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TOC Reference Bank - Valmont/ALS
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ORGANIZATIONAL INFORMATION  < back
Company Valmont/ALS    
Location Brenham - United States.
Company Contact   Mr. David S. Koziol, Controller
Source of Reference 

Management Accounting, May 1988, pp 44-49; Production and Inventory Management Journal - fourth quarter 1991, pp 48-52

IMPLEMENTATION INFORMATION
Name Valmont/ALS
Location Brenham, TX United States
Industry Segment Steel
Implementation Date 1987
Markets and Company Share Utility, Highway, Telecommunication
Products Steel poles from 20 feet to 200 feet for street lights, stadium lights, highways, transmission tower
Systems in use Not selected
WHAT WAS DONE?  
TOC Applications Measurement System, TP applications
WHO DID THE WORK?  
TOC Experts involved  Jeff Wood -
RESULTS OF IMPLEMENTATION
IMPLEMENTATION RESULTS  
Revenue Decrease Sales have fallen 2%
Inventory Decrease Reduced 40%
Expenses Decrease Reduced 17%
Net Profit Increased 154%
Return on Assets Increased 132%
PROJECT PAYBACK  
Months to first visible results
3 months
OTHER BENEFITS  
On-time performance
From 85%
To 95-98%+
Percent improvement 15%
Lead times
Percent improvement 50% plus
Quality improvement Scrap and reject from 15% to 2%
Brief summary From 1986 to 1987, While sales volume dropped by 2%, net earning rose 154%, return on equity rose 132%, inventory turns improved by 39% and operating expenses dropped 17%. Shipments increased to the highest levels in company history, while personnel were still near post layoff levels.