United to Scrap Baggage System at Denver Airport
Any project that is not well planned can lead to wastage of resources and increased risks for the company. In the case presented on United Scrap Baggage System at Denver Airport, Denver Airport implemented computerized baggage system that was not tested before the implementation. It is now ten years since the implementation and the technology have never worked since implementation which means the company still employs manual handling processes. The system has cost more money since its implementation and has never worked to its expectations. The system has only been successful for the luggage that is heading out of Denver but not in which is an indication that the system has failed yet more money has been spent for the last ten years. The author’s idea in this article is to show how lack of proper planning of a project can lead to risks. According to the author, the success of a big project can be gained if it is developed from a small successful project rather than starting a big project at a go.
I agree with the author that for a big project to be successful, it should have originated from a small successful project. A new project should not be started without learning the future implications of the project as it can be expensive and expose risks to the other projects in an organization. I think the author is right in his argument because, since the implementation of the computerized baggage system, the system has only served for only luggage that is directed out of Denver. The airline has spent a lot to ensure that the project is successful, but despite the efforts and increased spending, the airline still applies the manual handling procedures.
From the article, I support that any project that is not well planned end up increasing expenditure rater than reducing the cost as expected. Since the implementation of computerized baggage system, the United Stats has gone to bankruptcy which is why it plans to change to manual handling procedures to avoid misdirecting bags and damaging done by the computerized system. The computerized system is expensive to maintain and manage especially because it was started without the prior project. Starting a new project require getting a small system and trying to run it so that they can determine the success of the big planned project. Failure to test a project with a sample system leads to increased risks and increased expenditure which is a loss to the organization.
When a project is designed and installed, it should meet its expected goal to avoid wastage of resources. The computerized system at Denver was expected to serve all the airlines, but it did not. Since it has stayed for ten years, it requires maintenance which is expensive. This is an indication that any unplanned project increases risks to a company which can lead to bankruptcy or fall of the company. Lack of proper project planning and management leads to more negative risks to a project which affects both in current times and in the plan. This is evident in the case of Denver Airport when it designed and installed computerized baggage system with an aim to facilitate the work of luggage department but later became the most expensive inefficient project for the airlines.
Any project requires a trial to test the success of the big project. Any risk made at the starting of the project will have a negative impact in the future which calls for proper management of projects. This is supported by the fact that Denver airline did not assess the profitability of the project before initiating it. It later became a failure which led to an increased waste of resources.