Bae Case Analysis

BAE Case Analysis

In 1992 the city of Denver decided to integrate an airport-wide baggage handling system into the Denver International Airport which at the time was two years into its construction. Project managers of the under-construction airport suggested such a system would drastically improve the efficiency of baggage delivery. Even though the project showed promise in the beginning and certain aspects of it were successful, the overall result of it was a complete failure that cost the city of Denver and other invested parties excessive amounts of time and money. While many parts of the project failed, the poor management of the project scope was a crucial factor to the result.

Scope Management

        In project management the success of the project itself is directly linked to how clear the scope is and to how well it’s managed over the life of the project. When it comes to scope development BAE Automated Systems came to the city with a proposal to develop what they referred to as the ‘“most complex automated baggage system ever built”’. The project set out to improve the efficiency of baggage delivery throughout the entire airport, greatly improve the time spent in manual baggage sorting, and other processes associated with baggage. This was the scope of the project, its deliverables were another thing.

        The deliverables described by BAE were all realistic, obtainable, and measurable. The manufacturing company knew the project could be done since an airport in Munich had developed a much less complex but fully operational baggage handling system. The problem here was there was never a suitable cost assigned to these deliverables.

        Contents of the scope were defined thoroughly by the manufacturing company. The objectives the projected were to produce a fully integrated, baggage claim system that ran through the entire airport. Milestones were also set and accomplished throughout the life of the project. Perhaps the most important milestone was the prototype of the baggage handling system BAE developed on their grounds. Other milestones involved dates in which parts of the systems design could no longer be altered. The implementation of the baggage system had many requirements regarding the effects it would have on the airports structure, where it would fit, the power needed for it to operate, and ventilation and airconditioned needed.

        What set this part of the project up for failure was the city of Denver had never accepted the proposal BAE had presented them with. The project scope statement was never developed, therefore they had nothing to measure the progress and quality of the project with. Costs kept piling on since they were never identified in earlier stages. This aspect heavily contributed to the failure of the entire project.                                                                                                                    

        Changes to the project required an extra amount of effort from BAE. First, they had to adapt the airport’s project management structure, and these were manufacturers that weren’t used to that level of organization on projects. Second, despite passing milestones of the system design the airlines began to order changes to the system. This was added stress to the project, but regardless BAE was able to properly manage these changes.

Stakeholders Management

        In the BAE case the city of Denver and its mayor were the project sponsors here. They set to develop a highly advanced baggage system for their international airport. Other identifiable stakeholders in the project were the project manager, the manager of the main terminal, and the senior managers assigned to each of the concourses. This of course also involves suppliers, team members, and the customers as stakeholders.