...Otis and the Central Role of Information and IT May 18, 2011 I. Key Business Objectives Bousbib developed several key business objectives in response to the changing operational landscape of elevators, escalators and moving walkways industry. No longer would Otis be considered an “old-line industrial company.” Among these key initiatives and changes were: * Vision: Become the “recognized leader in service excellence among all companies – not just elevator companies – worldwide.” * Culture: Change the norms, values and processes of Otis – how they do business – so that the company focus shifts from a manufacturing company to that of a service company. Become the number one service company in the world. * Systems/Functions: Both systems and business functions need to be changed to align their processes and procedures with the new company vision and culture. This included integrating pre-existing systems already established in the company such as Otisline and REM and go from managing the flow of products, to managing the flow of information. * Growth: Provide excellent service in mature elevator regions as service and repair account for 75% of revenues in these locations. Expand to key growth areas and emerging markets such as China in order to win new business and stay ahead of their competitors. * Redefine Services: Go beyond traditional support tools such as Otisline and REM and include new equipment design, supply chain, new equipment delivery...
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...Otis Elevator: Accelerating Business Transformation with IT At Harvard the only thing considered duller, safer, and less adventurous than working for a bank was working for some old-line can't-miss industrial firm like Otis Elevator, which only needed caretakers. —Tom Wolfe, A Man in Full (New York: Farrar, Straus and Giroux, 1998), p. 31 At the northeast corner of 20th Street is the turreted red-brick Victorian Apartment house . . . the first cooperative apartment house in New York City. Peek into the luxurious lobby! The foyer is adorned with stained glass and Minton tiles, and the building is equipped with Otis hydraulic elevators installed in 1883, and among the oldest of their kind still in service. —Gerard R. Wolfe, New York: 15 Walking Tours (New York: McGraw-Hill, 2003), p. 261 In early 2004, Otis Elevator President An Bousbib (pronounced boozbe) finalized his presentation to United Technologies (UTC)—the parent company. The past 12 months had been a success for Otis, as highlighted in the 2003 Annual Report: Otis completed the second-largest acquisition in its history with the addition of Amtech Elevator Services. Amtech brings . . . a customer base spanning universities, hotels, hospitals, airports and convention centers throughout the United States. Overall, Otis revenues grew by more than $1 billion to $7.9 billion. Operating profit increased by more than $300 million to $1.38 billion, and operating profit margin grew by more than one point to 17.4%) Otis was the...
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...Jubin Shah The Future for Space Elevators: The Moon and Beyond An interesting concept, a space elevator from the Earth to the Moon, has been suggested since 1885, or perhaps even earlier (Soderman). Several countries, including the United States, have begun working on the concept with hopes of making it a reality. The NASA Lunar Science Institute, now known as the Solar System Exploration Research Virtual Institute, has noted that a space affiliate, the Liftport Group, is being funded through Kickstart to help finance the first step in building the space elevator (Soderman). The Liftport website describes their moon elevator project as follows: LiftPort’s proposed research will develop practical, near-term solutions for construction and expansion of a Lunar Elevator. The study will include characterization of materials; analysis of required rocketry and robotics; and evaluation of landing sites and methods of anchoring to the Lunar surface. Additionally, Ribbon spooling, infrastructure deployment, and micrometeorite mitigation techniques will be explored (Lunar). (Now) NASA has also has been instrumental in developing aspects of the moon elevator. Several years ago, NASA sponsored a million dollar contest for whoever could design the best mechanism to climb the elevator. LaserMotive won $900,000 from NASA's Centennial Challenges program for meeting the Level 1 standard of having their laser-powered robot climb a 900-meter-long cable suspended from a hovering helicopter...
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...Business Context Elisha Graves Otis founded the company when he first founded the ‘Safety brake elevator’ in 1853. From then the company’s main focus was to design and manufacture the safety systems according to the customers need. The Otis Elevator Company became a subsidiary of United Technologies (UTC). It is one of the largest manufacturing industries in the world. It not only manufactures but also installs the equipment in the respective customer desired locations. It then continues its relationship with the customers by providing timely service facilities. It was soon recognized as a leader in service excellence among all the companies. The main competitors included multinational companies such as Hitachi, Kinetek, KONE, etc. Otis grew aggressively by acquiring elevator business in China. By 2004, the company had 1.5 million elevators and 100,000 escalators operating in the world. Its revenues increased by $6 billion. The company was a huge success. Initiatives taken to improvise 1. OTISLINE customer service center During any service emergency, the service panel was dispatched from the local offices that caused huge delay time and hence decreasing customer satisfaction. The OTISLINE customer service center was created to dispatch service mechanics on immediate requests. The main aim was to implement 24x7 concept. This initiative also allowed Otis to produce ‘excess’ callback reports for various levels of management. The managers had the information they needed...
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...SECURITY SITE SURVEY DEVRY CORPORATE HEADQUARTERS – The Devry Center Jim Jones February 15, 2013 Eval of Security Systems Professor Semore Butts Overview This site survey was conducted by Jim Jones on February 15, 2013. This document is intended to detail the security survey and analysis for Devry Corporate headquarters. The report will detail the strengths and weaknesses of each of the operational areas. While it will detail an overview of staff and visitor procedures it will not be a personal evaluation of the staff’s readiness or ability to carry out those activities and responsibilities. The objective of the recommendations in this audit are to ensure that Devry Corporate headquarters complies with state, local, and federal regulations for the safety of its employees, the public, and visitors. It will also assist with recommendations that ensure Devry Corporation is free from any legal liabilities as a result of action or non action as it relates to security and safety (Garcia, 2008). Summary The Devry Corporate Headquarters is the central location for Devry Inc., which owns and operates fourteen educational institutions, their supporting both domestic and international operations. These Institutions are comprised of large scale educational facilities requiring sophisticated infrastructures. Each of the supported institutions must adhere to the Higher Education Act standards of security and safety. Those standards would not be applicable in the corporate...
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...MonoSpace® (No machine room) I suggest we split the marketing strategy of MonoSpace® into two parts: renovation market and new equipment market. For renovation market, property developer, who primly concerned with the overall cost, will be the focus customers. We will emphasis the long-term cost saving for replacing an old elevator to a MonoSpace®, such as better energy saving benefit and lower maintain cost. For new equipment market, we will focus on architects, because most small contractors rely on architects to select elevators. Thus, property developers, general constructors, and architects will be our target customers. Second, mid-size player and “cowboys” count for a 35.5% German elevator market share. They are our main competitors in Germany market. Since the end of construction boom brought price competitions, which effectively squeezed the space for mid-size or small players, we should price the MonoSpace® at a low price in order to gain market share from those mid-size or small players. My suggested pricing police for MonoSpace® are to set the price of MonoSpace® as low as a hydraulic system, which accounted for approximately 60% of the German low-rise elevator market. Although, it is foreseeable that the inevitable erosion of current product line by the launch of MonoSpace®, the overall market share of KONE will increase. Third, learning from Netherlands experience, we should market...
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...horizontal communication in an MNC? * * They analyzed a Finland based MNC (Kone Elevators?) where the corporates official language is English. * * The Reasons were they wanted to gain in-depth understanding of different ways communication goes between subsidiary staff (lower staff) in different countries. * * * Interviews: * * The interviews were with Kone staff, and there was an analysis of the company’s language and communication training program. * * The interviews were made with levels 1. Top management 2. Middle management 3. Operating management * * The Interviewees were from different countries (Europe, Mexico, and the far east.) and the interviews were spoken in different languages depending on the nationality who they were asking questions to. * * The Kone key informants (person who gives information to others) where interviewed on the telephone and email: 1. The specific role that language is perceived to play in horizontal communication. 2. Language training in Kole * * Those informants intervewees represented: 1. Human resources 2. Language training 3. Management development 4. Technical training 5. Customer Service * * * The company: * * Who is Kone Elevators? * It is one of the leading business in the world for elevators and escalators. * In 2000 the companies net sales totaled to 2.6 Billion EUR which is...
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...Kone came down to 6% of turnover in 1st 8 mths of 1996. New Revolutionary Pdt- MONO SPACE. Concern of Raimo Hatala Size of Monospace in Germany.How to Price & position Monospace.How will it canabalize Sales of KoNes Existing Low ise elevators.Launch strategies? Elevator Industry: Mainly dominated by 5 companies..New Equipment mkt accounts for : 9 Billion Dollar & Servicing mkt for : 13 Billion Dollars . 80% of all service Contract were given to Original equipment manufactures. Elevator Technology Gearless-10%(High speed – high rise commercial building)Geared Traction-30%(Low raise building).Hydraulic -60%(50% low cost than Geared transaction But high on oil consumption) Machine Room Requirement Gearless Elevators: 11-15 Square meters, Geared Traction:11 Square meters,3 Fixed Placement option, TOP OF THE SHAFT (PT) LOWEST FLOOR(PU):Expensive because of complex roping arrangement. Slightly above top floor & to the side of the shaft(PS):Most expensive & least Common. Hydrulic Elevator machine room(PH): 5 square meters Total elevator Cost: 50% Equipment+50% for construction of shaft /machine room/Instalation cost. About KONE: Established in 1910 in Finland:Low rise Elevators acconted fr 75% of Kones sales,Spent 1.5% of Revenue to R&D V1: 38% of revenue V2: 62% of revenue. 90% of Sales outside Finland. KONE Aufzug: in Germany with a Revue of 206 M DM & profit of 13M DM.They had less sales person compared to completion. 48% Sales...
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...with Orleans Elevator in Bloomington over the years but just wonder how long this will continue. I have much invested in my manufacturing plant located right next to their plant, but now that United Technologies [the parent company of Orleans] is all into this FreeMarkets Internet purchasing system, I just wonder how long they are going to be interested in keeping me in the supply-chain loop. It’s been a good business over the past few years. I was in the right place at the right time when Orleans got into just-in-time and lean manufacturing in the late 1980s. Initially, I was just making the control panels for the elevators. It was interesting to walk into a new building, get on the elevator, and see my company’s handiwork in that beautiful stainless steel panel that houses the buttons for the floors on the building. I could take a lot of pride in the craftsmanship even though it was largely a technology thing. That new numerically controlled machine tool that I purchased in 1985 made making the holes in those custom panels easy. We are still making beautiful panels. Since that time my company has gotten a lot of other business from Orleans. We now make all kinds of special brackets and panels for the plant. This has been great for us over the years. We have set up a very efficient process for fabricating exactly what the plant needs in these parts with very little lead time. For most items, Orleans simply gives us the production schedule for elevators being shipped...
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...Finland. During November 1996 Raimo Hätälä, the New Elevator Business director, was planning to launch a new product in the low-rise building market. The elevator industry in Germany was highly competitive and mature. From 1995, when the construction boom ended abruptly, until 2000 they expected the demand to shrink by 15%. This provoked the prices to fell between 5% and 7% in 1994 and 1995, generating loses for Schindler and Otis (two of the six major competitors in Germany). The German low-rise building market was divided, as in other European countries, in geared traction technology (PU and PT), and hydraulic technology (PH) that accounted for 8% and 92% respectively. KONE’s new product, MonoSpace, was mainly characterized for its new technology, the EcoDisc, which provided a more comfort ride, did not need for a machine room, and reduced energy consumption. Before the launch of MonoSpace in Germany, it was test marketed in France, United Kingdom (U.K.) and The Netherlands. In the latest, MonoSpace was a complete success. It gave higher profits and 62% of the low-raise market (up from 52%). But in France only 40 units were sold of the 300 expected and in U.K. no units were sold during the first month after launch. Results that gave Hätälä cause for concern. Finally, a pre-launch had been done: During November 1995, 4 PH customers converted their orders to MonoSpace and from January to June 1996, 30 MonoSpace elevators where arranged to be installed. All of them were asked...
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...flip-flops. She carries a large purse and pink water bottle. KATY You think this will really work? KELLY Yeah, don’t worry. Here comes someone now. STUDENT 1, 18, an average looking but confident young man approaches the door. He smiles at Kelly and Katy, swipes his keycard and opens the door for them. KELLY Thank you. STUDENT 1 Yea, no problem. INT. UNIVERSITY DORMITORY – DAY The girls walk in, looking around at the mass of paper decorations covering the elevator lobby. They move to the elevator beside the young man. The girls smile as the student calls an elevator. The elevator arrives and all three walk on. INT. DORMITORY ELEVATOR – DAY He swipes again. Kelly turns to Katy. KELLY What floor does John live on again? KATY 8, I think. KELLY 8, Please. STUDENT 1 Yea sure. KELLY Thank you. KATY Thanks. The 3 of them ride up to the 4th floor where the student gets off. The elevator door closes. Kelly immediately reaches into her book bag and pulls out a stack of blue rush cards. She cuts the deck in half. KELLY Ok, so um, give one to each person. She hesitantly gives one half to Katy. KATY Right, ok, cool. Katy looks at the stack for a second. KATY So you don’t want me to be with you at all? Just split up and go? KELLY Uhmm, well, we can do some together and then split up, go on and off. Doesn’t matter....
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...bookshelves to limit distractions 2nd Floor Potential Improvements: * Newer carpet * New furniture—most of the chairs are old and stained * Ceiling tiles are missing * Books and chairs need to be better organized * Get rid of some desks—there are a numerous number of unused desks and chairs that take up space * Get rid of old books and replace with more modern materials—many books are dusty/torn * Better cleaning—a lot of dust and dirt * Clear out furniture and empty bookshelves to free up space * Paintings and posters on the walls are old and outdated * Important documents on walls should be laminated or framed * More trash cans * Replace broken lights * Repaint elevators. 3rd Floor Potential Improvements: * Elevator safety inspection sign is outdated * Lots of unused space * Pictures laying around that are not hung up * More desks from second floor should be brought up * Rooms should be created to allow for students to work in groups without disturbing others * More cleaning * More artwork on walls * Bulletin boards on walls are empty * Less group tables—most students on this floor work independently at desks * Windows need to be cleaned * Outdated technology—broken printers laying around * Used as storage—there are a lot of things lying around that are not used by students. A separate storage space should be created * Kids area should be made...
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...1. KONE has targeted MonoSpace directly at Europe’s largest new-equipment market segment: low-rise residential elevators. Put yourself in Hätälä’s shoes and develop a detailed marketing plan for launching the MonoSpace in Germany. Kone was to launch the MonoSpace in the low-rise residential elevator market in Germany, which was its largest country market in Europe and vital to its overall success. 96% of elevators purchases in GER Kone has two real options: • They could market the product either both lines together MonoSpace and the hydraulic and the geared traction • They could position it as top of the line. Set a price for the MonoSpace (to facilitate comparison with prices of existing products as given at the bottom of case page 4, price a low-rise, 4-floor elevator) and specify clearly how it is to be positioned relative to the current product line (PH, PT, PU, or PS). MonoSpace fits relative to product lines. Based upon the above mentioned two options of MonoSpace launch plan, KONE can have the following two strategies to position MonoSpace in the elevator market, so that it should not cannibalize its own products and should be differentiated among its competitors. • Approach 1: Rather than adopting price-skimming strategy in extremely sensitive German market, KONE should price the MonoSpace similar to products offered by SCHINDLER and OTIS, but emphasize MonoSpace benefits to customers. • Approach 2: KONE should position MonoSpace above the...
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...Operations Management Materials Handling Equipments INDEX Sr. No. | CONTENT | PAGE NO. | 1 | Introduction | 3 | 2 | Objectives / Roles | 5 | 3 | Types of Material Handling Equipment | 6 | 4 | Material Handling Principles | 9 | 5 | Scope of Material handling | 10 | 6 | Importance of Materials Handling | 12 | 7 | Conveyor system | 13 | 8 | Cranes | 17 | 9 | Elevators | 20 | 10 | Industrial Trucks | 26 | 11 | Robotics | 28 | 12 | Live Racks | 32 | 13 | Role of material handling in supply chain | 35 | 14 | New generation material handling system | 36 | 15 | Summary | 38 | Introduction: Material handling refers to efficient short-distance movement of goods that usually takes place within the confines of a building such as a plant or a warehouse or between a building and a transportation agency. Material Handling is the field concerned with solving the pragmatic problems involving the movement, storage, control and protection of materials, goods and products throughout the processes of cleaning, preparation, manufacturing, distribution, consumption and disposal of all related materials, goods and their packaging. The material handling industry manufactures and distributes the equipment and services required to implement material handling systems, from obtaining, locally processing and shipping raw materials to utilization of industrial feedstocks in industrial manufacturing processes. Material handling systems range from simple pallet...
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...business with Orleans Elevator in Bloomington over the years, but just wonder how long this will continue. I have much invested in my manufacturing plant located right next to their plant, but now that United Technologies [the parent company of Orleans] is all into this FreeMarkets Internet purchasing system, I just wonder how long they are going to be interested in keeping me in the supply chain loop. It’s been a good business over the past few years. I was in the right place at the right time when Orleans got into just-in-time and lean manufacturing in the late 1980s. Initially I was just making the control panels for the elevators. It was interesting to walk into a new building, get on the elevator, and see my company’s handiwork in that beautiful stainless steel panel that houses the buttons for the floors on the building. I could take a lot of pride in the craftsmanship even though it was largely a technology thing. That new numerically controlled machine tool that I purchased in 1985 made making the holes in those custom panels easy. We are still making beautiful panels. Since that time, my company has gotten a lot of other business from Orleans. We now make all kinds of special brackets and panels for the plant. This has been great for us over the years. We have set up a very efficient process for fabricating exactly what the plant needs in these parts with very little lead time. For most items, Orleans simply gives us the production schedule for elevators being shipped over...
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