The document summarizes improvements made to the materials department of a manufacturing plant in Reynosa, Mexico from 2006 to 2007. Key changes included implementing a phased approach to introduce quick fixes, improving inventory control through reference locations and cycle counting, emphasizing training, creating production control systems to eliminate duplicate production, implementing lean tools like visual management and kanban systems, and developing capacity planning tools. These changes helped reduce inventory levels, open purchase orders, and duplication while improving accuracy, visibility, and decision making.

1. Accomplishments Materials Department Pentair – Water Reynosa, Mexico February 2006 to April 2007

2. Reynosa: February 2006 to April 2007 Initially, the situation was so desperate that improvements were implemented in phases; introducing “Quick Fixes” in each area allowed time for more permanent solutions to be developed. Phased Improvements

5. Accuracy Tracking The net adjustments during this time period (2006) were all positive. There had been a large inventory correction during a physical inventory in August as we re-set all the inventory levels. For months afterward we were in constant communication with the Engineering group in California fixing incorrect labels on boxes of component parts. An October 2007 physical inventory resulted in a 99.12% net adjustment (91.3% absolute).

6. Location Accuracy Control The table above shows data collected early in the implementation of location counts (2006). During the following months, the table turned to nearly all green.

7. Emphasis on Training My rule was that, if need be, we’ll repeat the training with any individual up to 3 times before finding them a new position. It was fairly typical that we needed to repeat the training at least once with each worker – often twice. It was rare that someone failed to get the message after the second or third retraining that we were serious about making change.

10. Queue – Load Analysis Created visibility into the amount of work at the plant. Prior to this, there was no way to see and understand trends in order to make decisions about staffing levels in Operations.

12. Created Rough-Cut capacity reports which could be automatically updated, creating visibility to what was happening at each work center both current and in the coming 4 months. Rough-Cut Capacity Planning Detail Pool Items cross-referenced to Reynosa work centers Rough Cut Capacity information by Cell. Updated daily All demands integrated

14. Inventory Turns & Inventory Levels The introduction of the web-based Kanban system and the elimination of blanket orders and uncontrolled e-mail ordering had an immediate and sustained impact on inventory levels. Inventory levels at the plant dropped by $3 million. The decrease was sustainable even as sales volume increased.

16. The Materials Team Reynosa 2006 Andre Fleury, Plant Manager; Sandra Esparza, Planner; Claudia Garza, Buyer; Ricardo Gongora, Planner; Tim Bina, Materials Manager; Enrique Villarreal, Shipping Receiving Supervisor; Elizabeth Varela, Inventory Control Supervisor. Jan 2008 note: Except for Elizabeth (who found a job outside Pentair as a Materials Manager) and myself, this team is still in-tact in Reynosa despite high turnover levels in the city. The skill level among this group of employees is as strong as anywhere in Pentair. Jeff Henson, who I interviewed and recommended as my replacement, is now the Materials Manager and is continuing to lead improvement efforts in both Reynosa and North Carolina.