2. What are the logistics functions involved here? An example of the importance of process planning was illustrated by the Heathrow Terminal 5 (T5) saga. This shows how failure in one logistics activity can have a major impact on an organization’s and its partners’ activities. The two principal operators at the centre of the T5 incident were the airline operator British Airways (BA) and the then British Airports Authority (BAA) as the airport operator. Both organizations are market leaders in the industry with a wealth of experience and a reputation for quality service.

This incident is a one-off teething problem that had huge consequences.

The construction of T5 started in September 2002 and it officially opened in March 2008. The terminal was funded by BAA at the cost of £4.5 bn and it was envisaged that the expansion would benefit passengers and create a world-class airport. It was constructed with the capacity to process 12,000 bags an hour, with 96 self-service checkin kiosks, 56 standard check-in desks and 20 security lanes.

Despite the magnitude of the preparation, the operation was far from smooth. The main problem started early on the first day of operation. In the first instance, both staff and passengers had trouble locating the car park. This resulted in staff turning up late, by which time queues had started building at the check-in desks and arrival passengers had to wait for their bags. This completely clogged up the system.