Introduction
Projects are considered to be strategic assets for many
companies today, and project management occupies a central role. The progress
and development of humanity are the concepts that are underpinned by the
successful delivery of many projects. The Denver International Airport project
is an IT project whose development was aimed at catering for the teaming of air
passengers. The paper is aimed at analyzing the role that the managers played
in making the project fail. The project was considered to be an all-around
disastrous colossal failure.
Discussion
The Denver project, called the Denver Airport Automatic
Handling System, was meant to create a new to be a mega monumental
accomplishment as well as the largest automated baggage handling system in the
globe, but it, unfortunately, ended up being a colossal tragedy (Calleam
Consulting Ltd, 2008).
The Denver city wanted to address the problem of low
capacity of the greater airport, and through the same, the city emanated to
cement its position as an air transportation hub. It was intended to handle
over 50 million passengers every year (Neufville, 1994). The project began in
1989 and in 1991 the airport management said that there would be an addition of
an airport-wide integrates a system for baggage handling to the project
scope. There were three bidders, and
the report showed that none of them could achieve the deadline of delivering
the project by October 1993.
The airport management talked to BAE and requested them to
expand the airline's baggage handling system to be integrated with all the
three concourses and all airlines. The managers wanted to reduce the aircraft
turnaround time to 30 minutes, thereby fostering the efficient operations as
well as eliminating the wastage of time by the manual conveyor and the old
system used earlier for handling asserting the baggage (Goetz & Szyliowicz,
1997). It was impossible to achieve what those managers wanted as it became
obvious with time while the development of the project was ongoing. It was
discovered that the managers and the development team underestimated the
complexity of the project, and the project risks were not fully identified. The
managers wanted to see then project implemented, and their late inclusion of
other systems to the projects scope contributed to the failure of the project
(Calleam Consulting Ltd, 2008).
The airport became dysfunctional for 16 months and them, in
turn, incurred a financial impact amounting to $1.1 million per day I term of
maintenance. As money continued to be pumped into the project besides the
amount that was planned for and as the project lagged behind the schedule, it
became apparent that the project would fail; not mentioning the sophistication
of the project. The cost of projects had been estimated to be $5 billion including
the Federal government contribution and the airlines contribution of over $400
million. The project, however, overran the planned for the budget by more than
30 percent due to the complexity around the construction of the new system.
Denver Airport, by 1994 it had run into a bonded debt amounting to $3.8 billion
plus. These many issues made the Denver Airport project not to have delivery at
the intended date that was October 1993. It also missed other three opening
dates that were April and May of 1994 due to heightening pressures from the
stakeholders.
The other role that the business managers played to
resulting in the failure of the project was the change of the strategy of the
project during its execution. They also failed to introduce the rights scope
control to the project that resulted in the introduction of new systems such as
the automated baggage system. The new system introduced was very complex, and
it was vulnerable to errors. The managers also failed to plan for the project
properly because of the lack of the estimation of the efforts required to
accomplish the project. For instance,
the managers gave a tight timeline for the project, and they stuck to it even
after making other additions to the scope (Neufville, 1994). They also ignored
the expert advice that the development of the project was not achievable within
that limited timeline. The tight schedule was not inclusive of the system
testing.
There was also a poor procurement management system as it
assumed the professionals’ bids that indicated that the new system would not
have completion within the remaining duration of 2 years (Sandeep &
Chhillar, 2012). Another issue was the presence of efficient communication
management whereby that lack of efficient communication resulted in the
cancellation of the purchase of the electricity filters without having full
knowledge that those filters were part of the project. When the filters were
reintroduced, it was very late. Thos problems were further compounded by the
death of the de facto sponsor of the project, Mr. Walter Slinger in October
1992. The Airport Management did not have effective plans for the sponsorship
of the project, and the death of that sponsor left them frustrated. Things
became worse when the management chose the successor of Walter that was devoid
of the technical know-how for managing the project.
What
did the management Miss Out?
The management missed implementing effective change control
for the project. Changes are constant in a project, and therefore project teams
need to be ready for them so as to avoid frustration (Stare, 2010). Also, it is
crucial to measure the effects introduced by the changes to a project. Denver
needed to implement a proper management process for the project so as to have
better control of the changes. That would be helpful in addressing the
complexities that were introduced by the changes to the project. The other thing that lacked was proper
planning and control to make sure that tasks have co0mpeletion before their
successors. That was missing in the project because the tasks were not
logically organized. The other missed opportunity for the management was good
stakeholder management. The leading cause of many project failures is a lack of
paying attention to the stakeholders that have the greatest influence on a
project (Kangas & Phillipson, 2010).
The management also lacked proper communication management.
A sure way to a project’s failure is the lack of proper communication (Harding,
2012). The management of Airport should have developed a communication matrix
so as to establish the desired communication channels that could, in turn, make
sure nothing is missed. Risk management for the project is also another thing
that the Airport Management missed. That is why the project risks caused the
project to fail. The management also failed to utilize the people with proper
skills I the leadership and management of the project. The cost was also not
properly controlled resulting in cost overrun. They needed to have had solid
plans for controlling costs and assessing the managers and leaders of the
project.
Conclusion
The Denver Baggage Handling project was the one that was
faced with so manage issues regarding the management. Many issues were not put
into consideration and the management was very stuck with their decisions even
though they could not bear any fruit. That made them even to ignore the advice
of professionals, and the result was a total failure of the project. The
underestimation of the project's cost caused the company to incur many debts
because they had to borrow money and try to see if they would save the project
from failing. Had they followed the guidelines highlighted in this paper, the
project would have been successful.
References
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Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in custom nursing essay writing services services if you need a similar paper you can place your order for college essay writing services.
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