BAE Automated Systems (A) Analysis Essay

* Cargo operating out of the northern edge of DIA, increasing time and cost for deliveries to Denver.

1. Denver Airport considering automated baggage system should start out by assessing their design and performance of these devices cautiously and far in advance of their use.

Gray, C. F. & Larson, E. W. (2008). _Project Management: The Managerial Process_. Boston, MA: McGraw-Hills Companies, Inc.

Firstly, Airborne Express chose its customer very selectively and pursued a emphasis on low price strategy. The main target customer for airborne was the high volume, frequent, service; consistent with flexible environment and price is the main competitive weapon. Airborne was essentially the custom solution logistics providing for larger companies and therefore, they did not target the masses. By focusing on large accounts, Airborne could use its ground capacity more effectively. Airborne delivery drivers dropped off and picked up far more packages per stop than do the drivers of companies that focus on serving smaller customer and individual customers. This helped boost productivity and lowers costs and make a profit at a price. Secondly, the strategy of concentrating on corporate account was strong point, since it leads to better capacity of operation and lowers the cost. The company’s incentive systems were designed to rewards employees for meeting the dual goals of high productivity and reliability. Airborne’s national and international tracking systems were the best in the industry. These assisted Airborne to tell customers at a moment’s notice where in the system there packages are. This helped improve reliability and build brand loyalty. The same information systems helped Airborne to efficiently manage its billing system, thereby lowering costs.

In the case study, “Project management Helps the Department of Defense protect Military and Civilians from Hazardous Materials”, the Department of Defense (DOD) had similar problems as the company in the article. The DOD had project to create a web-based software system that monitors, collects and analyzes information regarding human exposure to hazardous materials. The DOD also had scheduling problems. Teams for this government sponsored project had a difficult time coordinating their schedules with other government initiatives. Besides scheduling problems, there were disagreements on the minimum system requirements. And of course the schedule challenges led to budget issues

Unlike FedEx and UPS, Airborne owned the airport that served as its major hub, so it did not pay landing fees nor face any obstacles to tailoring facilities to its needs. It also built a warehouse in the airport and leased it to business customers, so as to increase delivery speed. Moreover, the airport’s status as a Community Reinvestment Act one led to reduced property taxes.

Project management is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. It is often closely related to program management (Wikipedia).

No airport anywhere in the world is as technologically advanced as the Denver International Airport.1 It’s dramatic. If your bag [got] on the track, your bag [was] in pieces.2 In November 1989 ground was broken to build the Denver International Airport (DIA). Located 25 miles from downtown Denver, Colorado, it was the first major airport to be built in the United States since the opening of the Dallas-Fort Worth Airport in 1974. In 1992, two years into construction, the project’s top managers recommended inclusion of an airport-wide integrated baggage-handling system that could dramatically improve

While BAE was already working on United’s baggage system, the PMT recognized the need for a fully integrated baggage-handling system for all of DIA. Since no other airlines were emerging with plans to develop their own baggage system, airport planners and consultants drew up plans for an airport wide baggage-handling system and sent out request for bids to several different companies. Initially BAE declined to bid on the project due to one main reason; the technology required to operate a system of such a large size and complexity should be determined very early in the project life cycle. BAE had the technology that was needed (destination-coded vehicles moving at high speed) but implementing this technology into such a complex project would have required much more time then was available.

The 3 bids are all rejected Denver Airport Project Management team approach BAE directly requesting a bid for the project Denver Airport contracts with BAE to expand the United Airlines baggage handling system into an integrated system handling all 3 concourses, all airlines, departing as well as arriving flights. In addition system is to handle transfer baggage automatically. Contract is hammered out in 3 intense working sessions United Airlines changes their plans and cuts out plans for the system to transfer bags between aircraft. Resulting changes save $20m, but result in a major redesign of the United Airlines portion of the system. Change requests are raised to add automated handling of oversized baggage and for the creation of a dedicated ski equipment handling area Continental requests ski equipment handling facilities be added to their concourse as well Chief Airport Engineer, Walter Singer dies. Mr Singer had been one of the driving forces behind the creation of the automated baggage system Change orders raised altering size of ski equipment claim area and adding maintenance tracks so carts could be serviced without having to be removed from the rails Target opening date shifted from 31 Oct 93 to 19 Dec 93 and soon thereafter to 9 Mar 94 Target opening date is shifted again, new target date is 15 May 1994 Original target for

The city convinced BAE to expand on the system they were designing for United Airlines to the entire Denver Airport. BAE was awarded the contract for an airport wide baggage handling system in

Fourthly, The Airborne maintained low prices, provided tailored services and achieved higher efficiencies and lower cost in order to long run and remain competitive in the market. So, Airborne targeted business customers who shipped frequently and was able to better serve them through repetition and experience including using customization codes to provide tailored service to specific large business accounts. Moreover, Airborne had a high concentration of customers in metropolitan area and a high percentage of afternoon and second day deliveries, permitting it to use ground shipping more often than its competitors and save up to two-thirds the cost of air shipping (Exhibit 8). Finally, Airborne had total control of its airport hub, which is design as per the needs and expand to enclose warehouse space for its business customers. Furthermore, Airborne achieved greater efficiency in its shipping by utilizing 80% of shipping space therefore; Airborne lowered cost not having retail service centers, using independent contractor van services and it was more efficient by picking up and delivering more parcels per stop than FedEx. Hence, Airborne becomes a stronger competitor in the market due to low prices and provided excellent service to the customers.

As an project manager in building a new international airport, important tasks of the project managers across any work scope or vertical is to ensure that the planned projects get finished well in time within the given budget and the planned time frame. Project management is one of the most high ranking areas of study and plays a meaningful role in organizations across all the scope.

According to Kerzner (2011), United Airlines as a primary stakeholder contracted BAE in January of 1992 to develop an automated baggage handling system for its own concourse at DIA. As documented by Montealegre, et.al. (2000), BAE was a world leader in the design and implementation of material handling systems, and had a proven

The Project management Institute (PMI), an international nonprofit organization dedicated to advancing the profession of project management, defines project management in its publication, A Guide to the Project Management Body of Knowledge (PMBOK ® Guide) as-“project management is the application of knowledge, skills, tools, and technique to project activities to meet project requirements.” To accomplish the entire task in the project management, there must be some process that needed to be taken before completing the task.