CASE I.1 THE DENVER AIRPORT When the Denver Airport project was initiated in 198

Question

CASE I.1 THE DENVER AIRPORT When the Denver Airport project was initiated in 1989, the planned 4-year timeframe seem adequate. However, despite abundant political backing and adequate funding, the project sufferea a 16-month delay and a $1.5 billion cost overrun. The NTCP model can be used in retrospect to explain the root cause of much of the project's unsatisfactory performance. With 20-20 hindsight one may argue that a relatively simple NTCP analysis of the project and its sub-projects at an early stage land adjusting the management style accordinglyl might have significantly improved performance To enable aircraft turnaround around in less than 30 minutes as requested by United Airlines one of the airport's largest tenants, an automated baggage sorting and handling system was

Explanation / Answer

The whole project of airport construction was classified as low-tech project along with the new automatic baggage handling system. The BAE automatic system identified the project in the same category and failed to take into account the risk and uncertainty related to the high-tech project. This failure to incorporate the risk during the selection and acceptance of the project lead to project failure.

The reasons for taking the project may relate to prestige related to the project, or the financial factors.

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