Case Report 2: BAE Automated Systems (A) and (B)

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Case Report 2: BAE Automated Systems (A) and (B)Summary
BAE Automated System Inc. is an engineering company founded in 1968 as a branch of the Docutel Corporation. The company was contracted by United Airlines to build a modern, efficient baggage-handling system in the Denver International Airport. The system was designed to improve efficiency, reduce operations time, and decrease the time consuming manual baggage handling and sorting. As the project is advanced, BAE’s mandate for the handling system was extended to cover the entire airport. Nonetheless, some construction problems led to time and schedule overruns. Identifying the various issues and challenges the company faces on the Denver International Airport problem, the paper carries out a cause analysis with the view of finding the most viable solution to the identified challenges.
Issue Identification
BAE Automated System Inc. faced multiple challenges arising from construction problems of the Denver International Airport. Following the July 1994 assessment by the German consultancy firm Logan, it was evident that BAE’s baggage system, although highly advanced, was only able to live up to its expectations theoretically. This indicated that the system was not only far behind schedule but faced significant challenges that made fully reliable operation highly improbable. BAE also faced problems arising from the City’s decision to slap a $12,000 a day penalty for …