So what can CIOs take away from Cobys experience of T5 and make sure that it doesnt happen on their watch? 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. Attend monthly board and committee meetings, Annual General Meeting. * Meeting the airline company Requirements and Standards, British Airways being the only airline operating from the Terminal at initial stages. John MacGregor for whom I was the Bernard to his Minister [from the Yes, Minister sitcom]. At the heart of this is a greater understanding of the needs of airlines and passengers, which means addressing people, process and technology, as well as infrastructure solutions. We use cookies to personalize and improve your experience on our site. A BA spokeswoman said delays in getting staff screened for work and other technical difficulties had caused the airline problems. WebHeathrow Terminal 5 opened on 27 March 2008 with high expectations. BON APPETIT Restaurants at Terminal 5 We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.io. In SITA we have a new technology lab looking at IT innovation and I am on the board of SITAs joint venture with Airbus called OnAir, which is pioneering on-board data and voice connectivity. T5, according to Coby, has many qualities that are similar to a factory, in that it aims to eliminate waste, simplify and streamline processes, create flow and create a culture of continuous improvement. The terminals problems are considered to have been a direct result of From time to time problems have developed that were not encountered during the extensive trials. We are where we wanted to be on day one and have statistics to prove it. What has been your biggest mistake? A business case is required form of document, supporting an argument for a proposal of the desired Project like (Project Rationale, Scope, Objective, Deliverables, Assumptions, Considerations and Constraints, Financial Analysis, Critical Success factor, Option Appraisal). WebThe case describes in detail the relational ethos of the T5 agreement based on principles of trust, collaborative work, and problem solving. Despite these positive outcomes, many have argued that BA should still have delayed T5 but Walsh later explained that the effect of a postponement would have been to lose the summer operating season. Now. Ensure the companies prosperity and Keeps the organizations mission, values, and vision. How do you deal with stress? 0000000827 00000 n Agile thinking Financial shared services recently became part of Cobys remit, and now he has accountability for a 250m budget about the same as the IT budget he has made a point of calling the people who provide facilities management for properties. Get started by entering your email address below. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Take IDCs ERP Modernization Maturity Assessment to benchmark your organizations progress against your peers. Webdisastrous openings at US$3.9 billion and Heathrow-Terminal 5, London United Kingdom which commenced operations in 2008 with estimated cost of its disastrous openings at US$6.4 billion can also be added to this list. The activities/task may be listed in order of entry of Start date, Finish date, duration and Slack and appropriate to their graphical bars we can find the Start, Finish, duration and slack as well. Its centrepiece is a 78-metre, 77 tonne metal sculpture by Richard Wilson called 'Slipstream', and it's built to handle 20 million people and 100,000 bags. A. I played a part in BA.com which I am very proud of, but that is something many people in BA have contributed to, so I will instead go for turning around SITA (Socit de Tlcommunication Aronautique). Management of supplier/contractual relationships. Whom: who are the participants involved during the meet? A construction programme to transform airports by 2013Airport owner BAA is about to embark on an ambitious five year, 6.6bn programme to transform its seven airports. WebIntroduction BAAs Terminal 5 Programme at Heathrow Airport is currently one of Europes largest construction projects. He taught me to always find the root cause and keep worrying until you know what that is. BAA will now use a single digital photograph to confirm passengers at the gate are the same as those that check in a system used in most other international UK airports. Late bags can be transported at high speed via BAGTRAX directly to the head of stands where the awaiting aircraft are parked. BA says similar disruption in T4 would have generated baggage mountains and taken weeks to address. We are losing none of the values that we have generated over the last 10 years. A. I enjoy most meeting small groups of colleagues to talk about their work and especially their successes. Heathrow's new Terminal 2 has welcomed its first passengers, with the airport insisting it has learned lessons from the opening of Terminal 5. The Commission said it was satisfied that the right steps The losses topped $4bn (2.7bn) in the last three months of 2008 alone, when the global credit, financial and economic crisis became acute and aviation fuel prices hurt carriers. My hero is of course Vetinari That is, they care for our paying customers. Q. 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. Its in character. A. For historical reasons, the Stansted economic regulation report always comes a year later. xbb``b``3 BA blamed the glitches on problems with "staff familiarisation", which had a knock-on effect on bags and flights. The objective of risk management is to identify the potential problems which may occur during the project life cycle, so that risk can be Controlled and Monitored throughout the Project life cycle. Airport-technology.com describes the system: The baggage handling system at T5 will be the largest baggage handling system in Europe for a single terminal. Yes. Along with BAA, they are the most mission-critical for us and we need very particular relationships with those organisations. Q. Under the agreed plan, BAA will spend 4bn at Heathrow and 874M at Gatwick to improve facilities. 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. Q. From ComputerworldUK : Terminal 5 has cost The airline also handles mass disruption more effectively, he says. It has put out a tender for a framework agreement to find suppliers able to risk-assess any new systems it develops and to monitor and maintain those same systems once they are in use. No plagiarism, guaranteed! * Its assumed the derived T5 agreement will effectively work between BAA and suppliers, team work can be effectively achieved. * Estimated Schedule of the project can increase due to intense public enquiries and the political influence. Heathrow's new Terminal 2 has welcomed its first passengers, with the airport insisting it has learned lessons from the opening of Terminal 5. On day one, the baggage system did what it was designed to do. BAs systems and IT infrastructure worked perfectly from day one. Stranded travelers immediately understood how problems with the baggage handling system affected them personally. Geez, isn't that always what seems to happen? First, there were technical software problems, but more significantly BAs challenge was integrating teams of staff, and it has been addressing this as a priority. [N]ational pride has been dented. The first plane (United Airlines flight 958, if you're interested) touched down at Heathrow's brand new Terminal 2 building at 5.49 this morning. While that toxic crew denied any personal culpability for creating the economic maelstrom that is wrecking the globe, Walsh acknowledged that risks had been sanctioned by him and, with hindsight, the opening should have been delayed to allow for more training and familiarisation for BA staff. 0000003080 00000 n For example The tools and techniques required for the respective phases. Purpose: Indicates the topics to be discussed. A project which saw client BAA buck the industry trend by driving a single team to successfully manage some very large construction risks, complex baggage systems and the integration of a myriad of critical IT systems. Picking good people. 2. Agile is fascinating, Coby says. This paper analyses a case of information system failure the London Heathrow Airport Terminal 5 (T5) failure; its causal factors, impact and lessons learned. Monitoring of issues and responding at the programme level. 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. When CIO published Cobys article entitled 50 Things I wish Id known before becoming a CIO a couple of years ago, number five on the list was entitled Try to be human. If spend is not discretionary, how do we reduce it? The British Airports Authority eliminated biometric security measures (fingerprinting all passengers) immediately prior to the terminal opening due to legal questions. Clearly, that was not the case. My take: there's never enough time or budget to test, train, and prepare properly for launch. We may fly to 157 countries and deal with 34 million customers a year but we are a tiny part of the worlds inter-actions and growing interdependencies, Coby says. Heathrow's control tower with a departing Virgin Atlantic Boeing 747-400 in the background. Who have been the most influential people in your career? Should encapsulate the roles of Contractors, Cost controllers, Schedulers, Risk manager, Operations and Control as an when required during the Project life cycle, Level of participation as designed by Project Leader, Responsibility matrix for Heathrow Terminal in the Appendix, To communicate effectively with better understanding of the project among the Stakeholders, Project managers, Project team members there shall be standard procedures to be followed in a Project management context. Testing RFID blocking cards: Do they work? T5 will involve 180 IT suppliers and run 163 IT systems, 546 interfaces, more than 9,000 connected devices, 2,100 PCs and enough cable to lay to Istanbul and back. Level 3. Early bags are stored in a BAGSTORE warehouse with 4,000 positions, allowing individual access to each bag any time. The T5 debacle was a searing experience for everyone involved and it is clear that many lessons learned there were applied elsewhere. Share this article It's the culmination of four years and 2.5bn of work. We provide telecommunications, systems and solutions to airlines, airports, governments and the UN, so if you check in at an airport or use a self-service kiosk there is a high chance that your agents screen, the kiosk or the baggage system and networks used will be provided by SITA. Considering these the risk assessment is done for Heathrow Terminal-5: Awareness of the Project to both the customers and stakeholders. This can be obtained by following the traditional method Hierarchical tree structure. Thats fundamental., Q. It includesplanningfor risk,identifyingrisks,analyzingrisks, developingrisk responsestrategies, andmonitoring and controlling risks to determine how they have changed ( Kerzner 2009). WebHeathrow's Terminal 5 is a good example of how stakeholders' perceptions of success, or failure, can vary enormously. Managing the Stakeholders, Project deliverables, Develop and maintaining detailed Project Planning, leading the project team. WebTerminal 5 when constructed will be able to handle 30 million passengers per year, taking Heathrows total number of passengers to around 90 million. Andrew Wolstenholme, BAA Capital Projects director interview by Antony Oliver. A passenger told the BBC: "Apparently the computer software told the baggage people that the flight had taken off. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! All rights reserved. The roof on the main building of Heathrows Terminal 5 was completed last month. The software means British Airways can now implement new business processes that bridge disparate global distribution systems and passenger service systems, enabling it to action sophisticated workflows against end-to-end customer orders. construction T5 left thousands without their baggage, and cancelled 34 flights The founder of Gantt chart Henry Lawrence Gantt used this tool to show the actual schedule and progress of the project was invented on 1920s and used on large projects from 1931. Q. Risk of differences in opinion. He adds: Ill forgive people once for making a mistake but Id be very concerned if they make it twice. 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. As reported in ComputerworldUK, the T5 systems represented a massive business transformation effort for British Airways: The technology has let British Airways create what is believed to be one of the airline industrys first Order Data Stores (ODS). Do you need one? They want leadership but prefer to work with someone who is not afraid to show that they have emotions too. 25+ search types; Win/Lin/Mac SDK; hundreds of reviews; full evaluations. Ensure the Scope of the project is achieved, if any variation order occurs proper planning to be done to overcome it. Heathrow says that it has sought advice from other airports around the world and learned lessons from opening Terminal 5, which was plagued by technical difficulties 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. Bags are automatically read, screened and sorted to their final build location via two electrical HELIXORTERS. Heathrow in focus:A.Terminal 1 - refurbishment of terminal building B.Heathrow East - new terminal to replace Terminal 2 and Queens BuildingC.Heathrow East - new satellite pier on eastern campusD.Terminal 3 - refurbishment of terminal building includes new forecourt and piazzaE.Terminal 4 - refurbishment of terminal building, also includes new piazzaF.T5 - British Airways homeG.Terminal 5c - new satellite terminal to be constructed, Stansted will have two programmes worth around 1.4bn assuming the regulator and on-going planning inquiry inspector grant approval. Furthermore, we are a co-operative which is owned by its customers who form the Board, a model of global collaboration which I believe has some important lessons in the world we now find ourselves in. We are re-engineering the website via a project called Leapfrog. An effective communication strategy as to be plotted by project manager to have a better understanding and coordination among the team members and good Communication strategy plays a vital role among the Team members/Stakeholders/Customers/Clients. "They have been doing tests on the belt system for the last few weeks and knew it wasn't going right. We must spend only on the things that matter, that deliver great payback or create direct relationships with customers. 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. This new runway could take Heathrows capacity from the predicted 2012 maximum of 78M passengers a year to 122M. 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." So, how about media relations and PR post-T5 and the messaging campaign to the effect that Terminal 5 is working? What is Lemon8 and why is everyone talking about it on TikTok? Which business (or other) books have been influential in your career? Fives disastrous debut could have been avoided, a report released today has this lack of co-operation, though the TSC also cited poor staff training and to holding daily and weekly meetings where attendees, including senior managers, 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. ", One baggage worker told the BBC the situation was "mayhem" and that the technical problems had been known about for some time. 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. Focus on proactively managing the risk instead of avoiding the litigation. In April, the CC s Emerging Thinking report cast doubt on whether BAAs airport ownership allowed proper competition. Milestone 3: Completion of Airfield and runway. This is not now one cap fits all, explains Wolstenholme. Smooth move From the official brochure: Terminal 5's technical complexity matches its physical size. Airport bosses insisted it wouldn't be a repeat of the Terminal 5 fiasco. To overcome the uncertainty in a Project, flow of information should be addressed among the team members and respective authorities for controlling and monitoring. The reason I came to BA in 1996 was on another secondment to broaden my experience again, so you never know what can happen as a result 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. Everyone in BA recognised that it does not matter to our customers where the problems were they paid good money, bought tickets from BA and deserved to have a great travel experience, which we did not deliver. To those close to the project, T5 will always be an engineering masterpiece which, constructed on time and to budget, pushed forward the concept of modern infrastructure delivery. To construct sixty new aircraft stands inclusive of stands designed for the most advanced aircrafts like Airbus A380. Defines the Project structure for the organization. 0000000016 00000 n After 15 years of planning and construction, the opening day of this high-tech facility at the worlds busiest airport was without doubt the airport operators finest and darkest hour all rolled into one. However, this Business Report is to evaluate information system failures in London Heathrow T5 project and to evaluate the project management and operations Milestone 2: Completion of Terminal 5 building. 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. Gantt chart are also used as project status report, it helps in the project manager in gathering the information have the deliverables met as per the baseline plan. Coby also believes that effective relationships with suppliers are fundamental and he has been working hard on getting new structures in place at Heathrow over the past year. * Terminal 5 has the potential to become a major Surface Access interchange or substitution by providing an important role in the South East transportation system of U.K. * Resource availability throughout the Life cycle of the Project. From Computing: Training and familiarisation procedures were carried out for a year so that staff could test the new IT systems in place throughout the building. <]>> Privacy concerns. To construct a Terminal-5 building, inherits all modern facilities while meeting the Environmental standards. 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. Indulge and unwind. Yet many more will simply remember the opening day nightmare of thousands of delayed passengers, tens of thousands of lost bags and hundreds of cancelled flights. (in concurrence with the Competition Commissions findings). See a whole year of Reward Seat Availability on one page at SeatSpy.com, Virgin's festive Upper Class fares now on sale, Live life in the fast lane with Avis Preferred, Connect with Business Travelers Worldwide with MeetWiv, Lufthansa operates A380 to Bangkok this winter, To see our latest subscription offers for Business Traveller editions worldwide, click on the Subscribe & Save link below. risk that I agreed to take.. 1. I also write a very intermittent blog and have enjoyed participating in online discussions with colleagues across BA. According to Lock (2007) the compliment of good management communications is the provision of adequate feedback paths through and across the organization. During the inquiry it In business, John Griffiths who I worked for in IBM in the early 1980s. much hoping for the best BAA had engaged in prior to the opening of Terminal This can cause a change in scope of project. 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. Computer Weekly reports: Heathrow Airport owner BAA is pulling a biometric fingerprint system at the new Terminal 5 the day before the building opens to the public, after the Information Commissioners Office (ICO) raised concerns about the system. Make sure milestones and deliverables to be achieved as per schedule. Small cog Airport bosses insisted it wouldn't be a repeat of the Terminal 5 fiasco. The book I most admire is The Later Roman Empire by AHM Jones, because he pulled together everything then known about the so-called end of the Roman Empire and brilliantly described the economy and society in its entirety. It would be nuts to says IT should determine which aircraft BA buys in 2012, but IT is in everything from crew rostering to data downloading to in-flight entertainment, Coby says. Copyright 2023 IDG Communications, Inc. Passionate about BA, hes survived huge corporate ructions over the last 12 years but did he ever consider quitting over T5? The IBM software works out where the bags are supposed to be going, and logistics software works out the best way to get there. Secondly it helps in assigning roles and responsibilities, resource allocation to the Project. I never contemplated resigning. Which word or phrase do you most use/overuse? Do Not Sell or Share My Personal Information. We broke the industry rule book, took on all the risk and we delivered that programme on time and on budget.. we equip you to harness the power of disruptive innovation, at work and at home. 0000002645 00000 n It represents a major step in the transformation of Heathrow and it is now a major gateway to the UK. WebTerminal 2 opening: three lessons Heathrow has learned from Terminal 5. When complete it will cater for approximately 30 million Vanderlande Industries forms part of the T5 Strategic Team and is supported by BAA's Baggage Delivery Team. Its a tribute to how well the whole thing is working together. The Guardian reports: Foreign secretary David Miliband also joined the criticism of BA as it emerged that the crisis could cost the airline 50m. As a former public monopoly, BAA airports in the South East (Heathrow, Gatwick and Stansted) are regulated by the Civil Aviation Authority (CAA) . Project structure includes both Organization structure and management structure. Terminal 5 The UK's largest free-standing building, T5 offers travellers space, style and world-class service in abundance. Inputs from all the stakeholders to be considered and implement it when required & record it. This leads to difficulty in negotiation between supplier and client, Risk of differences in business ethics leads to difficulty in decision making. unfolded that BAA and BA only held joint meetings after things began to go The professionalism of the IT services and the acceptance of responsibility for the quality of that service have greatly improved. This will not be the case for T5. We are still very firmly anchored into creating integrated teams, creating single team cultures and leading in the same way that we did in Q4, he says. Work in integrated team irrespective of their different organizations. The Information Commissioners Office (ICO) expressed concern that the move may breach data protection laws even though BAA planned to delete fingerprint data after 24 hours. With the benefit of hindsight it would have seemed more obvious to have done [the move into T5] in more incremental steps, he adds. WebThe Barcelona-to-London flight was delayed. * The estimated Cost of the project may increase because of the macro economical factors like exchange rate, cost of the materials and workforce. If any issue with respect to sustainability, the designed and approved sustainable frame work as to be applied at regular intervals. A. Q. We are now going to do 80% of our work through 15 to 20 suppliers.. BA says around 75m of these costs are for technology, while BAA invested at least another 175m in IT systems. Concorde G-BOAB in storage at Heathrow. We accepted responsibility for what happened to our customers because that was, and -remains, our primary accountability., Common goals v^ZXj2{rezl1nsusYl6.fw3wbI=wbK_. Representatives for BAA 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. 0000001706 00000 n Find the proposed structure for Heathrow Terminal-5, Organization Breakdown structure, Work Breakdown Structure, Project Hierarchy structure, Gantt Chart in the appendix 1234456. Also compare the actual costs and progress experienced with the costs and progress planned. We plastered London with adverts to get people in and experience T5. As such, the amount it can charge airlines to use its facilities and thus the amount it must then plough back in to create new airport infrastructure is strictly governed and reviewed on a five yearly quinquennial cycle. Looking for a flexible role? Project scope. However, its early operations were marred We have to get a closer relationship with the airlines and ensure that in meeting the programme and budgets agreed with the regulator for Q5, we deliver the improvements that the airline industry wants.. trailer My accountability is now to ensure that the end product is going to work on day one, explains Wolstenholme pointing out that in the past, responsibility for handover lay with a separate BAA corporate team. The first flight, a United Search flights. Devices are deployed, connections are being integrated and 2007 will be testing year. 0000001005 00000 n 5. Delivering more than 200 IT projects was easy when compared to the people element of the plan, said BAs programme head of information management for T5, Glenn Morgan. The baseline plan includes both schedule and resources, whether project is schedule overrun, resource allocation and budget status. By Sharon Stufflebeme, Managing Director, Technology Consulting and Sandip Shah, Managing Director, Technology Consulting. So everyone in the plane just watched as all their suitcases were taken back into the terminal instead of being loaded on. 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. have been made to ensure operations run smoothly in the future. Heathrow East (the current concept study name for the next terminal) will also cause the demolition of Europier, a little building that RSHP designed relatively recently. To divert the two rivers around the airport by incorporating many ecological enhancements. 0000002100 00000 n WebDeveloping Heathrow terminal five was perceived as crucial to meet the demand for travel and passenger growth. Its about delivery in weeks, not years. Lessons had to be learned. We must reduce cost across all of those. Make time for my family, write Roman history and model 19th-century German railways. Additionally, Biman Bangladesh Airlines will also be moving from Terminal 3 to Terminal 4 from 29 March. 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.