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ONTOS CASE STUDY

Merging 3 Manufacturing Facilities: The Case for Pentair Technical Products

The Client
Pentair is a global diversified industrial company employing 14,500 people worldwide with facilities in over 40 countries and $3B revenue. This project involved Pentair’s Mexico  facility, a 350,000 square feet facility with over 1000 employees, that designs and manufactures packaging solutions for electrical and electronic equipment or industrial and commercial equipment.

The Issue
In a difficult economic environment, the company had an aggressive growth strategy which included cutting manufacturing costs through standardizing processes and platforms whenever possible. To achieve this goal, the company’s Mexico facility wanted to bring together three manufacturing plants with different leadership teams, organizational structures and processes to operate as one. This included supply management discipline to keep the operations operating as efficiently as possible. To achieve this, Pentair needed the leadership teams of the respective plants to work together in a more cohesive way to standardize their processes, as well as update their leadership skills in general.

My best experience was to learn to know myself as a leader and myself in the leadership team.
In difficult times, it was the team work that made the difference for us. The results we are now achieving in the plant were due in large part to what we learned from you and reinforced by the plant manager.
The metrics are now being met and the plant is running very well.

– Operations Manager

The Solution
Retained for a one year assignment, we began with data. We gave 16 leaders comprehensive data (in Spanish) on their own style and performance through 360-degree leadership assessments, involving all plant operations in the initiative. As a result from these data and other means, we designed and implemented a customized leadership program to build on the team’s strengths and bring them together in support of one another to achieve the organizational goal of higher efficiency through standardization. Goals were set at the individual and group level, and supported through facilitated group sessions, leadership skills training, one-on-one monthly coaching of every leader (in Spanish), etc. Individual leaders were supported in improving business results through their own functional teams.

I can absolutely attest to our increased maturity as individual leaders, which will help our effectiveness in regards to every change coming at us in the coming year. You have certainly left a footprint on our plant.  Your approach really worked for me.
– Director of Human Resources

The Outcome
The leadership teams of the 3 plants were merged and members cited the leadership work as a contributing factor in their ability to attain the following results:

By the end of that year the site earned the 2010 Manufacturing Excellence Award awarded by Pentair’s CEO to the best plant within their 40 + Water and Technical Products plant locations worldwide.  The award encompassed outstanding results in various areas such as the Pentair Integrated Management System that includes 12 areas related to Operational Excellence and to the Toyota Production System including inventory, productivity, financial results of the plant, culture integration with results,
safety, delivery, and quality among other areas.  Pentair (Technical Products) received a PIMS score of 3.46 out of 4, being the highest scoring plant of Pentair.

The leadership program actually helped to minimize the negative impact
and difficulty of merging the plants together because it gave the leaders
the tools to become more mature and interdependent.
I was even able to apply what I learned on a personal level in my family.
– Lean Manafacturing Coordinator, Plant Leadership Team

The staff started to work more as a team.  Working as a team, we reduced the New Product Introduction process time by at least 25%, reduced the lead time response by at least 30%, and consolidated our different quality systems into one for the whole campus.  Due to the merging of the two divisions, this would not have been possible without your contributions.
– Quality Manager, Plant Leadership Team

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