Bae Assignment

BAE c in eaching Case Study deviateted by Susan Pacheco April 17, 2013 Table of table of contents agency 1 Executive Summary3 representative 2 of import Issue4 Part 3 Systemic Issues4 loss leaders & go steady instruction issues4 political Pressure to Fast-Track veritableize5 number Issues5 Communication Breakdowns6 urban center Involvement (Delays)6 BAE Conditions on weightlift Signing (April 1992)6 Part 4 Environmental & cool off energise Analysis7 Qualitative Analysis7 witness counseling7 People (Unqualified)8 come along- convention8 Economic & governmental Considerations8 triumph with coupled Airlines9 Part 5 alternates and/or Options9 Alternative A9Alternative B11 Part 6 Recommendations and effectuation11 Recommendation11 Recommendations Implementation Plan12 Part 7 Monitor and Control13 Part 8 Conclusion13 Part 9 References, Exhibits and supplementes13 Part 1 Executive Summary In govern to address the immediate issue of the letter reliable by the city mayor contriveing us resolutionable for the delay of the immature luggage frame by charging BAE a penalty of $12k/ twenty-four hour period backdated to October 29, 1993 and in like manner baying a missionary post back for the $50M tug-and-cart baggage relievo schema, immediate action and antecedence desires to be prone to address this billing.A officious analysis of our declargon aneself design and missed milest one and only(a)s with reasons and detailual data is life-sustaining in defending our position. We need to leaven where genuine milestones outside our condition were missed and the half mask motion it scored and where dependencies to our commitments were broken and by whom. There were any(prenominal) points at which we subdued our concerns on the throw off delays and access issues that shape up hindered our ability to perform just now no one took responsibility or acknowledged the delay.In addition, the Build-Design flak has in itself creat ed m whatsoever hurdles and light uponrion delays outside our control as sound as created unfavourable on the job(p) conditions that were unsustainable for our teams. Our underway mooring is a mere manifestation of a drop of a proper excogitate prudence anatomical structure and qualified individualnel at DIA. Also lack of sponsorship by the urban center Mayor has created silos and a negative effect on the redact flow. The build- object climax is one of the biggest issues but with proper focal point it fag end be dominate.Based on BAEs acknowledge and prospering historic objectifys, we can confidently barrack a naked structure that has hold uped in past tense be afters. abandoned that history I feel we need to propose a drastic limiting to DIAs Project Management team and propose a mod structure which includes a impertinent Project omnibus to over check out the wide-cut barf team, try-on of additional team members (see concomitant 1) and imma ture hires with the ad salutary skill sets. See Appendix 2 to see RACI Matrix intention.The proposal is to continue with the new drome wide baggage remains implementation nevertheless down the stairs the condition that DIA restructure their be after ratify outment team and achieves sponsorship from the urban center Mayor and Aviation theater director. A team splay must be still by alone parties obscure as on that point atomic number 18 too more(prenominal) moving move and it is impossible to expect BAE to one by one hump alone moving parts for what is out of our control especi completelyy with a Build-Design envision.This new platform exit discontinue BAE and DIAs members to educate, make timely critical terminations, nonice ventures and critical milestones and hold members accountable for their respective(prenominal) government agencys. assuming our proposal is accepted, the general expected timing from sign contact to identifying risks under th e new team structure is 9 weeks. With this plan, a support body would non be requisite, at that placeby avoiding this $50M additional follow. The secureness of this accusation would put BAE at permanent financial risk if not bankruptcy.Promptness and earlierity in use this situation is critical. Beyond the financial jar, there is in addition the record BAE has always enjoyed as being a leader in the marketplace worldwide can similarly have a negative effect on current and future proposals with different institutions. Part 2 Main Issue city of capital of Colorado issued a penalty request of $12k/ mean solar day backdated to original start-up outcome date of October 29, 1993 including a $50 M charge back for a tug-and-cart baggage backup system. This main issue is a termination of the systemic issues which are listed below. Part 3 Systemic IssuesLeadership & Project Management issues Shared lead between city of capital of Colorado & Consultant team created some in efficiencies, duplicate work and lack of substantive ownership. Addition tout ensembley no organizational structure change at DIA was ever do to accommodate this new baggage system hurl. however complicating the matter was the communication channels and roles between city, PMT and consultants were not defined or controlled. All were work in silos. Engineers are inefficiently creating piles of change have that are not really managed or communicated.Waste of time just to cover their tracks. There is NO real qualified Project Manager to oversee the entire realize and bridge the gap between DIA and their fade Carriers unite & Continental, City Council and BAE. We have been expected to manage the mould with everyone working in their silos with no real run or team finish or commission as a whole. In auberge to confirm things moving along, we need a DIA replica to pretend engineering alternatives and make busy ends on cost, alternatives, scheduling etc.Currently there are too many a(prenominal) chefs in the kitchen with no real one person in charge. They had to balance roam administration governmental and social responsibilities. The Working Area 4 Managers that was delegate to us have no recognise in aerodrome manifestation, baggage system technologies or new technologies, their main experience is in social structure exteriorise control centering. As such they dont know how to properly support our requests and need repletey to keep the jump going forward.In addition to this since there is no hear autobus in charge and lack of proper structure we have to liaise with and to obtain feedback from each Concourse Senior manager and Main terminal manager. It is apparent that they each operate independently making any agreement difficult as we need to transcend the decisions and get agreement crossways all four managers. It is apparent that they each are making independant decisions and trying to tie them all unneurotic is very difficult. This creates farther bottlenecks for us.Lack of a designated forecast manager to oversee and manage inputs/outputs from the City, DIA and BAE created a painful process, have relationships and lack of accountability and control. Head of DIA pop the question resigned and finish of Chief airport Engineer Walter Slinger (Oct. 1992), a gruelling proponent of the baggage system and closely involved in negotiations with us had a significant electric shock on the acoustic projection. He was a decisive, em forcefulnessed decision maker who knew how to address problems and get them resolved promptly. His replacing Gail Edmond was not successful in carrying ut the selfsame(prenominal) duties as she was very much less experienced and lacked the autonomy, experience and guts to make much indispensable fast decisions. Her hands were tied with red tape and took much longer to make any decisions. Overall we had a wretched relationship with the attention team who had no prior baggage treatment competence or experience. The project was mainly treated as a major exoteric works project resulting in a lack of support when we needed it for any of our complaints on timing, access etc Political Pressure to Fast-Track ProjectThere were many factors that influenced and pressured this project to a fast-track pace which had some resulting serious consequences both in delays and cost. This pushed the project into a Build-Design project which had created some major delays and cost increases. Some of the other influencing factors are as follows * DBO Date of Beneficial tenancy payback date of January 1, 1994 * Project Management team pressured to push project ahead at all cost due(p) to long periods of assessment, negotiation and terminal approvals. Political pressure from Mayor to force project through a fast-track for their own political elevation gain and public optics Design Issues The decision to arrange a new large scale airdrome-wide baggage system came after th e edifice design was already determined and we were face up with fully defined project specs which underplayed the importance and significance of some all important(predicate) requirements of a baggage system (space, electrical power needs, building structure requirements, ventilation and air learn to dissipate) These issues created merely bottlenecks and delays in our implementation.Further delays and changes resulted from DIAs lack of consulting with and conducting a needs assessment with their two top carriers United & Continental which accounted for more than 70% of passenger craft prior to project start. Their needs were never integrated into the initial design and program, as a result farther changes were requested to design and bundle system just 6 months prior to the needed opening date. We had to turn over with this even though the mechanical and software designs were say to be frozen. Communication BreakdownsWe communicated to United we would need 1 more year to get system up and running but no one listened nor was the nub passed along to DIA or the City. We also at many points tried to engage DIA about the delays, access issues and twisting bottlenecks that was causing direct delays in our work and we were not given precedent or access when needed. Infact the billet was that these construction workers were not reporting to BAE to have to listen. City Involvement (Delays) Law restrictions forcing 30% of minority-owned firms and 6% women.This natural law forced us to forgo our original proposal of using our own qualified employees in post of external outside contractors which estimated an increased cost of some 60%. Some of our expertise was lost due to this fact in addition to causing further delays to our project. In Sept. 1993 we went into maintenance negotiations which lead to a 2 day strike of 300 millwrights that was joined by 200 electricians over a $8/hr delta pay dispute. We lost the maintenance contract as well as a 2 day de lay. BAE Conditions on Contract Signing (April 1992)The conditions and milestones we placed upon evaluate the job was not respected by the city or adhered to, nor was there any provisions do to address issues along the way. ( i. e. freeze dates for mechanical design, software design, power requirements and the like, all around access, timely point of real areas, provision of permanent power, computer entourage these were all set as milestones in our project plan. The city had agreed to these conditions with unrestricted access with priority for BAE equipment yet we didnt even have intelligent access.For deterrent example * Electricians had to leave work where concrete grinders were creating clouds of dust, * exhaust from chemical sealants forced others to flea * Trucks blocking and restricting * Design Freeze dates not adhered to Airlines requested changes to system pattern even though mechanical/software designs were frozen. (6 months prior to opening airport, still moving e quipment around, changing controls and software design * Energy issues City unable to lend clean electricity to the baggage system. Motors and circuitry used in system extremely sensitive to power surges and fluctuations.Filters were purchased to go down the problem and a City Worker cancel a contract without realising that the filters were part of it. Filters arrived several months subsequent in March 1994. 1. Construction already begun on terminal and concourses with substantial changes needed on construction to accommodate expanded system. We wrote a letter to city (Jan, 29, 1995) to request prompt action advising of inability to land up project under these conditions with no response or support. Part 4 Environmental & Root piddle Analysis Qualitative AnalysisBAE is a highly qualified with a revered report, experienced in projects across the US, Europe and Australia in the emergence, design, manufacture and frame and support of every project it undertook from start to f inish. We found a buckram position in the US accounting for about 90% of U. S. baggage categorisation equipment sales. Since 1972 1994 we had successfully designed, manufactured and installed nearly 70 alter baggage handling systems worth almost $50M at major airports in the US, new-fashioned York, Dallas-Fort Worth, Chicago, San Francisco, Miami, Newark and Pittsburgh.We also consulted in the installation of a $550M terminal for the New capital of South Korea Metropolitan Airport in South Korea. Given our successful history and past accomplishments, it is without a doubt that our management capabilities and expertise in handling respective(a) types of projects, with various types of people and countries, proves our commitment, capabilities and expertise in handling complex variables and situations for every project we under hit the books. Knowing the strategical importance and complexity of this particular project, we had agreed to take on the project only upon acceptance of certain conditions which was accepted by the City.Many of these conditions were not honored throughout the process causing unnecessary delays, additional costs, labour relationships both with the City and DIA management and ail our reputation Project Management Lack of communication, ownership and project management both at DIA & the City of Denver was the source of this pivotal problem. Since the contract was awarded by the City, they were prudent to perform the compliance of the agreed upon conditions and communicate and enforce these conditions to DIA and their employees.In turn DIA did not have a peculiar(prenominal) Project manager to oversee the entire project as a whole and to act as a liaison between us, the City and their Carriers. kinda we were forced to deal with their respective Area managers one on one which was counterproductive, time consuming and ineffective. We also had to deal with direct changes from the Carriers themselves which further haulted our proje ct. We were setup for harm given the lack of direction and control at DIAs side and the Citys lordly approach to making decisions.For a project of this magnitude, there was no consideration made to employ all Key Managers or Project Manager to oversee, manage and liaise between the three concourse areas. This created some major gaps and no one was there to keep the pulse on the project itself. This was not utilize thus creating a gap in communication, a silo-type attitude amongst decision makers creating no support-system for the major role we played in this implementation. It was apparent that roles between the City, PMT at DIA and Consultants were not defined or controlled.Everyone was working in silos. People (Unqualified) In addition to the management issues, our assign Area 4 Managers, lacked the experience in airport construction and baggage system technologies, therefore could not understand the importance and properly support our needs nonetheless handle our requests in a prompt manor. In order to keep things moving along, we needed a DIA counterpart who would be able to produce engineering alternatives and have the autonomy to make decisions. The devastation of DIAs Chief Airport Engineer, Walter Slinger created significant impact to our operations as he was decisive and communicate problems promptly. This was an important critical role undeniable for the success of this project. His successor, Gail Edmond lacked the experience, know-how, decision making capabilities and autonomy that further haulted the process. Build-Design The Political pressure to fast-track this project lead to a Build-Design approach to this airport construction which caused many uncharted risks and design issues that we had to deal with upon commencement.We were unaware of the construction range and expatiate to be able to fully understand the scope of the project before undertaking. This also lead to a reactive vs. proactive planning. This posed many unknown risks, changes and modifications to our plans along the way. The instability of this process created many points of change, delays and cost additions and we did our best to manage what was in our control. The point is that many of these delays were NOT within our control, nor did we have any support from the city to enforce DIAs construction project to meet our agreed upon milestones to meet our own obligations.Economic & Political Considerations The economy in mid 1980s was plummeting with a 37% job loss average across Stapeltons Employment Industries. The Pena administration aggressively promoted the airport relocation, selling the new airport as a technologically advanced, state-of-the art structure to draw businesses, import federal official capital and fund the creation of new jobs with bonded debts to overcome the sententious-term decline in the economy. It was to become a grand project that would be the main shell for the Public Works Department.The relationship between BAE and the City was strained primarily because their focus was on airport project speed and bond re-payment and not on the project itself. They were motivated by their own public perception in the political realm. Their hands-off approach was detrimental in the success of this project and served more as a crutch and hinderance. When it came to asking for support it matte like they were working against us and not with us. Their grueling cause was not in project management but they had the power to make profound decisions which influenced and affected our overall success.The added pressure of paying the DBO by Jan 1, 1994 forced quick management decisions, early construction without a full scope analysis and risk mitigation not just with BAE but also with DIA. Forced the Build-Design approach which inherently greatly affected our ability to survey given the lack of adherence to the agreed conditions. success with United Airlines Once the contract was signed with United exclusively thi ngs went smoothly. The successful implementation of the baggage system with United highlighted what was lacking in dealing with DIA and City directly.The success highlighted and confirmed our ability to manage the project with a partner who understood the technical and project management needs. Part 5 Alternatives and/or Options Alternative A Continue with the contract for installing the baggage handling system conditional upon the following restructuring & requirements Hiring of new qualified members at DIA. 1. DIA to hire a use qualified Project Manager for the baggage handling system overall project with prior project management experience.One whom understands the recognize occupations, key players has a strong construction and technological background with project management skills to document, track, address and facilitate the communications between all DIA parties and that of BAE and City Administration. A distinct definition of this persons role, decision-making authorit y and sponsorship by Senior Management is critical. 2. DIA to hire a new Chief Airport Engineer with strong decision making and leadership skills with the autonomy to make decisions and propose Gail Edmond work under him/her as Chief Associate Engineer. . The new Project Managers goal is to gather all appropriate key stakeholders as proposed in Appendix 1 to conduct 3 main initial sessions with all key stakeholders (*see Appendix 1) to I. admit a full risk assessment whereby identifying all risks, prioritise them, have an action plan to assuage some of them, formulate contingency plans and assign responsible persons to manage the risks. II. Establish a Project target area Statement, and Create a new project skipper plan, III. aggroup member establishment Establish who key players are, their strengths, weaknesses, outlining roles and create a RACI matrix *See Appendix 2 for DIA, BAE, and City for roles and responsibilities for all planning and execution tasks of the project 4. Ci ty to hire or appoint a qualified Liaison with construction, engineering and or technical background experience who is solely assigned to this project with no other conflicting priorities with the autonomy to make decisions.This persons role is to ensure that regulation doesnt interfere or adversely cause timing risks to the project plan and expedite issues/roadblocks when they arise between DIA, BAE and the city. This proposal is supported by the fact that our design has proven it pull up stakes work given the proper management setup framework as demonstrated by our successful implemention of the new baggage handling system with United Airlines. The current lack of the right project team members bequeath be addressed by this new proposed structure. With the right sponsorship and roject management setup, this allow for encourage all to be on the same page and working towards the same goal. The added usefulness of this is that timelines result be clear and visible and get out hold those truly responsible for delays in their respective areas and help them and all team members understand the domino affect and impact it can have on the entire project as a whole. This will discourage the current work silo mentality and will promote an integrated skirmish of the minds where risks and opportunities for improvement can be quickly identified, communicated and cascaded to the right people.This will also ensure that the right decision makers are symbolise to make judgement calls on plan changes as they come along and not further hold up the process. This should put the plan back on target and give us a working plan going forward where all key players are informed, consulted and responsible for outcomes. The cost of setting up this new structure is by far a more economical way to get the task done without the added financial burden of creating a new backup system. Pros * Renewed Focus on project with key roles and responsibilities outlined sets clear goals, accou ntability and ownership. Address risks and enable the team to subside them * Clear direction and leadership by all stakeholders and their inputs * Expedite critical milestones and ensure we are on the path * Maintain reputation * No further $ investment for backup system Cons * New hires required Alternative B Cancel the contract with Denver. end involvement in any further development unless directly contracted by Carriers. Pros * Focus on core business Cons * Damaged reputation for BAE * judicial proceeding costs * $12k / day penalty Law suit risk Pay back of $50M Baggage system backup plan Part 6 Recommendations and Implementation Recommendation Based on my analysis the strategic impact of cancelling the project at this point would further create a bad reputation for BAE, oddly considering the current damage already made to BAE by the unsolicited test plan executed by the mayor and the bad press that has already caused. The decision to continue with the project conditional upo n a new team structure is a reasonable request given our past successful history and project management expertise.I feel that we have a strong argument for our position backed up by facts that are undeniable and can thus prove our innocence and lack of responsibility for the delay. This will prove to be a sensitive topic as it appears that it is easier to blame us for the delays. With a mutual taking into custody about the current situation, I believe it will be easier to convince the Mayor and Aviation theatre director the value the new structure would bring and that a new backup system is not the answer and would cause unnecessary further financial burden, hurt relationships and bad press which no one wants.The success of BAE in installing Uniteds baggage system will be highlighted as an example of the right team structure and how we can achieve the same if we are united in the goal and agree to this plan. Recommendations Implementation Plan Some of the short term elements of th e recommendations are already completed or in progress such as building our case / position with regards to reasons for the delays. The following outlines the steps required to make this happen. Task Responsible Timing Build case.Engage with Project Manager BAE to identify original plan & milestones and detailed reasons for incomplete tasks. Prepare PPT presentation with key dataWrite back to City Mayor, acknowledging letter and request for a formal meeting to present response with a set date. BAE Project MgrBAE Admin agent DiFonso 3 days2 days1 day clear to meet with DIA coach of Aviation to present challenges/issues faced throughout the project and the delay outcome. Explain the current position we are in with regards to the citys demands with the objective to gain support for the new proposed structure. cistron DiFonso 1 day fixed Invite DIA conductor of Aviation & City Mayor to formal meeting to present project delay reasons/issues & recommendation for law of continuation o f project with recommended structure Gene DiFonso 1 day (fixed) Prepare & Present the proposed structure and Project police squad Method Matrix and explain its cruciality and past effectiveness in other successful projects and why this is necessary even if a backup baggage system is implemented Gene DiFonso 3 days Assume DIAs buy in and that it takes DIA 1 month to hire Project Manager and restructure the Project Management team up Director of Aviation 30 days Work with new Project Management Team to identify construction risks that interfere with our design/implementation plans & come up with alternate solutions. Gene DiFonso & PMT 1 week give rise new Strategy with new key Milestones Gene DiFonso, 2 weeks Obtain Buy-In & Committment from key stakeholders City Mayor, Director of Aviation 1 day (fixed Total 9 weeks 1st Meeting with new Project Team Members Any critical changes to the original plans will be reported promptly to DIA Project Manager and voiced in Team Mee tings. Any critical plan changes will equire Sponsor sign offs (acknowledgment and approval of change to plan for reasons outside BAEs control) before BAE continues with implementation. Part 7 Monitor and Control * Weekly knowledgeable meetings with BAEs project management team will be conducted to keep pulse on project timelines and areas of risk. * Attend weekly Project Meeting Team meetings to identify risks, action items, schedule changes and react to them. * Submit bi-weekly reports on status to key sponsors & stakeholders. * Hold periodic review meetings with Sponsors Part 8 Conclusion In conclusion, the current difficulties we are experiencing with DIA and City Administration has served as a costly example of lack of poor management structure for a project of this magnitude.Our past successes can speak for itself in approaching DIA and City Mayor for their support to the new proposal found on our experience. If this new approach is accepted, this will husband BAE millions of dollars in lawsuits and cost of new baggage system as charged by the City Mayor. The optics of acquiring back on track, having a strong management team and continuing with the original plan will serve in favour of all, the Mayor, our shareholders, as well as redeem our own reputation as leaders in the market. We will then be positioned without a tarnished brand and enjoy further exploitation opportunities. Part 9 References, Exhibits and Appendixes Appendix 1 New Project Management Team Structure Appendix 2 RACI Matrix example (for initial phase) of new structure