PPMP20009 Project Management Methodologies
Term 2, 2017 Assessment 4 (Individual Work)
Case study: Continuous Improvement
Latino Engineering is a midsize company with about 300 employees located in New South Wales, Australia. It provides design, development and manufacturing of specialist engineering equipment for various industries
(oil & gas, utilities, construction and infrastructure). It was founded by Dominic Latino, a mechanical engineer passionate about designing and developing engineering equipment. Dominic has many patents for the engineering equipment that he has designed over the years. The company has been operating for almost 30 years and has good clientele. Most of the clients have a very high regard for Dominic’s professionalism and quality of work. Due to its reputation, Latino Engineering became a much sought after company. Many contracts were awarded and overall, profitability was soaring. This attracted many investors who either wanted a stake in the company or to buy it entirely. Dominic had many offers to evaluate either to sell in part or as whole. He knew that if he allowed other shareholders into his business, he would lose full authority in major decision making and strategy development for his company. Furthermore, he is not used to taking instruction from others as for the last 30 years, he has been the sole decision maker for the company. Considering this, Dominic decided that he will only sell the company outright and then retire.
group took the opportunity and purchased Latino Engineering for a sizeable amount. The investors decided to maintain the name of the company so as to ensure continuity and avoid disruption to its clientele. Dominic, after spending 30 years in his company, has decided to call it quits at the age of 65. The company retained most of its workforce, but some senior engineering folks decided to seek other opportunities.
The crack is appearing 12 months after the take cover, Latino Engineering began to receive many complaints from its clients. The complaints were: i. Defective engineering equipment ii. Poor design and development follow up with clients iii. Too long turnaround time for issue resolution iv. Non responsive customer service team v. In some cases, wrong engineering equipment was packaged and delivered to clients Management response
Senior management was surprised at the decline of quality in the company. While they had retained most of the workforce to ensure minimal disruption to work processes, customers are still not happy. To arrest the situation,
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