Denver Airport Baggage System Project Failure Analysis

This presentation provides an in-depth analysis of the Denver International Airport (DIA) automated baggage handling system failure. It explores the project's background, highlighting its ambitious scope and the subsequent challenges. The presentation identifies key factors contributing to the failure, including dysfunctional decision-making, improper project management practices, and unrealistic timelines. It details specific decisions that led to the project's downfall, such as changes in strategy, the decision to proceed despite warnings, and the acceptance of numerous change requests. The presentation also examines issues related to risk management, leadership, and architectural design, ultimately concluding that a combination of these factors resulted in the project's failure. It emphasizes the importance of proper project planning, effective communication, and stakeholder management to avoid similar outcomes in future projects. The analysis underscores the significance of recognizing and mitigating risks, making informed decisions, and maintaining a realistic project scope and schedule.

Denver International Airport
Automated Baggage Handling
System Failure

Introduction
 The Denver International Airport baggage handling system proves to be
an excellent illustration of the need of appropriate decision making in
management of a project.
 The failure of Denver international Airport Baggage Handling system
was a main result of dysfunctional decision making.
 The ineffective decisions making and project management issues that
lead to the failure of the project will be discussed in this presentation.

Project Background
 The project of Denver Airport Baggage system was supposed to be the
largest of the time. Unfortunately this project proved to be one of the
greatest examples of how a technology can go wrong ,mainly because
of ineffective decision making and improper project management.
 The Denver International Airport wanted to increase the airport
capacity and thus planned to construct a transportation hub.
 The complexity of the project resulted in increase of problems. The
problems was mainly with the baggage system which delayed the
opening by 16 months.

Why Project failed?
 The project was originally billed to be
the advanced and modern systems
across the globe.
 It was suppose to automate the
baggage handling throughout the
airport.
 One of the major reasons behind the
failure of the system was that the
project did not have a feasible plan.
The project plan was too complex that
added to the failure of the project

Cont..
 The timeline of the project was short
compared to the complexity of the
project and therefore the project was
bound to fail and ended in a
spectacular failure.
 The bids that were submitted on the
new luggage project system never
mentioned that the project will be
completed on time.

Cont..
 A four years timeline was proposed
by the senior manager on basis of
the complexity of the project instead
of a 2 year timeline
 The goals of the project was needed
to be scaled back based on the
complexity which was not done.
 Furthermore, the key stakeholders
were not a part of decision making
thus giving rise to the condition of
improper project management.

Cont..
 The project on its implementation
stage has underwent a number of
major changes that delayed the
project and wasted a considerable
amount of time and money. The
scope creep can therefore be
considered as a major project
management issue with the project
 There was errors in the testing in the
new automated system that added
to the failure of the project.

The Timeline
 The Construction work of the Airport had started in November 1989.
 In February 1993 the target opening date of the project shifted from 31
October 1993 to 19 December 1993.
 However, the project could not be completed even in the year 1994.
 The system testing took a considerably larger time that expected and
therefore the actual opening date of the airport was shifted to 1995
 However, in August 2005, the project is scrapped.

The basic Mode of failure
 Denver International project failed mainly because the key decisions
that were taken underestimated the complexity involved in the project.
 Failure of recognizing the complexity and the different risks associated
with the project resulted in the late project opening. Improper project
management was one of the key issues
 The improper estimation of project complexity resulted in the improper
estimation of the efforts involved in the project. The project plan was
improper which was one of the significant project management issues.
The baggage system was considered to be the critical path which was
nearly impossible to complete within the scheduled time.

Decisions that lead to the failure
 To understand the root cause of the failure, the key decisions that added to
the failure of the project is needed to be identified.
 Decision 1: Change in strategy
The change is the strategy of the project added to the failure of the project. The
strategic decisions associated with the project sets the direction of the
project
It was assumed that he individual airlines will be making their own baggage
handling system
However, later in 1991, the team of project management the project strategy
and decided to developan integrated system which was a wrong decision
taken by the project management team.

Cont..
 The integrated system was required and therefore the change in the
strategy was needed.
 However, the timing of the project decision making was wrong. The
correct strategy was needed to be set at the outset.
 The change in the strategy of the project called for the increase in
project schedule by 2 more years, which was not permitted
 The team of project management failed to see the required shift in the
technology due to the change in the project strategy. This is one
significant project management issue with the project

The decision to proceed- Improper
Project management decision
 Decision 2: Deciding to proceed
Although the change in the strategy was required, it was a bad decision on
a project management perspective to continue with a full scale project
irrespective of the fact that the time remaining for project completion
was insufficient.
The reports provided a clear indication that the complexity was too high to
build a system
The decisions were taken on basis of the communications between the
senior management team and the chief engineer and did not involved
the stakeholders that resulted in chaos.