Summary - Wilkins

WILKINS, A ZURN COMPANY; AGGREGATE PRODUCTION PLANNING

Background

Wilkins Regulatory Company (Wilkins), a manufacturer of water control products, was acquired by Zurn Industries in 1971. However, as Zurn merged with U.S. Industries Bath & Plumbing Products Co. 1998, it changed its name to Jacuzzi Brands in 2003.

The Wilkins’s plant, located in Paso Robles, housed manufacturing operations, engineering lab, marketing and sales operations, and offices. Meanwhile, outside sales force consisted of over 70 manufacturer’s sales representatives and 52 service centers providing national marketing coverage and customer service.

Product

Even though Wilkins manufactured 12 different product lines, it specialized in water valves for backflow prevention and water pressure reduction products. The company positioned itself as a low – cost producer with innovative product design and rapid response to market needs and trends.

Backflow products, including plumbing systems in commercial and residential buildings, irrigation systems and water systems for fire suppression, accounted for 60% of the company total sales. On the other hand, pressure reducing valves were considered commodity products with low margins which only accounted for 25% of the total sales.

Pressure Vacuum Breakers (PVBs)

PVBs were a mature product family in the backflow prevention line used in agricultural irrigation systems. They were make-to-stock (MTS) products and available in two series: the 720 and the 420. Wilkins also offered a discount to customers purchasing PVBs early in the calendar year in order to smooth production due to seasonal PVBs’ sales.

Fire Valves

Fire valves were used in single - and multi - story commercial buildings to prevent backflow from the building’s fire control system. Similar with PVBs, demand for fire valves was also seasonal although not as extreme as PVBs. These products were ordered during new building construction which could happen anytime.

INVENTORY

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