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Illinois Tool Works Inc. Message Board

  • soonersnoone soonersnoone Feb 2, 2013 9:49 PM Flag

    Talk about Dumb Ideas?

    Back when Shakeproof had over 1000 employees the reason they started spliting them up was due to poor service, poor quality and high costs. Now we what to go back to that time(Late70's) and think we can lower management cost and reduce the purchasing cost. This idea is so juvenile what will really happen it will be like Shakeproof all over again. Back in the 60s it didnt matter how knowledgable you were about the product it was more important if you were a great bowler, softball player etc.

    Sentiment: Sell

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    • The reason Shakeproof was "split up" was to drive more innovation, and customer engagement in product, segments and markets that had growth opportunities beyond auto and industrial. A way to focus and experiment(innovate). There was no quality and service issue, infact it was a time of phenominal growth.
      The new initiative is focused on the cost and efficiency of supply chain, elimination of redundant support functions (costs), and optimization of the businesses portfolio, to drive higher margins in a tough environment. Decentralization is still mantained, 80/20 lives, innovation is still core to ITW culture and strategy.Don't think you remember things the same way I do.

      Sentiment: Hold

      • 1 Reply to dltd2000
      • Phenominal Growth-Is that why they had to shutdown the Russellville KY Plant. I knew employees who were losing there Jobs with over 20 years.
        No quality problems- Only windows falling out of tall buildings in Chicago.
        Service issues- if you were willing to wait 16-20 weeks to get something made.
        Decentralization cannot be maintained with divisions of over 1000 people.
        Innovation occurred due to smaller divisions not larger but I understand you drank the koolaid.

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