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Diabhs Case Presentation Final
 

Diabhs Case Presentation Final

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    Diabhs Case Presentation Final Diabhs Case Presentation Final Presentation Transcript

      • CASE ANALYSIS
      • Denver International Airport
      • Baggage-Handling System (DIABHS)
      • by
      • Karla Aguilar
      • Setiawan Soekamtoputra
      • Course MGT 565 Project Management
    • Agenda
      • Project Background
        • Project Outline
        • Project Execution
      • Primary Theme
      • Players
      • Gantt Chart
      • Six Important Issues
      • Recommendations
      • News beyond case
    • Project Background
      • Construction of Denver International Airport started in 1989
      • No considerations for baggage handling system were made
      • United Airlines contracted BAE to implement baggage handling system
      • Airport-wide integrated baggage system was suggested
    • Project Outline
      • Objectives:
        • Improve baggage delivery cycle time and ground efficiency
        • Reduce close-out time for hub operation
        • Decrease manual sorting/handling
      • Scheduled Budget: $193 million
      • Scheduled Completion: October ‘93
      • Scheduled Duration: 18 months
      • Financing: Bond Issuances
    • Project Actual Execution
      • Spending: $300 million + $1 million/day excess expense
      • Additional sub-project: back-up baggage system
        • Start date : August 1994
        • Spending : $51 million
      • Finish date : 28 February 1995
      • Late from scheduled: 16 months
    • Project Primary Theme
      • Delays in construction and implementation of baggage system
      • Pressure from stakeholders
      • The city’s handling of the situation
      • Technical and organizational problems
      • Leadership, communication and organization
    • Players
      • Client: City of Denver
        • Mayor Wellington Webb
      • Developer: BEA Automated Systems, Inc.
        • Gene Di Fonso, President
      • Slinger, Chief Airport Engineer
      • Gail Edmond, Slinger’s replacement
      • Other Stakeholders:
        • DIA Program management team (PMT)
        • German Logplan consultants
    • Gantt Chart
    • Six Most Important Issues
      • Problems:
        • Bad communication among players
        • Lack of compliance with preset conditions
        • Poor planning during early stage
        • Failure to objectively assess situation and escalating commitment
      • Best Practices:
        • Quick back-up plan after experiencing multiple delays
        • BAE was the right guy for the job (world-wide reputation as superior baggage system builder)
    • Recommendations
      • Define a clear leadership, roles and hierarchies- chain of command
      • Take time to carefully plan and determine reasonable finish time
      • Get buy-in from stakeholders and necessary commitments
      • Communicate often and thoroughly with all players
      • Build smaller scale system first
      • Test mechanical, hardware, and software reliability in real environment
    • News
      • 6 months after opening, baggage handling system was abandoned till now
      • Logplan is working with DIA on a master plan update for 2015 and 2030
      • August 2005: UA abandoned the system to save $1 million maintenance costs
      • DIA: to spend $1.2 billion over the next seven years (2008) on improvement of a new automated baggage system
    • Thank You
      • Q & A Session