Diabhs Case Presentation Final

Slide 1: CASE ANALYSIS Denver International Airport Baggage-Handling System (DIABHS) by Karla Aguilar Setiawan Soekamtoputra Course MGT 565 Project Management

Slide 2: Agenda  Project Background  Project Outline  Project Execution  Primary Theme  Players  Gantt Chart  Six Important Issues  Recommendations  News beyond case

Slide 3: 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

Slide 4: 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

Slide 5: 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

Slide 6: 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

Slide 7: 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

Slide 8: Gantt Chart

Slide 9: 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)

Slide 10: 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

Slide 11: 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

Slide 12: Thank You  Q & A Session