Rocky Mountain Steel Mills

After implementing Profit InSight, Rocky Mountain Steel Mills (RMSM) recently realized a $34 million profit by developing and continuously improving a market/production strategy for their previously discontinued Seamless Pipe product.

RMSM executives believed that the market would welcome a reintroduction of their Seamless Pipe. They found, however, that using existing, traditional analytical methods to understand the profit implications of Seamless Pipe production was fraught with error and that each complex trade-off created a new scenario for RMSM management to analyze. This ongoing spiral impeded identifying a profitable path forward.

By adopting Profit InSight, as an analytic platform to support strategic planning, RMSM liberated themselves from the limitations of standard industry decision-making tools and separated themselves from the competition.

Using Profit InSight, RMSM identified the profit implications of restarting Seamless Pipe production, the effects Seamless Pipe production would have on the other products produced by RMSM, and the most advantageous production and marketing calendars. Defining and acting on an optimized profit mix scenario, they entered a new, larger, and highly profitable market at precisely the right time.

RMSM continues to use Profit InSight to constantly improve profitability through enhanced management of product mix, production capabilities, market shifts, equipment challenges, and sales channels.

At its 2006 Progressive Manufacturing Summit in Las Vegas, Managing Automation cited Rocky Mountain Steel Mills for superior performance in Business Model Mastery. 

EIS is proud to be RMSM’s change management consultant, and that our flagship product, Profit InSight, was their guiding analytic tool.

Rob Simon, VP and General Manager of RMSM, was invited to participate in a panel discussion on Business Transformation at the Progressive Manufacturing Summit, to tell the story behind RMSM’s success.