August
Issue "Precision Manufacturing" Magazine
Interview of WSI President/CEO Mike Pudil."
Preparing
For The Future
The changing face of industry has required those that
serve it to rise to unique challenges. Today's contract
machining customers are searching for reliable, high-quality
suppliers with characteristics that are seemingly
contradictory. Customers are seeking suppliers large
enough to handle major programs during peak demands
with little or no requirements at other phases. At
the same time, they desire vendors with the attributes
of small, lean manufacturers - low overhead, responsiveness
and excellence in customer service. Mark Schumacher,
vice president and general manager of the Taurus Division,
holds a part recently processed on their high-speed
FMS system.
Two
years ago, WSI Industries Inc. began the process of
redefining their entire operation to meet these challenges.
For 50 years, WSI had provided its customers with
contract manufacturing services. Primarily serving
large OEMs, WSI built a reputation for quality work
and timely deliveries. Their Long Lake, Minnesota
manufacturing facility had grown to over 175,000 square
feet. However, Mike Pudil, president and CEO of WSI
Industries, realized that their existing structure
and conventional ways of doing business weren't going
to be enough if WSI wanted to continue to grow with
their customers in the future. "Business has
changed dramatically," says Pudil. "Our
customers' demands have increased because their customers'
demands have increased. In addition to the constant
need to reduce costs, our customers have to be much
more flexible than a few years ago. Fixed long-term
production schedules are no longer realistic. Customers
are demand-flow driven; if their product is selling,
they want our components, if it isn't selling, they
don't want any. In the past, customer's needs changed
every six months or so. That gave suppliers a sense
of stability. Now orders change daily, forcing responsive
suppliers to be demand driven." Pudil realized
that the changes required to position WSI to meet
these new challenges would not be easy - and they
weren't.
WSI
designed a strategy that allows them to provide their
customers with what they need in a new, dynamic climate.
Their strategy was to acquire companies who were leaders
within their industries and had the attributes customers
sought. The newly purchased companies would consolidate
under the WSI umbrella, offering customers the benefits
of a small, lean supplier as well as the advantages
of working with a large corporation. Realizing the
solution, WSI initiated a rigorous selection process.
With its 50-year-old reputation on the line, the company
sought only well run operations that had earned 'Supplier
of the Year' status with their key customers. They
also desired companies with a customer base and services
that were complementary to the existing operation.
In February 1999, WSI brought its first acquisition,
Taurus Numeric Tool, (founded in 1976) into the corporation.
Prior to the acquisition, Taurus' Osseo, MN. plant
had been primarily providing the aerospace, avionics
and defense industries with contract machining and
manufacturing services. Upon acquiring the company,
WSI combined its existing contracts within the recreational
vehicle, power systems and electronics markets with
Taurus' client base, this created a company with efficient,
cost-effective management and a diverse customer profile.
Within one month, Taurus' sales doubled. "You
will not survive in this business if you can't be
responsive to your customer's requirements."
Two
years ago, WSI Industries Inc. began the process of
redefining their entire operation to meet these challenges.
For 50 years, WSI had provided its customers with
contract manufacturing services. Primarily serving
large OEMs, WSI built a reputation for quality work
and timely deliveries. Their Long Lake, Minnesota
manufacturing facility had grown to over 175,000 square
feet. However, Mike Pudil, president and CEO of WSI
Industries, realized that their existing structure
and conventional ways of doing business weren't going
to be enough if WSI wanted to continue to grow with
their customers in the future. "Business has
changed dramatically," says Pudil. "Our
customers' demands have increased because their customers'
demands have increased. In addition to the constant
need to reduce costs, our customers have to be much
more flexible than a few years ago. Fixed long-term
production schedules are no longer realistic. Customers
are demand-flow driven; if their product is selling,
they want our components, if it isn't selling, they
don't want any. In the past, customer's needs changed
every six months or so. That gave suppliers a sense
of stability. Now orders change daily, forcing responsive
suppliers to be demand driven." Pudil realized
that the changes required to position WSI to meet
these new challenges would not be easy - and they
weren't.