TRANSBACO

SteelStream Bottles is a Nevada-based manufacturer of premium stainless steel water bottles, serving the Professional, Executive, and Artisan markets. For years, the company relied on a single European mill for its high-grade steel, managing a steady 25% Tariff on imports. However, the air turned cold when a flash report hit the CEO’s desk: a new trade policy was set to double that burden, threatening the company’s entire financial structure.

As the PM for this initiative, here is a summary of the process:

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The Incident

The fluorescent lights of the Nevada plant hummed. Marcus, the Chief Executive Officer (CEO), stared at the monitor. $1.3 million. That was the monthly loss from scrap alone. Behind him, the “Professional” line hissed, spitting out another deformed steel bottle—the 150,000th defect per million (DPMO) or 15% scrap rate. Marcus, as an Executive Sponsor decided to appoint a Business Transformation Team and PM.

“It’s a disaster, Marcus,” said Elena, the Chief Financial Officer (CFO). She dropped a folder on the desk. Inside, a bold stamp confirmed the nightmare: NEW TARIFF IMMINENT. Between the 15% Steel Scrap Rate and the rising duties, SteelStream was moving toward a total shutdown.

The Stakes

“If we don’t fix this in 90 days,” Elena warned, “the banks will trigger the Covenants.” These are formal legal agreements in our loan contracts that require us to maintain certain financial health ratios. If we fail, the banks can demand immediate repayment of all debt.

As the PM, I immediately felt the pressure of the Project Management Institute (PMI) triple constraint: Scope, Time, and Cost. If we couldn’t figure out how to deal with the tariffs, the industry—and our readers—would lose an iconic example of great American manufacturing.”

The False Lead

“We just need to raise prices,” suggested the sales team.

Julian Chen, the FP&A Lead, shook his head. “If we raise prices, we lose our Executive clients to cheaper plastic alternatives. The answer isn’t in the price—it’s hidden in the Landed Cost.”

Landed Cost is the total cost of a product once it reaches the customer’s door. And ours was bloated.

The Realization

The “Aha!” moment came at 2:00 AM. Alistair, the Open Group Architecture Framework (TOGAF) Architect, studied the Business Architecture.

“We aren’t just a bottle company,” he realized. “We are a data-processing business that bends steel.”

The truth was brutal:

We were paying a tariff on waste.

With a 15% scrap rate, we imported 100% of the steel but only sold 85%.

We were effectively paying taxes on material that ended up in a bin.

The Digital Twin

To solve this, Alistair built a Digital Twin—a real-time virtual replica of the entire manufacturing process. It allowed the team to simulate tariff hikes, machine failures, and sourcing changes before touching a single machine.

Against the Clock

“Day 45 of our 90-Day Turnaround,” barked Sarah, the Operational Excellence (OpEx) Lead, standing on the Gemba—the place where the work happens.

“Every hour we wait, another $1,800 vanishes.”

She launched a Six Sigma DMAIC strike (Define, Measure, Analyze, Improve, Control). This data-driven improvement cycle must be used for optimizing processes. Indeed, if we couldn’t stabilize the line, the Digital Twin would only be simulating our failure.

The Strategy

While the competition scrambled, the team pulled a non-obvious move.

The SteelStream Supply Chain accelerated a Foreign Trade Zone (FTZ) approval already in progress. An FTZ is a secure area considered outside U.S. customs territory for duty purposes, enabling duty deferral and tariff engineering.

Our Supply Chain & Legal also implemented the First Sale Valuation (FSV), that is a legal mechanism reducing the duties by using the manufacturer’s price.

The Data Engineer upgraded the machines with Jidoka—smart automation or autonomation- that stops production the moment a defect appears, preventing waste of expensive steel.

The final piece was when Fiona, the Supply Chain Director, shifted sourcing to Mexico. Mexican steel met the United States-Mexico-Canada Agreement (USMCA) melt‑and‑pour rule, qualifying for 0% duty.

The Victory

The “Professional” bottles product line roared to life. The scrap rate plummeted to 3.4 DPMO—Six Sigma precision.

Julian confirmed the win: an 11.6% improvement in Landed Cost.

Harmonized Tariff Schedule (HTS) codes were no longer classified manually. The data engineer, Kavi ’s Internet of Things (IoT) sensors fed the Digital Twin, enabling predictive trade modeling and real-time landed-cost forecasting preventing to damage profitability.

SteelStream was transformed.

The Future

The tariff crisis was only the first battle. As the CEO reviewed the new dashboard, a notification pinged: New Carbon Border Adjustment Tax Proposed.

The system was ready. But the work never ends.

Through Kaizen, the team succeeded in implementing continuous improvement —small, daily changes that keep the engine tuned.

🚀 The “Resilience” Synergy Result

By combining the PM, OE, FP&A, and TOGAF methodologies, the conflict was resolved through a shared goal:

The Result: SteelStream achieved an 11.6% net improvement in landed costs and 0% tariff.

The Triumph: The company is now lean enough to absorb future trade shocks without raising prices for its “Professional” and “Executive” customers.

Alejandro Velasco, CC BY, February 19, 2026