Success of Mexican plant helps turn tourist haven into manufacturing mecca.
Not long before ITT Industries opened its plant in Guaymas, Mexico, outsiders came to the area mainly for the white sand beaches, marlin fishing, sailboating on the Sea of Cortez and other recreational pursuits.
Those lures still beckon. But today, thanks in part to the success of the plant, vacationers are being joined by an influx of manufacturers who find the business climate equally hospitable.
Fluid Handling Systems (FHS) was among the first wave of companies to locate in this part of northwest Mexico, in the state of Sonora, about 250 miles south of Arizona. The plant, which assembles fuel lines, quick connects, vacuum harnesses and other automotive parts, recently celebrated its 10th anniversary.
What started as a small site with one customer and 37 employees has grown dramatically. Today the facility covers 100,000 square feet, employs nearly 600 people and serves industry leaders such as Ford, Chrysler, General Motors, Nissan, NUMMI and Delphi among others. Annual sales have steadily mounted to account for 10 percent of FHS's revenue.
"The success of this plant and others that came here early on has shown other companies that the area's workforce is stable, dependable and hard working," says plant manager Ricardo Grijalva. While the employee turnover rate at plants near the U.S. border runs as high as 20 percent, here it's only three percent, he notes.
As word got out, the rush to Guaymas was on. Now the Bella Vista Industrial Park where the plant is located teems with two dozen production facilities and 10,000 employees. Now Guaymas means business as well as pleasure, and the standard of living for area residents has improved markedly.
The plant has prospered by respecting and leveraging the values and traditions of the local culture. The emphasis on family is a prime example. Its workplace counterpart, the team approach, keeps driving quality, safety and productivity levels higher.
Team unity is fostered through spirited competitions such as basketball tournaments and altar decorating contests in observance of the "Day of the Dead" on October 31. Monthly Excellence Rallies celebrate zero defects, 100 percent efficiency and other goals. Winning teams receive the ITT equivalent of pesos, "pesITTos," redeemable at Christmastime for bicycles, appliances and other prizes.
"These motivational activities create togetherness and get everyone pulling in the same direction," says manufacturing manager Jorge Federico. "They make coming to work more enjoyable, and that shows up in the quality of our output."
Music, another dominant cultural influence, plays a productive role. Can you name another plant where employees compose and perform songs in support of lean manufacturing? The tunes ring out over the public address system to remind operators to perform the 5-S's (straighten, sweep, etc.) for smooth workflow. "It's another way of triggering awareness and inspiring people to stay committed," says Federico.
The familial feeling extends beyond the plant's walls. Employees participate enthusiastically in community outreach programs. Each month the plant "adopts" a charitable institution, such as an orphanage, to receive food and volunteer fix-up help.
Guaymas' employee involvement methods are gaining best practices status throughout FHS. Though they're rooted in rich native soil, transplanting them should yield positive results elsewhere.
The Guaymas anniversary celebrations included (top) presentations and congratulations from FHS executives and managers, and (bottom) recognition from FHS President Stormy Hicks of 10-year employees like Gabriela Reeves.