Project Management Assignment

on

Submitted By:
Gaurav Kumar

Arun

Kumar.R
Roll No.14 Sec-A

Roll No.06

Sec-A
NMPXXVIII Batch

Management Development Institute,Gurgaon

Problem Statement
The opening of the Denver Airport had to be delayed four times due to problems in the
baggage handling system. The enormous increase in complexity of the baggage
handling system is the root of the problem. The total delay was 16 months. The total
costs were $4.5 billion.
Statement of Objectives
To Carry out SWOT Analysis of the Decision to build Denver International Airport.

SWOT Analysis
Strengths
1. The New Denver Airport represents a model airport of the future. It was also planned to
be the second largest hub, having huge local commitment and it was financed by a lot of
different sources.
2. The baggage handling system is unique being integrated and automated. The BAE
automated systems had enjoyed the reputation of being among the best and on the
strength of its good work has been responsible for most of the major baggage systems
recently installed in the United States.
3. The integrated system would improve ground time efficiency; reduce closeout time for
4.

hub operations, & decrease time consuming manual baggage sorting &handling.
The city of Denvers approach to preparing a master plan for the airport was typical.
They hires the best consultant on airfields layout, noise impacts, terminal
layout, on-side road ways, off-side road ways, cost estimating, financial, Alternative were
discussed & eliminated at periodic joint working sessions & a technical subcommittee

was organized together input from the eventual airport.

5. What they did was plan the DBO date & then they planned an extra six months just in
case there was a lag in the opening which in essence allowed us to create stability in the
market. The other thing they did was that they conservatively financed & filled every

reserve account to the maximum. So we borrowed as much money as we could

at the lower interest rate & were able to average the debt cost down not up as we
thought it would be.
6. The resident engineer had about 5 to 8 12 drawer filing cabinets of documentation & this
was nothing compared to what the area manager had. There were at least 4 to 6copies
of every thing
7. They developed a database system that was installed t each one of the resident
engineers trailers & each contract administrator was then charged with keeping that
system up to date & feeding them disks, which they would then merge together
periodically to produce an integrated repo

Weaknesses
1. The baggage handling system has poor scheduling, new and untested technology,
complexity of the system and changing requirements, highly visible mechanical
problems, does not deliver productivity and efficiency, lower cost-effectiveness of the
system.
2. The Denver Airport did not open as scheduled; there were enormous costs on the part
of the owners due to delays and high costs of maintaining the airport.
3. On the management system, there were also a number of weaknesses: resignation of
the DIA project head; death of the Chief Airport Engineer Walter Slinger who was the
key player in the negotiations; communication was a problem from the beginning
channels between (a) the city (b) the project management team (c) Consultants were
never well defined; the city did not get airlinestogether to ask them what they wanted or
needed to operate; the management team had no experience of baggage handling
systems and treated it as being similar to pouring in concrete or fitting air-conditioning
ducts; poor management relationships.
4. BAE had to change its working structure to conform to DIAs project management team
structure. BAE felt restricted with the breaking over their agreement on unrestricted
access which occurred everywhere. Other contractors work was impeding BAE
progress. (key point in original negotiation).

Opportunities

The City of Denvers 1983 mayoral race precipitated initiatives to improve the airfield
infrastructure. The Mayor of Denver put a very high emphasis on jobs and trade for the city.
Denvers geographic location and the growing size of its population and commerce made it an
attractive location for airline hubbing operations. There was a growth on the determination of
the pro New Airport.
Threats
There were a number of threats which are the following: expensive for the airlines due to
delays; economic free-fall in 1987, airlines are likely to limit operations below the level for
which the airport was designed fewer flights and passengers increase the cost per
passenger thus encouraging airlines to route connecting traffic through alternative and
competitive hubs; the new mayor who was elected inherited the project with no commitment
to it by the major airlines; City of Denver invited reporters to observe the first test of the
baggage system without notifying BAE.
Alternative Courses of Action
The alternative courses of action are:
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.The
advantages may include: upgrades Airport performance; when done properly and cautiously,
this will improve ground efficiency; airport competitiveness.The disadvantage would be
causing time and more money
2. Airlines building their own baggage system.The advantages may include: baggage system
will depend on the airlines budget and needs.The disadvantage may include: affects airport
competitiveness; different design lay-out for each airline.

Recommendation

Denver Airport considering automated baggage systems should start out by assessing their
design and performance of these devices cautiously and far in advanced of their use. They
should certainly do this before they allow architects to fix the layout of the airport passenger
buildings. This is because a realistically conservative estimate of what automated systems
can achieve should influence the design of these facilities. Though this may take time and
money, the benefits of a good and reliable baggage system will be reaped at the end.
Plan of Action
To be able to implement the said recommendation, BAE should do the following activities:
1. Have the research and development team do an extensive research and testing on
integrated automated baggage systems. This includes computer simulationsand the like.
2. Have the production manager develop an efficient control system. An effective control
system for any automated baggage system is likely to take a long time to develop
successfully.
3. BAE should work with people who understand the technology and its needs
4. Form a team which everybody has the same goal
5. Have the Projects control staff develop a proper schedule

Role of Project Management Team:

In looking at the Denver Airport Project and the many setbacks that they encountered, I would
have to propose leadership styles that are consistent with that of a transformational, taskoriented, and Charismatic leader. This project required a project management team (PMT) to be
responsible for the design of over 100 contracts, 160 contractors, and over 2000 subcontractors
in order to complete this job. There were also many unforeseen issues that caused serious
delays in the completion of the airport project. Transformational leadership is developmental and
usually begins with a transactional approach. As the city of Denver began its negotiation
process, the vision would be articulated and explained thoroughly to the team by the
transformational leader and helping them to see the vision as well. At a basic level, leaders and
their teams are in an exchange relationship that involves negotiation to establish outcomes and
rewards. With a project of this magnitude, the transformational leader would be instrumental in
helping to relay the overall vision from the City of Denver to the various team members who
were ultimately responsible for getting the job done. This type of project requires someone who
can help in communicating the vision to those followers in order to keep them motivated along
the way. Under the most strenuous circumstances, the transformational leader has to motivate
their team to go beyond the call of duty at times in order to complete the necessary tasks.
Transformational leaders rely on three behaviorscharisma, intellectual stimulation, and
individualized considerationto produce change. The transformational leader serves as a role
model for followers. Because followers trust and respect the leader, they emulate this individual
and internalize his or her ideals.

Title: Project Manager

Role :

The person responsible for developing, in conjunction with the Project Sponsor, a

definition of the project. The Project Manager then ensures that the project is delivered on time,
to budget and to the required quality standard (within agreed specifications). He/she ensures
the project is effectively resourced and manages relationships with a wide range of groups
(including all project contributors). The Project Manager is also responsible for managing the
work of consultants, allocating and utilising resources in an efficient manner and maintaining a
co-operative, motivated and successful team.

Responsibilites
Managing and leading the project team.
Recruiting project staff and
partners and working groups engaged in project work. consultants.
Managing co-ordination of the
Detailed project planning and control including:
Developing and maintaining a detailed project plan.
Managing project deliverables in line with the project plan.
Recording and managing project issues and escalating where necessary.
Resolving cross-functional issues at project level.
Managing project scope and change control and escalating issues where necessary.
Monitoring project progress and performance.
Providing status reports to the project sponsor.
Managing project training within the defined budget.
Liaises with, and updates progress to, project board/senior management.
Managing project evaluation and dissemination activities.
Managing consultancy input within the defined budget.
Final approval of the design specification. Working closely with users to ensure the project
meets business needs. READ FULL DO

Title :Project Team Members

Role:

The staff who actively work on the project, at some stage, during the lifetime of the

project. Some may have a specific role for example, the Team might include a Project
Administrator.

Responsibilities
Team member roles will vary depending on the type of project.
Typically they might be to: Provide functional expertise in an administrative process
Work with users to ensure the project meets business needs
Documentation and analysis of current and future processes/systems
Identification and mapping of information needs
Defining requirements for reporting and interfacing
User training.

Reasons for Two Involvement of Two Companies in Project Management