National Corporation, a largeinternational corporation manufactured speciality machines, components andtools to the automotive and aircraft manufacturers. The case study portrays thesignificance of project management which should have been followed. As aresult, they lost the order worth $40 Million due to their negligence. At National, Jeff Pankoff wasinitially assigned in the Engineering department and transferred to Ireland toset up engineering department.
After a successful three years, he was promotedas a Chief Engineer when he returned to the Home office. Jeff, the head of theengineering department and was responsible for purchasing capital equipment andselection of production methods. Ben Ehlke, Manager of South Carolinaplant wanted to purchase a CNC machining centre worth $250,000 based on the whatthe aircraft company had requested.
Jeff was responsible for approving thepurchase and had many questions about the purchase necessity and arranged ameeting with the Tom Kelly, chief tool buyer of the Aircraft Company APC. JackWhite, the distributor salesman accompanied Jeff and Ben for the meeting. Jeffwas surprised to know that there was a big of $40 million per year worth dealfrom Kelly. Jeff convinced his superiors about the deal that he had accepted.Jeff suggested to approach Project Management method for this project but hisboss, Don Wolinski refused and said to follow the same traditional method thatthey were using. As they approached traditionalmethod, information from the customers through sales was delayed. Withoutconsulting the engineering team, 100 parts were promised to deliver in twoweeks. As a result, they were late by one week and the quotes were not able to provideon time.
APC received quotation from others competitors and therefore cancelledthe National’s deal. National realized their mistake and decided to implementproject management on the future projects.