Answer Happy

Como Tool and Die (B)¹ By 1987, Como had achieved partial seccs in implementing project manage Lead ws were reduced by 10 percent rather than the target of 25-35 per cental resources were reduced by only type time and cost was 15 percent cathe Como's automotive customers were not pleased with the show progress and relatively immature performance of Como's project management system Charge was taking place, but not fant enough to placate the cutones. Como was on tar pt according to its thirty six month schedule to achieve some degree of exced lence in project management, but would its customers be willing to wait another two years for completion, or should Como ty is accelerate the schedule? FORD INTRODUCES "CHUNK MANAGEMENT In the summer of 1997, Ford announced to its suppliers dut it was establishing a "chonk management system All new vehicle metal siruch would be divided into de or four major portion with each chous supplier de. chunk manager) Festions.com responsible for all components within that portion of the vehicle. To mluce lead time at Ford and to gain supplier commitment, Ford announced that advanced placement of new work (e, chunk managers) would take place without compes itive bidding Target agreements on piece price, sooling cost, and lead time would be established and equitably negotiated later with vahe engineering work acknowledged Chunk managers would be selected based on superior project management capability, including program management skills, coordination reposibility, de sign feasibility, prototypes, tooling, testing process sampling, and start of pro duction for components and subassemblies. Chunk managers would function as the second ter component suppliers and coordinate vehicle build for multiple different vehicle projects a varied stages in the developers-tool-launch process.
STRATEGIC REDIRECTION: 1997 Ford Motor Company stated that the selection of the chunk manages wodd o take place for another year. Unfortunately, Como's plan would not have been completed by then, and is chances t managt slot were s achieve excellence awarded a chunk The automotive division of Como was now at a critical junction Como's management believed that the company could survhe low level supplier of parts, but it growth potential would be questionable. Chunk managers might find it cost-effective to become vertically integrated and produce for themselves the same components that Como manufactured. This could have devastating res for Como This alternative was unacceptable The second alternative required that Como make it clear to Ford Mo Company that Como wished to be considered for a chunk manage contract. If Come were to be selected, then Como's project management systems would have to Provide grair coordination activines than previously anticipated Integrate concurent engineering practices into the company's existing methodology for project management Decentralize the organization so as to enhance the working relationship Plan for better resource allocation so as to achieve a higher level of effi ciency Force proactive planning and decision-making Drive out waste and lower cost while improving on time delivery There were also serious risks if Como were to become a chunk manager. The company would be under substantially more pressure in meet cost and delivery targets. Most of its resources would have to be committed to complex coordina tion activities rather than new product development. Therefore, value-added ac tivities for its customers would be diminished. Finally, if Como failed to live up to its customers expectations as a chunk manager, it might end up losing all a tomotive work The decision was made to inform Ford of Come's interest in chunk manage ment. Now Como realized that in original three year plan for excellence in proj ect management would have to be completed in eighteen months. The question on everyone's mind wa "How?" QUESTIONS 1. What was the driving force for excellence before the announcement of chuck management, and what is it now? 2. How can Como accelerate the learning process to achieve excellence in project management? What strpn should management take based on in learn ing so far? 3. What are their chances for success? Justify your answer 4. Should Como compete to become a chank manager? 5. Can the decision to become a chunk supplier change the way Como perform strategic planning for project management? 6. Can the decision to become a chunk supplier came an immediate change Como's singular methodology for project managresent? 7. If a singular methodology for project management already exists, then how difficult will be to make major changes to the methodology and what type of resistance, if any, should managemine expect