an SBIR presentation from CS 410
Green Group
presented by Jeremey Sellen
Wednesday, December 10, 2008
10 December 2008
AIR Tracker
1
Lonely Bag Left Behind
10 December 2008
AIR Tracker
2
Staff Structure (Phase 0)
10 December 2008
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Food for Thought
If you were told that
3 bags in 1,000
were lost or mishandled in some way, meaning
that you may not have your bag when you landed,
Would you be excited to embark on that
airline with checked bags?
10 December 2008
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Fact!
In September of 2008, the average of 19 major airlines
for mishandled baggage was 3.86 bags per thousand,
with a high of 9.37 per thousand. 1
This number represents domestic flights only!
1) http://airconsumer.ost.dot.gov/reports/2008/November/200811ATCR.pdf
10 December 2008
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Food for Thought
Not convinced? Consider that
 In 2007, an Atlanta airport processed 78 million
passengers over an 11-month span!
 This equates to 7,090,909 passengers per month,
which equals 236,363 passengers per day. Assuming
a conservative average of a single bag
per customer:
3.86 bags per thousand means that 912 bags will be
mishandled in one day at this particular airport.
This is an unnecessary result of a flawed system.
1) http://airconsumer.ost.dot.gov/reports/2008/November/200811ATCR.pdf
10 December 2008
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Problem Statement
In spite of current quality assurance measures, airlines
spend billions of dollars a year on mishandled
luggage.1 This includes the funding to support the
extra personnel to transport bags to travelers and
also to reimburse those travelers whose bags have
been mishandled.
1) http://www.sita.aero/files/resources/Baggage_Report_2008.pdf
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Importance of Problem
“Even small improvements in the amount of baggage
ending up at the right place at the right time could
save the air transport industry hundreds of millions of
dollars a year as well as millions of passenger hours
that could have been spent doing something more
productive than trying to retrieve mishandled bags.”1
1) Francesco Violante, SITA’s CEO
10 December 2008
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Solution
The AIR Tracker software solution will
 augment existing routing systems at airports utilizing
existing technology,
 add an additional layer to the routing system at the
baggage cart and transfer levels to fill in the gap of
the current system, and
 provide reporting on the airport’s current system of
routing.
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Objectives
The overall objectives of the AIR Tracker system are to
1. reduce the number of bags that are mishandled
in any given airport,
2. provide an innovative solution that fills the
current gap of the transfer process,
3. provide system reporting to allow airports to
research their weak baggage routing areas, and
4. provide statistics for historical trend analysis.
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Causes of Mishandled Luggage
Source: Popular Mechanics
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Process Flow (Outbound)
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Process Flow (Inbound)
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An Expert’s Words
 “Baggage handlers drop more bags [off a cart] than
they put baggage on the wrong flight.”1
 “The carry-on versus checking issue is becoming more
important because people are [not wanting to pay the
extra money]. They refuse to check bags, but now,
airlines can get fined thousands of dollars if a
passenger carries more than two carry-ons onto a
plane.”1 This means a greater strain on the baggage
handling process.
1) Gloria Anderson, baggage handler at Norfolk International Airport
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Modular Solution
AIR Tracker is broken down into modules to better
display the functionality and to increase flexibility. The
modules include
1. the routing module
2. the transfer module (this module provides the
technical innovation that has not currently
been solved)
1
10 December 2008
2
AIR Tracker
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Routing Module
The routing module contains the actual tracking of the
bag as it goes through the Radio Frequency
Identification (RFID) / Bar Code scanning process.
The path of the bag is tracked by pulling the data from
the airport database that is sent from the readers. This
is used in quality assurance reporting as well as
another level of accountability for the whereabouts of
the bag.
Airport Database
10 December 2008
AIR Tracker Database
AIR Tracker
Reports
16
Transfer Module
After getting through the routing module, the bag is
then passed to the transfer module.
10 December 2008
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Current Cart Dilemma
If a bag is dropped from the cart, it may not be noticed
until the cart reaches the airplane. By that point,
depending on the size of the airport, it may be too late
to go back and get it before the plane departs.
10 December 2008
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AIR Tracker Cart Module
Enter the Baggage Cart RFID / WiFi Antenna:
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RFID Antenna
The RFID baggage cart antenna communicates
wirelessly via onboard WiFi capability with the airport’s
WiFi antenna to gain updates from the master database
on which bags should be on which flight.
10 December 2008
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RFID Antenna (continued)
The RFID baggage cart antenna actively pings the RFID
tags on the bags in a cluster method. If one of the bags
is returning a distinctly longer ping response, the
antenna alerts the driver that a bag has fallen off. The
driver then has time to stop and regain the dropped
bag or alert another handler of the location of the bag.
10 December 2008
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At the Airplane
An RFID gate on the ramp reads the bags that are
loaded on the airplane and sends an alert to the
handlers if there is a bag that is not meant to be on
that plane. The gate is updated wirelessly from the
airport as well. This serves as a final redundancy to
the RFID system and removes the need for a manual
scan at the bottom of the ramp.
10 December 2008
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Risk Matrix
Initial Risks
1.
2.
3.
4.
Disinterested Airports
Unintentional Leak of Personal Information
Incompatible with Airport Databases
Wireless Communication Problems
Mitigation of Risks
1. Provide a Lower Cost Solution for Smaller Airports
2. Strong Security Protocols and Best Practices
3. Survey Databases Prior to Installation and Provide
Manual Data Input
4. Add Access Points to Existing Networks or Install an
Optimized Wireless Infrastructure
10 December 2008
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Risk Plan
In order for this product to be a success, airports must
be willing to purchase the system based on the
projected data. Since this project scope
encompasses not only airports of different sizes,
but also of different luggage throughput, the
installations will be customized to fit the needs of
the airport in a physical sense as well as in
fiscal cents.
Due to extensive communications devices operating in
the wireless mode at airports, there are concerns
about signal-to-noise ratios and even signal
interference (intentional). To alleviate this, indepth research will be made into the wireless
capabilities and limitations of the technologies in
the airport environment.
10 December 2008
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Competition Matrix
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AIR Tracker Versus the Competition
Although the competition helps
to solve each facet of the
mishandled luggage problem,
AIR Tracker supplements their
capabilities and is the only one
that offers the cart solution for
transfers (61% of the problem
scope).
1
1) Popular Mechanics
10 December 2008
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Marketing Plan
The customer for this product is airports vice airlines
due to the fact they own the equipment and
routing processes this system would have to
integrate with.
The cost for the product would be shared by airlines
and shops and other airport venues via higher lease
fees or contracted price division.
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What’s in the Box?
Handheld
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AIR Tracker MFCD
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WBS Tree
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Phase Breakdown
Phase 0
“Conceptualization Phase”
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Phase 0 Tasks
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Phase 0 Major Deliverables











10 December 2008
Problem Statement
Risk Matrix
Staff Structure
Major Functional Component Diagram
Feasibility Presentation
Feasibility Presentation (Revised)
Work Breakdown Structure
Task Breakdown Gantt Chart
Milestone Presentation
SBIR Presentation
Project Plan Write-Ups
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Phase Breakdown
Phase 1
“Initiation Phase”
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Phase 1 Tasks
10 December 2008
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Phase 1 Major Deliverables








10 December 2008
Reassess Staff Structure
Resource Determination
Persuasive Paper
Database Design
Documentation
Prototype
Test Results
SBIR Grant Proposal
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36
Prototype (Routing)
For the routing prototype:
 3 RFID scanners will be set up representing RFID
stations throughout a routing process.
 1 bar code scanner will be inserted in the flow to
demonstrate the functionality.
 All of these nodes will be related in the application
server to a destination. Once the RFID / bar code
tags are passed through these checkpoints, the
application will update the database server. The
tags will be run through an improper checkpoint to
display the error functionality.
10 December 2008
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Prototype (Transfer)
 A database will be created with information related
to the RFID tags including destination.
 This information will be sent to a WiFi router which
will transmit this information to a WiFi / RFID hybrid
device which will store it locally.
 The related RFID tags will be grouped together and
the hybrid device will be used to actively scan the
tags.
 One or more RFID tags will be removed from the
group and the RFID scanner will show an alert that
there is a problem.
10 December 2008
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Phase 1 Resource Budget
Hardware
- three RFID readers (with WiFi and onboard
memory) - $900
- wireless router - $80
- bar code scanner - $100
- RFID tags - $.15 per tag (lot of 100)
Total Hardware Cost for Phase 1 - $1,095
10 December 2008
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Phase 1 Budget (Personnel)
10 December 2008
Title
Quantity
Time Needed
Hourly Rate
Total
Project Manager
1
640 hours
$15
$9,600
Hardware Manager
1
320 hours
$15
$4,800
Software Manager
2
520 hours
$15
$15,600
Marketing Director
1
80 hours
$15
$1,200
Financial Specialist
1
160 hours
$15
$2,400
Webmaster
1
80 hours
$15
$1,200
Wireless Consultant
1
30 hours
$15
$1,050
Transportation Consultant
1
70 hours
$15
$840
Database Analyst
1
400 hours
$15
$6,000
Risk Analysis
1
190 hours
$15
$2,850
Sub-total
-
-
-
$45,540
40% Overhead
-
-
-
$18,216
Totals
10
2,490 hours
-
$63,756
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40
Phase Breakdown
Phase 2
“Planning Phase”
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Phase 2 Tasks
10 December 2008
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Phase 2 Major Deliverables






10 December 2008
Reassess Staff Structure
Resource Organization
Build Functional Lab Model
Successful Hardware and Software Tests
Implement Marketing Plan
Sell Product and Begin Environmental Statistics
Generation
AIR Tracker
43
Phase 2 Budget (Resources)
 Hardware (per install)
Server - $14,000 [1]
RFID reader (with WiFi and onboard memory)
- $300 [N]1
Wireless router (O) - $200 [N]
RFID tags (O)- $100 (lot of 1000) [N]
Handheld assistant (O)- $300 [N]
 Software
Oracle database software - $10,000 [1]
 Total Cost
Base = $24,000 + $300 per RFID Reader
With options = $24,000 + $300(w) + $200(x) +
$100(y) + $300(z)
1)
2)
10 December 2008
‘N’ represents the customized number needed by the individual airport
‘O’ represents an optional component that airports may use if they have it.
AIR Tracker
44
Phase 2 Budget (Resources)
Example (Base)
– An airport with 20 trucks (each with 2 carts for a
total of 40 carts) and 20 gates that has all of the
WiFi routers they need and do not want the
handheld option. Their routing architecture is
assumed to be sufficient.
– 40 RFID antennae ($12,000)
– 20 RFID “gates” for loading ramps ($6,000)
– Server ($14,000)
– Oracle database software ($10,000)
– Total resource cost to us for this install ($42,000)
10 December 2008
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Phase 2 Budget (Personnel)
Title
10 December 2008
Salary
Time Needed per
month
Hourly Rate
Monthly Total
Project Manager
$62,000
160 hours
$30
$5,167
Hardware Manager
$58,000
160 hours
$28
$4,834
Software Manager
$104,000
160 hours
$50
$8,667
Marketing Director
$82,000
160 hours
$40
$6,834
Financial Specialist
$45,000
160 hours
$22
$3,750
Webmaster
$64,000
160 hours
$24
$5,334
Wireless Consultant
$52,000
80 hours
$25
$2,000
Transportation Consultant
$19,200
80 hours
$20
$1,600
Technical Writer
$58,000
160 hours
$28
$4,834
Database Administrator
$80,000
160 hours
$39
$6,667
Risk Analyst
$42,000
160 hours
$21
$3,500
Contracted install team (4
electricians, 1 hardware installer, 1
wireless surveyor)
-
160 hours
-
$25,000
Sub-total
$666,200
$78,187
40% Overhead
$266,480
$31,275
Totals
$932,680
1,760 hours
AIR Tracker
-
$109,462
46
Phase Breakdown
Phase 3 and Out Years
“Execution Phase” and Beyond
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Phase 3 and Out Years Tasks
10 December 2008
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48
Phase 3 Major Deliverables
 Reassess Staff Structure
 Maintain Mass Production
 Maintain Product Support
10 December 2008
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49
Phase 3 Budget
 Hardware (per install)
Server - $14,000 [1]
RFID reader (with WiFi and onboard memory)
- $300 [N]1
Wireless router (O) - $200 [N]
RFID tags (O)- $100 (lot of 1000) [N]
Handheld assistant (O)- $300 [N]
 Software
Oracle database software - $10,000 [1]
1)
2)
10 December 2008
‘N’ represents the customized number needed by the individual airport
‘O’ represents an optional component that airports may use if they have it.
AIR Tracker
50
Phase 3 Budget
Title
Salary
Time Needed per month
Hourly Rate
Monthly Total
Project Manager
$62,000
160 hours
$30
$5,167
Hardware Manager
$58,000
160 hours
$28
$4,834
Software Manager
$104,000
160 hours
$50
$8,667
Marketing Director
$82,000
160 hours
$40
$6,834
Financial Specialist
$45,000
160 hours
$22
$3,750
Webmaster
$64,000
160 hours
$24
$5,334
Network Engineer
$52,000
160 hours
$25
$4,334
Transportation Consultant
$19,200
80 hours
$20
$1,600
Technical Writer
$58,000
160 hours
$28
$4,834
Database Administrator
$80,000
160 hours
$39
$6,667
Risk Analyst
$42,000
160 hours
$21
$3,500
Lawyer
$90,000
160 hours
$47
$7500
Human Resources Manager
$75,000
160 hours
$39
$6,250
Customer Service Representative
$30,000
160 hours
$16
$2,500
Contracted install team (4 electricians, 1 hardware
installer, 1 wireless surveyor)
-
160 hours
-
$25,000
Sub-total
$861,200
$96,771
40% Overhead
$344,480
$38,709
Totals
10 December 2008
$1,205,680
2,320hours
AIR Tracker
-
$135,480
51
Price Point
 ~ $200,000 - $500,000
 $200,000 is the approximate cost for a small to
mid-level airport and $500,000 is the approximate
cost for a large airport (primarily the hub airports).
 The price fluctuates based on the hardware and
software suite the airport opts for.
 Reference Funding Plan for further information
regarding the price point.
10 December 2008
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Marketing Potential
 “52 percent of airports in the 2007 Airport IT
Trends Survey said that improving baggage
processing and management was a high priority.”1
 An alternate customer may become the
competition since they do similar tasks, but lack
the transfer module process.
 patent + market to competition = profit
1) http://www.sita.aero/files/resources/Baggage_Report_2008.pdf
10 December 2008
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Breakeven Analysis
For small to mid-level airport installs, the cost of
equipment (per install) is $37,000.
The cost for personnel per year is $1,205,680. A price
point of $200,000 generates a surplus per install of
$163,000.
After 8 installations of only small to mid-level airports,
a profit would be gained.
10 December 2008
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Breakeven Analysis
For large airport installs, the cost of equipment (per
install) is $164,000.
The cost for personnel per year is $1,205,680. A price
point of $500,000 generates a surplus per install of
$336,000.
After 4 installations of large airports only, a profit
would be seen.
10 December 2008
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55
AIR Tracker ROI
The soonest that a Return on Investment (ROI) would be
noticed would be 4 months after 4 large airport
installs. This is assuming 1 install per month with a
full team working 8 hours a day, 5 days a week for
4 weeks.
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Airport ROI
The airport would spend $200,000 to $500,000 for AIR
Tracker. The cost can be recuperated by increasing
lease fees for airlines and venues in the airport.
The ROI would depend on how the airport director
decides to increase these fees or if the director
implements a one-time cost-sharing fee with the
airlines.
10 December 2008
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Airport ROI
Larger airports can contain anywhere from 10 – 19
airlines that could share the cost of the
implementation (paid to the airport).
Assuming 10 airlines at a total cost to the airport of
$500,000, the average cost per airline is $50,000. At
$100 per mishandled bag, once AIR Tracker saves 500
bags, the system has essentially paid for itself.
At a mishandled rate of 3.86 bags per 1000, this number
indicates that 129,534 bags would have to be
processed for the airline to see an ROI.
*Reminder: Atlanta processes about 236,363 passengers
per day.
10 December 2008
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Management Plan
 Set-Up Full Development Team
 Work within the WBS and Emphasize Milestones
 Report Progress to Upper Management
10 December 2008
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Funding Plan (Phase 1)
 National Science Foundation
 Phase 1: funding for up to $100,000
- proposal deadline: February 25, 2009
 Total Phase 1 Budget: $64,851
 Applicable for Grant: $64,851
 Not Funded by Grant: $0
10 December 2008
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Funding Plan (Phase 2)
 Phase 2: NSF SBIR Grant (up to $750,000)
 Total Phase 2 Budget: $1,016,580
 Applicable for Grant: $750,000
 Not Funded by Grant: $266,580
 Federal Aviation Administration Grant
- Airport Improvement Program (20.106)
- $12,000 to $35 million
- Average Grant: $1.25 million
10 December 2008
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Funding Plan (Phase 3)
 Total Phase 3 Budget: $1,205,680
 Income from Installations
- 8 Installs from Small Airports
- 4 Installs from Large Airports
 Federal Aviation Administration Grant
- Airport Improvement Program (20.106)
- $12,000 to $35 million
- Average Grant: $1.25 million
- Small Business Loans
10 December 2008
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Marketing Plan
 Target Market
- Focus on airports.
- Airlines may be an alternate market.
- Competition may be another possible market.
 Sell
- Advertise to airports (travel to locations).
- Attend technology conferences.
10 December 2008
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Staffing Plan
 Phase 0
- 1 Project Manager
- 1 Webmaster
- 1 Hardware Manager
- 1 Wireless Consultant
- 1 Transportation Consultant
 Phase 1 (same as Phase 0)
 Phase 2
- add Contracted Electricians
- add 1 Wireless Surveyor
- add 1 Hardware Installer (Welder)
 Phase 3 and Out Years
- add Legal Representation, Human Resources, and
Customer Service Representative
10 December 2008
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Evaluation Plan
 Phase 0
- Success will be known after the acceptance of the
project concept.
 Phase 1
- Success will be known after the completion of a
successful prototype.
 Phase 2
- Success will be known after the sale of the first
operational module.
 Phase 3
- Success will be known by a maintained sell rate of
the product and updates.
10 December 2008
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Conclusion
Mishandled luggage costs unnecessary resources
including money, time, and personnel. The process in
place has inherent flaws, and in order to locate
these areas and provide the most efficient
operations and customer service, AIR Tracker should
and must be employed.
10 December 2008
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References
1)
2)
3)
4)
5)
6)
7)
8)
9)
10 December 2008
“Air Travel Consumer Reports for 2008.” airconsumer.ost.dot.gov. 30 JUL
2008. Office of Aviation Enforcement. 01 Oct 2008 <http://airconsume
r.ost.dot.gov/reports/atcr08.htm>.
“Airport IT Trends Survey 2008.” sita.aero. SITA. 21 Oct 2008 <http://www
.sita.aero/News_Centre/Industry_surveys_and_trends/Airport_IT_trends
/default.htm>.
Bevan, Judi. “Coping with crisis, climate change — and lost luggage.”
spectator.co.uk. 07 Nov 2007. The Spectator. 20 Oct 2008 <http://ww
w.spectator.co.uk/the-magazine/business/334921/coping-with-crisis-cli
mate-change-and-lost-luggage.html>.
Bicknell, David. “Airlines reject RFID as universal industry solution to
lost bags.” ComputerWeekly.com. 30 Jul 2008. Computer Weekly. 20
Oct 2008 <http://www.computerweekly.com/Articles/2008/06/20/2311
41/airlines-reject-rfid-as-universal-industry-solution-to-lost.htm>.
“Frequently Asked Questions.” globalbagtag.com. Global Bag Tag. 20
Oct 2008 <http://www.globalbagtag.com/faq.cfm>.
Halthore, Mukund. “RE: Contact request from website (Germany).” Email to
Joel Elixson concerning the wholesale cost of GPS/GSM modules. 21 Oct
2008.
“IBM System x3450.” IBM. 2008. IBM. 21 Oct 2008 <http://www-304.ibm.co
m/shop/americas/webapp/wcs/stores/servlet/default/CategoryDisplay
?categoryId=4611686018425232005&storeId=1&catalogId=-840&langId=
1>.
James, Andrea. “Seattle firm sues British Airways over lost luggage.”
Seattle PI. 13 Nov 2007. Seattle PI. 21 Oct 2008 <http://seattlepi.nwso
urce.com/business/339434_lostluggage13.html>.
“Job Salaries-Performance Reviews-Compensation software- Salary.com.”
2008. Salary.com. 04 Nov 2008 <http://www.salary.com>.
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References
10) Levy, Francesca. “The Airlines’ Bag Reflex.” BusinessWeek.com. 30 Jul
2008. Business Week. 20 Oct 2008 <http://www.businessweek.com/life
style/content/jul2008/bw20080729_355085.htm>.
11) Mummolo, Jonathan. “Now Arriving At Carousel 1, Far Fewer Of Your
Bags.” Washingtonpost.com. 01 Oct 2007. Washington Post. 20 Oct 20
08 <http://www.washingtonpost.com/wpdyn/content/article/2007/09
/30/AR2007093001653.html?sid=ST2007100200809>.
12) Scottberg, Erin. “Anatomy of Lost Luggage: How to Track Your Bags
(and Save ’Em).” Popular Mechanics. 20 Dec 2007. Popular
Mechanics. 21 Oct 2008 <http://www.popularmechanics.com/technolo
gy/transportation/4237628.html>.
13) “Software Engineer / Developer / Programmer Job Salaries in Virginia
Beach-Norfolk-Newport News, VA-NC.” PayScale. 2008. 21 Oct 2008
<http://www.payscale.com/af/calc.aspx?job=program mer&city=Norfo
lk&state=VA>.
14) “IB Technology 125 kHz RFID Antenna.” Trossen Robotics. 2008. Trossen
Robotics. 04 Nov 2008 <http://www.trossenrobotics.com/ibtechnology125-khz-rfid-antenna.aspx?feed=Froogle>.
15) http://www.sita.aero/files/resources/Baggage_Report_2008.pdf
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Questions?
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