s top in passenger satisfaction’’, Airport World, 4(3), 39-41, 1999.
• H. Hegendorfer, P. Morris, ‘‘Competition hots up for top airport ratings’’, Airport World, 5(3), 26-29, 2000.
• J. Fuhr, ‘‘(De)regulation of European ramp handling market: Lessons to be learned from an institutional perspective?’’, Working Paper, Center for Network Industries and Infrastructure CNI, Berlin, 2006.
• J. Fuhr, T. Beckers, ‘‘Vertical governance between airlines and airports: A transaction cost analysis’’, Review of Network Economics, 5(4), 386-412, 2006.
• J. Glaeson, D. Barnum, ‘‘Toward valid measures of public sector productivity: Performance measures in urban transit’’, Management Science, 28(4), 379-386, 1986.
• J. Leyk, J. Kopp, ‘‘Unternehmensplanung bei Logistikdienstleistern mit Advanced Budgeting. In: Schneider, C. (Ed.)’’, Controlling für Logistikdienstleister: Konzepte, Instrumente, Anwendungsbeispiele, Trends, Deutscher Verkehrsverlag, Hamburg. 361-377, 2004.
• J. Martin, C. Roman, ‘‘An application of DEA to measure the efficiency of Spanish airports prior to privatization’’, Journal of Air Transport Management, 7(3), 149-157, 2001.
• J. Mentzer, B. Konrad, ‘‘An efficiency/effectiveness approach to logistics performance analysis’’, Journal of Business Logistics, 12(1), 33-61, 1991.
• J. Müller, V. Kamp, H. Niemeier, ‘‘Can we learn from benchmarking studies of airports and where do we want to go from here?’’, Paper presented at the German Aviation Research Society Workshop on Benchmarking, Wien, 2005.
• J. Sandström, J. Toivanen, ‘‘The problem of managing product development engineers: Can the balanced scorecrad be an answer?’’, International Journal of Production Economics, 78, 79-90, 2002.
• J. Sarkis, ‘‘An analysis of the operational efficiency of major airports in the United States’’, Journal of Operations Management, 18, 335-351, 2000.
• J. Schmitz, K. Platts, ‘‘Supplier performance measurement: Indications from a study in the automotive industry’’, International Journal of Production Economics, 89, 231-243, 2004.
• J. Ukko, J. , Tenhunen, H. Rantanen, ‘‘Performance measurement impacts on management and leadership: Perspectives of management and employees’’, International Journal of Production Economics, 110, 39-51, 2007.
• J. Wahler, J. Cox, ‘‘Competitive factors and performance measurement: Applying the theory of constraints to meet customer needs’’, International Journal of Production Economics. 37, 229-240, 1994.
• K. Hafeez, Y. Zhang, N. Malak, ‘‘Determining key capabilities of a firm using analytic hierarchy process’’, International Journal of Production Economics, 76, 39-51, 2002.
• K.-H. Lai, E. Ngai, T. Cheng, ‘‘An empirical study of supply chain performance in transport logistics’’, International Journal of Production Economics, 87, 312-331, 2004.
• M. Abbott and S. Wu, ‘‘Total factor productivity and efficiency of Australian airports’’, The Australian Economic Review, 35(3), 244-260, 2002.
• M. Balle´, ‘‘The Business Process Re-engineering Action Kit’’, Kogan Page, London, 1995.
• M. Bourne, J. Mills, M. Wilcox, A. Neely, K. Platts, ‘‘Designing, implementing and updating performance measurement systems’’, International Journal of Operations and Production Management, 20(7), 754-771, 2000.
• M. Brown, ‘‘Keeping Score: Using the Right Metrics to Drive World Class Performance’’, Productivity Press, New York, 1996.
• M. Garvens, ‘‘The airport of the future against backdrop of dramatic changes in the aviation sector. In: Delfmann, W., Baum, H., Auerbach, S., Albers, S. (Eds.)’’, Strategic Management in the Aviation Industry, Ashgate, Aldershot, 2005.
• M.J. Gregory, ‘‘Integrated performance measurement: A review of current practice and emerging trends’’, International Journal of Production Economics, 30–31, 281-296, 1993.
• M. Kennerley, A. Neely, ‘‘A framework of the factors affecting the evolution of performance measurement systems’’, International Journal of Operations and Production Management, 22(11), 1222-1245, 2002.
• M. Smith, D. Smith, ‘‘Implementing strategically aligned performance measurement in small firms’’, International Journal of Production Economics, 106, 393-408, 2007.
• N. Adler, Berechman, J., ‘‘Measuring airport quality from the airlines viewpoint: An application of data envelopment analysis’’, Transport Policy, 8, 171-181, 2001.
• N. Ashford, M. Stanton, C. Moore, ‘‘Airport Operations’’, Wiley, New York, 1995.
• P. Hill, ‘‘Tangibles, intangibles and services: A new taxonomy for the classification of output’’, Canadian Journal of Economics, 32(2), 426-446, 1999.
• P. Lawson, ‘‘Performance management: An overview. In: Walters, M. (Ed.)’’, The Performance Management Handbook, Institute of Personnel & Development, London. 1-13, 1995.
• P. Upham, J. Mills, ‘‘Environmental and operational sustainability of airports: Core indicators and stakeholder communication’’, Benchmarking: An International Journal, 12(2), 166-179, 2005.
• R. Doganis, A. Graham, A. Lobbenberg, ‘‘The economic performance of European airports (No. 3). Department of Air Transport Research’’, Cranfield University, Bedford, UK., 1995.
• R. Doganis, ‘‘Flying off Course: The Economics of International Airlines’’, Routledge, London, 2002.
• R. Doganis, ‘‘The Airline Business in the Twenty-First Century’’, Routledge, London, 2001.
• R. Kaplan, D. Norton, ‘‘Linking the balanced scorcard to strategy’’, California Management Review, 39(1), 53-79, 1996b.
• R. Kaplan, D. Norton, ‘‘Putting the balanced scorecard to work’’, Harvard Business Review, 71(5), 134-147, 1993.
• R. Kaplan, D. Norton, ‘‘Strategic learning and balanced scorecard’’, Strategy and Leadership, 24(5), 18-24, 1996c.
• R. Kaplan, D. Norton, ‘‘The balanced scorecard: Measures that drive performance’’, Harvard Business Review, 70(1), 71-79, 1992.
• R. Kaplan, D. Norton, ‘‘The Balanced Scorecard: Translating Strategy into Action’’, Harvard Business School Press, Boston, MA, 1996a.
• R. Kaplan, D. Norton, ‘‘Transforming the balanced scorecard from performance measurement to strategic management: part I’’, Accounting Horizons, 15(1), 87-104, 2001.
• R. Kaplan, D. Norton, ‘‘Using the balanced scorecard as a strategic management system’’, Harvard Business Review, 74(1), 75-85, 1996d.
• R. McIvor, ‘‘Outsourcing: Insights from the telecommunications Industry’’, Supply Chain Management: An International Journal, 8(4), 380-394, 2003.
• S. Albers, B. Koch, C. Ruff, ‘‘Strategic alliances between airlines and airports’’, Journal of Air Transport Management. 11(2), 49-58, 2005.
• SAS, ‘‘The SAS Group’s Annual Report and Sustainability Report’’, Scandinavian Airlines, Stockholm, 2005.
• SH&E, ‘‘Study on the quality. London’’: SH&E, 2002.
• S. Schmidberger, L. Bals, E. Hartmann, C. Jahns, ‘‘Ground handling services at European hub airports: Development of a performance measurement system for benchmarking’’, International Journal of Production Economics, 117, 104-116, 2009.
• T. Oum, C. Yu, X. Fu, ‘‘A comparative analysis of productivity performance of the world’s major airports: Summary report of the ATRS global airport benchmarking research report-2002’’, Journal of Air Transport Management, 9(5), 285-297, 2003.
• TRL, ‘‘Airport performance indicators’’, Research Report, Transport Research Laboratory, Wokingham, 2003.
• T. Soames, ‘‘Ground handling liberalization’’, Journal of Air Transport Management, 3(2), 83-94, 1997.
• T. Wegelius-Lehtonen, ‘‘Performance measurement in construction logistics’’, International Journal of Production Economics, 69, 107-116, 2001.
• V. Zeithaml, A. Parasuraman, L. Berry, ‘‘Problems and strategies in services marketing’’, Journal of Marketing, 49, 33-46, 1985.