...DENVER INTERNATIONAL AIRPORT AUTOMATED BAGGAGE HANDLING SYSTEM- PROJECT FAILURE ANALYSIS MSc Project Management Abstract The purpose of this study is to critically analyse the Denver International Airport Baggage Handling System project in order to detail the underlying reasons for the perceived failures in the project and to provide recommendations on how effective project management could have helped to avoid the problems the project encountered. A thorough analysis of the activities of the project from nature of project, contracting, design, construction, testing, stakeholder management, risk management, project controls, as well as the overall project leadership was carried out and failure causal factors were identified. A recommendation was also made on how the project should have been managed to ensure project success. The analysis viewed the project from both project management and project perspectives. Student: @00380661 25-Feb-14 Number of words: 2558 Table of Contents 1. 1.1 2. 2.1 Introduction ................................................................................................................. 2 Project Failure .......................................................................................................... 2 Discussion .................................................................................................................... 3 Failure Modes of the Project .............................................
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...Running head: CASE REVIEW ANALYSIS OF THE DENVER INTERNATIONAL AIRPORT 1 Case Review Analysis of the Denver International Airport And Its Baggage Handling System Warner Sherman CASE REVIEW ANALYSIS OF THE DENVER INTERNATIONAL AIRPORT Table of Contents 2 Summary of Findings……………………………………………………………..………. 3 Background Information…………………………………………………….……............. 3 Problem Statement………………………………………………………………..…..…… 4 Analysis of Alternatives…………………………………………………………………… 4 Detailed Recommendations………………………………………………...……………... 5 Implementation and Evaluation…………………………………………………………… 6 References………………………………………………………………………………… 8 Appendix A.……………………………………………………………………………… 14 CASE REVIEW ANALYSIS OF THE DENVER INTERNATIONAL AIRPORT Summary of Findings 3 There has been considerable controversy documented through case study over the inadequacy of project and risk management structure associated with the Boeing Airport Equipment (BAE) automation design technology for a new baggage transport system at the Denver International Airport (DIA). Research background conducted by Kerzner (2011) under Case 23 revealed a documented tenyear history of this complex project with inherent risks. In another case study conducted by Montealegre, Keil, and Robinson (2000), a risk practice methodology was presented through “lessons learned” for improved implementation of the project’s risk management structure. Unfortunately, analogy comparisons for this type of project to incorporate past...
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...BAE Automated Systems Executive Summary This report concerns the automated baggage handling system which was built by BAE Automated systems. Faced with the need for greater airport capacity, the city of Denver elected to construct a new state- of- the- art airport that would cement Denver’s position as an air transportation hub. Covering a land area of 140km-squared, the airport was to be the largest in the United States and have the capacity to handle more than 50 million passengers annually. A mechanized baggage system was at the heart of the new Denver Airport, as for all major new airports. In the case of Denver, this was to be something unique: the “integrated Automated Baggage Handling System”, originally designed to distribute all baggage, including transfers- automatically between check-in, the aircraft and pick-up on arrival. The airport’s baggage handling system was a critical component in the plan. By automating baggage handling, aircraft turnaround time was to be reduced to as little as 30 minutes. Faster turnaround meant more efficient operations and was a cornerstone of the airports competitive advantage. Despite the good intentions, the plan rapidly dissolved as underestimation of the project’s complexity resulted in problems and public humiliation for everyone involved. Thanks mainly to problems with the baggage system, the airport’s opening was delayed by a full 16 months. Expenditure to maintain the empty airport and interest charges on construction...
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...Study BAE Automated Systems DIA Baggage-Handling Systems Table of Contents Topic Pages Executive Summary 3 Introduction 4-5 Issue Identification and Root Case Analysis 6-8 Alternatives and Options 9 Recommendations 10 Implementation Plan 11 Monitor & Control 12-13 Exhibits 14 Executive Summary Denver International Airport(DIA) project started in November 1989 it was a very large project. Implementing the automated baggage handling in the middle of the project made it even more complex. Denver after being behind schedule for 18 months the Airport finally opened in February 1995. Once completed the airport had 5 runaways an 88 gates. The baggage handling system of the airport was initially built for United Airlines whom insisted on the system in the earlier planning stages. Denver officials agreed the automated baggage system will be a great addition to the airport; however not just for United Airlines concourse but all concourses in the airport. Boeing Airport Equipment(BAE) was contracted for building the system by officials in Denver long after the construction on the airport began. When the airport opened it had both the automated, a back-up for the automated system and conventional baggage handling system in place. Unfortunately, the project at Denver International Airport has gone wrong in...
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...Course Title: Busniess Management Lecturer Name: John Lamont Module/Subject Code: B8MG022 Module/Subject Title: Project Planning Techniques Assignment Title: Denver International Airport No of Words: 2600 Note technical support is available to student between 0930- 1700 hrs only. There is no technical support after 1700 hrs. It is your responsibility to ensure that you allow time to troubleshoot any technical difficulties by uploading early on the due date. Assignment introduction and contents Based on the Case Study supplied on the construction of Denver International Airport we have conducted our own analysis and observations of the information in the case in order to answer the following set of questions: 1) Is the decision to Build at Denver Strategically a Sound Decision? 2) Perform a SWOT analysis on the Decision to Build? 3) Who are the Stakeholders and what are their interests or objectivies? 4) What Appears to be the Single Greatest Risk in the Decision to build DIA? 5) Do Scope changes reflect upon the ineffectiveness of a project Management Team? 6) Why did United Airlines decide toact as the project manager for the baggage handling system on Concourse B? Denver International Airport The Strategic Decision When looking at upgrading or building an airport as a feasibility amenity it would seem strategically sensible to look to fulfil needs in both the near and more distant future. Decisions for improvement must be sustainable...
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...Executive Summary In November of 1989, the City of Denver began the construction phase of its new airport with the expected completion in Fall of 1993. This project was received with political and public support and promised to aid in preventing an economic free fall. The city used as many Denver area contractors and services as possible to keep their promise of increasing the economic benefits of the new airport. Due to construction beginning later that scheduled, the design-build approach was used, which led to a number of circumstances where partially constructed, or constructed areas had to be changed causing duplication of work, increased costs and delays. Due to lack of proper planning, and that the assumption that airlines would build their own baggage system, an airport wide baggage system was not included in the final plan for the airport. BAE, after already been contracted by United to build their baggage system, was approached and agreed to build an airport wide baggage system based on negotiated conditions. At this point the scheduling and construction of the project and baggage system was out of control. As BAE worked on building and installing the baggage system, the negotiated conditions were not met, leading to further delays. The city took action to filed a lawsuit against BAE penalizing them $12,000 a day for not finishing the baggage system, possibly BAE’s reputation around the world. I recommend that BAE propose a plan for this point in the...
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...6. A hermeneutic analysis of the Denver International Airport Baggage Handling System Stasys Lukaitis, School of Information Systems, Deakin University Jacob Cybulski, School of Information Systems, Deakin University Abstract This paper attempts to demonstrate the principles of hermeneutics in an effort to understand factors affecting Information Systems (IS) projects. As hermeneutics provides a systematic method of interpreting text from multiple information sources, thus, Information Systems being prima facie defined and documented as text documents, are eminently suited for this mode of investigation. In this paper, we illustrate hermeneutics by analysing a sample case study document describing the well-known Denver International Airport (DIA) Automated Baggage Handling System project, which was extensively reported in the IS and management press and studied by Montealegre and his colleagues. As a result of the hermeneutic approach to the analysis of this document, a new ‘flexibility’ factor has been discovered to play an important, yet unreported, role in the DIA system demise. In the DIA case, the observed flexibility factor influenced the quality of the interaction between the actors, the prevailing environment and the information systems. Introduction Although there are several reports of information systems projects that have applied hermeneutics (Boland, 1991; Klein and Myers, 1999; Myers, 1994a), there are very few publications that explain the actual hermeneutic...
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...the decision to build a new airport at Denver strategically a sound decision? http://www.allfreepapers.com Denver was the fifth largest airport in the country. Due to recent growth and projected future growth, the local government bodies (which operated the existing Stapleton International airport) determined that future growth could not be supported by expansion to Stapleton and a new airport was needed. Building a new, highly-expandable airport was a good strategic decision that was poorly planned and implemented. Stapleton Airport in Denver did have its issues in terms of airline traffic bottlenecking. The airport would consistently cause delays across the country as it was projected as the fifth busiest airport in the United States. Also, with Denver not having any major cities within a 500 mile radius, I do believe it was strategically sound to plan on building a new airport. Some might disagree on this, but the issue seems to be around poor planning and not whether a new airport was needed. Bottom line, something had to replace Stapleton due to the lack of technology and modernization within it. Q2: Perform an analysis for strengths, weaknesses, opportunities and threats (SWOT) on the decision to build DIA. Q3: Who are the stake holders and what are their interests or objectives? Q4: Did the airlines support the decision to build DIA? Q5: Why was united opposed to expansion at Front Range Airport? Q6: Why was the new baggage handling system so important to united? The...
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...------------------------------------------------- BAE AUTOMATED BAGGAGE HANDLING REPORT DENVER INTERNATIONAL AIRPORT March 31, 2015 SCM GURPREET SINGH GILL March 31, 2015 SCM GURPREET SINGH GILL SCOPE The Denver Automatic Baggage system is to enhance the ground time efficiency. With the installment of automatic system the close out time will also get reduced and effectively decrease the work load of sorting and handling of baggage. Basically, this project introduce the project management to monitor and control few areas of knowledge such as scope, time, cost, quality, risk, communication, procurement, etc. EXECUTIVE SUMMARY The motive of this paper is to provide information and justify the implementation of automatic baggage system project in Denver International Airport and its failure or success. As we go through the case study we will analysis the activities of the project to consider and identify the aspects of the project which had led this project to failure. The recommendations from various elements had also been mentioned that should be taken place for the project to be a successful by using some of the project management measures and techniques. This project of Denver Automatic Baggage system project was analyzed with the point of view of project management and project approach. . ISSUE IDENTIFICATIONS As we gone through the case it has been noticed that there were many issues which took place during the initiation of the project throughout the process of implementation...
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...Case Study – Denver International Airport Baggage Handling System – An illustration of ineffectual decision making Synopsis Dysfunctional decision-making is the poison that kills technology projects and the Denver Airport Baggage System project in the 1990’s is a classic example. Although several case studies have been written about the Denver project, the following paper re-examines the case by looking at the key decisions that set the project on the path to disaster and the forces behind those decisions. Background What was to be the world’s largest automated airport baggage handling system became a classic story in how technology projects can go wrong. Faced with the need for greater airport capacity, the city of Denver elected to construct a new state of the art airport that would cement Denver’s position as an air transportation hub. Covering a land area of 140 Km2, the airport was to be the largest in the United States and have the capacity to handle more than 50m passengers annually. The airport's baggage handling system was a critical component in the plan. By automating baggage handling, aircraft turnaround time was to be reduced to as little as 30 minutes. Faster turnaround meant more efficient operations and was a cornerstone of the airports competitive advantage. Despite the good intentions the plan rapidly dissolved as underestimation of the project’s complexity resulted in snowballing problems and public humiliation for everyone involved. Thanks mainly to...
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...Is the decision to build at Denver Strategically a Sound Decision? The Strategic Decision I believe the reasons behind the decision to build the airport were legitimate as it was unable to cope with the massively increasing volume of passengers traveling to and from the airport. Flight delays and heavy financial losses were incurred by not only by the airlines but the airport itself due to the continuous delays and other missed opportunities. Future analysis carried out at the airport had predicted even further growth for the airport within the coming years. With Denver being the capital city in the county of Colorado, Stapleton airport was viewed as the main airport for the county with graphs showing it to be the 5th busiest airport in the...
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...Assignment – Denver International Airport (DIA) Individual Case Analysis Nicholas Y. Foo City University of Seattle PM501_03_IN: Intro to Project Management Larry D. Mitchell October 17, 2014 DIA – Individual Case Analysis The Denver International Airport was built and finally opened on February 28, 1995. It took the project nearly six years to complete with project costs initially estimated at $1.2 billion to the final cost of $5.0 billion. From the case study in Project management: a systems approach to planning, scheduling and controlling, DIA provided improved airfield configuration, improved efficiency in the operation of the regional airspace, reduced noise impacts, a more efficient terminal/concourse/apron layout, improved international facilities, significant expansion capability and enhanced efficiency of airline operations (Kerzner, 2001, pp. 645-646). Yet, the DIA construction project was inundated with many problems, conflicts of interest, increase scope changes and cost issues. Of which, the root cause is that DIA had poor Stakeholder involvement and accountability. In the PMBOK® Guide, a Stakeholder is “an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project” (PMI, 2013, p. 563). The facts will show that our stakeholder involvement and accountability suffered throughout the DIA construction project. United Airlines and Continental had 80% of all the incoming...
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...BAE Automated systems was contracted by the United Airlines to build the baggage management for them at the Denver International Airport (DIA). The management team at DIA, looking at the response from other airlines towards the leasing of the own baggage systems, decided to build an integrated system for baggage management at DIA. The DIA approached BAE for the completion of this 195 million dollar project. After much deliberation on the project specifications and timelines, BAE decided to take up the project however they enforced many timelines and freeze dates to be strictly followed by the DIA. BAE highlighted the need for privileges such as unrestricted access and priority treatment which would be necessary for timely completion of the project. The project eventually ran into difficulties after the death of Slinger, the new point of contact between the BAE and the Denver government. Gail Edmond was not as autonomous as Slinger was and even though she tried her best to manage the situation. The issue snow balled into a situation where an external consultant was hired to assess the situation, from a German firm “Longplan”, and based on their recommendation the DIA decided to go ahead with the plan to construct a backup baggage management systems. They also decided to put the blame for the delay in the opening of the airport on BAE and issued a fine of $12,000 per day from the promised date of delivery and also the whole amount of development of the backup system. BAE on the other...
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...com/community/masterplan/faqs.asp What is an Airport Master Plan? As defined by the Federal Aviation Administration (FAA), an airport master plan is a comprehensive study of an airport and usually describes the short-, medium-, and long-term development plans to meet future aviation demand. Airport master plans serve as facility development guides for a long-range planning horizon (usually 20 to 25 years), and summarize an airport’s strategy for the development of the airport. The goal of a master plan is to provide the framework needed to guide future airport development that will cost-effectively satisfy aviation demand, while considering potential environmental and socioeconomic impacts. Master Plans also provide the airport with the tools to react to uncertainties by examining key trends in the aviation industry, such as changing airline business models, improvements in technology, and local/regional economics that could affect airport activity. Master plans vary in the level of detail and complexity depending on the size, function, issues and challenges of the airports under study. FAA Advisory Circular 150/5070-6B Airport Master Plans provides guidance for the preparation of airport master plans. Read the FAA Advisory Circular (Adobe PDF) Specific objectives of the Master Plan Update put forth by Denver International Airport (DIA) include the following: Maintain and ensure the safety and security of the Airport Emphasize customer...
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...SAMPLE SOLUTION SAMPLE #1 DENVER AIRPORT: AUTOMATIC BAGGAGE - HANDLING SYSTEM System Overview Early in the planning stage, United Airlines insisted on an automated high speed baggage system. Denver officials had sound reasoning in choosing to install an automated baggage handling system. The Airport was approved in 1989 and planned to be operational by end of 1993. They designed a large scale baggage handling system that cost $193 million. The system requires no manual labor personal and was designed to run faster and more reliable than traditional technology. The original system relied on a network of 300 computers to route bags and 4000 telecars, carry luggage across 21 miles of track. Laser scanners were to read multi-digit bar-coded luggage tags, while photocells tracked the movement of toboggon-like baggage carts. But buggy software crashed the system again and again. The resultant delay in opening has cost the city of Denver and the airlines roughly $1 million per day. Problems Hardware and software bugs (not fully tested), telecars were misrouted and crashed baggage was lost and damaged. This problem occurred as follows : The baggage system continued to unload bags even though they were jammed on the conveyor belt, because the photo eye at this location could not detect the pile of bags on the belt and hence could not signal the system to stop. The baggage system loaded bags into telecarts that were already full, because the system had lost track of which telecarts...
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