Denver Case Study

I. View Point

I will be assuming the Management Consultant expert in production's view point.

II. Definition of the Problem

The opening of the Denver International Airport had to be delayed four times due to problems in the baggage handling system. The enormous increase in complexity of the baggage handling system is the root of the problem. The total delay was 16 months. The total costs were $4.5 billion.

III. Statement of Objectives
 To improve ground efficiency
 To reduce close-out times for hub operations
 To minimize time – consuming manual sorting and handling

IV. Areas of Consideration

A. Strengths
New Denver Airport
 Represents a model of the airport of the future
 Planned to be the second largest hub.
 huge local commitment
 DIA was financed by a lot of different sources

Baggage Handling System
 Uniqueness of the technology being integrated and automated

BAE Automated systems
 Had enjoyed the reputation of being among the best and, on the strength of it good work, has been responsible for most of the major baggage systems recently installed in the United States.

B. Weaknesses
Baggage Handling System
 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.

Denver Airport
 Did not open as scheduled
 Enormous costs on the part of the owners due to delays
 Costs of maintaining the new airport

Management System
 Resignation of the head of the DIA project assigned
 Death of 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 and (c)