Case study Xizi Otis Elevator Co. Ltd China LVD equipment elevates productivity for Xizi Group When Xizi Otis, a joint venture co-founded by the U.S. company Otis Elevator Co. Ltd, and Xizi Elevator Group in 1997, looked to improve productivity at its 80,810 square metre facility in Hangzhou, China, it too considered brand, product quality and after sale support when contemplating new punching, bending and laser cutting equipment. After an extensive analysis of the market, Xizi’s supplier of choice was LVD. The company uses three LVD PPEB CNC press brakes, ranging from 80 - 320 tonnes, an LVD Axel 3015 2 kW laser cutting system and two LVD Strippit CNC turret punch presses, 20 tonne and 30 tonne configurations. Xizi Otis purchased the LVD equipment to add capacity to maintain its quick delivery times. Improving productivity and maintaining flexibility were key considerations. Justification for the machinery was driven by the increasing product demand in domestic (Chinese) and export markets. Xizi Otis employs more than 3,000 workers and reports assets of 4.5 billion RMB. Its product lines include elevators, escalators, moving walkways and components. It annually produces 20,000 elevators. While Xizi Otis has felt the recent strain of the economic downturn, with its business reduced by 10 %, projections for 2009 are strong. According to Mr. Wang, the company’s production department manager, the forecast is for 25,000 units this year. Key to the company’s market stronghold is brand strength. Customers will pay more for a Xizi Otis product recognising that they get what the Xizi Otis brand delivers. As Mr. Wang comments: The quality of the product produced is directly tied to the precision capabilities of Xizi’s equipment. The company fabricates steel and stainless steel in thicknesses up to 3 mm. Small batches with a high variety of parts is the norm, hence fast throughput is necessary to maintain short lead times. Xizi’s high-speed, high-performance turret punch presses deliver up to 425 HPM on 25 mm centres and feature a flexible 30 and 34 station turret, generating parts quickly with little operator involvement. Auto indexing stations accept a variety of indexable Multi-Tools to enhance capability and flexibility while reducing set-up time. Xizi Otis’s LVD PPEB press brakes ensure bending accuracy through automated functions. All axes of the press brake, including the CNC crowning system, are calculated by the control and are automatically positioned for optimum bending results from the first part. These automated functions keep part repeatability and accuracy at a high level. Once a part is programmed, a subsequent set up takes a few minutes. continued over As Mr. Wang reports: The accuracy of the press brake’s V-axis system for bending long parts is a key advantage for Xizi. The CNC crowning ensures the ram and table are parallel during the bending operation. Force and related deflection of the table and ram are automatically determined according to the length and thickness of the part, ensuring optimal results for each bend. Ease of use and reliability were also factors Xizi considered before making its investment in LVD equipment. The company operates two shifts a day, five days a week. Employees are cross trained to operate the LVD punch press, laser and press brake, so ease of use and a fast learning curve was a key factor. Mr. Wang reports a smooth startup with the new equipment and consistently high levels of machine uptime. For Xizi Otis, LVD’s strong local support is also a plus. To gauge the efficiency of its equipment, the company uses a system called OEE, Overall Equipment Efficiency. Xizi Otis measures the success of their investment as the productivity of the machine, coupled with flexibility, relating back to the OEE figure. The overall OEE of the new LVD turret punch presses is 30 % better than the company’s older punching machines. The laser cutting system’s OEE is at 60 - 70 %. Mr. Wang attributes this figure to the machine’s ease of setup and shuttle table design, able to handle larger sheet sizes: Use of modern management systems, such as 5 S and Kanban, coupled with the efficiency of the new equipment, has helped Xizi Otis further streamline its production, improving production capacity by 25 % while reducing floor space consumption by 1200 square metres. Today Xizi Otis is now meeting its quick lead times more efficiently than ever before. LVD Company nv Nijverheidslaan 2 B-8560 Belgium Tel.: + 32 65 43 0511 Fax: + 32 56 43 25 00 www.lvdgroup.com marketing@lvd.be