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Monday, December 1, 2008

Robert Weiner, President & CEO, PAS Technologies

When Gridiron Capital LLC acquired PAS Technologies Inc. from Praxair in 2006, it knew it had to improve customer service. Key to that effort was selecting as its president and CEO Robert Weiner, an expert in Lean Six Sigma and former executive with Pratt & Whitney and GE, among other companies. PAS Technologies adopted Lean Six Sigma processes and has received the Global Six Sigma & Business Improvement Award. Headquartered in north Kansas City, Mo., PAS Technologies provides repair and overhaul for aircraft engine and airframe components, as well as materials management. It operates in eight locations, including in Ireland and Singapore.

AM: What problems did PAS Technologies initially face?

Weiner: We inherited quite a few. Successive operations were distant from one another, and we had excessive inventory, minimal total productive maintenance and few visual controls. The flow lines became bottlenecks and stagnate pools, backlog was one to two months, and on-time delivery averaged 50 to 60 percent. Also, manufacturing costs were difficult to control. Focusing on two critical areas, turnaround time and on-time delivery, we achieved a 180-degree reversal from the company’s poor performance in July 2006.

AM: There must have been an urgency to remedy the situation.

Weiner: We had to go lean quickly. We assembled a management team of big-company veterans. The challenge was to change PAS Technologies’ culture from that of a major corporation into a nimble, customer-focused, quick-moving company. My slogan was to "think like a big company but act like a small company."

AM: Tell us about your effort to be lean.

Weiner: Just two weeks after becoming PAS Technologies, we assembled a team of lean experts, including senior management and outside consultants, along with key managers. They met in Kansas City for the initial, intensive Lean Six Sigma training. During the first two months, we conducted five training sessions involving 15 percent of our workforce. We selected employees from all levels of the organization.

They became the nucleus of the Lean Six Sigma teams for each product line and leaders in Kaizen events at their facilities. We provided them with all of the tools required: consultants, training, individual empowerment and team rewards, along with unwavering leadership by our management team.

PAS Technologies became lean in just six months. Normally, training in smaller groups over a longer period of time, it would have taken 12 to 18 months.

AM: Can you explain employing Six Sigma and lean principles.

Weiner: Independently, lean principles and Six Sigma can be powerful tools. Integrate them, and you get a balanced approach. Lean methods helped realize the early dramatic improvements in turnaround and on-time delivery. We look to Six Sigma’s data-driven methods to analyze specific quality or performance issues. Some companies use only Six Sigma as their primary program; here it is one of the tools in our lean methodology.

AM: Give an example of a lean process at PAS Technologies.

Weiner: On our carbon-seal product line, prior to a Kaizen event, the team reduced wait times and rework, and made flow in the shop more visual. However, the process plateaued at around 18 to 20 days. The team then created a U-shaped process that accommodates four different work scopes. Now it is on track for zero waiting time, zero inventory, internal customer "pull" instead of "push" system, and cutting batch sizes. This product’s turnaround time is now 15 days compared to the industry standard of 30 days.

Another success story resulted when employees tackled the backlog of parts waiting for repair in the compressor blade shop. They broke the repair process into five cells, each with specific value-added steps. The process pulls parts in rather than backing them up in queues. A color-coded system informs everyone of daily workflow. The changes reduced turnaround time from 25 days to 15 days or less.

AM: How have lean principles affected your bottom line?

Weiner: Thanks to Lean Six Sigma, we’re managing an increased workload while maintaining the same number of hourly production workers. In 2008 alone, we are estimating a 26 percent improvement on sales per employee compared to 2007.

AM: Do you expect sustained growth in your business?

Weiner: PAS Technologies has experienced nearly 35 percent annual organic growth, or increased revenue, in just over two years. In addition, our efforts to diversify markets and the product mix are bearing fruit.

Ultimately we plan to grow PAS Technologies 10-fold, which means sustaining this new level of performance and new way of life as a lean, customer-driven organization. It’s a remarkable turnaround story.