Case $8\mathrm{.}2$ Power Train, Ltd$.$

We have smashing systems for reporting, tracking, and controlling costs on design projects.

Our planning of projects is better than any I have seen at other companies. Our

scheduling seemed to serve us well when we were small and we had only a few projects.

Now that we have many more projects and schedule using multiproject software, there

are too many occasions when the right people are not assigned to the projects deemed

important to our success. This situation is costing us big money, headaches, and stress!

Claude Jones, VP$,$ Design and Operations HISTORY

Power Train, Ltd$.($PT$),$ was founded in $1970$ by Daniel Gage, a skilled mechanical

engineer and machinist. Prior to founding PT he worked for three years as design engineer

for a company that designed and built transmissions for military tanks and trucks.

It was a natural transition for Dan to start a company designing and building power

trains for farm tractor companies. Today, Dan is no longer active in the management of

PT but is still revered as its founder. He and his family still own $25$ percent of the company,

which went public in $1998.$ PT has been growing at a $6$ percent clip for the last

five years but expects industry growth to level off as supply exceeds demand.

Today, PT continues its proud tradition of designing and building the best$-$quality

power trains for manufacturers of farm tractors and equipment. The company employs

$178$ design engineers and has about $1,800$ production and support staff. Contract

design projects for tractor manufacturers represent a major portion of PT$$s revenue. At

any given time, about $45$ to $60$ design projects are going on concurrently. A small portion

of their design work is for military vehicles. PT only accepts military contracts

that involve very advanced, new technology and are cost plus.

A new phenomenon has attracted management of PT to look into a larger market.

Last year a large Swedish truck manufacturer approached PT to consider designing

power trains for its trucks. As the industry consolidates, the opportunities for PT

should increase because these large firms are moving to more outsourcing to cut infrastructure

costs and stay very flexible. Only last week a PT design engineer spoke to a

German truck manufacturing manager at a conference. The German manager was

already exploring outsourcing of drive trains to Porsche and was very pleased to be

reminded of PT$$s expertise in the area. A meeting is set up for next month.