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modern productivity awardsMANUFACTURING WINNEROtis Technology:Manufacturer goes lean withmaterials handlingMobile robots, an AS/RS and supply chain softwaretransformed this manufacturer’s processes.Conventional wisdom holds thatrobotics and automated materialshandling systems are for theindustry’s big guns, not for the little guys.In the case of Otis Technology, conventionalwisdom is wrong. A manufacturerof firearms cleaning systems inupstate New York, Otis Technology hasinstalled three mobile robots (ADAMRobots, adamrobot.com) in a manufacturingand distribution facility thatmeasures just 80,000 square feet.The company began to install automationin 2008 with two primarypurposes in mind—to enable OtisTechnology’s implementation of leanmanufacturing processes and further aphilosophy that employees matter.But its automated materials handlingwasn’t limited to mobile robots. OtisTechnology has also installed a warehousemanagement system (WMS) andenterprise resource planning (ERP)system, automated data collection,a wireless voice over Internet protocol(VoIP) communications system,and a two-aisle automated storage andretrieval system (AS/RS). One aisle features512 pallet positions for unit loadstorage while the other aisle includes3,240 positions for mini-load storage.Since going live, the results havebeen impressive:• On-time deliveries increased from85% to 99.92%.• Otis Technology has saved $2 millionin inventory.• Mobile robots are saving the companyan estimated 94.2 hours a day intime employees used to spend walkingback and forth in the operation. That’sroughly 1 hour per day per employee.Growing a businessOtis Technology is unique in a numberof ways. For one, the 26-year-oldcompany is female-owned and operated,with Doreen Garrett, founder andCEO, at the helm and her siblings alsoinvolved in the business.Early orders were produced at thefamily’s kitchen table. In 1996, the companymoved into its current offices, andin 2004 it broke ground on the manufacturingplant. Otis Technology is now thelargest employer in its part of the county.The company is also unique in that itremains a vertically integrated company,with some 31 work centers on the floor.“We produce 90% of what we kit,” saysMike York, director of operations. “As aresult, we have multiple work centers goinginto work-in-process, followed by work-inprocessgoing to other work centers.”Getting leanThe seeds leading to lean manufacturingwere planted in 2008, when thecompany added 22,000 square feet forthe unit and mini-load AS/RS. Prior tothat, raw materials, work-in-process andfinished goods were stored on the floorin the manufacturing area, in traditionalwarehouse racking or in an off-site warehouse,which was inefficient and costly.In 2009, a group of Otis Technology’smanufacturing operations employeesattended a White Belt class in leanMobile robots are saving Otis Technologyan estimated 94.2 hours a day in timeemployees spent walking back and forth.mmh.com Modern Materials Handling / F e b r u a r y 2 0 1 2 35