Apache Metals, Inc.

Apache Metals, Inc., serves as an original equipment manufacturer of metalworking equipment,

predominantly supplying the automotive, appliance, and building products industries. Each

production line is meticulously crafted to suit specific applications, industries, and customer

demands.

Historically, project managers have been allocated to purchase orders only after the sales

department secures a signed contract. These managers could be sourced from any department

within the company, resulting in a flexible but somewhat inconsistent approach to leadership.

Often, individuals with little experience were entrusted with managing multiple purchase orders

simultaneously, leading to inefficiencies and cost overruns. This lack of emphasis on project

management once resulted in a significant decline in sales and average cost overruns of $2025$

percent per production line.

In January $1997,$ the board of directors appointed a new senior management team tasked with

elevating the organization's project management practices to excellence. This initiative

involved augmenting the project management team through strategic recruitment and careful

evaluation of existing personnel, with a focus on individuals possessing strong interpersonal

and communication skills.

Several measures were enacted to enhance the quality and efficacy of the project management

system:

$$ Implementation of external training programs for project managers

$$ Establishment of an apprenticeship program to cultivate future project management

talent

$$ Modification of the prevailing methodology to prioritize the role of the project manager

$$ Increased involvement of project managers in customer interactions

Discussion Questions:

$1.$ What shortcomings do you identify in the previous method of assigning project

managers?

$2.$ Will the revised approach implemented in $1997$ propel the company toward project

management excellence?

$3.$ What skill set would be optimal for prospective project managers at Apache Metals?

$4.$ What broader cultural considerations should be taken into account when striving for

project management excellence?

$5.$ Can you speculate on the long$-$term effects of these initiatives on Apache Metals, Inc.$\text{'}$s

performance and competitiveness within their industry?