Managing of The Heathrow Terminal 5 Expansion - Case Study Example

 Deciding for the British aviation industry quantum leap in 1982 presented options of a terminal expansion either at Stansted or Heathrow. That is, several airport hubs are increasingly near or at operational capacity, particularly during peak periods. Should these circumstance continue in the European flight interchange, quality if not prices could be used to curtail demand to the available capacity. The purpose of the Heathrow Terminal 5 expansion is to increase hub capacity from 60 million travelers per annum to 90 million. Heathrow Terminal 5 is the exclusive terminal hub of British Airways designed with a total spending of £4.5 billion. The terminal occupies 260 hectares to gear up additional 60 aircraft slots; a quarter of slots for the Airbus A380. Facilities designer is Richard Rogers Partnership and aviation specialists Pascall and Watson; the Arup group takes on the structure. Chapter 1 DEVELOPMENT INTENT T5 expansion is a strategic move to restore the Englishman's dominance in international air travel. Tantamount to the capabilities of flight interconnections is the possibility of investment, trade and cross cultural learning that are crucial in a time of globalization. Thus even without its quite stunning design, Heathrow Terminal 5 is a vital piece of national infrastructure because it positions as a network node which supports a long haul air traffic pattern and a vibrant brisk flight leg. The fact Heathrow is indispensable to British economy rests crucially on its capability for advancement within existing slot concentration, node connections, congestion externalities and natural monopoly. 1.1 PROJECT GOALS Goal 1—T5 transforms Heathrow as the state-of-the-art international terminal benchmark. Goal 2—Use leading edge technologies for seamless interface between sixteen different segments. Goal 3—Integrate retail and media at the outset, for design and operations coherence. Goal 4—Place equal consideration and same level of thought to the back of house design elements against front of house. Goal 5—Fully integrated transport interchange between rail, bus and air. 1.2 OBJECTIVES Given the project scale and intricacy of processes the objectives are simple and straightforward: 1—buildability, 2—tidy and safe, 3—collaborative decision and 4—transferable lessons. The T5 project finished on time and within budget, is an open culture buckled in a solution driven structure. Project leadership resolved issues quickly and in confidence. 1.3 RESOURCES 60,000 workers on build lasting 37 million hours on an investment of £4.5 billion. In terms of capitalisation, the project is considered long term in nature requiring reviews every five years. Materials resource usage strategy aimed for minimal resource depletion by way of design efficiency; principles of SPAM (standardisation, prefabrication and modularisation), materials selection life cycle impact, and the simple avoidance of non-sustainable or toxic materials. On waste management concerns 85% waste recovery and recycle throughout construction phase is achieved. To conserve on water, a matching in quality required at the users end was made available and supplied, resulting less consumption of potable water by 70%. Two bores for the collection of rainwater onsite spilling 35 litres per second with minimal treatment requirement. 1.4 ASSUMPTION AND RISKS Investing long term assumes a gradual recovery in the economy which combines with improvement in traffic results on annual passengers and passenger air transport movements in the region. Given the level of professionalism exerted in this initiative, the second assumption is that planning policy, airspace and environmental issues can be tackled, public domain safety zones and land use concerns are reasonably contained. Nonetheless risk is embedded in the nature of long term capital extensive, which is developmental and evolving, requiring constant re-prioritisation to current circumstance or trend. In a later article “Sustainable Legacy,” finance experts Mark Charlton and Philip Harcourt of Colliers CRE confirm T5 wrapped on time and on budget, with low risk exposure all throughout. 1.5 PROJECT DEFINITION AND DESCRIPTION In defining the Heathrow Terminal 5 facility configuration, the criteria priority of functionality, aesthetics, performance and operational processing are applied. A two runway facility due a third strip that a three runway layout was given serious thought. Expansion includes the main terminal building and two satellite buildings, rails, tunnels and an air traffic controller. Terminals are interconnected by underground transit for passenger ferry between buildings. The new facilities incorporate a baggage system T5 to T3, the upgrade and realignment of taxiways and aprons. This massive construction entailed the movement of 6.5 million cubic meters of earth and 80,000 tonnes of structural steel, making the largest single-span structure in the United Kingdom. The facility has 142 lifts and 94 escalators. The rail tunnel complete 13.5 km and a spur road created apart the diversion of two rivers. The built structure is complimented by a landscape of 1500 semi-mature trees, 2500 semi-mature shrubs, native hedgerow, native woodland plants and evergreen groundcover shrubs. London Plane trees are housed in the Interchange Plaza. The main roofing reaches down in a dramatic full height, acting as a unifying element of the building. Its exposed steelwork and glazed facades lean out at an angle of 6.5 degrees, forming a distinctive shape. Steel arms stretch up from the legs to support the rafters, strapped from the ends to complete the hybrid portal frame structure. These lines of the structure are simple and clean to exude calm and purpose to the space, but in a very bold structural arrangement. Chapter 2 PLANS Planning was accomplished with matured Information technologies and adept project management skill that the project itself challenged the construction industry. A natural flow and configuration came about where travelers leaving move perpendicularly from check-in through security zones to the airside lounges. Incoming travelers move on the reverse. For a very large terminal, walking distances are short. The layout is a stacking that segregates departures on top the main level that completes 96 check-in kiosks on self service and 140 customer service desks. The terminal is reached through a bus and coach station underneath the northern end. There are six platforms for rail and two safeguarded platforms. Vehicle parking is located right across the terminal front, separated by a landscaped plaza and adjacent a luxury hotel. 2.1 Sustainability Elements of sustainability are priority in the planning of the T5. To regulate heat and ventilation a plant is situated inside the terminal as the main supply source and abatement of Co2 emission. The plant meets 85% of facility requirement. A centralized chilled water system is installed and operates on a free cooling cycle which permits outside air to reduce temperatures under certain external conditions. Lighting requirements are lessened with glassed lobbies and mechanical equipments designed at variable speed drives for increased efficiency. Sustainable innovative approaches to reduce air pollution and advanced technologies for 40% aircraft fuel emissions reduction and 57 decibels noise contour surrounding Heathrow. Simulation solutions induced effective applications of facility contour to channel noise upwards and out the roof. Noise reduction was noted from 291 square kilometres in 1990 to 129 square kilometres. Other sustainability issues dealt with by the project management concern the house issue on the loss of 700 dwellings for the T5 expansion. 2.2 IDENTIFY ACTIVITIES 2.2 CRITICAL ACTIVITIES Two severely critical activities in the project undertaking are noted. The first being the public inquiry which began on 16 May 1995 and lasted nearly four years, finally ending on 17 March 1999 after sitting for 525 days. This classic example of social acceptability in a democratic nation, forum and consensus are prerequisite to Government decision. The next difficult task is the sensitivity of the twin rivers diversion from its original alignment through the center of site, nearby a neighborhood. The work took up 18 months period and alterations on a live carriageway. 95% of the rivers diversion is placed in two manmade channels measuring 6km long and twice its original size. The river banks are rehabilitated with forms of translocating and regeneration life forms inclusive. For exceptional ability to complete the project to budget and schedule while preserving high ecological standards and quality, the Twin Rivers diversion scheme has won a Civil Engineering Environmental Quality (CEEQUAL) Award. Chapters 3 ORGANISE Schedule and cost objectives given the site constraints had to be professionally streamlined. The approach taken by the project management was to map supply chains and calculate value streams at every point of the construction phase. Civil works activities are described as most tedious with 80 concurrent projects of 3500 craftspeople plus a 2500 of support team. Establishing movement on the project site was a difficulty with the operating runways on two sides and the existing terminals on the third side. A limited lay down area and storage space had inventory down to less a day and continuous delivery activities. The system devised particularly for the T5 undertaking is based on three key elements: 1—Logistics centers and site stores were used to received outside inventories and allow just -in-time access of materials. 2—Software applications using virtual simulations were performed to validate operational plans, integrate costs and time elements and create thorough bills-of-materials. 3—Resources from raw materials supply through fabrication and onsite assembly was implemented control workflow. In the tackle of issues and project complexities, the project management used the viability criteria as shown in figure 2. But in spite these efforts, finishing the build and converting T5 into an operating asset proved tough. Three pitfalls in the initial stages of the operation are the integration process, the malfunctioning luggage system and the lack of an operating license. To organise responses, individual teams were set up to self regulate target progress. Teams were split in three work zones for emphasis and focus on the finishing. At this point, the supply chain was steadily involved in the final hurdle. PM implemented LRM or the last responsible moment, which is a project driven information system crafted in house. The application uses simple rules and schedules on a visual interface for planning, scheduling and information control. Work breakdown and methods could not be achieved in traditional management forms because of the scale and complexity. Each process had to be reexamined and innovative ways explored. Chapters 4 CONTROLS Change control is crucial in long term initiatives. Specifically for T5, change management control is established for decision makers when in mitigating risk. To measure indication of acceptance, an Airline Engagement Marker as shown in figure 1 helps determine the level of the airline community involvement in each issue or concern. Part of which, is a decision making process flow (refer to appendices 2), to define roles and responsibilities at an earlier part of the undertaking. 4.1 CONTROL TECHNIQUES IN PARTNERING THE SUPPLY CHAIN A control technique was to involve the suppliers in the management of risk. This extended to the environmental risk abatement methods of assessment, monitoring and control. Suppliers put forward a materials strategy along with the supplier tender pack which is scored on the sustainability charts. Once the supplier qualifies approval, PM provides the contractor or supplier with a health, safety and environmental obligations on-site. With changing regulations, regular on site audits and performance reviews are carried out. Coaching and training were taken up with even second and third tier suppliers. Awards and recognition scheme for all entities participating in the undertaking, for best practices on sustainability, safety and health. This unique T5 culture integrates risk mitigation from concept development through construction. Practicing partner contribution is recognised as a fundamental factor to the on time and budget completion. Control also meant full proof component movement sequencing as shown in the table below. 4.2 CONTROL TECHNIQUES IN WORKER HANDLE AND THE MPA Worker relations onsite was handled exceptionally. The MPA (Major Projects Agreement) was designed to integrate teamwork across several company units, and includes the partnering of trade unions in organizational and employment decisions. The model is a mechanism which proved a positive addition to the project outcomes, even when it legitimizes the role of the union in continuing dialogue with employers. T5 employee control model is quite unique since it provides the platform for representation and articulation of the interest of non-shareholders. The origin of its structure, which has leeway for the workforce key voice in operational, strategic and employment decisions, resembles an approach to governance defined by Kochan and Rubinstein (2000). Worker related objectives had these objectives: 1—to establish and maintain an environment without accidents and work related ill-health. 2—Completion on time and within budget. 3—To establish and maintain industrial relations by providing an effective and proactive industrial relations framework for all works within scope of the Agreement. 4—To reward performance and productivity. Chapter 5 CONCLUSION An impressive deliverance to the last hurdle is enough to conclude project management effective. The capability of the T5 project management has challenged the limits and proclivities of the construction industry, with a management thinking that is solution directed and collaborative in form. In structure, the T5 management has incorporated all human and ecological issues into its decisions on design, training and awareness procurement, construction, to able risk abatement, insofar maximise opportunities in this expansive job. It is a revolutionary project given this leadership style which shall have industry wide implications in the categories of risk management, safety, ecological preservation, and industrial relations. Even with a lean and flexible workforce, on nine occasions the construction site in its entirety has worked more than a million consecutive man-hours without a single reportable accident. As a result a shift in competition capacities is expected. References Brinckerhoff, P. 2002, Airport Development: Creating Vision, Building Reality, PV Aviation network. Beardwell, G, et al. Terminal 5, London Heathrow: 3-D and 4-D design in a single model environment. The Arup Journal, 41(1), pp3-8, 1/2006 Business in the Community as part of the Beacon Programme: BAA– Sustainable Construction at Terminal 5. Deakin, S. & Koukiadaki, A. 2008, Governance processes, employee voice and performance outcomes in the construction of Heathrow Terminal 5, Cambridge Europe Airports Council International 2010, An official T5 report for the aviation community. Greater London Authority 2005, Heathrow Expansion, The London Assembly’s response to BAA’s consultation on the interim Master Plan for Heathrow Airport, City Hall England. Maplecroft 2004, Company report review BAA Annual Report, pp.3-5. McKechnie, S. 2006, Terminal 5, London Heathrow: The main terminal building envelope. SPS Technical Services 2006, London Heathrow Terminal 5 civil phase, a case study, Strategic Project Solutions, California, USA. Starkie, D 2006, The dilemma of slot concentration at network hubs, accessed 28/11/2010. T5: The making of— Vadhera, S. 2010, Infrastructure and sustainability, capital investment plan Appendices Read More