Heathrow Terminal 5 Risk Management Essay - 2388 Words

Introduction Work on the London Heathrow terminal 5(T5) began in 2002 after a 4 year public enquiry. It took six years to build at a cost of  £4.3bn. The facility, situated on a 251hectar site had 6000 people working on site at any one time (Health and Safety Executive, 2005). It boasts of 30,000 square meters of glass walls, has 60 new aircraft stands and includes 13km of tunnels which were bored for baggage handling and rail links (BBC, 2007a). This report will be evaluating the project risk management in the construction of T5 airport. It will start with a brief background on Heathrow terminal 5. The report will then take a critical look at some of the British Airport Authority’s (BAA) method of risk allocation and identification. It†¦show more content†¦In getting all parties involved to work as part of an integrated team, the risk identification process would have involved a larger number of people and increased the identified sources of risk for the project. This fundamental relationship between project parties played a huge role in the success of the project with regards to time and cost. (Davies et al, 2009) Another area that BAA also identified as a major source of risk going into the project was the Information Technology (IT) systems that would go into T5. The head of systems for BAA, Nick Gaines stressed that the IT systems represented the largest risk to the entire project ( Illet, 2006).This is further supported by the fact that T5 underwent 6 months of testing prior to it’s opening, most of which was to do with its IT systems integration including the baggage system (BBC, 2007b) Risk allocation As mentioned in the introduction, allocating risk in financial terms to different parties is encouraged as good practice.BAA however took on an entirely different approach to their allocation of risk by choosing to take on all the risk. They went against the normal convention of contractual agreements which are normally reactive in their nature and mostly end up with a focus on each party involved claiming against the other for any extraShow MoreRelatedStadium Contracts1073 Words   |  5 Pagesclient must specify the type of building they require and the contractor proposes the best design to meet this, this information was found at the web address Building.co.uk. A design and build project allows the low risk factor as for the client has the contractor takes on the risk by offering a fixed cost contract. The web address designbuild-network.com states the original provision for a building cost was around  £352m, with total project costs of  £757m. A fixed price contract protects the clientRead MoreCritical Analysis Of The Heathrow Terminal 5 Project1236 Words   |  5 PagesCritical analysis of the Heathrow Terminal 5 project Programme and Portfolio Management: Analysing the Strategic Multiple-Project Environment Introduction: Project portfolio management (PPM) deals with the coordination and control of multiple projects pursuing the same strategic goals and competing for the same resources, whereby managers prioritize among projects to achieve strategic benefits. (Martinsuo 2012) Heathrow Terminal 5 success is attributed to the project management approach, this is neededRead MoreBeyond the ‘Iron Triangle’: Stakeholder Perception of Key Performance Indikator (Kpis) in Large-Scale Public Sector Development Projects941 Words   |  4 Pagestowards project manager, deputy project managers, and line manager on the project site. In addition to the questionnaires, face-to-face interviews were also conducted. Demographic respondents divide into; respondents’ experience in project management, profile of the respondents, educational background of respondents, nationality and native languages of respondents, and type of organization. Results The survey result of this research found that top ranked KPIs are completion ‘on time’Read MoreAviatin Policy1449 Words   |  6 Pageswith improved resilience. Heathrow has taken steps towards becoming Europe’s hub of choice. The capital investment programme has modernised Heathrow to provide a better experience for its passengers. Heathrow’s ASQ score, an internationally benchmarked survey measure of passenger satisfaction, has been improved from 3.43 in 2007 to 3.88 in 2011. It achieved its highest ever score of 3.92 in the survey for the first quarter of 2012 which continues to position Heathrow as one of Europe’s leading hubsRead MoreProject Management Case Study3301 Words   |  14 Pagesat the Busiest Airport in  the World through Project Management Refurbishing Heathrow Airport Terminal  1, On Time, On Budget, With  No  Disruptions to Travelling Public Background: Dated and In Need of a Revamp, But It has to be Business as Usual... BAA Airports Ltd. was tasked with the refurbishment of Terminal 1, a 40-year-old building within Heathrow Airport, the busiest international airport in the world, whilst constantly keeping the terminal open to the 20 million annual travellers. In 2004 BAARead Morebaggage blunders (british airways) CASE STUDY Essay2145 Words   |  9 Pagesï » ¿BAGGAGE BLUNDERS A Case Study Presented to the Faculty of the Department of Business and Management College of Management and Economics of the Visayas State University ______________________________________________________ In Partial Fulfillment of the Requirements in MGMT 101: Concepts and Dynamics of Management ______________________________________________________ Submitted by: GROUP III Acabado, Rona Jane E. Alpar, Florie Mae A. BiscoRead MoreBritish Airwayss Environment1605 Words   |  7 Pagesmarket. The UK market for airlines grew by 1.2% since 2003 to reach a value of  £8.7 billion in 2004. The number of passengers flying from UK airports alone has increased from 70 million in 2000, to 86 million. The development of a fifth terminal at London Heathrow testifies this growth. However, against this expanding consumer market, the airline industry continues to struggle with the continuous threat of terrorism, high fuel prices and increased competition. The two main sectors of the market areRead MoreOperations Management Defined and in Context2573 Words   |  11 PagesBusiness Operations (BIO0230) Assignment 2012/13 Student: Vanessa Sears Student ID: U1176604 Assignment Title: Operations Management Defined and in Context Operations Management has evolved over many years and is now considered a critical function in any business, as supported by J.R Meredith, â€Å"operations is critical to success in today’s economy† ( P35, Meredith 1992). Businesses need to have faster production, cheaper prices, better quality products and fast delivery to be competitiveRead MoreA Research Study On Mega Projects Essay2240 Words   |  9 Pagesorder to examine how the Mega Construction project are handled in the Construction Authority. The questions are focused on the following: - Stakeholder Management: The roles, responsibilities, and requirements of the stakeholders. - Complexity Management. - Briefing Process Management. - Stakeholders Conflicts - Adopting Stakeholder Management Strategy A general approach was developed and contained two methodological ways in order to understand how stakeholders impact mega project performance.Read MoreOperations Management: Long Term Expansion Strategies4085 Words   |  17 Pages+ Operation Management + Strategies for Capacity Planning/ Substantial Expansion K.J.Sanjit Roll No#59 PGPME-14, Great lakes IEMR, Gurgaon + INDEX Table of Contents K.J.Sanjit Roll No: 59 PGPME-14, GLIEMR INTRODUCTION SUMMARY .............................................................. 3 CHAPTER#1: CAPACITY PLANNING ..................................................... 4 Break-even analysis ...............................................................................................