A Case Study on Improving Business Performance through Innovative Project Management Practices

Abstract

The automotive industry is characterized by rapid growth, high competition, and the need for efficient project management. As companies expand and take on more complex projects, organizational restructuring and improved resource management become essential to maintain operational efficiency and competitiveness. In this context, effective management of projects and project resources plays a crucial role in improving business performance. This study aims to analyze the effectiveness of project management and resource management in supporting company performance. It also seeks to examine how organizational restructuring, particularly the establishment of a dedicated project office, contributes to improving efficiency and competitiveness in the automotive sector. The research was conducted using a case study approach in a Batam company operating in the automotive industry. The company employs approximately 200–270 employees, including around 110 employees in management roles. Data were collected by examining company performance, organizational changes, and project management practices following the acquisition of a major project in 2018. The findings show that the acquisition of a major automotive project—representing approximately one-third of the company’s annual turnover of IDR 25,000,000—triggered organizational restructuring. The company established a separate and independent project office dedicated to automotive projects. This restructuring improved the efficiency of project teams, optimized the management of project resources, and reduced operational costs. The study concludes that effective project management supported by organizational restructuring can significantly enhance company performance. The creation of a specialized project office enables better coordination of resources, improves efficiency, and reduces costs, thereby strengthening the company’s competitiveness in the global automotive market