Ingersoll Rand Makes Materials Management Core Competency

When Ingersoll Rand says it is committed to advancing the quality of life by creating comfortable, sustainable and efficient environments, it attributes this ambition not just to its products, but to the people behind the products—their valued employees.

So in 2010, when—under the new leadership of Chief Executive Officer Mike Lamach—the company set out to realign their focus on achieving operational excellence, it was no surprise that they turned to their employees first.

Goals

• Achieve operational excellence

• Turn materials management into a core competency

• Improve inventory turns, delivery performance and customer satisfaction

Approach

• Deploy company wide work standard based on best practices

• Establish a common language

• Develop people through education and certification

• Partner with operations management authority, APICS, to develop playbook

Results

• 86 percent delivery improvement

• $5.5 million in cost savings over three years

• Inventory turns improved 10 percent; freeing up cash assets of $125 million

• 85+ CPIM-certified materials personnel making three times higher inventory turns

• 200+ employees engaged in training and certification program supporting operational excellence