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Valmont

Valmont is the global leader in designing and manufacturing poles, towers and structures for lighting and traffic, wireless communication and utility markets, and a provider of protective coating services. Valmont also leads the world in mechanized irrigation equipment for agriculture, enhancing food production while conserving and protecting natural water resources. In addition, Valmont produces a wide variety of tubing for commercial and industrial applications.

On its journey with TOC, Valmont implemented a revised measurement system – based on Throughput Accounting principles – which gave them tangible benefits within three months. The revised approach caused them to examine the true profitability of their product lines and guide some better decisions.

In fact, over the next 12 months, as a result of these decisions sales value went down by 2% - yes went down.

However during the same period:

• Operating expense reduced by 17%
• Net earnings rose by 154%
• Inventory reduced by 40%
• Return on equity rose by 132%

The full Valmont story was documented in the magazine Management Accounting and also in the Production and Inventory Management Journal

©2007 Goldratt UK