Essay on Bae Airlines Summary

643 Words3 Pages
Issue Identification The primary issue to consider as Gene Di Fonso is whether BAE should cancel, modify or continue with the contract for installing the baggage-handling system at the Denver International Airport (DIA) amidst the severe deterioration in communication and rising hostility. Furthermore, BAE must consider what additional resources would be required if the company chooses to negotiate with the City for the support to finish the system and whether the size and complexity of the system, given its departure from conventional technology, should be reduced. All the while, BAE is recognized worldwide for baggage-handling systems, and therefore the company’s decision must maintain BAE’s strong reputation in the industry and its…show more content…
Furthermore, a project plan was never formally established to define the work breakdown structure, determine a schedule and analyze existing and required resources. This led to many construction delays and unsystematic project changes such as changed layout plans and facilities after-the-fact. Finally, the DIA Project Management Team (PMT) failed to implement a comprehensive tracking system for three years. As a result, the PMT failed to track the project’s progress and were prevented from making better adaptive decisions relative to changes that were occurring. Initial mistakes made at the signing of the $175.6 million contract to build an integrated DIA baggage-handling system included: accepting previously defined project specifications, and agreeing to change its effective, and industry proven working structure to conform to DIA’s ineffective project management structure. To further enhance the issue, the DIA PMT had neglected to consult its airline carriers regarding their needs and wants from a baggage handling system. Resistance and a lack of commitment on behalf of some carriers and some PMT members naturally formed. In addition, communication channels between the city, the PMT, the consultants and BAE were not adequately defined. This made resolving issues surrounding initial contract specifications such as unrestricted BAE access, and late design changes difficult. Shedding light on BAE system software and baggage-handling
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