"Located in Hamilton, Wise Technologies is a $$850$ million chemical and materials operation, employing $950$ people. The plant has two distinct manufacturing product lines: industrial chemicals and building materials. All projects originate in construction or engineering but usually are designed to support production. The engineering and construction departments have projects that span the entire organization directed by a project coordinator. The project coordinator is a line employee who is temporarily assigned to coordinate a project in his line organization in addition to performing his line responsibilities.

Assignments are made by the division managers $($who report to the plant manager$)$ and are based on technical expertise. The coordinators have monitoring authority only and are not noted for being good planners or negotiators. The coordinators report to their respective line managers.

The project coordinators then arrange for the work to be accomplished in their areas with minimum interference from manufacturing forces. In all cases, the coordinators act as project managers and must take the usual constraints of time, money, and performance into account.

Wise Technologies had $30$ projects listed for completion between $2002$ and $2006.$ In the first two years, fewer than $10$ percent of the projects were completed within time, cost, and performance constraints. Line managers find it increasingly difficult to make resource commitments because crises always seem to develop in production.

Profits are made in manufacturing, and everyone knows it$.$ Whenever a manufacturing crisis occurs, line managers pull resources off the projects, and, of course, the projects suffer. Project coordinators are trying, but with very little success, to put some slack onto the schedules to allow for contingencies."

A: We discussed three different organizational structures from a project management perspective. What is the current organizational structure of Wise Technologies? $(1\mathrm{.}5$ marks$)$

B: Considering the high failure rate of the projects in the company, which organizational structure do you suggest to Wise Technologies? Explain your answer. $(1\mathrm{.}5$ marks$)$