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Nibco

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130 views

Nibco

cvbn

Uploaded by

niranjanusms
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 17

Larissa Guijosa Myra Flores

Angelica Valdez Justin Lang Carlos Martinez

In 1904, NIBCO opened its doors in Elkhart, Indiana, and was named Northern Indiana Brass Company. At that time, NIBCO was known simply as a brass foundry. Today, this privately owned Midwest-based company has expanded into 12 separate manufacturing facilities throughout the United States and in Mexico and Poland, with a diverse range of flow control products For nearly a century, NIBCO has offered an unsurpassed line of quality flow control products. NIBCO's metal and plastic fittings, valves and actuators, and its Chemtrol line of industrial plastics are used in residential, commercial, fire protection, industrial and irrigation markets worldwide. Through its recent acquisition of California-based TOLCO, NIBCO has expanded its breadth of line to include pipe hangers and fabricated supports, seismic bracing, framing channels and fittings for many of the same markets

MISSION STATEMENT
To stay 'Ahead of the Flow' in today's marketplace, NIBCO combines experience, leadership, and values to provide quality products and services that customers can count on every day.

PRODUCTS & SERVICES

Metal Valves & Fittings: BLYTHEVILLE, AR (2) IBBM and quarter-turn valves NACOGDOCHES, TX bronze pressure rated valves SOUTH GLENS FALLS, NY plumbing valves, cast bronze fittings STUARTS DRAFT, VA copper fittings Plastic Pipe, Valve & Fittings: GREENSBORO, GA ABS and PVC plastic fittings GOSHEN, IN ABS and PVC plastic fittings DENMARK, SC CPVC pipe and fittings, Schedule 40 PVC fittings Industrial Plastics: CHARLESTOWN, IN (2)

thermoplastic pipe, valves and fittings

Pipe Hangers, Pipe Supports, Seismic Bracing: CORONA, CA HOUSTON, TX Distribution Centers: ATLANTA, GA COLUMBUS, OH ELKHART, IN LODZ, POLAND LOS ANGELES, CA Overseas Manufacturing: LODZ, POLAND (2) CPVC Fittings, PVC & CPVC pipe REYNOSA, MEXICO plumbing valves

COMPANY PROFILE
Company Type 1-Year Sales Growth Employees (2002) Sales (2002) Private 4.5% 3,500 $420 million

ANNUAL SALES
440 435 430 425 420 415 410 405 1999 2000 2001 2002

Industry Competitors
MLI AICO.OB Pvt1 WLV Industry Market Cap: Employees: Rev. Growth (ttm): Revenue (ttm): 1.07B 3,500 42.69M 2,315 35,001 93.20M 3,199 227.20M 941

4.80% 999.08M

-26.40% 424.63M 420.00M1

-5.60% 596.32M

0.90% 166.42M

AICO.OB = Amcast Industrial Corp Pvt1 = NIBCO INC. (privately held)

WLV = Wolverine Tube Inc


Industry = Machinery & Tools
1

= As of 2002

Strengths

Large established customer base. ERP packages were evaluated by strengths and weaknesses. Continuous contact with top management. Benchmarking done on the ERP implementation. The close quarters they were working in forced them to worked closely with each other and solve problems quickly.

Weaknesses

Old legacy systems could not talk to each other. They did not properly take into consideration of the DCs (warehouses) current consolidation project. IBMs change management approach is not ERPspecific. Triad leadership design was not optimal for decision making said consultants. Long hours could cause morale problems.

Opportunities

Nibco needs to seriously addres the consolidation of their DCs and the concurrent implementation of the ERP system. Nibco needs to follow through this project to completion quickly, since they have learned that the go-slow approach has failed for others in their industry. They must provide for their DCs proper instruction on what the new chain of command will look like so that communication between headquarters and DCs do not suffer.

Threats

This project must be completed by year end 1997, which can cause workforce strain. Nibco can be harmed because current company initiatives would have to be put on hold during the system deployment. Employees must be up-to-speed with R/3 before the Go-Live date. Since IBMs change management is not ERP specific this may cause future slowdowns during the implementation of the ERP package.

Questions

Would it be better for Nibco to implement this new IS system quickly or use the go-slow approach? Is it a good idea for Nibco to insist on the Triad style leadership? Would it be feasible for Nibco to sacrifice customer satisfaction for the proper implementation of the ERP system? Was it a good idea for Nibco to implement the ERP system during the consolidation of their smaller warehouses into larger DCs?

Company Update

Implemented an Enterprise Resource Package (ERP) system in 1997 which enabled the launch of several websites, advanced utilization of Electronic Data Interchange (EDI) and Vendor Managed Inventory (VMI), and the introduction of a customer self-service website NIBCOpartner.com.

Company Update (cont.)

We rolled it out on Jan. 1, 1998, but getting there nearly killed us. We had at least 150 people assigned full-time to the project, and we brought it in on time and on budget. Our cost was $18 million, including training time, consultant time and our time. Our service to customers diminished during that time, but the pain was worth it. We're upgrading every 18 months or so, but that's easier.

Company Update (cont.)

We've done EDI with our retailers, such as The Home Depot, because they said, "You do EDI or you will not do business with us," but 85 percent of our sales are to plumbing wholesalers that are not technologically advanced. With technology costs getting lower, we think wholesalers will catch up. When they do, they'll be able to check for stock on our Web site.

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