...Denver International Airport Denver International Airport (DEN) is located 23 miles Northeast of downtown Denver Colorado. At 53 square miles it is the largest airport in the United States and the second largest airport in the world after King Fahd International Airport. Denver is also known for having one of the longest runways in the United States at 16,000 feet. DIA was built to replace the old an outdated Stapleton International Airport which was Colorado’s primary airport from 1929 to 1995. In September 1989, under the leadership of Denver Mayor, Federal Aviation officials authorized the outlay of the first $60 million for the construction of DIA. Two years later, Mayor Wellington Webb inherited the multi billion-dollar over budget megaproject, scheduled to open on October 29, 1993. Delays caused by poor planning and repeated design changes pushed the opening day back, first to December 1993, then to March and finally to May 15, 1994. In April 1994, the city invited reporters to observe the first test of the new automated baggage system. Reporters ended up watching clothing articles and personal items scattered all over the floor. The mayor cancelled the planned May 15 opening. The airport collects landing fees, rent and other revenues from the airlines to help offset its operating costs. Denver International Airport is owned and operated by the City and County of Denver, but does not operate using tax dollars. Instead, the airport is an "enterprise fund" generating...
Words: 1541 - Pages: 7
...DENVER INTERNATIONAL AIRPORT AUTOMATED BAGGAGE HANDLING SYSTEM- PROJECT FAILURE ANALYSIS MSc Project Management Abstract The purpose of this study is to critically analyse the Denver International Airport Baggage Handling System project in order to detail the underlying reasons for the perceived failures in the project and to provide recommendations on how effective project management could have helped to avoid the problems the project encountered. A thorough analysis of the activities of the project from nature of project, contracting, design, construction, testing, stakeholder management, risk management, project controls, as well as the overall project leadership was carried out and failure causal factors were identified. A recommendation was also made on how the project should have been managed to ensure project success. The analysis viewed the project from both project management and project perspectives. Student: @00380661 25-Feb-14 Number of words: 2558 Table of Contents 1. 1.1 2. 2.1 Introduction ................................................................................................................. 2 Project Failure .......................................................................................................... 2 Discussion .................................................................................................................... 3 Failure Modes of the Project .............................................
Words: 4266 - Pages: 18
...Benedictine Univeristy | Denver International Airport Baggage Handling System | MBA 683 | | Farrah R. Ansari | 10/1/2015 | | Denver International Airport Baggage Handling System The Denver International Airport, located in Denver Colorado, is the country’s largest airport based on total land area. The airport has the longest runway, is considered the 18th busiest airport in the world and the 6th busiest airport in the United States. There are nearly 53 million passengers that travel in and out of this airport. In the early 1990s the airport decided to create the world’s largest automated baggage handling system. In order to accommodate for the millions of passengers the project team felt this would be an effective project. The goal of the project was to create an automated baggage system that would reduce aircraft turnaround time to nearly 30 minutes. By reducing the turnaround time to a half an hour would allow for more efficient operations. The project team wanted to include this new system to all three concourses which included 88 airport gates. The concept of the project was well intended but poorly planned and executed by the project management team. The first flaw and biggest flaw of the project was the unrealistic scope. The project failed to set a realistic deadline or budget for the project. The deadline was exceeded by nearly 16 months, the budget by $560 million, and the overall intention of incorporate all three concourses was also not met....
Words: 560 - Pages: 3
...Analysis of the Denver International Airport baggage system Michael Schloh Dan Stearns, advisor Title Abstract Contents Introduction Reasons For Automation Functionality Of Original BAE Design Problems and Solutions System Complexity Comparative Functionality Opening Delays Financial Hardship Summary Glossary References THE DENVER INTERNATIONAL AIRPORT AUTOMATED BAGGAGE HANDLING SYSTEM by Michael Schloh Computer Science Department School of Engineering California Polytechnic State University 1996 Date Submitted: February 16, 1996 Advisor: Daniel Stearns ABSTRACT This document discusses events at the new Denver International Airport that resulted in opening delays of the airport. The scope is limited to the automated baggage handling system, which was the primary source of failure warranting the airport's several opening delays. Analysis of the failing system is comprehensive. Research is conducted using a variety of sources. The final report is published on the worldwide web. CONTENTS Introduction 1 Reasons For Automation 2 Functionality Of Original BAE Design 3 Problems and Solutions 6 System Complexity 12 Comparative Functionality 14 Opening Delays 15 Financial Hardship 17 Summary 19 Glossary 20 References 21 INTRODUCTION This research concerns the automated baggage handling system which was built by BAE Automated Systems, Incorporated of Carrollton, Texas for the Denver International Airport. The analysis of this system provides an important topic of study. From the baggage...
Words: 12573 - Pages: 51
...Denver International Airport Project Communication Plan Prepared by: Date: 6/15/12 Version: Master Plan Document Purpose Communication is a critical component in project delivery. It must be delivered in a timely and effective manner to all project stakeholders in order to meet objectives and achieve project goals. This document will detail the execution of all communication regarding the Denver Airport Project. This includes, but is not limited to, communication to and from executives, managers, and the project team. It will also discuss the means and frequency by which communication will be delivered. Overview The Denver International Airport project consists of designing and constructing a new airport, based upon a “Home-on-the-Range” design. The City of Denver requires a wide open entry point for visitors. The airport is to maintain a distinctive look that will be easily identified by travelers. This design must meet specifications provided by the City of Denver. The new airport should allow for more traffic in and out of the airport, while also becoming less congested. Improvements to runways will lead to a more efficient operation of the regional airspace, significantly reducing aircraft delays and airline operating costs. The new airport will also result in reduced noise impact, as it is being built on a relatively large site in an unpopulated area. The overall layout will be more efficient in reducing passenger walking distance, while also having...
Words: 1331 - Pages: 6
...1. Is the decision to build a new airport at Denver strategically a sound decision? 2. Perform an analysis for strengths, weakness, opportunities, and threats (SWOT) on the decision to build DIA 3. Who are the stakeholders and what are their interests or objectives? 4. Did the airlines support the decision to build DIA? 5. Why was the United opposed to expansion at Font Range Airport? 6. Why was the new baggage handling system so important to United? 7. What appears to be the single greatest risk in the decision to build DIA? 8. What impact do the rating agencies (i.e. Moody’s and Standard & Poor’s) have in the financing of the airport? 9. Assume that DIA finally opens and with a debt of $3billion. Is the revenue stream sufficient to pay interest each year and pay the principal at maturity? 10. What options are available to the DIA if the coverage falls below 100%? 11. Is there additional revenue space available (i.e. unused capacity) ? 12. What is the function of the Project management team (PMT) and why are two companies involved? 13. When did the effectiveness of the project management team begin to be questioned? 14. Did it sound as though the statement of work/ specifications provided by the city to the PMT were ‘vague’ for the design phase. 15. During the design phase, contractors were submitting re- estimates for work. 30 days after the original estimates and the new estimate were uo to $50 million larger than the prior estimates. Does this reflect...
Words: 326 - Pages: 2
...10. What impact do the rating agencies (i.e Moody’s and Standard & Poor’s) have in the financing of the airport? 11. On October 1, 1982, the United bonds were issued at an interest rate of 6.875 percent. Was this an appropriate coupon for the bonds? 12. There are numerous scenarios that can occur once the airport opens. The following questions are “what if” exercises and may not have a right or wrong answer. The questions are used to stimulate classroom discussion. The students must use the prospectus excerpts in the exhibit at the end of the case study. For each situation, what will be the possible outcome and what impact is there upon the bondholders? 13. Assume that DIA finally opens and with a debt of $3 billion. Is the revenue stream sufficient to pay the interest each year and pay the principle at maturity? 14. What options are available to DIA if the coverage falls below 100 percent? 15. Is there additional revenue space available (i.e., unused capacity) 16. What is the function of the project management team (PMT) and why were two companies involved? 17. When did the effectiveness of the project management team begin to be questioned? 18. Did it sound as though the statement of work/specifications provided by the city to the PMT was “vague” for the design phase? 19. Should the PMT be qualified to perform risk analyses? 20. Why were the architects coordinating the changes at the constructions site? 21. Should the PMT have been...
Words: 255 - Pages: 2
...September 18, 2012 Mr. Patrick Heck Deputy Chief Financial Officer Denver International Airport 201 West Colfax Avenue Denver, Colorado 80202 Re: The Westin Denver International Airport – Denver, Colorado Dear Mr. Heck: Pursuant to your request, we have conducted a study of the potential market demand and developed a statement of the estimated annual operating results for a proposed 519-room Westin hotel (the “Subject”) to be located at the south terminal of the Denver International Airport (“DIA”) in Denver, Colorado. Throughout this analysis, we formally refer to the Subject as The Westin Denver International Airport. The development of the Subject hotel is expected to be financed through the issuance of tax-exempt bonds coupled with some form of public subsidies/guarantees/loans. This report has been prepared for use by the Denver International Airport and its financial advisors in determining the estimated annual operating results of the proposed Subject. The conclusions set forth in this report are based on an analysis for supply and demand for the transient lodging market in the Denver-Aurora market area as of August 8, 2012, the completion date of our fieldwork and primary market research. As in all studies of this type, the estimated results assume competent and efficient marketing and operational management, and presume no significant change in the status of the competitive lodging industry from that as set forth in this report. The terms of this engagement are...
Words: 40945 - Pages: 164
...Identification and Root Case Analysis 6-8 Alternatives and Options 9 Recommendations 10 Implementation Plan 11 Monitor & Control 12-13 Exhibits 14 Executive Summary Denver International Airport(DIA) project started in November 1989 it was a very large project. Implementing the automated baggage handling in the middle of the project made it even more complex. Denver after being behind schedule for 18 months the Airport finally opened in February 1995. Once completed the airport had 5 runaways an 88 gates. The baggage handling system of the airport was initially built for United Airlines whom insisted on the system in the earlier planning stages. Denver officials agreed the automated baggage system will be a great addition to the airport; however not just for United Airlines concourse but all concourses in the airport. Boeing Airport Equipment(BAE) was contracted for building the system by officials in Denver long after the construction on the airport began. When the airport opened it had both the automated, a back-up for the automated system and conventional baggage handling system in place. Unfortunately, the project at Denver International Airport has gone wrong in many ways. I have identified dysfunctional decision making as the main problem that has led to the messy situation at both BAE and DIA. The major issues of concern at BAE are inexperienced Project Managers, software errors, improper...
Words: 3154 - Pages: 13
...Table of Contents Declaration of Originality 2 Table of Figures 3 Acknowledgement 5 Abstract 6 1. Background 7 Event Daybook 9 Acknowledgement I owe my deepest gratitude to my lecturer for her supervision and support provided throughout the project. It helped me in better understanding about the subject and come up with a righteous work. Above all, I appreciate each and everyone who have supported me in any respect of completion of project. Abstract Denver International airport (DIA) is situated 23 miles northeast of downtown Denver (Colorado) with a size of 137.8 sq. km . Currently the airport handles around 41 airlines and having traffic more than 3,905,138 passengers . During the construction of the airport, implementation of an automated integrated baggage system to minimize the turnaround time was a critical component . But it turned to be one of the woeful incidents in the history of technology project implementation. The airport scheduled to open in October 1993 finally came to live on March 2005 with a delay of 16 months due to under estimation of the baggage handling system. This delay almost cost them $1.1M per day for the maintenance and loans. In March 1994, the BAE systems ran a test run in front of several media groups. The result of the test was a complete failure. The baggage were partially or completely damaged or misplaced to the wrong gate. The system was not able to cater the needs properly and thus United Airlines abandoned...
Words: 1313 - Pages: 6
...satisfy aviation demand, while considering potential environmental and socioeconomic impacts. Master Plans also provide the airport with the tools to react to uncertainties by examining key trends in the aviation industry, such as changing airline business models, improvements in technology, and local/regional economics that could affect airport activity. Master plans vary in the level of detail and complexity depending on the size, function, issues and challenges of the airports under study. FAA Advisory Circular 150/5070-6B Airport Master Plans provides guidance for the preparation of airport master plans. Read the FAA Advisory Circular (Adobe PDF) Specific objectives of the Master Plan Update put forth by Denver International Airport (DIA) include the following: Maintain and ensure the safety and security of the Airport Emphasize customer service and satisfaction Plan for phased, incremental development that meets foreseeable aviation demands and maintains flexibility for change Maintain practical and affordable airline costs per passenger Meet sustainability and environmental requirements DIA is a fairly new airport, why is the airport completing a...
Words: 3264 - Pages: 14
...Executive Summary BAE Automated systems was contracted by the United Airlines to build the baggage management for them at the Denver International Airport (DIA). The management team at DIA, looking at the response from other airlines towards the leasing of the own baggage systems, decided to build an integrated system for baggage management at DIA. The DIA approached BAE for the completion of this 195 million dollar project. After much deliberation on the project specifications and timelines, BAE decided to take up the project however they enforced many timelines and freeze dates to be strictly followed by the DIA. BAE highlighted the need for privileges such as unrestricted access and priority treatment which would be necessary for timely completion of the project. The project eventually ran into difficulties after the death of Slinger, the new point of contact between the BAE and the Denver government. Gail Edmond was not as autonomous as Slinger was and even though she tried her best to manage the situation. The issue snow balled into a situation where an external consultant was hired to assess the situation, from a German firm “Longplan”, and based on their recommendation the DIA decided to go ahead with the plan to construct a backup baggage management systems. They also decided to put the blame for the delay in the opening of the airport on BAE and issued a fine of $12,000 per day from the promised date of delivery and also the whole amount of development of the backup...
Words: 1509 - Pages: 7
...Failed Strategic Information Systems By Grace Ceniza A report submitted in partial fulfillment of the requirements For CIS370-05 In Computer Information Systems School of Business and Public Administration California State University, Dominguez Hills Spring 2012 Table of Contents I. Hershey Food Corporation o Background 3 o Implementing ERP 3 o Expected benefits 3-4 o What went wrong? 4 II. Denver Airport Baggage System o Background 4-5 o Expected benefits 5 o What went wrong? 5 III. United Kingdom Passport Agency o Background 6 o What went wrong? 6 IV. FBI’s Trilogy Terminated o Background 7 o What went wrong? 7-8 V. Reference 10 Hershey Food Corporation Background Milton Hershey founded Hershey Food Corporation in 1894. Hershey was famous for a lot of innovations and was credited for several chocolate variants like chocolate syrup, chocolate chips, Krackle Bar, ice cream toppings, hot fudge and a lot more. By 1895, Hershey Corporation was manufacturing more than 114 different varieties of chocolates. Their most popular products are Hershey’s kisses, Kit Kat, Reese’s Peanut butter cups and more. Their sales went up from US$334 million in 1969 to $4.94 billion in 2006. Most of their sales that was 40% of their profit came from sales...
Words: 1652 - Pages: 7
...------------------------------------------------- BAE AUTOMATED BAGGAGE HANDLING REPORT DENVER INTERNATIONAL AIRPORT March 31, 2015 SCM GURPREET SINGH GILL March 31, 2015 SCM GURPREET SINGH GILL SCOPE The Denver Automatic Baggage system is to enhance the ground time efficiency. With the installment of automatic system the close out time will also get reduced and effectively decrease the work load of sorting and handling of baggage. Basically, this project introduce the project management to monitor and control few areas of knowledge such as scope, time, cost, quality, risk, communication, procurement, etc. EXECUTIVE SUMMARY The motive of this paper is to provide information and justify the implementation of automatic baggage system project in Denver International Airport and its failure or success. As we go through the case study we will analysis the activities of the project to consider and identify the aspects of the project which had led this project to failure. The recommendations from various elements had also been mentioned that should be taken place for the project to be a successful by using some of the project management measures and techniques. This project of Denver Automatic Baggage system project was analyzed with the point of view of project management and project approach. . ISSUE IDENTIFICATIONS As we gone through the case it has been noticed that there were many issues which took place during the initiation of the project throughout the process of implementation...
Words: 1147 - Pages: 5
...Assignment – Denver International Airport (DIA) Individual Case Analysis Nicholas Y. Foo City University of Seattle PM501_03_IN: Intro to Project Management Larry D. Mitchell October 17, 2014 DIA – Individual Case Analysis The Denver International Airport was built and finally opened on February 28, 1995. It took the project nearly six years to complete with project costs initially estimated at $1.2 billion to the final cost of $5.0 billion. From the case study in Project management: a systems approach to planning, scheduling and controlling, DIA provided improved airfield configuration, improved efficiency in the operation of the regional airspace, reduced noise impacts, a more efficient terminal/concourse/apron layout, improved international facilities, significant expansion capability and enhanced efficiency of airline operations (Kerzner, 2001, pp. 645-646). Yet, the DIA construction project was inundated with many problems, conflicts of interest, increase scope changes and cost issues. Of which, the root cause is that DIA had poor Stakeholder involvement and accountability. In the PMBOK® Guide, a Stakeholder is “an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project” (PMI, 2013, p. 563). The facts will show that our stakeholder involvement and accountability suffered throughout the DIA construction project. United Airlines and Continental had 80% of all the incoming...
Words: 1951 - Pages: 8
