...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 DIA was built to replace the old an outdated Stapleton International Airport which was Colorado’s primary airport from 1929 to 1995.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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...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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...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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...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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...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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...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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...10. What impact do the rating agencies (i.e Moody’s and Standard & Poor’s) have in the financing of the airport? 11. On October 1, 1982, the United bonds were issued at an interest rate of 6.875 percent. Was this an appropriate coupon for the bonds? 12. There are numerous scenarios that can occur once the airport opens. The following questions are “what if” exercises and may not have a right or wrong answer. The questions are used to stimulate classroom discussion. The students must use the prospectus excerpts in the exhibit at the end of the case study. For each situation, what will be the possible outcome and what impact is there upon the bondholders? 13. Assume that DIA finally opens and with a debt of $3 billion. Is the revenue stream sufficient to pay the interest each year and pay the principle at maturity? 14. What options are available to DIA if the coverage falls below 100 percent? 15. Is there additional revenue space available (i.e., unused capacity) 16. What is the function of the project management team (PMT) and why were two companies involved? 17. When did the effectiveness of the project management team begin to be questioned? 18. Did it sound as though the statement of work/specifications provided by the city to the PMT was “vague” for the design phase? 19. Should the PMT be qualified to perform risk analyses? 20. Why were the architects coordinating the changes at the constructions site? 21. Should the PMT have been...
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...Denver International Airport Project Communication Plan Prepared by: Date: 6/15/12 Version: Master Plan Document Purpose Communication is a critical component in project delivery. It must be delivered in a timely and effective manner to all project stakeholders in order to meet objectives and achieve project goals. This document will detail the execution of all communication regarding the Denver Airport Project. This includes, but is not limited to, communication to and from executives, managers, and the project team. It will also discuss the means and frequency by which communication will be delivered. Overview The Denver International Airport project consists of designing and constructing a new airport, based upon a “Home-on-the-Range” design. The City of Denver requires a wide open entry point for visitors. The airport is to maintain a distinctive look that will be easily identified by travelers. This design must meet specifications provided by the City of Denver. The new airport should allow for more traffic in and out of the airport, while also becoming less congested. Improvements to runways will lead to a more efficient operation of the regional airspace, significantly reducing aircraft delays and airline operating costs. The new airport will also result in reduced noise impact, as it is being built on a relatively large site in an unpopulated area. The overall layout will be more efficient in reducing passenger walking distance, while also having...
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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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...1. Is the decision to build a new airport at Denver strategically a sound decision? 2. Perform an analysis for strengths, weakness, opportunities, and threats (SWOT) on the decision to build DIA 3. Who are the stakeholders and what are their interests or objectives? 4. Did the airlines support the decision to build DIA? 5. Why was the United opposed to expansion at Font Range Airport? 6. Why was the new baggage handling system so important to United? 7. What appears to be the single greatest risk in the decision to build DIA? 8. What impact do the rating agencies (i.e. Moody’s and Standard & Poor’s) have in the financing of the airport? 9. Assume that DIA finally opens and with a debt of $3billion. Is the revenue stream sufficient to pay interest each year and pay the principal at maturity? 10. What options are available to the DIA if the coverage falls below 100%? 11. Is there additional revenue space available (i.e. unused capacity) ? 12. What is the function of the Project management team (PMT) and why are two companies involved? 13. When did the effectiveness of the project management team begin to be questioned? 14. Did it sound as though the statement of work/ specifications provided by the city to the PMT were ‘vague’ for the design phase. 15. During the design phase, contractors were submitting re- estimates for work. 30 days after the original estimates and the new estimate were uo to $50 million larger than the prior estimates. Does this reflect...
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...3. A. Denver Airport Baggage system is one of the largest technology project that failed to provide the service i.e. the system failed at the crucial time. The project was started in Nov 1989 and decided as a project abandoned in Aug 2005 since the project was unsuccessful to automate the entire baggage system. The major factors that involved in failure are described below. First of all, the decision they took was not effective as well as efficient which led to fail to analyze the complexity. They implemented the same baggage system functionality that was implemented in Frankfurt, which was small airport as compared to Denver Airport. Although the project was to be started from Nov 1989, due to late processing of contracts it started in mid – 1991. So they had a pressure to finish the project in a limited time. The project was in trouble from the beginning later the requirement of stakeholders and accepting that requirement further made the project worse. Since the Denver Airport is too big they had to provide service to many customer at the time but mess up calculation i.e. they developed the algorithm which did not support large number of customers. There was the reliability issues between the baggage system and the physical structure...
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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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...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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...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 many ways. I have identified dysfunctional decision making as the main problem that has led to the messy situation at both BAE and DIA. The major issues of concern at BAE are inexperienced Project Managers, software errors, improper...
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...Table of Contents Declaration of Originality 2 Table of Figures 3 Acknowledgement 5 Abstract 6 1. 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...
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