Discuss about the Project Application Construction Management.
From the PESTLE perspective, the case study of the Denver Airport can be analyzed as follows.
Political – Political factors have significantly affected the construction of the Denver Airport. Due to major problems arising regarding funding and implementation of different complex technologies related to the airport, there were competitions between three local mayor candidates regarding how much each of them will offer for the completion of the airport within a reasonable amount of time (Jordan, 2017). With delay occurring due to several complexities and problems regarding the implementation of the technology, the mayor had to take active part for completing the project and open the airport for public.
Economic – Economic factors have significant impact on this project. Citing several major problems like the scale of the project, complexity of the entire system, newness of the technology and others, the project was delayed beyond deadline for a considerable amount of time. Due to the delay, the costs of the project were also increased significantly and even after the significant increase, the project was not completed. Hence, the authority faced major losses from the project.
Social – Social factors had some impact on the progress of the Denver Airport project. Due to the increasing demands of an airport in Denver with significant influx of passengers, social pressure was growing to get the construction done and open the airport for public use (De Neufville, 2016). With continuing delay in the construction and implementation of the proposed technologies, the hostility of the people increased and the authority faced enormous pressure to get the project done as fast as possible.
Technological – Technology always played a major role in the project. As per the proposed plan for the airport, several new technologies needed to be implemented in the airport including the baggage handling and processing technology (Han, Clarke & Tsou, 2017). While it was already estimated that implementation of the technologies will require high amount of fund, it could not be predicted that the project will later face major complications regarding the newness and complexity of the implementation of the technologies.
Legal – After a significant amount of delay, a survey was done in order to determine the existing condition of the project and whether it can be completed or not. It was found that although the technical implementations were made according to plan, the project should require some more and significant amount of time in order to complete all the technical work and get all the functionalities working properly or the airport could be opened for public by skipping the remaining work. For the second case, it was highly likely that the airlines companies could sue the airport authority for not providing the functionalities as promised initially.
Environmental – The project affected the environment significantly due to the continuous period of the construction (McDonald et al., 2018). With the increasing delay of the project, the construction works constantly made negative impact on the surrounding environment and hence, there was growing pressure to complete the works in order to prevent further harm to the environment.
As a project manager of the Denver Airport project, I would have taken some steps to prepare for the influences mentioned above. Firstly, I would have conducted a risk analysis to identify all the risks associated with the project and take suitable steps accordingly. Secondly, I would have conducted a feasibility analysis of the project and after some rounds of discussions with all relevant authorities as well as the airline companies, I would have set a more flexible and extended deadline so that delays did not cause massive amounts of losses.
The decision to build was not very unrealistic as the proposed plan had numerous long term benefits if the initial shortfalls and risks could be survived and addressed. However, the major part that was missing while taking the decision was that there were no prior feasibility analyses conducted before the project was approved. After deciding on a suitable amount of budget and time schedule, a feasibility analysis was required to determine whether the project could be completed within those set limits. In my opinion, the decision was good one as the benefits of the airport can now be noticed after several years have passed after the construction process. However, the construction period has been much more complex and a lot of difficulties have been faced. Hence, some flexibility had to be added during the setting of project scope and analyzing risks and feasibility of the project.
Regarding project feasibility, I would need to focus first on the budget and schedule of the project. It is evident from the case study of the Denver Airport, delay in the project can cause significant increase in costs that in turn result in heavy losses for the authority as well as the project contractor who has been working on the project from the start. Hence, it is important to check whether the preset budget and schedule are suitable for getting the project done based on the complexity and amount of possible risks that may be encountered during the course of the project.
The scale of the Denver Airport Construction was huge and hence, a much better approach could have been taken in order to ensure the project is completed by fulfilling all the requirements and preventing any losses for the authority or the project contractor. I identified the major flaw in the prepared plan as there was not sufficient risk and feasibility analysis done during the planning of the project. Furthermore, I also found that even the authority was not sure whether the project could be completed at all after several months past post the deadline. I would have taken a different approach and prioritize assessing risks and project feasibility before proceeding with the project. In addition, I would also have set a more flexible deadline instead of a strict and short deadline so that all the activities could be completed without encountering delay costs.
There was significant need for accurate estimations of cost and profitability for the project as this was a very large scale project and involved a huge amount of expenses. Furthermore, with delay of the project, the overall costs accelerated quickly to reach a very high value after few months of the deadline passed. In order to cover for the expenses, the authority slapped a $50 million late penalty of the project contractor. In spite of these, the profitability of the project was decreased significantly.
In order to determine whether the decisions were effective, I would monitor the project on a regular basis (weekly). I would also ensure the decisions taken were carried out effectively in order to gain sufficient benefits from the project. For the decisions that have not been effective in the project, I would consider change management process and discuss with the stakeholders to determine some changes that can be introduced in the project. I would also consider feasibility of these changes in the project before actually implementing them.
The roles of some of the plans, which need to be implemented within the construction project of Denver Airport, are as follows:
Value Management – One of the major problems of the BAE Automated Systems is that the airport was facing a major issue in meeting the deadlines in order to build the space for storing the various elements of the baggage handling system. The role of the value management is to make appropriate decisions in order to adhere to the deadlines.
Risk Management – There are various risks that would be inherited with the implementation of the project. This would include the large scale of the project, the massive complexity of the new system and the adoption of the new form of technology, high level of uncertainty with the technical based definition of the project and the short span of time for the completion of the project (Keller et al., 2015). Hence the new form of system would be helpful in mitigating the risks associated with the implementation of the project.
Quality Management – The management of the quality of the BAE Automated Systems is very much essential in order to process the huge capacities of the expanded system within the airport. The quality of the system had to be given the topmost priority for the smooth function of work within the systems.
Change Management – There were several negotiations that had been made with the contract of the project. These negotiations had also brought a major change within the structure of the organization (Barrett, 2015). The huge change within the airport systems would be needed to be managed in order to adapt the new technology. Hence, an efficient manager would be highly needed in order to deal with the changes within the structure.
Environmental Management – The environment within the Denver airport should be assessed properly. This would be very much necessary for the implementation of the automated luggage systems.
Health and Safety Management – The health of the passengers within the airport should be taken care of properly. The airport management should consider the basic health facilities of the passengers in order to satisfy the growing demands and luxury of the passengers. The safety of the passengers should also be taken into consideration (Moran, 2014). The automated systems would be a huge help for the comfort of the passengers. Hence the health and safety management would be playing a major role for the BAE Automated Systems.
Resources Management – The management of the additional resources that would be necessary for the completion of the project is extremely necessary to be decided prior to the starting of the project. The proper resources, which would be needed for the start of the project should be acquired within proper time so that the management could work on the progress of the project.
The discussed plans have been made for the successful completion of the project. The implementation of the various forms of management within the BAE Automated System could have a major impact on the project completion. There should be a proper assessment of the mentioned criteria in order to establish the base of the project. These plans would have a major impact for dealing with the several issues that would arise during the start of the entire construction of the system (Marcelino-Sádaba et al., 2014). The pre-determined deadlines should be met in order to complete the project. A well settled management is extremely necessary in order to look into the various aspects of the project. A new form of the engineering system would need a high level of dedication from the employees as well as from the management and the consulting team. Hence, the project should be looked from the perspective of the public so as to understand their issues and thus ensure a smooth working of the automated baggage system.
References
Barrett, S. (2015). Ownership structures and the implications for developing airport solar projects in the USA. Journal of Airport Management, 9(3), 248-263.
Cagliano, A. C., Grimaldi, S., & Rafele, C. (2015). Choosing project risk management techniques. A theoretical framework. Journal of Risk Research, 18(2), 232-248.
De Neufville, R. (2016). Airport systems planning and design. Air Transport Management: An International Perspective, 61.
Han, S. Y., Clarke, K. C., & Tsou, M. H. (2017, November). Animated Flow Maps for Visualizing Human Movement: Two Demonstrations with Air Traffic and Twitter Data. In Proceedings of the 1st ACM SIGSPATIAL Workshop on Analytics for Local Events and News (p. 5). ACM.
Jordan, G. (2017). Optimizing Pedestrian Flow in Airports(Doctoral dissertation, University of Colorado at Colorado Springs).
Keller, T. L., Trier, S. B., Hall, W. D., Sharman, R. D., Xu, M., & Liu, Y. (2015). Lee waves associated with a commercial jetliner accident at Denver International Airport. Journal of Applied Meteorology and Climatology, 54(7), 1373-1392.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A. M. E., & Villanueva, P. (2014). Project risk management methodology for small firms. International journal of project management, 32(2), 327-340.
McDonald, A., Ni, C., Li, J., Gu, T., & Jin, X. (2018). Scenarios for Pollinator Habitat at Denver International Airport.
Moran, A. (2014). Project Risk Management. In Agile Risk Management (pp. 17-32). Springer, Cham.
Paquin, J. P., Gauthier, C., & Morin, P. P. (2016). The downside risk of project portfolios: The impact of capital investment projects and the value of project efficiency and project risk management programmes. International Journal of Project Management, 34(8), 1460-1470.
Parihar, S., Bhar, C., & Srivastava, N. K. (2015). A Project Risk Management Methodology Based on Probabilistic and Non-probabilistic Approach: A Study on Transmission Line Installation Projects. Jindal Journal of Business Research, 4(1-2), 27-45.
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