University Project: Analysis of Denver Airport Project Construction

This report provides a comprehensive analysis of the Denver Airport construction project, examining various aspects of project management. It begins with an introduction that highlights the importance of construction standards and their impact on market success. The report then delves into a PESTLE analysis of the project, assessing political, economic, social, technical, legal, and environmental factors. It outlines the necessary steps for project preparation, including feasibility studies and site selection, and evaluates key project decisions. The report further explores project viability, assessing factors like project size and scale, and the need for project estimation. It then moves on to project planning, analyzing the role of each phase, including value, risk, quality, change, environmental, and resource management. The analysis highlights the complexities of the Denver Airport's automated baggage handling system and the impact of dysfunctional decision-making. The report concludes by emphasizing the importance of construction project standards and offers recommendations to mitigate issues, such as changes in leadership, risk management plans, and expert team involvement.

Running head: DENVER AIRPORT PROJECT CONSTRUCTION
Proj6010 Project Management Application: Denver Airport Project Construction
Name of the student:
Name of the university:

1DENVER AIRPORT PROJECT CONSTRUCTION
Table of Contents
Introduction......................................................................................................................................2
Module 1..........................................................................................................................................3
1. Part A: Project influence..............................................................................................................3
1.1 From PESTLE perspectives analysis of the Denver Case project.........................................3
1.2 For project preparation the necessary steps those have been undertaken..............................4
1.3 Evaluation the project decision to be build............................................................................6
Module 2..........................................................................................................................................7
2. Part B: Assessing project viability...............................................................................................7
2.1Decisions to be undertaken for project feasibility..................................................................7
2.2 Assessing the approach of project size and scale..................................................................7
2.3 Analyzing the need for project estimation.............................................................................8
2.4 Explanation on how the importance of the decisions could be determined..........................8
Module 3..........................................................................................................................................9
3. Part C: Project planning...............................................................................................................9
3.1Analyzing the role of each phase of project planning............................................................9
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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3DENVER AIRPORT PROJECT CONSTRUCTION
Introduction
This project the importance of considering all the construction standards while
developing any construction based projects. With the help of the construction level project
standard the developing companies would be able to gain effective market revenue and
measurable success from the marketplace as well. After analyzing the background of Denver
case project, it would be able to analyze the details of Denver construction sector. It has been
found that in order to analyze the critical factors in this specific market domain the global project
management practices and processes including the project development strategies for addressing
the project specificities are elaborated in this report. In order to reduce the project complexity
proper range of construction project tools and technologies are also elaborated in this report.
After analyzing the Denver case project, from PESTLE perspectives, the analysis impact,
the importance of each of the project activities for project success are illustrated in this report. In
addition to this, for establishing the construction project successfully, it is necessary for the
project manager to make accurate project decision as well. It would help the project manager to
make effective decision for assessing the project viability is also illustrated in this report. Apart
from this, in order to build the construction project it is necessary to make proper cost estimation
and time allotment as well. The last and most vital part of the project is project planning phase.
In this phase, the role of each undertaken project plans and its positive impact for the successful
project outcome are elaborated it his report.

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Module 1
1. Part A: Project influence
1.1 From PESTLE perspectives analysis of the Denver Case project
Political: The decisions for Denver Airport Baggage system project failed due to the
dysfunctional decision making. Denver Airport is referred to as world’s largest automated
baggage handling system. Before, during and even after the execution of the Denver case project
the political parties have supported the project manager and team members throughout.
Economic: In order to develop a modern automatically managing baggage system
enough economic support from the sponsors and airport authority are gained accordingly. At the
project initiation phase, the finance manager developed a feasibility study to determine that the
project outcome is beneficial or not.
Social: The Denver Airport project is developed based on the requirement of the
consumers. In order to develop the new art of Denver Airport, that might cement the position of
the Denver in the airport transportation hub, the social support was always there. The project
complexities were also reduced completely with the help of the social support.
Technical: Technically the project is not at all beneficial due to the extreme complexity
of the baggage system. The system is very much larger than the general system size thus the
system performances keep on degrading. In order to optimize the performance of the system an
empty cart is distributed around the airport to make it ready for picking the baggage. An
advanced queue behavior in terms of a mathematic model is developed for Denver Airport.

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However, even after the identification of risks and technology based operational issues also they
did not make the necessary changes.
Political economical social technological legal enviironmental
0
1
2
3
4
5
6
7
8
Figure 1: PESTLE analysis of Denver Airport case project
(Source: Zalengera et al. 2014, pp-340)
Legal: The Denver airport case project is legally affected due to the exponential growth
of the line balancing and project complexity. The project design approach was very much late
thus the construction got very late approval from the government.
Environmental: The Denver Airport project allowed the system to become the most
critical path to the consumers. The developed system helped the project manager and the airport
authority to gain measurable success factors and revenue as well. Thus, the business environment
stands as effective for extensive expose of the levels of the project schedule and relevant
activities.

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1.2 For project preparation the necessary steps those have been undertaken
In order to construct the Airport project different steps are there those should be
undertaken by the project manager. Through the help of the project preparation steps the project
could be executed easily with beneficial outcomes as well. It is defined that each of the project
steps has influenced the project successful both internally and externally. The necessary steps
those are highlighted for preparing the Denver Airport project include the following:
Airport sponsor: In this phase the project is approved as a grant agency to be a public
agency. However, the local governments grant the eligibility.
Feasibility study: In this phase the finance manager estimate the cost within which the
project is required to be completed successfully. However, the legislative appropriation and the
eligibility do not guarantee the state funding professionally. Proper transportation and proper
access of the needs are also needed to be served by the airport authority. Not only this but also
the finance manager should estimate cost for all the necessary resources. Even from the airspace
and location authority had proper resource cost are also estimated.
Development of entry plan for Denver Airport: In this phase an advanced entry plan
with security checking are deployed.
Site selection for locating the Airport: In order to construct the Airport, site is referred
to as one of the most important things that should be considered by the government. It will help
the project manager to overcome the issues of capital cost as well as operational cost.
Primary environmental planning for the Denver Airport: Huge range of
environmental study is done in this phase of project development.

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Facility planning: Whether the important is serving proper facilities to the employees
and consumers or not are checked in this phase.
Development of local government planning: A local governmental and strategic master
plan should be developed by the project manager in this particular project development phase.
Analysis of the environmental impact: Based on the layout of the airport development
plan the environmental migration plan should be developed in this phase. The impacts of the
environment are analyzed in this phase.
Construction of Denver Airport
Thus, it can be concluded that each of the steps of project planning are beneficial
individually and their integrated implementation is also very much helpful.
1.3 Evaluation the project decision to be build
Both the domestic and international airport is constructed side by side and the parking lot
in 6 minutes distance from the security check in point.

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Figure 2: Layout of Denver Airport
The project manager is responsible to track the operational and functional activities and
at the same time proper control and monitoring approaches are also needed to be undertaken by
the project manager.
Module 2
2. Part B: Assessing project viability
2.1Decisions to be undertaken for project feasibility
Whether the project is beneficial from the consumers and business perspective or not
could be analyzed accurately by adopting the following steps:
 Conducting analysis of the Airport layout details accurately

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 Preparation of project income statement
 Conducting a market survey
 Planning business organization with functional and operational activities
 Preparation of project balance sheet
 Reviewing and analyzing information
 Final decision making
2.2 Assessing the approach of project size and scale
After analyzing the details of this particular project tit is defined that, the size and scale f
the project is very large. The factors depending upon which the project size is determined include
the following:
 Available financial resources of the project
 The total number of team members associated to the project
 The number and size of the deliverable that is going to be produced
 The complexity of the project outcome
 Time frame required to complete the project
This project is defined as a large one due to the following reasons:
 A Business case s available
 Feasibility study done
 Project team is appointed
 Project office had been set up
 Phase review is performed

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2.3 Analyzing the need for project estimation
The project estimation is required so that during the project development phase no extra
budget or capital would be needed to be invested by the project manager or project sponsor as
well.
2.4 Explanation on how the importance of the decisions could be determined
The key decisions for Denver Airport project development are as follows:
Key 1: Change in business strategies
Key 2: The decision for proceeding
Key 3: Commitment for schedule, scope and commitment
Key 4: Change request acceptance
Key 5: Building structure design
Key 6: Decision for developing different direction
All these key decisions taken for Denver Airport construction project failed thus the
recommendation or suggestion those might mitigate the issues associated to it include:
 Change in leadership
 Risk management plan development
 Proper architecture design implementation
 Expert team involvement

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Module 3
3. Part C: Project planning
3.1Analyzing the role of each phase of project planning
Value management plan
For creating value the steps those are adopted by the Denver airport authority are as
follows:
 Managing the consumers segmentation (demand for international and domestic
flight)
 Measurement of consumer margin
 Measuring lifetime value for the consumers
 Measurement of consumer impact
 Client’s profitability management
Risk management plan
Risks Impact Priority Mitigation plan
Financial risk High High In order to mitigate
this issues at the
very project
initiation phase the
finance manager
should make proper