...Case 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...
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...Background 7 Event Daybook 9 Acknowledgement I owe my deepest gratitude to my lecturer for her supervision and support provided throughout the project. It helped me in better understanding about the subject and come up with a righteous work. Above all, I appreciate each and everyone who have supported me in any respect of completion of project. Abstract Denver International airport (DIA) is situated 23 miles northeast of downtown Denver (Colorado) with a size of 137.8 sq. km . Currently the airport handles around 41 airlines and having traffic more than 3,905,138 passengers . During the construction of the airport, implementation of an automated integrated baggage system to minimize the turnaround time was a critical component . But it turned to be one of the woeful incidents in the history of technology project implementation. The airport scheduled to open in October 1993 finally came to live on March 2005 with a delay of 16 months due to under estimation of the baggage handling system. This delay almost cost them $1.1M per day for the maintenance and loans. In March 1994, the BAE systems ran a test run in front of several media groups. The result of the test was a complete failure. The baggage were partially or completely damaged or misplaced to the wrong gate. The system was not able to cater the needs properly and thus United Airlines abandoned the system. The system was used in a small scale with an efficiency of 90% during the opening of DIA . This...
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...Summary 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...
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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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...Denver Airport Fiasco Presentation Timeline I will start by finishing up the timeline. * In April 1994, the airport authorities organize a demonstration of the system for the media without informing BAE. It’s a disaster as clothes are ejected from crushed bags. As a result, the mayor of Denver is forced to delay the opening for the fourth time. * In May of the same year, BAE says the system is fine and that most of the problems are caused by the airport staff using the system incorrectly. The problems persist as testing continues so the airport builds a manual tug and trolley system instead. * In august, the City of Denver starts fining BAE 12 thousand dollars per day for further delays. * The airport finally opens on February 28th 1995 using part of the BAE system and a manual tug and trolley. * Finally, in 2005, the system fully scrapped for the manual one. Software Issues Next I will discuss the main software issues. * One of the system’s big problems was that carts were late to pick up bags, destabilizing the whole chain. This was, in part, due to the mathematical nightmare that represented the development of a line-balancing algorithm to feed carts at more than 100 pickup points. * It was also due to the fact that BAE’s codes expected perfect behavior from the system components. They didn’t allow for proper margins of error. The components were expected to perform better than they did. * Another major cause of software...
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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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...Analysis of the Denver International Airport baggage system Michael Schloh Dan Stearns, advisor Title Abstract Contents Introduction Reasons For Automation Functionality Of Original BAE Design Problems and Solutions System Complexity Comparative Functionality Opening Delays Financial Hardship Summary Glossary References THE DENVER INTERNATIONAL AIRPORT AUTOMATED BAGGAGE HANDLING SYSTEM by Michael Schloh Computer Science Department School of Engineering California Polytechnic State University 1996 Date Submitted: February 16, 1996 Advisor: Daniel Stearns ABSTRACT This document discusses events at the new Denver International Airport that resulted in opening delays of the airport. The scope is limited to the automated baggage handling system, which was the primary source of failure warranting the airport's several opening delays. Analysis of the failing system is comprehensive. Research is conducted using a variety of sources. The final report is published on the worldwide web. CONTENTS Introduction 1 Reasons For Automation 2 Functionality Of Original BAE Design 3 Problems and Solutions 6 System Complexity 12 Comparative Functionality 14 Opening Delays 15 Financial Hardship 17 Summary 19 Glossary 20 References 21 INTRODUCTION This research concerns the automated baggage handling system which was built by BAE Automated Systems, Incorporated of Carrollton, Texas for the Denver International Airport. The analysis of this system provides an important topic of study. From the baggage...
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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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...Doyne Mc Nally Project Failure Essay Title: International Airport Baggage Handling System Why the project was established: Denver International Airport, often called DIA, is an airport in Denver, Colorado. By land size, at 140 km2, it is the largest international airport in the United States, and the third largest international airport in the world. Back in late 1980’s the city of Denver felt they needed a larger airport to deal with the increasing amount of air traffic through the city, so they elected to construct a highly efficient, fully automated airport. The predicted passenger handling was an outstanding 50 million annually. It was envisioned as a state of the art airport mainly due to its luggage handling system. This system of automated baggage-handling would greatly reduce aircraft turnaround time. Faster turnaround meant more efficient operations and was a cornerstone of the airports competitive advantage. Project Sponsors and Stakeholders: The Airport Project Management team on behalf of the City of Denver was the major stakeholder but funding was also received from United and Continental Airlines as they would eventually use terminals as major hubs for their respective organisations. The company BAE Automated systems was employed by DIA to design a conveyor system to meet the airports needs. Ultimately the majority of funding came from the pockets of the citizens of Colorado. The overall cost of the project was $ Success Criteria: The airport's computerized...
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...SWOT Analysis Strengths The New Denver Airport represents a model airport of the future. It was also planned to be the second largest hub, having huge local commitment and it was financed by a lot of different sources. The baggage handling system is unique being integrated and automated. The BAE automated systems had enjoyed the reputation of being among the best and on the strength of its good work has been responsible for most of the major baggage systems recently installed in the United States. Weaknesses The baggage handling system has poor scheduling, new and untested technology, complexity of the system and changing requirements, highly visible mechanical problems, does not deliver productivity and efficiency, lower cost-effectiveness of the system. The Denver Airport did not open as scheduled; there were enormous costs on the part of the owners due to delays and high costs of maintaining the airport. On the management system, there were also a number of weaknesses: resignation of the DIA project head; death of the Chief Airport Engineer Walter Slinger who was the key player in the negotiations; communication was a problem from the beginning channels between (a) the city (b) the project management team (c) Consultants were never well defined; the city did not get airlines together to ask them what they wanted or needed to operate; the management team had no experience of baggage handling systems and treated it as being similar to pouring in concrete or fitting air-conditioning...
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...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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...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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...Denver International Airport Denver International Airport (DEN) is located 23 miles Northeast of downtown Denver Colorado. At 53 square miles it is the largest airport in the United States and the second largest airport in the world after King Fahd International Airport. Denver is also known for having one of the longest runways in the United States at 16,000 feet. DIA was built to replace the old an outdated Stapleton International Airport which was Colorado’s primary airport from 1929 to 1995. In September 1989, under the leadership of Denver Mayor, Federal Aviation officials authorized the outlay of the first $60 million for the construction of DIA. Two years later, Mayor Wellington Webb inherited the multi billion-dollar over budget megaproject, scheduled to open on October 29, 1993. Delays caused by poor planning and repeated design changes pushed the opening day back, first to December 1993, then to March and finally to May 15, 1994. In April 1994, the city invited reporters to observe the first test of the new automated baggage system. Reporters ended up watching clothing articles and personal items scattered all over the floor. The mayor cancelled the planned May 15 opening. The airport collects landing fees, rent and other revenues from the airlines to help offset its operating costs. Denver International Airport is owned and operated by the City and County of Denver, but does not operate using tax dollars. Instead, the airport is an "enterprise fund" generating...
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...HOMEWORK #1 – 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...
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...Failed Strategic Information Systems By Grace Ceniza A report submitted in partial fulfillment of the requirements For CIS370-05 In Computer Information Systems School of Business and Public Administration California State University, Dominguez Hills Spring 2012 Table of Contents I. Hershey Food Corporation o Background 3 o Implementing ERP 3 o Expected benefits 3-4 o What went wrong? 4 II. Denver Airport Baggage System o Background 4-5 o Expected benefits 5 o What went wrong? 5 III. United Kingdom Passport Agency o Background 6 o What went wrong? 6 IV. FBI’s Trilogy Terminated o Background 7 o What went wrong? 7-8 V. Reference 10 Hershey Food Corporation Background Milton Hershey founded Hershey Food Corporation in 1894. Hershey was famous for a lot of innovations and was credited for several chocolate variants like chocolate syrup, chocolate chips, Krackle Bar, ice cream toppings, hot fudge and a lot more. By 1895, Hershey Corporation was manufacturing more than 114 different varieties of chocolates. Their most popular products are Hershey’s kisses, Kit Kat, Reese’s Peanut butter cups and more. Their sales went up from US$334 million in 1969 to $4.94 billion in 2006. Most of their sales that was 40% of their profit came from sales...
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