Workflows in Project Management

Hi,

We have project execution which works like an assembly line production. For e.g. the first department works on certain tasks in the project and once completed they send it to the next department through lotus notes using custom workflows. We are looking to replace custom workflows legacy system with Project Management. Please let us know if this kind of functionality is supported or can be built in Project Management module. We are also open to the possibility of looking at Agile PPM if  it meets these requirements better.