Think of BAA and you think of Heathrow Terminal Five (T5). According to the British Airports Authority (BAA), "It has taken 400,000 man-hours of software engineering just to develop the complex system, and coding work is set to continue even after the initial installation begins." Q. The challenge for us all in addressing the lack of capacity in the South East is how we ensure the timely delivery of investment, says BAA chief executive Colin Matthews. Do you have a sport you practise? However, its early operations were marred }q}c'%ofnjvf6||}RMuG@?v80X9^w cg,d_U]$dh>xVlq9vn7.OQD[{ZiN~ {a,]'hWc`f ^Tq. He reiterates the criticality of understanding and recognising where suppliers fit in your universe and recognising that you have different sorts of suppliers, like Amadeus for reservations, and SITA for our networks. Monitoring the project progress and performance, Status report to the Stakeholders in the form of Newsletter/Email/PPT. They are requested to evaluate the magnitude of risk factors and influencing factors that appear in the risk mode, also assist in classifying the risk. Spending 6.6bn efficiently and effectively over such a short period will be a tough challenge, not least as little of the work is straightforward and more often than not has phases which are deeply intertwined. A. Im an inexpert skier but love the views and its a sport you can do as a family. I want people to get up in the morning and to do something that matters to them, he says. 'I've been too excited to sleep,' John Kaye, the airport's development director, told The Telegraph. 0000000016 00000 n This began in the 1990s with the post-Latham predictable performance regime which led the way in delivery partnerships. The Commission said it was satisfied that the right steps In terms of the relationship with BAA, he says that a close relationship and common goals are essential when the two organisations share the same flight-path. We must reduce cost across all of those. We are very proud of that and the serious commentators in the industry know what we did. A systematic reduction approach is being used for identifying the occurrence and/or exposure to a risk.On the above approach the Risk Mitigation has been plotted for Heathrow terminal-5, please find it in the Appendix 1234. Strategic Decisions maker, Ensures the ideas of the Team are understood, Implemented, Monitored, coordinated and Managed throughout the life cycle, Since its a mega project, the coordination. But BAA has to learn fast. HT-5 being developed on such a large scale, proactive measures to be taken if any form of threat like Terrorist attack. Given that at 400 by 150 metres, this is the largest single span roof in Europe, it was a tricky operation. As a former public monopoly, BAA airports in the South East (Heathrow, Gatwick and Stansted) are regulated by the Civil Aviation Authority (CAA) . Airport bosses insisted it wouldn't be a repeat of the Terminal 5 fiasco. The most terrifying words you can hear on the slopes are Follow me, Daddy!. Risk of overseeing the specification, assumptions and requirement of the product during starting phase of design, Risk of including the extra cost due to complex design. * Its assumed the derived T5 agreement will effectively work between BAA and suppliers, team work can be effectively achieved. If youre in aviation, it doesnt get much better. risk that I agreed to take.. The global aviation industry is in meltdown with the International Air Transport Association (IATA) saying airlines lost over $8bn (5.5bn) in 2008. * Estimated Schedule of the project can increase due to intense public enquiries and the political influence. Willie Walsh, BAs British In Q4 we tended to have isolated projects supporting individual terminals, he says. Heathrow's new Terminal 2 has welcomed its first passengers, with the airport insisting it has learned lessons from the opening of Terminal 5. With the benefit of hindsight it would have seemed more obvious to have done [the move into T5] in more incremental steps, he adds. Suppliers wanted to take on more risk where appropriate. Managing the Stakeholders, Project deliverables, Develop and maintaining detailed Project Planning, leading the project team. So, how about media relations and PR post-T5 and the messaging campaign to the effect that Terminal 5 is working? Now. v^ZXj2{rezl1nsusYl6.fw3wbI=wbK_. Its a tribute to how well the whole thing is working together. British Airways CIO, Paul Coby, described the process changes the company is trying to incorporate into T5. The application is of course subject to public inquiry but BAA anticipates that if the application proceeds smoothly it could potentially start construction of the new facility in 2011 ahead of an 2015 opening. Defines the Project structure for the organization. will review T5s progress. The systems incorporated in T5 severely taxed BA's planning, testing, and deployment capabilities. Failure of align in meeting the interests of individuals and corporations. Ms Ellman, who It would be very foolish to assume otherwise. Milestone 3: Completion of Airfield and runway. Civil Aviation Authority (CAA) BAAs operations at Heathrow, Gatwick and Stansted are regulated by the CAA. It absolutely cuts with the kind of cultural change that were trying to do with the whole airline making people accountable and empowering them to change. The following week, when the A380 arrived for its first flight, many of us believed that Heathrow had turned a corner and that the bad publicity of recent years would turn into positive publicity, notwithstanding the importance of scrutiny as regards the expansion. Heathrow Terminal 5 and Wembley are two high profile projects whichwere both for different reasons perceived as less than successful by the public. These will facilitate cooperation and coordination. Q. The King was also pictured touring a British Airways Boeing 787 Dreamliner and sitting in the Captains seat as he learned more about the fuel-efficient aircraft. Well learn our lessons and well put our front foot forward, he explains, although he points out that BAA had been planning much of the recent organisational change long before T5s opening crisis. Heathrow's new Terminal 2 has welcomed its first passengers, with the airport insisting it has learned lessons from the opening of Terminal 5. In March 2007 the Office of Fair Trading asked the Competition Commission (CC) to investigate the supply of airport services in the UK on the basis that it suspected that BAAs position as the owner of the UK biggest airports was preventing , restricting or distorting competition. To develop the Rail infrastructure by extension of Heathrow express, London underground Piccadilly Line and creating six platform Rail station. No, he says. How do you keep up to date with the march of technology? All this is set to change. Risk of overrun of the budget due to improper scheduling, Risk of Schedule Slip. In an irony perhaps better suited to a BBC sitcom, the British Airports Authority recently solicited for software quality assurance vendors. In business, John Griffiths who I worked for in IBM in the early 1980s. Most reports have focused on stranded customers, a crazed supermodel, and Queen Elizabeth's grand opening speech, which called the terminal "a 21st Century gateway to Britain.". That performance is being enabled by T5, says Coby, and statistics show a marked improvement in baggage handling, punctuality and customer satisfaction. Communication can also be defined as transfer of valid information from an entity to another, Purpose of a communication plan is to transfer of required information to the audience, associated with respect to those issue/updates/scenarios. The derived communication plan for Heathrow Termina-5 was structured on the basis of the below activities: Phase: Indicates in which phase the meeting is going to occur. Ensure the adequate resources (Financial, Expertise, Technology) are available to the organization. They want leadership but prefer to work with someone who is not afraid to show that they have emotions too. The closeness with which BA and BAA now -operate cant be overstated. IT is in my view a team sport. With BA taking the blame, on the morning of 27 March, 2008, was there any IT chief not wondering if BAs global CIO, Paul Coby, was about to become history? Recruiting skill full Employees, Identifying the stakeholders, expertise as per the Project requirement. The baseline plan includes both schedule and resources, whether project is schedule overrun, resource allocation and budget status. In a moment of understatement adding insult to injury, British Airways CEO, Willie Walsh, commented: We are working hard to tackle the difficulties we have had with the terminal's baggage system. BAA has of course prided itself over the last decade or more for leading the way when it comes to innovative procurement to drive down the construction costs and increase the quality. xb```b``i ,`@{,j'w]k$te``K``HKh``Pb@-fp108@ae09G> i -6 nb`` |.#j[4#m 0 j(L Walsh set an example of leadership in his dealings with the Parliamentary Committee that every failed banking CEO in front of the Treasury Select Committee should follow. The roof on the main building of Heathrows Terminal 5 was completed last month. Coby is on record as saying: SAP is the highest cause of fatalities among CIOs, and he looks positively cheerful when confirming that a global ERP project was canned. Willie Walsh has said that BAs CIO and his team played a critical role in ensuring the software problems were resolved as quickly as possible. Coby says that blame doesnt help fix a problem, but understanding that problem does. People expect a lot from CIOs. We have a discipline I learned from the now retired, much-missed head of operations, Dave Weston, who worked at BA for 42 years. The rating for the below is derived on the occurrence of probability and impact. opening on March 27 of the 4.3 billion terminal was a result of poor Do you have a 2:1 degree or higher? A. They argue that BAAs one customer at T5, BA, shouldnt be getting it in the neck but should instead be receiving massive recompense based on service-level availability penalty clauses. Obviously, Heathrow's management is keen to avoid the omnishambles that surrounded the opening of Terminal 5, when queues and delays became a national joke - particularly given Heathrow is in the running for a third runway. The purpose of communication plan is to overcome the communication breakdown among the project team members and also helps in monitoring the Progress and Difficulties of the Project. Heathrow's glittering new Terminal 2 - or 'the Queen's Terminal' - opened this week. Looking for a flexible role? WebThe case describes in detail the relational ethos of the T5 agreement based on principles of trust, collaborative work, and problem solving. Make sure milestones and deliverables to be achieved as per schedule. What is your greatest strength? The project phase as combined related project activities to achieve a logical outcome like major deliverables; these deliverables form the milestone throughout the lifecycle. Q. Here's my rundown of the major failures and why this debacle happened. T5 is a complex multi-modal transport interchange designed to handle 30 million passengers per year over a 260 Ha site. The sheer physical size of the project is impressive. Since 2006, BAA has been developing its third generation capital value procurement strategy with which to roll out its forthcoming programmes of work. Still there may be some accidental positives. Agile is fascinating, Coby says. BA spends over 100m a year on advertising and around 10 per cent of that went on the T5 summer campaign, which came in for criticism when some statistics it used regarding take-offs proved inaccurate. After six years of 2. Heathrow last named an airport terminal after a reigning monarch in 2013 when it decided to call the newly built Terminal 2, The Queens Terminal, in honour of Queen Elizabeth II. * The competition from the other contemporary rivals like Charles De Gaulle airport in Paris and. A. I enjoy most meeting small groups of colleagues to talk about their work and especially their successes. Q. Ensuring proper flow of cash from the stakeholders throughout the life cycle, Risk of migration of skilful, resourceful, expertise employee of company to competitive organization, improper usage of limited resources by unskilled employee. The airports authority wants any suppliers to maintain software quality by putting in place rigorous development processes and testing procedures prior to systems go-live. A. WebHeathrow's Terminal 5 is a good example of how stakeholders' perceptions of success, or failure, can vary enormously. The proposed standard form for Heathrow Terminal-5 Association of Project Management, which is been agreed and approved by the stakeholders for successfully achieving the Project. Critical I talk to other CIOs, especially in the US where there is still amazing amounts of innovation coming out of Boston and the Bay Area. BA.com now represents 50 per cent of UK sales by volume and it provides a cost-effective customer service, says Coby. CIOs and IT leaders share the challenges they are experiencing in their current transformation initiatives. Hence the need of communication plan for Heathrow terminal-5 was determined on the basis of the activitys occurring and a definite completion of the task during the respective phases. From CIO UK: The project is a complex one. criticised BAA executives for showing up unprepared for their first evidence session, He apologised to customers, and Coby mirrored the approach soon after when he spoke at a Forrester Research event, saying: BA as a company apologises for the problems that we may have caused many of you travelling through Terminal 5. Confidentiality to be maintained by the respective authorities who manage the contract. endstream endobj 205 0 obj<>/Size 194/Type/XRef>>stream Privacy concerns. 0000001005 00000 n * Sustainability of the Project in terms of environmental, social and economic factors. Study for free with our range of university lectures! The ODS will combine customer information from across the complete booking-to-fulfillment lifecycle in a single unified data layer. To construct a Terminal-5 building, inherits all modern facilities while meeting the Environmental standards. People believed that collectively we had all done enough, that the infrastructure was in place, delivered on time and on budget with extensive trials and testing, he explains. Anyone having the misfortune to pass recently through Heathrow's new Terminal 5 knows the huge project debuted as a case study in full-blown systems failure. Sixty aircraft stands which can adopt most advanced aircrafts and runway connections. 0000002645 00000 n It is absolutely fundamental when everything is so interdependent that we manage key suppliers and that doesnt mean you neglect your own direct area of accountability and people. The terminals problems are considered to have been a direct result of But the system is only part of a complex end to end baggage process, he explains. Delivering the required information to authorized people, also make sure there is no breakdown of communication between the two interface, Updation of the latest clauses if any during the review meetings, poorly written/executed contracts there is a risk to the organizations assets, property and reputation. We are very disappointed. And having spent so long planning and constructing this massive 4.3bn project, Wolstenholme clearly feels an acute sense of personal and collective loss from not having been able to celebrate the great work done on the project by more than 100 first tier suppliers and some 60,000 different people who contributed 100M man hours of work. He taught me to always find the root cause and keep worrying until you know what that is. And it said it also wants firms to conduct risk and integrity analyses of proposed system architectures and provide guidance on assurance issues.. Walsh shouldered the responsibility and was extraordinarily frank during the Parliamentary Transport Committees enquiry into T5. confirmed. Yes. According to Lock (2007) the compliment of good management communications is the provision of adequate feedback paths through and across the organization. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. It also describes salient details designed into the commercial policy, namely in relation to managing design change, paying suppliers for their work, and rewarding exceptional performance. We are now going to do 80% of our work through 15 to 20 suppliers.. In the future, says Wolstenholme, the BAA Capital Projects team is intent on working much more closely with its airline customers to understand their business needs and make sure that all plans for new infrastructure are developed and handed over in close cooperation with them. Any issues with organization impact the progress and decrease in efficiency towards the project. Copyright 2023 IDG Communications, Inc. BA says around 75m of these costs are for technology, while BAA invested at least another 175m in IT systems. should have been delayed to allow for sufficient testing and training. Q5 will be successful if we have really transformed our airports if people continue to write letters saying: that was the best passenger experience and what a great building and infrastructure have been produced on the way there. Delay of the services/materials from the Suppliers. Gantt chart key feature is that it focuses on Systematic approach rather than algorithm approach, Gantt chart is most effective form of graphical representation hence for Heathrow Trminal-5 such an tool helps you out in sorting your. HWrH+(o bb"lwNFtOJP-j* As per Dobie (2007), project must be divided into measurable a package, that is actions which will contribute to the achievement of objectives. Inputs from all the stakeholders to be considered and implement it when required & record it. Vanderlande Industries is fully responsible for design, software development, manufacturing, installation, commissioning and integration of this baggage handling system. Effective agreement for HT-5 was achieved by using the Contract type NEC3. The program included two large terminal Acts as tool to Control the risks, like action taken towards a particular risk by choosing the appropriate Avoid, Accept and Mitigate, also provides that who is responsible for resolving the occurrence of the risk. Cobys take is that the customer should always come first. The Guardian reports: Foreign secretary David Miliband also joined the criticism of BA as it emerged that the crisis could cost the airline 50m. This is entirely down to Colin and Philip but we believe we have resolved all the issues with BAA. To construct a state of the art Control Tower, designed to meet the demands of Air traffic control at Heathrow in the future. At that, the intended capacity of T5 was 30 million passengers each year ( Towards a sustainable Heathrow 2011). If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. It was clear that different projects and different suppliers needed different procurement approaches to match risk to reward and optimise cost. Consider relationship interdependencies, internally and externally; He adds: I want to create opportunities for the best suppliers and for the best individuals in the industry to come together in an exciting environment. 5. Purpose: Indicates the topics to be discussed. WebObviously, Heathrow's management is keen to avoid the omnishambles that surrounded the opening of Terminal 5, when queues and delays became a national joke - particularly given T5 is in a fantastic situation. My take: there's never enough time or budget to test, train, and prepare properly for launch. And your greatest success? Devices are deployed, connections are being integrated and 2007 will be testing year. Diversion of two rivers round the west of the airport incorporating many ecological enhancements( eg: Water Quality), Failure to compliance the standards for environmental act (Misunderstanding of process and pathways of the environment), Failure to meet the standard of air quality which defined before the execution of the project, Failure to meet the standards defines in Control of Pollution Act Section 61 agreement, Improper waste management will increase the estimated budget( eg: use of recycled product), Making sure the social activity of the people surrounding the construction site will not affect (eg: transportation, Traffic), Failure to compliance the policies of the government (will affect the progress of Project), Change in Government could lead to change in foreign policies and affect the project. on its first day of business. Along with BAA, they are the most mission-critical for us and we need very particular relationships with those organisations. Find the below communication flow among the Project team members for Heathrow Terminal-5, also find communication plan for find in the appendix. Terminal 5 represents an enormous investment in buildings, systems, technology, systems, and human processes. Q. Change to Next-generation, cloud-based ERP systems yield new levels of strategic agility and business insights. Admit to making mistakes, he wrote. Getting people to understand the new role of technology and buy into the new proposition was our biggest challenge, he said. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Management of supplier/contractual relationships. The Q5 decision for Stansted will follow in 2009 after the current public inquiry into whether or not Stansted is to be permitted to expand capacity within the existing footprint. A. Coby concludes: Everyone learned a lot from T5, which is surely the most important point, and precisely why the terminal is functioning so well now., 1978: Joined civil service as trainee and worked in Departments of Transport and Environment, 1992: Principal Private Secretary to John MacGregor as Secretary of State for Transport, 1996: Secondment to BA Information Management department, 1997: Joined BA and led the outsourcing of its reservations and check-in systems to Amadeus, 2000: Appointed CIO with accountability for IT policy and strategy, 2001: Made BA Group CIO with responsibility for IT operations and new IT developments, developing BA.com and IT for T5, 2009: Added role as Head of Financial Shared Services.
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