Diabhs Case Presentation Final

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Diabhs Case Presentation Final

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

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