How lean manufacturing is transforming DCT Texas
Aug 23, 2026
Last year, Data Center Technologies' production facility in Selma, Texas, nearly doubled its cost-saving target of USD 4 million. Together, employees saved a staggering USD 7.6 million. Behind the result lies a collective effort to build a world-class production facility, guided by the principles of lean manufacturing.
In Selma, Texas, Data Center Technologies (DCT) produces specialized cooling equipment. These energy efficient units are used by the data industry to cool server halls. Each unit consists of hundreds, sometimes thousands, of individual components, creating a logistical challenge for any facility that isn't exceptionally well organized.
Introducing and accelerating the principles of lean
The facility’s journey toward a world-class production line started in 2022 when the production and lean manager attended a course dedicated to lean manufacturing, Lean Six Sigma. Upon completion, employees immediately started the transformation by applying the concepts learned.
In 2024, the transformation was accelerated when the facility hired its current lean manager: Ray Padilla, a soft-spoken Coloradoan who moved to Austin, Texas, 12 years earlier to work for Hewlett Packard (HP).
Earlier in his career at HP, Ray oversaw the test laboratory for the company’s desktop computer division. Through his job, he and his team were tasked to run computer tests in the toughest conditions to create the most durable piece of equipment. Their work won them the prestigious Deming Prize for excellence in quality management. Ray even trained with Dr. W. Edwards Deming, the renowned quality management pioneer whose teachings helped shape modern lean manufacturing and played a key role in Japan's post-war industrial transformation.
Armed with decades of experience in quality management and lean principles, Ray set out to methodically transform the DCT facility.
“You need to optimize the whole, not the parts”
One of the things that Ray learned from Dr Deming is that you need to optimize the whole, not just the parts to create an efficient production line.
Ray used this principle to get the facility from producing three to four cooling units per day without increasing headcount.
“We did this by balancing the whole line,” says Ray. “By dividing the number of working hours, 420 minutes in total, we knew we had to have a product coming off the line every 105 minutes.”
Together, employees optimized every station to deliver a product within the required timeframe and reorganized the warehouse to ensure that every component was available and in the right place.
"What we discovered was that our inventory record accuracy was 60%," he says. "Today, it is 95%."
“Problems are an opportunity for improvement”
In lean manufacturing, problems are not seen as a failure, but rather a deviation from expectations. The Japanese word for it is Kaizen, which means “change for the better.”
To change for the better, Ray believes you have to combine high expectations with education and training.
At DCT, this commitment to employee development has included a partnership with the University of Texas at San Antonio (UTSA) to provide Lean Six Sigma training at three certification levels: Yellow Belt, Green Belt, and Black Belt. Employees are selected for the program based on their demonstrated high performance and leadership potential. To date, 172 employees have completed Lean Six Sigma training, with 43 earning Green Belt certification and 13 achieving Black Belt certification. To obtain certification, Green Belt candidates must successfully complete a tactical improvement project that demonstrates their understanding and application of lean methodologies, while Black Belt candidates are required to complete a strategic project that delivers significant organizational impact.
In addition to this, Ray introduced a book club where employees read books about lean manufacturing and discuss how to improve the line based on their newfound knowledge.
But the training doesn't stop in the classroom. Instead of relying solely on "tribal knowledge" passed from one employee to another, the facility now uses playbooks and visual work instructions throughout the production line. To make this possible, DCT hired a manufacturing engineer dedicated to translating engineering drawings into clear instructions that production teams can easily follow.
The relentless pursuit of perfection
The results can be seen across the facility. Inventory accuracy has improved from 60 to 95 percent. Employees identified nearly 700 improvement opportunities in just 15 months, with a completion rate above 90 percent. Through initiatives ranging from workplace organization and equipment maintenance to warehouse optimization, continuous improvement has become part of everyday work.
When asked what achievement Ray is most proud of, he doesn't mention the figures. Instead, he talks about the people.
"I'm most proud of the employees," he says. "They're learning the techniques, applying them and getting the results.”
The facility still has improvements to make, he says. In true lean fashion, there is no finish line.
His vision is to transform the Selma site into a world-class manufacturing operation through what he describes as a relentless pursuit of perfection.
"People ask what motivates me," says Ray. "It's not money. It is creating excellence. Excellence in processes and excellence in people."
