BAE Automated Systems (A) Analysis Essay

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Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements (PMBOK Guide, 2008). Using this definition, it is made evident that the parties involved in the Denver International Airport (DIA) Baggage System project in the 1990’s failed at applying basic organizational practices towards managing the triple constraint of scope, time, and cost goals. The combination of inherent risks, uncertainties, and dysfunctional decision making geared the project towards disappointment while simultaneously designating it as a text book example of what not do when taking on a complex project. By looking at the key strengths, weaknesses, opportunities, and threats we can…show more content…
Overall, the city of Denver pursued an automated baggage system to improve ground efficiency, to reduce close-out times for hub operations and to minimize time consuming manual sorting and handling (Montealgre et al, 1996, p.1). From the city of Denver’s perspective, it was an easy choice to award BAE Automated Systems with the contract. The initial project design (as cited in Montealgre et al, 1996, p. 8) did not incorporate an airport-wide baggage system; the city expected the individual airlines, largely consisting of United and Continental Airlines, to build their own systems in their respective concourses as in most other American airports. The city sent out initial requests for bids to take on the first attempt at implementing such a complex baggage system, with not much response. Eventually they had no choice but to approach BAE, whose superior reputation in the field of baggage handling had already motivated United Airlines to contract them to design their baggage handling system. This system was to be implemented in United’s Concourse B without integration with the other concourses (Montealgre et al, 1996, p. 8). In return, BAE offered the city of Denver a proposal to develop the “most complex automated baggage system ever built” (Montealgre et al, 1996, p. 9). The whole DIA project was to be a public works project involving many shareholders with various financial sources and intentions. The main shareholders

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