Bae Automated Systems-Dia

1870 Words8 Pages
Executive Summary The events that lead to the debacle at Denver International Airport (DIA) are a perfect template to disaster. There were many causes of failure for their new integrated baggage system; however, one stands out as the root cause. On behalf of DIA and BAE the dysfunctional decision-making due to lack of knowledge on projects of this scope, had this project doomed from the beginning. Denver’s existing airport, Stapleton, was seen as a liability in the late 70s early 80s due to the booming economy at that time. It was determined in 1983 the airport needed to be expanded and ground was broken in 1989 for what is now DIA. The plan was to make DIA the most efficient airport in the world, but it was not until 1992 the decision was made to have a fully integrated baggage system. BAE already had a contract with United at the time to handle their baggage service but after some deliberation, they were convinced they could expand the system to the whole airport. BAE touted it as the “most complex automated baggage system ever built.” In retrospect, senior leadership at BAE should have never let this leave the drawing board for a number of reasons. The senior leadership at BAE failed to calculate the total risk of taking on a project of this scope. Although, BAE had 90% of the market share in this industry the scope was unattainable. When DIA made the decision to approach BAE about expanding the baggage system they were already halfway complete with many of the terminals and concourse and were just two years away from the original open date in October 1993. This meant that BAE would have to tear up certain sections of the airport and redesign around the new integrated system. This alone cost millions in delays and rework. In addition, BAE and officials at DIA failed to listen to technical advisors that a project of this scope could not be completed in time

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