Integrated business planning boosts Watts Industries
1 min read
The Italian operation of valve manufacturer Watts Industries has dramatically improved customer service levels, with on-time-in-full (OTIF) performance increasing from 68-72% to a sustainable 95%, and has cut inventory days from 85 days to 59 thanks to an Integrated Business Planning (IBP) programme that is now being rolled out across the group's European operation.
Umberto Ferretti , managing director of Watts' Southern Europe & Central Region, said of the project that resulted in the award of 'Class A accreditation' from the business improvement specialists, Oliver Wight who facilitated the initiative: "Thanks to IBP and Class A, I can directly attribute 300,000 Euros of savings in production, including waste elimination from processes. In addition, the German operation has been able to reduce the value of stock held by four million Euros."
Watts' Italian operation – one of the most important in its European and global organisations – engaged Oliver Wight, to help shape a new business management process after recognising inefficiencies in its supply chain, particularly when serving internal customers. The Italian operation is the largest producer of valves and components for intercompany use, and its biggest customer is the German assembly plant. Improved business processes between the two operations have dramatically enhanced relations and performance.
Watts Industries Europe has an annual turnover of 330 million Euros, 14 production facilities, 14 sales offices and a workforce numbering 2,000. The global headquarters - Watts Water Technologies Inc - is in Boston USA.
