Apache Metals is an original equipment manufacturer of metal working equipment. The majority of Apache's business is as a supplier to the automotive, appliance, and building products industries. Each production line is custom-designed according to application, industry, and customer equirements.
Project managers are assigned to each purchase order only after the sales department has a signed contract. The project managers can come from anywhere within the company. Basically, anyone can be assigned as a project leader. The assigned project leaders can be responsible for as many as ten purchase orders at one time. In the past, there has not been enough emphasis on project management. At one time, Apache even assigned trainees to perform project coordination. All failed miserably. At one point, sales dropped to an all-time low, and cost overruns averaged 20-25 percent per production line. In January 1997, the board of directors appointed a new senior management team that would drive the organization to excellence in project management. Project managers were added through recruitment efforts and a close examination of existing personnel. Emphasis was on individuals with good people and communication skills. The following steps were implemented to improve the quality and effectiveness of the project management system: Outside formal training for project managers, Development of an apprenticeship program for future project managers, Modification of the current methodology to put the project manager at the focal point, Involvement of project managers to a greater extent with the customer.
Question: Will the new approach taken in 1997 put the company on a path to excellence in project management?