Module8 BAE Automated Systems WooJinHan

Topics: Construction, Project management, Denver International Airport Pages: 11 (2180 words) Published: April 18, 2015


BAE Automated Baggage Handling Systems
Table of Contents
Executive Summary2
Issues Summary3
Environmental and Root Cause Analysis5
Alternatives or Options7
Recommendation8
Implementation Plan9
Monitor and Control10

Executive Summary
The City of Denver wanted to be the position as an air transportation hub in United States by building 140 Km2 and the capacity of handling 50 million passengers annually. In 1992, two years into construction, chief engineer project manager, Walter Slinger recommended airport-wide integrated baggage handling system that could improve the efficiency of luggage delivery as little as 30 minutes. This faster turnaround could be meant competitive advantage over other airports. This master plan rapidly turned into the biggest problems in history because the City of Denver underestimated the scale and complexity of project. Because mainly problems with the baggage system, the airport’s opening was delayed by 16 months, 4 times of change dates. Late project initiation played a big part of failure also. Excessive schedule pressure, significant design change, failure of risk management (e.g. unstable power supply) could have been prevented if major airlines participated and automated baggage handling system was planned at very early stage of project. There were many facts that caused debacle of automated baggage system but the key fact that led the project to disaster is a change of strategy in the middle of construction. The risk of change was too big to justify benefits that DIA may have had or fear that manual trolley based system would be too slow to handle its demand of luggage delivery. The automated baggage system project should have been cancelled when there was no bidder that met airport’s requirement and the City should have focused on how implement proven and less complicated manual baggage handling system. More detail will be discussed in the rest of the report.

Issues Summary:
Insufficient project time and late decision
PMT decided to build integrated automated baggage system two years prior to airport’s opening date. BAE and other expert say it required at least four years to complete the project. Airport construction began in November 1989 and decision of new automated baggage handling system was made in the summer of 1991. It required significant change of building structure and automated baggage system had to accommodate unsuitable layouts of building. Lack of experience and underestimation

The area manager had no experience in airport construction, baggage system technologies or construction project control management. Complexity of baggage system had been underestimated. The city ignored several warnings. BAE told them from the beginning that they were going to need at least one more year to get the system up and running, but no one wanted to hear that 16 companies had been contacted for bidding and only 3 companies responded. None of submission met what airport’s needs Expert from Munich airport advised that much simpler Munich automated baggage system had taken 2 years to build and it had run 24/7 for 6 months prior to opening. BAE executives and city officials hammered out a deal in JUST three intense working sessions. Lack of centralized project management oversight

It took three years to implement the centralized change tracking system. Up to 400 companies involved in construction. The project had to be chopped up into many small projects. Existing law stated 30% minority-owned, 6% women-owned firms had to be participated. It generated 110 construction contracts Inconsistent strategy and subsequent changes

Originally individual airlines would make their own baggage system but the city had decided to implement own integrated automated baggage handling system after the construction had started already. Despite design change lock-down, airlines had requested changes such as adding of ski equipment racks, additional maintenance track and oversized...
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