In April, the CC s Emerging Thinking report cast doubt on whether BAAs airport ownership allowed proper competition. Her Majesty opened T5 to national fanfare and delight in early March. 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. Is this a job interview? Q. 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. When: How frequently would the team members meet? The airline also handles mass disruption more effectively, he says. Terminal 2 opening: three lessons Heathrow has learned from Its in character. 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. %PDF-1.4 % 0000001294 00000 n I want people to get up in the morning and to do something that matters to them, he says. 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. On day one, the baggage system did what it was designed to do. The identified four major Milestones for Heathrow terminal-5 during the scheduling of execution phase. When complete it will cater for approximately 30 million Her Majesty The Queen had officially opened London Heathrow Terminal 5 just short of two weeks before. Otherwise you waste time and money treating symptoms, not eliminating the root problem. 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. By Sharon Stufflebeme, Managing Director, Technology Consulting and Sandip Shah, Managing Director, Technology Consulting. So, we have lost some very senior people and thats as true in IT as elsewhere. 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 In hindsight it would have seemed more obvious to have done [the move to T5] in more incrementalsteps, Not least, since T5 was without doubt a very successful design and construction project. WebHeathrow Terminal 5 opened on 27 March 2008 with high expectations. Risk management is a constant process which as to be carried out throughout the project life cycle and its conducted in the planning phase. I am going to skip this question. Heathrow Terminal 5: delivery strategy That was a big fat target that didnt survive last autumn. It was a matter of extreme urgency and Coby clearly used every resource, asset and influence to do that. Whom: who are the participants involved during the meet? BA says around 75m of these costs are for technology, while BAA invested at least another 175m in IT systems. 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. The best AI art generators: DALL-E 2 and other fun alternatives to try, ChatGPT's intelligence is zero, but it's a revolution in usefulness, says AI expert. Risk of overrun of the budget due to improper scheduling, Risk of Schedule Slip. Terminal 5 (T5) was officially opened in the Londons Heathrow Airport in 2008 with an objective to increase the airports capacity up to 95 million passengers annually (Chan 2012). Keeping the above factors for Heathrow terminal-5 the below are identified and classified as. It represents a major step in the transformation of Heathrow and it is now a major gateway to the UK. Work in integrated team irrespective of their different organizations. Liz Weston: 3 Lessons I Wish I'd Learned Sooner about Travel BA.com now represents 50 per cent of UK sales by volume and it provides a cost-effective customer service, says Coby. 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. This new runway could take Heathrows capacity from the predicted 2012 maximum of 78M passengers a year to 122M. I never fail to be impressed by the breadth of skills and achievement of everyone in BAs IT department. 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. As the toast rack develops, it creates Heathrow East a new terminal building which will replace Terminal 2, The Queens Building and part of Terminal 1. Avoid large scale cutovers whenever possible; The short-term fix was to deploy all the considerable skills in BA and BAA and those of our respective suppliers to understand the immediate problem. 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. So, how about media relations and PR post-T5 and the messaging campaign to the effect that Terminal 5 is working? Here's what you need to know, Apple sets June date for its biggest conference of 2023, with headset launch expected. BON APPETIT Restaurants at Terminal 5 If it is discretionary, we reduce it. Do you believe in mentoring? Committee (TSC) investigating the debacle has concluded that the chaotic To overcome the uncertainty in a Project, flow of information should be addressed among the team members and respective authorities for controlling and monitoring. They want leadership but prefer to work with someone who is not afraid to show that they have emotions too. Change to Next-generation, cloud-based ERP systems yield new levels of strategic agility and business insights. Lessons had to be learned. How do we do that? 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. London Heathrow says its has 'learned lessons from T5 opening' BA invested fairly early, back in 2002 to 2003, in BA.com, but its not as agile as wed like and our business colleagues are very keen to manage the way the site looks and its content without making fundamental -coding changes.. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. 0000001005 00000 n Risk of losing the formed trust and good will from the client point, due to the organisational issues within the company. So what can CIOs take away from Cobys experience of T5 and make sure that it doesnt happen on their watch? This is not now one cap fits all, explains Wolstenholme. Heathrow Terminal 5: a fresh approach to the Balanced Scorecard 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. [British Airways CIO Paul] Coby says that even the construction of T5 involves: creating a small town with a full telecommunications network for the construction workers, merely to enable the terminal to be built.. If the BA.com guy can demonstrate that spending 100,000 will deliver a quarter of a million pounds this financial year, then yes, we will invest, he says. Heathrow Terminal 5 and Wembley are two high profile projects whichwere both for different reasons perceived as less than successful by the public. The system was designed by an integrated team from BAA, BA and Vanderlande Industries of the Netherlands, and will handle both intra-terminal and inter-terminal luggage and will actually process 70,000 bags a day. You need to expose yourself to as many different experiences and people as possible so I was fortunate enough to spend secondments in IBM and the Northern Ireland Office and as a speechwriter for ministers. We were struck by how The Transport Select At BAAs other airports: Southampton, Aberdeen, Edinburgh and Glasgow, BAAs investment plans are not regulated by the CAA. It could not have been more different from the Civil Service I had seen the future and it worked. trailer 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. startxref Its Heathrow, a beautiful new terminal is open and the first flight takes to the skies. BAA and BA have now committed Its about delivery in weeks, not years. Willie Walsh, BAs 27 March 2008 was all meant to go swimmingly. WebCrisis management lessons from Terminal 5 Last week saw the opening of Heathrow airports latest terminal and what should have been a flag-waving event turned into a Share this article Given the new system's complexity, staff training and preparation was clearly lacking. 194 13 Breaching the contract terms and conditions, due to illegal activity from Suppliers (Eg: Information leakage), Failure of techniques/technologies used in the project ( Eg: IT System, Design, Data Management). 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. Q. And so it proved, but many CIOs still question BAs decision to take the flak on T5. Coby explains that lean involves using simple, repeatable processes and only adopting complex technology when there is no alternative. WebYes, if the OP flights were both on United there would be no terminal change. 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. To improve the road infrastructure, new spur road to the M25 linking the terminal to the national road network. this lack of co-operation, though the TSC also cited poor staff training and * The competition from the other contemporary rivals like Charles De Gaulle airport in Paris and. Commodity builders will handle the less complex, more definable jobs typically worth between 2M and 30M such as car parks and landside roads. <]>> 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. He points out that even before the T5 opening, BAA was clear that its whole approach to designing and procuring infrastructure had to be fundamentally shifted forward in Q5 compared to Q4, which was dominated by the T5 programme. It will contain 175 lifts, 131 escalators and 18km of conveyor belts for baggage handling. Privacy concerns. These will facilitate cooperation and coordination. Effective agreement for HT-5 was achieved by using the Contract type NEC3. 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. 2023 ZDNET, A Red Ventures company. Thats unheard of at BA and again, Coby says its due to a fully-functioning, integrated T5. To construct a Terminal-5 building, inherits all modern facilities while meeting the Environmental standards. 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. construction T5 left thousands without their baggage, and cancelled 34 flights 10% off Management Today's Leadership Learning programme. Thats the environment in which we will be operating over the next few years. A BA spokeswoman said delays in getting staff screened for work and other technical difficulties had caused the airline problems. Internal risks are the uncertainty which occurs by the organization or within the organization like communication and resources; these can be controlled and monitored by the project manager. The work has involved 180 IT suppliers and seen 163 IT systems installed. Heathrow Terminal WebTerminal 2 opening: three lessons Heathrow has learned from Terminal 5. Focus on people and training to the nth degree; Looking for a flexible role? The purpose of risk mitigation is to specify the criticality and priority of risk, what are the effects of the risks, occurrence of the risks and impact of the risk to the organization/people/environment. The combination of below process constitutes risk management: This process involves in identifying potential risk which affects the project, its further classified into Internal and External risk which affect the project in achieving the scope. Consider relationship interdependencies, internally and externally; "They have been doing tests on the belt system for the last few weeks and knew it wasn't going right. Airport bosses insisted it wouldn't be a repeat of the Terminal 5 fiasco. Understandable: the new terminal, known as 'The Queen's Terminal' because she'll officially open it later this month, has 60 check-in gates, 66 self-check-in kiosks, 17 restaurants (including Heston Blumenthal's first airport effort), more than 7,000 seats, 42 water fountains and 634 toilets. Heathrow T5 is in a fantastic situation. There probably isnt a more important or more challenging programme of work in the UK than transforming Heathrow.. should have been delayed to allow for sufficient testing and training. Airline. Chicago O'Hare changing from Terminal 1 to Terminal 5 Maintenance of the Terminal after handing over to BAA. 0 agreed that the opening of Terminal 5 carried inherent risks. To Increase the capacity of passengers flying per year by 30 million. wrong namely issues with the baggage system, security searches and car The ODS will combine customer information from across the complete booking-to-fulfillment lifecycle in a single unified data layer. Free resources to assist you with your university studies! As per Dobie (2007), project must be divided into measurable a package, that is actions which will contribute to the achievement of objectives. "We have concerns about the routine collection of fingerprint information from passengers and we will require reassurance from BAA that the data protection implications of the proposals have been fully addressed," said an ICO spokeswoman. WebIntroduction BAAs Terminal 5 Programme at Heathrow Airport is currently one of Europes largest construction projects. Concorde G-BOAB in storage at Heathrow. Reviews and approves the annual budget, Program plans and organizational policies. Please find the proposed work breakdown structure of Heathrow Terminal-5 which mainly focuses on Execution phase with a budget of 3120 million and 300 million, Kept apart for the contingency which may occur during the Execution Phase, please find the Work Breakdown structure in the Appendix 1.23. My take: there's never enough time or budget to test, train, and prepare properly for launch. 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. Unauthorized employees signing the contracts, due to non-compliance of contract by suppliers and other contractors. Its a dire situation, far worse than 9/11 in terms of revenue challenges and the sheer systemic shock, says Coby. Who: who is going to conduct the meeting? From CIO UK: Originally designed for the automotive industry, the lean model is popular in manufacturing circles as a process management philosophy that focuses on standardising processes in order to reduce costs and time waste and improve efficiency. 0000000827 00000 n opening on March 27 of the 4.3 billion terminal was a result of poor Representatives for BAA 0000002645 00000 n We're here to answer any questions you have about our services. The new spur road links to M25 motorway and its widening to reduce the traffic congestion. BA acknowledged the critical importance of training in the kind of business transformation program that T5 represents. Deals with challenges and issues with regard to Corporate Governance, Corporate social responsibilities and corporate ethics. From the official brochure: Terminal 5's technical complexity matches its physical size. A. British Airways CIO Paul Coby reveals lessons from Terminal 5 disaster, Socit de Tlcommunication Aronautique, dtSearch - INSTANTLY SEARCH TERABYTES of files, emails, databases, web data. WebThe case describes in detail the relational ethos of the T5 agreement based on principles of trust, collaborative work, and problem solving. From AI to IoT, advancements, convergences, and new use cases are giving rise to new avenues for IT innovation across industries, thereby transforming the business landscape to come. 0000000556 00000 n 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. 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. We are where we wanted to be on day one and have statistics to prove it. (in concurrence with the Competition Commissions findings). By controlling how much BAA charges airlines and how much BAA spends on infrastructure, the CAA hopes to encourage efficient airport development. 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. Geez, isn't that always what seems to happen? 194 0 obj <> endobj Monitoring of issues and responding at the programme level. WebFind out the terminal your airline uses at Heathrow. But after the deluge, when problems have been exposed and the bigwigs embarrassed by failure, time and money magically appear. A. Langsdale, a vastly experienced CIO, wasnt employed at BAA in March 2008 when T5 opened but replaced Richard Rundle who retired last summer. At that, the intended capacity of T5 was 30 million passengers each year ( Towards a sustainable Heathrow 2011). 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. Monitoring the project progress and performance, Status report to the Stakeholders in the form of Newsletter/Email/PPT. The facility, situated on a 251hectar site had 6000 people working on site at any one time (Health and Safety Executive, 2005). Computer Weekly reports that IBM supplied software components: The system was designed with Dutch company Vanderlande and IBM. Risk of differences in opinion. The costs of that would have been crippling to BA, which like the rest of the airline industry is under pressure. HEATHROW TERMINAL 5 By Editor. Indulge and unwind. 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. Q. Every five years, new price controls are set and April saw the start of the fifth quinquennial period (Q5) which set price controls and spending plans for Heathrow and Gatwick Airports. 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. This is not BA software. Which tools or tactics have given you most success in communicating? Vanderlande Industries is fully responsible for design, software development, manufacturing, installation, commissioning and integration of this baggage handling system. Ms Ellman, who Failure of align in meeting the interests of individuals and corporations. T5: The Concept To construct sixty new aircraft stands inclusive of stands designed for the most advanced aircrafts like Airbus A380. v^ZXj2{rezl1nsusYl6.fw3wbI=wbK_. Heathrow's glittering new Terminal 2 - or 'the Queen's Terminal' - opened this week. A public relations disaster. 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. We offered voluntary severance to any manager that wanted to go, and about a third across the airline went. Airport bosses insisted it wouldn't be a repeat of the Terminal 5 fiasco. We have a discipline I learned from the now retired, much-missed head of operations, Dave Weston, who worked at BA for 42 years. With the benefit of hindsight it would have seemed more obvious to have done [the move into T5] in more incremental steps, he adds. Under the agreed plan, BAA will spend 4bn at Heathrow and 874M at Gatwick to improve facilities. I dont read the glossy magazines sent round by suppliers. This is entirely down to Colin and Philip but we believe we have resolved all the issues with BAA. Heathrow's control tower with a departing Virgin Atlantic Boeing 747-400 in the background. This was followed in 2000 by the Egan report-inspired lean delivery which spawned the second generation frameworks and the T5 agreement putting BAA at the heart of the construction process as the all seeing, risk aware, intelligent client. TABLE OF CONTENTS part | 2 pages Part I Introduction chapter 1 | 11 pages Introduction and overview Abstract chapter 2 | 13 pages Case Study BAA Terminal 5 Project Introduction We are losing none of the values that we have generated over the last 10 years. It has big plans to develop its airports portfolio across the UK over the next five years plans it hopes will stem the current tide of negative publicity about the poor condition of its assets and, in particular, the poor passenger experience at Heathrow. All this is set to change. 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.". 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. Abstract The success of the five-year construction phase of Terminal 5 at London's Heathrow airport was dependent of putting into effect the principles of a unique form of contract, called the Terminal 5 agreement. If spend is not discretionary, how do we reduce it? If youre in aviation, it doesnt get much better. 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. Ensure the companies prosperity and Keeps the organizations mission, values, and vision. 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. CIOs and IT leaders share the challenges they are experiencing in their current transformation initiatives. Deliverables: The outcome during the discussion for that meeting. communication and preparation on the part of both BAA and British Airways. Bags undergo several processes on the way through the system including automatic identification, explosives screening, fast tracking for urgent bags, sorting and automatic sorting and passenger reconciliation. 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. 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? Getting people to understand the new role of technology and buy into the new proposition was our biggest challenge, he said. People expect a lot from CIOs. We must reduce cost across all of those. Attend monthly board and committee meetings, Annual General Meeting. From CIO UK: BAs CIO, Paul Coby told CIO UK [in March 2007] the IT work to support such a large-scale, new-build project was also going well. called the terminals opening an occasion of national embarrassment. When we landed at Heathrow Airport in London, we learned we had to pick up our luggage at baggage claim, go through customs , check 0000000016 00000 n WebCentral waiting area in Terminal 5. 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. Project structure includes both Organization structure and management structure. A contingency plan is also derived to mitigate the risk, below is the proposed Probability-Impact matrix for Heathrow Terminal-5: Resources Organizational Issues, Airport Security, Legal Issues, Technology, Corporate Governance, Design Political, Cultural, Adverse Publicity, As per PMBOK 3rd Edition work breakdown structure is defined as A deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables., The Purpose of Work breakdown structure in Heathrow Terminal-5, firstly it helps the project manager accurately in defining and organise the scope of the Project. BA uses the lean model to assist the carrier to reduce overheads and manage the enormous task of handling business change and the massive integration challenge involved in this large-scale project. BA now has Continuous Improvement Groups to better understand when things go wrong, fix them and ensure they dont happen again. Considering these the risk assessment is done for Heathrow Terminal-5: Awareness of the Project to both the customers and stakeholders. also confirmed that it considers BAA to be a monopoly that should be dismantled Milestone 1: Completion of landside civil process. Terminal 5 represents an enormous investment in buildings, systems, technology, systems, and human processes. Agile thinking The Commission said it was satisfied that the right steps BAA and BA plan working together for system integration over two years, weve been focused on bringing systems together. During the sudden snowfall in February it contained within the system the number of bags that did not travel with their owners on the Monday, repatriating them quickly. * To meet the environmental standards and compensating the local residents plus the effect on the other four terminals. 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). Consultation with the industry demonstrated that a T5 Agreement style cost reimbursable procurement process would not be suitable across the board in Q5. 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. system testing by BA as significantly contributory. 25+ search types; Win/Lin/Mac SDK; hundreds of reviews; full evaluations. The structural change that [BAA chief executive] Colin Matthews has brought in takes out an important handover at the beginning of the process and at the end of the process, he adds. 5. Any issues with organization impact the progress and decrease in efficiency towards the project.