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.
An investment 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.
As a project management consultant, you have only three (3) months to correct the situation. You would need
i. Explain how you would go about identifying the root cause (s) by proposing the use of appropriate tools and techniques.
ii. You will propose a plan to eliminate or reduce the root cause (s) taking into considerations the resources that are required.
iii. Develop a continuous improvement plan to ensure the problems and issues are not repeated.You may refer to the knowledge area Quality Management from PMBOK, Prince2 or from any other quality management systems such as ISO9000 series, TQM (Total Quality Management), Six Sigma / Lean Six Sigma etc to devise your continuous improvement plan.