Denver International Airport Baggage-Handling System - Case Study Example

Denver International Airport baggage-handling system The Denver International Airport baggage-handling system meant to bethe best-designed and up to date technology in the baggage-handling system, in 1991, at the Denver international Airport. The construction company chosen to ensure achievement of this goal, was BAE Automated Systems, Incorporated of Carrolton. The main reason for the choice was due to the company's good reputation. The company was successful in the construction of more than ten baggage-handling systems in United States, Miami, Newark, San Francisco, Dallas-Fort Worth, Chicago, and Pittsburg among others. The construction by the Denver International Airport baggage-handling system began in 1991 and completed in 1994. The project faced numerous challenges in the course of its implementation leading to the delay of the opening of the Denver international airport by sixteen months. Implementation of the project failed due to software, mechanical and electrical difficulties in its operation. This study aims at enumerating the various issues, management decisions and the consequences of the decisions in the construction of the Denver International Airport baggage-handling system. Major influences The major influence for the construction of the Denver International Airport baggage-handling system was the political scenario in Denver. Mayoral election at Denver was a significant influence in the construction of the Denver International Airport baggage-handling system, as the business community made Pena and Tooley sign agreement for the development of the airport. The need to, please the public made Pena, the winner of the election; lead activities for the erection of a new airport in Denver. The other influence for the construction of Denver International Airport baggage-handling system was the lackluster economic performance leading to the need to ignite economic development. Economic development necessitated increased investments to aid against economic free-fall. This was through infrastructural development by issue of bonds by the Denver city municipality. Another influence for the Denver International Airport baggage-handling system construction was the congestion in the Stapleton airport, favorable geographical local as air transport hub and need to cater for increased air transport in the region. Circumstances Various circumstances led to the need for an airport with an efficient baggage handling at Denver. The circumstance that led to the need was increased tourism, oil, and real estate industries in the region. This led to operational inefficiency at the Stapleton airport because it limited the Denver’s access to business people. Congestion and traffic delays at the Stapleton airport were the reason for improvement in the airport or another airport to ease the congestion. Attractiveness of Denver as an airline hub destination due to its geographical location and increased population was also the reason for the need of a new airport with an efficient baggage handling system. These circumstances led to the construction of Denver Airport and culminated in the construction of the Denver International airport baggage-handling system. Issues faced by the BAE Automated Systems: Denver International Airport Baggage handling system 1.0 Planning The planning of the baggage handling system at the Denver International airport was an afterthought and was not included in the original plan. The plan of the baggage handling system arose after BAE contraction by united airlines to build a baggage handling system. This happened due to the failure of the Denver international airport planners to consider the need for a baggage handling system. A decision to include a baggage handling system in the project came late in the construction leading to only three bidders for the task. This led to agreements between BAE Automated Systems and Denver international airport planners to undertake construction of the baggage handling system. Lack of planning resulted to inconveniences during the construction by BAE including lack of enough space for vehicles, lack of space for the construction and disputes between the other contractors and BAE Automated Systems. 2.0 Complexity The other issue that faced the baggage handling system at the Denver International airport was the high complexity of the system. The design of the system was hard to comprehend for contractors and the management. The design of the software, electrical design, and the circuit were highly complex due to the amount of time taken in their development. This led to the difficulties in its construction coupled with less time awarded to the project than was needed. The planners in the construction of the baggage handling system did not consider the complexity of the system, which attributed to its failure. The project's complexity was visible when the system could not work due to poor coordination of computers and the miss tracking of the cars in transit. 3.0 Modification and Changes There were numerous changes made by Continental and United airlines on the construction, design, and look out of the baggage handling system at Dental airport. Because of financial difficulties, United required a removal of one of the double loops at concourse B of the Denver airport leading redesigning of the project altogether; hence hampered the construction of an efficient baggage handling system. There were other changes in the original design of the system, which include Continental’s need of a bigger baggage handling section and the relocation of outside stations during the construction. These changes in the original plan aimed at reducing costs led to increased complexity of the system. There was the need for redesigning and other alterations of the system, but due to lack of time, this never happened. The lack of redesign and increased size and complexity of the project acted as some of the impediments and issues that affected the BAE Automated Systems construction of the Denver International airport baggage-handling system. 4.0 Lack of time for software testing There was a rush by the politicians Webb inclusive, to finish the project at the scheduled opening date giving no time for routine checks and tests. The undertaking was hugely complex, therefore, the need for tests and checks to ensure the running of the various parts, software, and the tests control devices in the system. The lack of enough time for testing, correcting and retesting of the system affected the overall efficiency. BAE Automated Systems underestimated the time for testing, due to their need to beat the deadline set in the contract and increased pressure from the politicians. Compared to the Munich airport where the system was up and running for six months, there was the lack of time for running of the baggage system in Denver. This could have allowed earlier detection of problems, their correction, and making of necessary changes to the system. 5.0 Financial Difficulties The management of the baggage system and the airlines faced financial difficulties for the proper implementation of the ambitious project. The revenues to the city council led by the mayor were not certain during the period, hence the need to keep the expenses at the lowest possible cost. The Continental airlines also went bankrupt during the period, which affected the inflow of money and the requirements of the concourse B hired by the company. These financial difficulties led to many alterations in the project design to meet lower cost requirements, which increased the systems complexities and congestion. This affected the project a great deal and led to the collapse of the system and its inability to meet the requirements. 6.0 Power Shortage Surges and fluctuations affected the running of BAE operations during the construction due to sensitivity of motors and circuitry. These power fluctuations led to the need for the design of filters to correct the problem. Ordering of the filters happened, but the order arrived 6 months later due to cancellation of the order by a city worker. This affected the operations of BAE Automated Systems leading to the increase in the period for the completion of the project. 7.0 Rules and Regulations Rules on hiring of the workers in Denver and city laws also affected the operation of BAE Automated Systems. The requirement for hiring 30% of local workers and the need to incorporate local contractors in the project affected the operations and increased project costs. This affected the operations of BAE due to the strike of 200 electricians and 300 millwrights within the construction period. 8.0 Other issues Other issues faced by the BAE Automated Systems construction of Denver International Airport baggage-handling system include failure of software, and interruption from other contractors. These issues affected the running the project, construction, as well as implementation. The lack of enough human resource also affected the implementation of the design of the project. A depiction of this is through the death of Engineer Slinger, which affected the operations of BAE Automated Operations during the construction of the baggage system. Hensel Phelps truck blocking the construction site of BAE Automated Systems depicts the operational difficulties due to the death of Slinger. Information made available to the project manager The manager did not have full information of the complexity of the project he was getting involved in with the construction of the Denver International Airport baggage-handling system. This led to his believe in possible completion of the system in the short span of two years, therefore, did not anticipate enormous challenges posed by the construction. The information given to the manager was of the main goal of the construction, creating the most advanced baggage-handling system. This blinded him to believe in overcoming the challenges posed by the project and reach the goal. The information given to the manager made him believe overcoming the technical difficulties in the project responsibility fell to BAE Automated Systems, hence false security. Key management decisions made by the project manager and their effects Changing the strategy The project management made changes of the planning and construction strategy of the Denver International Airport with two years left to its completion. This decision-making happened due to the need to incorporate a joint baggage handling section for all the airlines using the airport. At that time, there existed a contract between BAE and United Airlines for the development of its baggage handling system. Management realized the need of a joint baggage handling section culminating in the decision to develop a baggage handling section through the services of BAE Automated Systems. The effect of this decision was the failure to match the responsibilities and the complexity of the project given the poor timing in decision making by the project manager. The project manager’s decision affected the implementation of the project because of lack of enough time, lack of prior planning, and the lack of enough resources to meet the increased requirements. There was also less time to decide on an elaborate and efficient system, leading to the failure of the project in the implementation stage. Continuation of the project Another key decision made by the management is the continuation of the project despite all indications against the decision. The period between the opening dates and the decision to have a joint baggage handling system in the airport was less for the implementation of the project. The Munich airport baggage handling took two years yet it was smaller the management ignored advice from the Munich officials and went on to construct the baggage handling system. The bidders for the project indicated the project cannot take less than two years, and the BAE Automated Systems officials were reluctant to accept the bid due to time constraints. Management decided to go on with the construction despite all factors pointing against the decision. The effects of the decision led to the failure of the project because of lack of enough time for the construction, testing, and implementation of the system. The time set for the project’s completion was not enough to carry out the project leading to its failure. The other effect of the decision was the extension of the opening of the Denver International Airport due to the malfunctioning of the Denver International Airport baggage-handling system. Decision to accept changes in the original design of the project The need to appease stakeholders made management make decisions in favor of accepting changes to the original plan. The management made decisions to accept changes by the various airlines on the removal of the loops, increase in the baggage size and addition of maintenance tracks. The effect of this decision was the redesign of the baggage handling system to accommodate the changes leading to increased complexity in the system. This increased complexity led to the inability of the project to achieve the required objectives of the Denver Airport project management. Decision for an alternative At the end, after rescheduling four opening dates the management realized the need and made the decision on seeking an alternative to the project. This led to contracting of the services of Logplan Consulting of Germany, to design a baggage system of lesser complexity than the one designed by BAE Automated Systems. Reaching the decision happened after the embarrassing media review and tests on the Denver International Airport baggage-handling system. The effect of the decision was the opening of the airport but the decision was long overdue. The decision also affected usage of the Denver International Airport baggage-handling system designed by BAE because of its usage on only concourse A. Decision as a project manager The best decision in the above case involves taking the time to study the complexity of the project through researching on the requirements. Seeking enough resources for construction in terms of money, time, and human resource for the project is crucial. The time allocated for the above project must be enough and keeping in touch with the work and its complexity, not the goals only. In conclusion, various challenges faced the construction of the Denver International Airport baggage-handling system. The challenges were too significant and prevented effective performance of the Denver International Airport baggage-handling system after completion. The overconfidence of management and the need to, please the public led to the ignorance of challenges in the project. Lack of enough time, ineffective planning, and the complexity of the system are the main challenges that faced the project. Most of the decisions made by the management of the project were wrong or wrongly timed leading to failure of the Denver International Airport baggage-handling system. Works cited De Neufville R. The Baggage system at Denver: Prospects and Lessons- Journal of Air Transport Mnagement, Vol. 1, No. 4, Dec., pp. 229-236, 1994. Print. Diane, Publishing. Denver International Airport: Baggage Handling, Contracting, and Other Issues, DIANE Publishing, 1996. Print. Kock, Ned. Systems Analysis & Design Fundamentals: A Business Process Redesign Approach, Sage, 2006. Print. Read More