...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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...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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...Project: 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...
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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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...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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...Executive 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...
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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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...------------------------------------------------- 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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...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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...Benedictine Univeristy | Denver International Airport Baggage Handling System | MBA 683 | | Farrah R. Ansari | 10/1/2015 | | Denver International Airport Baggage Handling System The Denver International Airport, located in Denver Colorado, is the country’s largest airport based on total land area. The airport has the longest runway, is considered the 18th busiest airport in the world and the 6th busiest airport in the United States. There are nearly 53 million passengers that travel in and out of this airport. In the early 1990s the airport decided to create the world’s largest automated baggage handling system. In order to accommodate for the millions of passengers the project team felt this would be an effective project. The goal of the project was to create an automated baggage system that would reduce aircraft turnaround time to nearly 30 minutes. By reducing the turnaround time to a half an hour would allow for more efficient operations. The project team wanted to include this new system to all three concourses which included 88 airport gates. The concept of the project was well intended but poorly planned and executed by the project management team. The first flaw and biggest flaw of the project was the unrealistic scope. The project failed to set a realistic deadline or budget for the project. The deadline was exceeded by nearly 16 months, the budget by $560 million, and the overall intention of incorporate all three concourses was also not met....
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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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...Background The City and County of Denver have built a massive new airport, the New Denver International Airport. It extends over 13,568 hectares (about 53 square miles); has 3 parallel North-South runways, 2 parallel East-West runways, and room for a total of 12 major runways. In many ways the New Denver Airport represents a model of the airport of the future (de Neufville, 1995). At opening, the Airport will have cost about US $ 5 billion including the US $ 685 million contribution of the Federal Government and the over US $ 400 million investment of airlines in fitting out their passenger buildings, catering facilities and cargo centers (US Government Accounting Office, 1994). At the end of 1994, the bonded debt of the municipally owned Denver Airport System was more than US $ 3.8 billion (City and County of Denver, 1994b). A mechanized baggage system is 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. Unfortunately, massive problems plagued this automated baggage system. (See Henderson, 1994, for example.) Consequently, the New Denver Airport did not open in October 1993 as scheduled. After missing later opening dates in April and May 1994, the Airport seems -- as of January -- likely to be open in...
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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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...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 loans cost the City of Denver $1.1m per day, throughout the delay. The embarrassing missteps along...
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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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