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BAE- Baggage Handling System
Transcript of BAE- Baggage Handling System
Operation Production Management
Supply Chain Management
At 140 km2 (35,000 acres) DIA is the largest airport in the United States by total area. It has the longest public use runway in the United States.
In September 1989, under the leadership of Denver Mayor Federico Peña , federal officials authorized the outlay of the first $60 million for the construction of DIA.
In Dec,1991, BAE signed the contract to built the Automated Baggage handling system for the Airport.
Baggage handling system was the core part of the whole project.
Connecting 88 gates in three concourses and reducing the turnaround time for airlines was the main reason of building the efficient baggage system
300 to 400 firms were involved
11000 employee were hired
Many Interrelated milestones
Uncoordinated Tracking System
Iack of coordination between PMT and BAE team
Accountability: Blaming someone else if things go wrong
Death of Slinger
Restrictions and limited autonomy to new CAE, Gail Edmond.
Every system requires frequent maintenance in order to perform efficiently.
Regular maintenance ensure that the system doesn't break down easily.
A lot of maintenance was required as a result of high complexity.
BAE lost the maintenance contract.
High number of operation that the system handled required an often checkup and maintenance.
Lack of effective communication between the city, PMT and consultants.
Late start with respect to deciding the type of technology to be used for the BHS.
City of Denver limited the authority of new CAE, Gail.
BAE lost control of their project to the PMT that had no experience in airport construction.
Lack of planning resulting in subsequent changes in strategy.
Failure to perform risk management
Coordinate activities within the supply chain to maximize the supply chain’s competitive advantage and benefits to the ultimate consumer
Supply Chain Management
complexity of the automated system
Control of capacity of the system.
Strike a balance between inventory investment and customer service
Level of Risk
Allocate and prioritize demand
BAE is a luggage handling company that was founded in the year 1968 as a division of Docutel Corporation.
It is an engineering company implementing airport wide , integrated system for baggage handling.
The previous Airport and the need for new one
In late 1970s and early 1980s Denver became an attractive place for many people and businesses.
Stapleton Airport and the growth in Denver.
Hub for airlines.
Poor taxiways and frequent delays.
Study to assess the airport's needs.
The general layout of the Airport posed a great challenge for the construction of the automated baggage handling system
The general geography of the airport was too tight for the fitting of the automated system.
The automated system was forced to fit within the underground tunnels.
The location of any project and the system determines its success as well as its efficiency.
The DIA is located 25 miles from Denver.
Avoiding aircraft noise.
The region was attractive to many businesses unlike the Stapleton Airport.
Communication problem because of the long distance from the developed areas.
Initially they signed the contract for building baggage system for United Airways.
Unable to understand the complexity and the risk involved in the project caused major delays in the opening of the DIA
The essential layout of the automated baggage system at Denver is that conveyor belts feed the central network of DCVs.
Highly visible mechanical problems have plagued the automated baggage system.
Difficulties in Line Balancing - Provide equally good service to all lines, to avoid situations where some lines get little or no service.
Complicated Software & glitches in the system.
Multiple databases to track the progress.
The fully automated system may never be able to deliver bags consistently within the times and at the capacity originally promised
The management team had no prior baggage handling experience.
The project management did ignore expert advice and overlooked the uncertainty they were going to encounter.
As a result of this, there were delays as well as limited access.
Instead of serving three concourses, the automated system serves only one concourse.
what could have done
The Denver airport authority should applied Quality circles method, which is Group of employees who meet regularly to solve problems.
The Denver airport authority should have given enough consideration to the expert advice from the other airport officials who had previously done similar projects.
The BAE Company should have employed the use of other proven technologies in designing the baggage system such as Six Sigma
What could be Done
Proper Labor planning
Job Classification and work rules
Division of labor into unique task
Self Directed teams
Motivation and incentives