National Corporation, a large
international corporation manufactured speciality machines, components and
tools to the automotive and aircraft manufacturers. The case study portrays the
significance of project management which should have been followed. As a
result, they lost the order worth $40 Million due to their negligence.
At National, Jeff Pankoff was
initially assigned in the Engineering department and transferred to Ireland to
set up engineering department. After a successful three years, he was promoted
as a Chief Engineer when he returned to the Home office. Jeff, the head of the
engineering department and was responsible for purchasing capital equipment and
selection of production methods.
Ben Ehlke, Manager of South Carolina
plant wanted to purchase a CNC machining centre worth $250,000 based on the what
the aircraft company had requested. Jeff was responsible for approving the
purchase and had many questions about the purchase necessity and arranged a
meeting with the Tom Kelly, chief tool buyer of the Aircraft Company APC. Jack
White, the distributor salesman accompanied Jeff and Ben for the meeting. Jeff
was surprised to know that there was a big of $40 million per year worth deal
from Kelly. Jeff convinced his superiors about the deal that he had accepted.
Jeff suggested to approach Project Management method for this project but his
boss, Don Wolinski refused and said to follow the same traditional method that
they were using.
As they approached traditional
method, information from the customers through sales was delayed. Without
consulting the engineering team, 100 parts were promised to deliver in two
weeks. As a result, they were late by one week and the quotes were not able to provide
on time. APC received quotation from others competitors and therefore cancelled
the National’s deal. National realized their mistake and decided to implement
project management on the future projects.