BAE Case Study
Issues:
Key issue: numerous delays and re-schedules on the target opening date for DIA due to the BAE unable to successfully implement the automated baggage system, which caused massive financial damages to the City, airport, BAE. Moreover, the delays also brought great inconvenience to national passengers and damage the potential city development since the new airport is going to be significant city symbol, which would attract investments and other resources. From the BAE’s perfective, beside financial penalties, this project management failure brought negative influences to its reputation in the industry.
Sub issues:
Mechanical and software problems: additional equipment must be installed to solve problems like damaged and lost bags during transit, and jammed baggage carts in tracks. New software must be designed in order to coordinate with the airport system.
Design and build at the same time: after BAE signed the contract in April 1992; the tight lead time only allows this automated baggage system to be designed while building. This practice brought great uncertainty to the project on both budget and process management.
Increase in complexity: before Denver airport started this project, there was no other airport in the US has accomplished a fully automated baggage in such large geographic coverage and baggage transportation speed. The other two airports which implemented similar system took two years to complete the testing phase, but in a much simpler scope.
Continuous changes on project scopes: As per the contract agreements, Airport was not allowed to change certain designs after certain dates; however, BAE had to keep changing mechanical and software designs at the time only six months prior opening the airport due to the system design changes made by the Airlines.
Ineffective coordination between BAE and airlines: poor communication and cooperation experiences among both parties during the project. The ineffective collaboration caused
Key issue: numerous delays and re-schedules on the target opening date for DIA due to the BAE unable to successfully implement the automated baggage system, which caused massive financial damages to the City, airport, BAE. Moreover, the delays also brought great inconvenience to national passengers and damage the potential city development since the new airport is going to be significant city symbol, which would attract investments and other resources. From the BAE’s perfective, beside financial penalties, this project management failure brought negative influences to its reputation in the industry.
Sub issues:
Mechanical and software problems: additional equipment must be installed to solve problems like damaged and lost bags during transit, and jammed baggage carts in tracks. New software must be designed in order to coordinate with the airport system.
Design and build at the same time: after BAE signed the contract in April 1992; the tight lead time only allows this automated baggage system to be designed while building. This practice brought great uncertainty to the project on both budget and process management.
Increase in complexity: before Denver airport started this project, there was no other airport in the US has accomplished a fully automated baggage in such large geographic coverage and baggage transportation speed. The other two airports which implemented similar system took two years to complete the testing phase, but in a much simpler scope.
Continuous changes on project scopes: As per the contract agreements, Airport was not allowed to change certain designs after certain dates; however, BAE had to keep changing mechanical and software designs at the time only six months prior opening the airport due to the system design changes made by the Airlines.
Ineffective coordination between BAE and airlines: poor communication and cooperation experiences among both parties during the project. The ineffective collaboration caused