s p e c i a l r e p o r tPratt & Whitneyon the prowlAt Singapore’s Asian Aerospace ’98Pratt & Whitney (P&W) president KarlKrapek made some firm predictions.He admitted that until 1997, Pratt had neveroverhauled one of its own JT8D engines.With some 12,000 in service, this was a vastmarket left untapped, which he described as“amazing”. The company, he added, shouldhave attacked it “years ago”.He predicted the after-market wouldprove a growth area for a good five years,into the early years of this new millennium,and that Asian crisis-related deferrals couldfree up factory space that would be occupiedby this expansion.And he added that P&W was now goingout there to claim for itself 10% of thatsizeable JT8D after-market.As Asian Aerospace 2000 neared, P&Wgrabbed a last minute addition to its orderbook from Asia with a 10-year agreementfrom Japan Air System (JAS) for a fleetmanagement programme for their JT8D-200-powered MD-80 aircraft.Previously Ishikawajima Harima HeavyIndustries (IHI) in Japan had done the work.Robert Weiner, P&W’s vice-president engineservices, said they were particularly pleasedto win the contract against strong localcompetition.Signed in late November, the deal offeredcost savings and turn time improvements,which reduced the cost per engine-flighthourfor the customer, said Mr Weiner. Thefleet management programme is based on“power by the hour” with JAS paying perengine flight hour.As part of the agreement, dedicated P&Wtechnical staff are assigned to JAS’s base inTokyo and the engine-maker’s overhaul centreto focus entirely on JAS work.The new agreement covers 63 engines inthe JAS fleet and has an estimated value ofnearly US$150 million.The full-scale overhaul and maintenancework will be performed at P&W’s Columbusengine centre in Georgia, USA, Columbusopened in 1996 and is dedicated to the JT8Dengine family. Since its opening the centrehas handled about 200 engines, 70% of themSIA Engineering: successful joint venture with P&Wduring 1999.“We’re doing very well in Columbus,” MrWeiner told <strong>Orient</strong> <strong>Aviation</strong>. “We’ve done atremendous amount of work implementingflow lines and reducing our turn time. In fact,turn time is down to 45-50 days. We’re doingabout 15 8Ds each month and we’ll ramp thisup significantly over the next few years. We’llat least double last year’s total in 2000.”Mr Weiner said he expected to achieve thetargeted 10% share of the 8D market by theend of this year. However, he said P&W’s 1999share had only been 3% to 4%, which clearlyunderlines the benefits awaited from the ongoingturn time reduction programme.At Asian Aerospace ’98, Mr Krapek contrastedhis company’s strategy to that of GEEngine Services, which aggressively targetsmaintenance work on rivals’ products. “Prattisn’t interested in doing the other guy’s engines... I’ve got plenty of growth in my ownengine market to take care of first,” he said,but added that when P&W take on an airlinewith a mixed fleet of engines, it will handlerivals’ powerplants.Now it seems that P&W is taking moreinterest in competitors’ engines and thatis what has happened in Singapore. P&Wbought a 51% stake in SIA Engineering’sengine overhaul business in 1998 and amongthe 240 engines handled last year was its firstheavy overhaul of a rival engine.The first CFM56-5 went through theshop in November, although the companyhad handled light overhaul of the engine theprevious year. Now it is handling two heavyoverhauls each month and is beginning tolook for third party CFM56-5 clients andpossibly a repair capability“That’s our first non-Pratt engine andit won’t be the last!” said Mr Weiner. “TheSingapore joint venture is the first step. Nowwe’re looking at many other opportunitiesaround the world to go well beyond theCFM56-5. We already do a fair amount of GEand Rolls-Royce engine repairs and we’ll beexpanding that, too.”The Singapore joint venture was originallyregistered under P&W’s old Eagle Servicesbrand name and it still goes by that title, eventhough the rest of the business switched toPratt & Whitney Engine Services last year. Like66 | <strong>Orient</strong> <strong>Aviation</strong> | February 2000
the rest of its global business, the Singaporecentre employs flow lines to boost quality andturn-around times.“Flow lines are unique to P&W. We firsttested them in our military manufacturingbusiness. We used to take 72 days to builda military engine, but with flow lines it wasdown to just 17 days by the end of the year.We took the same concept and applied it tothe overhaul world,” said Mr Weiner.The standard approach was for an engineto sit in a bay while the mechanics came inwith their tools and a bin for parts. They tooka bunch of parts off and then the tools andparts went out and the mechanics fetchedmore tools for the next operation. Everythingcame in and out of one bay. Flow lines aredifferent.“It’s more like a Toyota or GM assemblyline ... the engine moves from one station toanother so there is five stations to tear downan engine and each station has dedicatedmechanics, dedicated tooling, dedicated partrack, dedicated everything. Every day, every 22hours roughly, the engine moves to the nextstation. After disassembly the sixth station isre-assembly so it’s everything in reverse.”According to Mr Weiner the flow linemethod requires significantly less shop space,because in the bay concept you have to havean individual bay for every engine in process.“In flow line there’s no limit to volume. Whenvolume increases you just turn up the speedand put more people on them. Flow line isdependent solely on your manpower.”Instead of moving every 22 hours, increaseddemand would mean engines hadto move down the chain every 11 or even5 hours. But even with flow lines, turn timeimprovements cannot surely continue indefinitely?Mr Weiner disagrees.“In my view the limit becomes just the‘touch-time’ on an overhaul or repair. Whenwe started on turn time reductions, a statortook about 50 days. We are on about 25 daysnow. But the ‘touch-time’ on stators is probablyonly about 1.5 days, so the limit becomes1.5 days. When you get down to 1.5 days youcan implement process improvements too.There’s a long way between where we arenow and reaching ‘the end’.”Although 1999 was Singapore’s first fullyear of operation improvements have beensignificant. “We reduced turn time significantlyon the PW4000s. We were overhaulingthem in a little over 50 days at the end of theyear. It was more than double that when wetook over.”Such productivity increases are openingup capacity in the 800-worker shop. P&W isaggressively seeking third party business ina shop that was once purely handling theSingapore Airlines fleet.Flow lines for the JT9Ds also are inprogress, through which Mr Weiner wantsto funnel the Asia-Pacific fleet. “There’s stilla good market there for JT9Ds,” he said.Flow lines for the CFM56 engine will also beintroduced this year.Last year there were rumours of a planfor a P&W joint venture for the JT8D andV2500 in mainland China, but Mr Weiner putthem into perspective. “We are expandingextremely quickly right now, so we’re lookingat overhaul facilities all over the world,including possibilities in China.”A busy P&W sales team also recentlysigned contracts with Asian carrier Air Maldivesand Aloha Airlines in Hawaii. Air Maldivesopted for a US$30 million powerplantJapan Air System: signed a 10-year deal with Pratt & Whitneyfleet management programme as part of itsplan to expand its mixed PW4000 / JT8D drivenA310-300 fleet. P&W will provide a completearray of off-wing maintenance and engineoverhauls under a five-year agreement announcedlast December.Earlier in the year Aloha Airlines choseP&W’s Columbus centre for overhaul and repairof its JT8D engines and engine modules.John C. Buckingham, vice-president maintenanceat Aloha, said he was pleased the OEMwas now involved in JT8D MRO. “As a smallerairline we count on our ability to develop integral,mutually beneficial relationships withour vendors.”The engine services division has becomeincreasingly important to the P&W bottomline. By 1999, Mr Weiner said it brought in“over US$1 billion” – excluding parts – comparedto about US$200m annually in themid-nineties.“We have come a very long way in justa few years as a truly full-service engine supplier,”Mr Weiner added. “These airlines andothers like British Airways, America West,Delta and American Airlines are seeing thevalue we can bring to their operations as wemove from being simply a supplier of enginesand parts to an integrated partner in managingairline engine fleets.”The P&W vice-president also was keento set the record straight on his division’s sizecompared to rival GE Engine Services. “Whenyou compare overhaul and repair work ofPratt & Whitney Engine Services with GE EngineServices we are very close. If you includeUnited Technologies Corporation aerospaceservices [Pratt & Whitney, Pratt & WhitneyCanada and Hamilton Sundstrand] we’reslightly bigger than GE.”Mr Weiner was tight-lipped about whatannouncements are in store for February’sAsian Aerospace, but more third party contractswould seem to be a good bet. “Lastyear we reduced turn time by an average 50%across the world. This year we plan to do thesame, becoming the fastest across the worldon all our overhaul and repair businesses.“That sets the stage for P&W to go outand really grow the business. We’ve packagedour services so that we are really a full serviceprovider to the airlines through flight managementprogrammes and material managementprogrammes. This year promises furthergrowth and programmes in place in the worldwhere we’re not at today.”February 2000 | <strong>Orient</strong> <strong>Aviation</strong> | 67