COMPANY PROFILE
2014
Otis Elevator Company SA
A top to bottom focus on quality service
CompANY PROFILE
A top to bottom focus on quality service Editorial: Roland Douglas Production: James Clark
Otis South Africa is one of the country’s leading names when it comes to elevators and escalators. Managing Director, Faizal Ally tells IndustrySA more about what makes this organisation a top performer.
The Burj Khalifa in Dubai is the tallest building in the world. It stands at over 2700 feet tall and took over five years to construct. From the ground to the 160th floor, there are 2909 steps – a daunting prospect, even for the fittest of those who scale this mega structure. Fortunately, thanks to Otis Elevator Company, there is an alternative to the seemingly never ending staircase. The company installed double-deck elevators, some of the fastest in the world, so that guests can avoid the challenge of nearly 3000 steps. Faizal Ally, Managing Director Otis South Africa, while managing the Otis UAE organisation, oversaw the installation in Dubai and remembers it as one of his proudest career achievements. “From a physical structure point of view, it’s really an amazing building. “For that project we did many things for the first time and they all seem fine on the drawing board but when it comes to actually putting them in the building, there were some engineering challenges. “We had to deal with a diverse group of people from all around the world; Australians, Japanese, Americans and others; they were all coming up with solutions to various
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problems so managing their diversity was a real challenge but exciting as well,” he says. Faizal knows Otis inside out. He has been with the company for 32 years and has worked around the world developing an all-encompassing understanding of this industry leading organisation. “I started off as an apprentice” he says “and I worked my way through nearly every level in the organisation, including running a manufacturing facility, and whilst I was moving through the ranks I studied to get my degrees. I then went on a short term assignment in the UK, doing project management work, before going on a longer term assignment in the Middle East, based in Dubai.”
OTIS SOUTH AFRICA In the major cities of the world, land has become so expensive that it makes sense to build upwards to ensure you are making the most of your space and increasing cost efficiency. Take New York for example; the city’s skyline has become infamous for its impressive architecture and buildings that reach way up offering fantastic views across the city. This is of course to maximise the space that is available, especially on the relatively small island that is Manhattan.
Otis Elevator Company SA
The XO-508 Escalator, ideal for use in retail, commercial and hotel applications
In South Africa, the commercial hubs like Johannesburg, Pretoria, Cape Town, Durban and Port Elizabeth have all experienced construction booms and are home to huge structures, some of the biggest in Africa. The skylines of these cities will potentially change soon as new projects are constantly being pushed thanks to private sector development and the government’s investment in infrastructure. The city of Johannesburg is currently looking into high density high-rise village projects which, if approved, could transform the skyline of Johannesburg in coming years. There are also a number of proposals under consideration in Cape Town and Sandton for major new structures. Obviously, this type of investment brings with it benefits across many industries, not just construction and of course, as more and more high-rise buildings emerge, there is a need for transport solutions so that the eventual occupants of the buildings can get from bottom to top, with no sweat. Otis South Africa is an important part of the global group and has a long and deep history. “South Africa reports into our UTC Building and Industrial System France headquarters and serves as the gateway for the whole Southern African region. Otis SA as part of the global organisation, import our products
from recognised Otis manufacturing facilities around the world,” says Faizal. “Otis prides itself on providing the most technologically advanced and green products. Greener products are of course one of the prerequisites in the South African market today. We also maintain a consistent approach towards process improvement internally, and focus on excellent service delivery to the customer. “We were involved in a number of high-rise buildings throughout South Africa, and have been involved in setting out the maintenance strategy for many major buildings in the country. We worked with many iconic buildings from a maintenance perspective in places such as Sandton and we also worked on many large shopping complexes around the country. We set a strategy around providing products and services for an expanding retail market,” he says.
GOOD TIMES The past few years have been years of much success for Otis in South Africa. Since the global economic slowdown in 2008, which had detrimental effects on many businesses, Otis has managed to continue gaining significant new contracts and has received numerous awards for customer satisfaction.
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CompANY PROFILE
Johannesburg 26 Pomona Road, Pomona, Kempton Park Tel +27 11 976 7000 Email: natalie.james@expeditors.com
Durban 47 Jeffels Road, Prospecton Tel +27 31 913 6300 Email: heather.cannan@expeditors.com
2010 was a particular prosperous year for the company after gaining a lot of work with the FIFA World Cup stadiums and achieving a Diamond Arrow Award from PMR Africa, recognising the company’s customer service excellence. “2010 was a good year for Otis, but we have had many stand-out years. We have maintained a positive status with PMR, receiving a Diamond Arrow award in 2010, a Gold Arrow in 2011, and again Diamond Arrow awards in 2012 and 2013. “We have continued to win major contracts throughout this period, with some of our recent wins and installations including the Bay West Mall in P.E., Standard Bank head office in Rosebank, 15 Alice Road Sandton, 70 Grayston, replacement of existing units in Johannesburg Park Station and Menlyn Shopping Centre, Tygerberg Hospital, Blue Route mall and a recent award of the Horizon View in Mozambique – a prestige mixed use building in Maputo,” he adds. In 2012, credit solutions provider Coface South Africa told Engineering News that whilst building confidence among contractors, materials manufacturers and quantity surveyors had increased marginally over 2010 and 2011, the immediate outlook for the South African construction
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Cape Town Cnr Mobile & Madrid, Airport Industria Cape Town Tel +27 (0) 21 386 6700 Email: lauren.goddard@expeditors.com
industry remained challenging. However, Otis managed to come through the difficult period unscathed and the company has managed to operate sustainably, even with the global economy still in a particularly fragile state. Faizal puts this down to a focus on quality and service and a vast array of business activities, not just work on new buildings. “In the post World Cup period, we have seen development slow down on new building and as such the new installations but there has been growth on the existing building side. There are many companies doing a lot of upgrade work. The maintenance and repair business has remained fairly stable throughout this period,” explains Faizal. This on-going success, according to Faizal, is in part down to continued investment from the South African government into various infrastructure projects. This has not only galvanised the private sector, it has also bought in work from the public sector with many government buildings needing upgrades and installations. “We have certainly seen benefits from the government’s investment, with upgrades to the lifts and escalators in many government buildings and healthcare facilities as part of overall healthcare and parastatal upgrades.” As well as the government, Otis has many big name
Otis Elevator Company SA clients in South Africa; in fact, it would be difficult to find another company that services as many national brands as Otis. “We work with property companies like Growthpoint Properties, Redefine Properties, JHI, Investec Properties, Liberty Properties and Old Mutual to name a few. From a government perspective National and Provincial Departments of Public Works and Eskom and ACSA are key customers. FNB, Standard Bank, Netcare and Telkom are Otis customers. On the retail side, groups like Edcon, Woolworths and Foschini are customers and of course we work closely with facilities management companies like Drake and Scull, and a broad range of construction companies,” explains Faizal.
STRONG HISTORY Perhaps one of the key drivers behind its success, Otis has a long and impressive history, both globally and in South Africa. Its roots go back to the aforementioned New York City and the innovator and entrepreneur, Elisha Otis who invented a safety elevator for his employer in 1852. The following year, he sold his first three elevators for US$300 each and then saw a slump in sales until 1855 which saw a
pickup in business. In 1861, Elisha Otis died in the diphtheria epidemic and the business was left to his two sons who turned it into a multi-million dollar organisation. Since day one, it has been the safety of the Otis elevator which has stood it apart from the crowd and Elisha Otis himself used the equipment’s impressive safety record to market the brand. Interestingly, his business card from 1853 stated: “Otis’ Life-Saving Steam Elevators are so constructed that if the rope breaks the platform cannot fall. Twelve men killed in this city (Yonkers, N.Y.) within four years with the old-kind, and not one killed or hurt with Otis’ Excelsior Elevators.” In South Africa, Otis started out in 1903 and began manufacturing in 1948 under the name Waygood-Otis (South Africa) Ltd. In 1957, the business became Otis Elevator Company Ltd and then changed identity again in ’98 becoming Otis (Pty) Ltd when United Technology Corporation (UTC) bought out the minority Otis shares. “We remain today a part of the global UTC group, which also incorporates companies like Chubb, Carrier, Sikorsky Helicopters, Pratt and Whitney and Hamilton Sunstrand,” explains Faizal. On a global level, Otis has provided elevators to eight of
Otis technicians working on an elevator modernisation project
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CompANY PROFILE the ten World’s Tallest Buildings in the past 100 years. In South Africa, the company has over 500 employees, with over 300 technicians around the country. The company now holds the vision of being the recognised leader in service excellence among all companies, not just elevator companies, worldwide. As with many global organisations, Otis has placed a large emphasis on the developing economies of Africa and business in Southern Africa is managed by the regional head office in Gauteng. “Otis maintains a strong focus in Africa. The Southern parts of Africa (Zambia, Zimbabwe, Angola, Mozambique, Malawi and Namibia) report into the South African organisation. The more Northern countries are handled by our Paris Head Office, and Otis has offices in Kenya, Egypt and Morocco. We have plans of expanding sales of our products throughout the continent,” explains Faizal.
THE FUTURE As with many companies, in many industries, the future for Otis is green. Obviously, the company is expanding its global footprint to remain in line with global demand but a key element of that expansion is a focus on green issues and environmental awareness. To meet increasing demand and maintain leadership in key global markets, Otis has announced the opening of three new state-of-the-art manufacturing facilities around the world, with locations in Sao Paolo, Brazil; Bangalore, India; and Florence, South Carolina. This global focus has positioned Otis as an industry leader and led to the development of key new research facilities, such as the
high-rise centre of excellence in Shanghai. Daryl Marvin, Otis Director of Innovation said last year: “As countries like Brazil, Russia, India and China build the mega cities of the future, Otis will be in their markets to anticipate their needs and exceed their expectations for technology and service.” When it comes to technology, Otis is leading the way in environmental awareness. The company has recently rolled out a campaign which emphasises its commitment to environmentally friendly solutions. ‘The Way to Green’ campaign focusses on continually driving the company, and its customers, forward with green thinking on a global scale. It aims to encourage environmental awareness in everything that the company does. Pedro Baranda, President of Otis Elevator Company said last year: “After 160 years, Otis is just getting started. We are meeting the challenge of building elevators for today’s skyscrapers with tomorrow’s technology, all the while with an unwavering commitment to safety, quality and ingenuity.” In South Africa, the focus on green technology was demonstrated when the company introduced the Gen2 range of products, a range of ‘smarter technologies that help save space, money, energy and the planet’. “Otis continuously invests in research and development. Our latest product introduction was the Gen2 Switch which was launched during 2013. Further product introductions are likely to be announced throughout 2014,” says Faizal. He explains that green thinking now encompasses
The Otis compass Destination Management system to reduce landing and in-car waiting times
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Southern Air Conditioning
Electrical wholesaler servicing the industrial and domestic sector for over 30 years on all electrical, cabling and specific requirements
Tel: +27 11 616 8272 E-mail: salesinfo@idealelectrical.co.za Website: www.idealelectrical.co.za all parts of the business from manufacturing and initial installation to maintenance and modernisation. “Our manufacturing facilities are strongly focused on reducing environmental impacts through waste reduction, less energy and water use and more efficient manufacturing but more than this, our products are making significant differences in energy usage in our customer’s buildings,” he says. “Our ReGen drive (part of our Gen2 elevator range) utilises the potential energy created by the movement of lift cabins (down with a heavy load, or up with a light load), and converts this to real electricity, powering it back into the building power grids for use in other building systems. “This isn’t just available for new lifts, but can be installed on existing lifts and escalators as well. The ReGen drive means an energy reduction of up to 70% against lifts with a traditional non-regenerative drive. Otis has also recently introduced the Gen2 Switch – the world’s first hybrid elevator. It uses the ReGen drive to store the electricity in batteries, which can then be used in standard elevator operation saving significant amounts of electricity, and has the advantage of standard operations while power outages occur. The Gen2 Switch is also solar compatible and can be linked with solar systems to allow for use with
sustainable energy options.” Faizal explains that technology has come such a long way in the last 30 years and now modern components are often just a third of the size that they were on more traditional machines. “A machine manufactured in the 80’s consumed a significantly large amount of energy to turn the motor and the gearbox and the sheave. Back then, a machine could carry 1000kgs with a sheave dimension of 750mm. Today, we have a machine that can move the same weight at the same speed with a 100mm sheave. Of course, this means less material for manufacture. “Also, we now use a gearless machine system which is not sent through heavy motors and a gearbox; it’s a direct permanent-magnet machine which consumes a third of the electricity of a traditional machine.” Obviously, these green attributes are selling points for Otis products and can have an impact on a buildings environmental credentials. “If you look at green assessments on buildings; the primary advantage when gaining points on the elevator side is through energy savings,” he says. “It has brought us many orders, particularly on highprofile, prestigious buildings which are expected to meet
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CompANY PROFILE strict green compliance requirements.” Otis is also busy developing systems which move away from using polluting oils and lubricants. The company already introduced systems which use significantly reduced amounts of lubricant with the goal of eventually utilising systems that use no harmful oils whatsoever.
KEY TO SUCCESS? The drivers behind the success of Otis, not just in South Africa but globally, stretch right back to 1852 and Elisha Otis himself. From the very beginning he was focussed on service excellence and quality products. Today, Otis lives by those values but the difference is it’s not just one man. There are over 60,000 Otis employees around the world and through them the company delivers its premium service. Needless to say, there is clearly heavy investment that goes on with regards to people development. “Over the years, the drivers behind our success have been ongoing product innovation with increased safety features on our products; service excellence and our commitment to continuous internal improvement,” explains Faizal. “Equally our focus on safety, both of our own employees and the public who ride Otis escalators and elevators is of consummate importance to us, and we ensure our people maintain safety throughout. “We run a strong program aimed at all levels of our company, stressing the importance of great customer service and training our teams regularly. “Every Otis employee plays a role in maintaining the quality our customers expect. Through our rigorous
ACE (Achieving Competitive Excellence) program, our employees strive for better quality every day using the tools of continuous improvement methodology to improve productivity, quality, cost-effectiveness and customer satisfaction. With ACE, every function at Otis, from engineering to sales and service, measures its performance and sets goals for improvement. We’re relentless about improving our performance,” he says.
“Otis prides itself on providing the most technologically advanced and green products. Greener products are of course one of the prerequisites in the South African market today” There are huge opportunities for Otis employees and Faizal firmly believes that with the right application, anyone can work their way up the company ladder. “Otis is very good at helping people develop. You’ll find that many Otis employees have been with the company for over 20 years and that is one of the strengths of the company. “We are very serious about people development because in the industry in South Africa, there is a huge shortage of technicians and we have invested in the training centre and training programmes and aligned ourselves with the skills development act and with merSETA to help develop young technicians.
Faizal Ally – Managing Director Otis Southern Africa PAGE 8 FEB 14
MP ELEVATOR SERVICES cc
Otis Elevator Company SA
2003/110319/23
MP Elevator Services provides the following services: • Installations of new lift equipment • Upgrading and modernization of old lift equipment • Repairs and maintenance to all makes of elevators and escalators • Refurbishment of lift interiors
Cell: 076 216 1200, Fax: 086 613 3978, Email: mpelevators@gmail.com PO Box 1578, Carletonville, 2500
“We will hire people from college, put them through a learnership programme and qualify them as lift technicians. Because of the skill shortage, we are increasing the amount of people that we are training and we now see many people set their sights on further development. “For example, we had a very good female mechanic in Cape Town. She qualified and did a great job as a mechanic. After she qualified, she studied general management and we promoted her last year to take over a very important role in an estimating function for all our maintenance contracts. We have a path set out for her and she is doing exceptionally well but this is just one example. “Of the nine people that report directly to me, four have come right through the ranks and the others are functional specialists like finance people. “This is a huge benefit. An elevator is a complex piece of equipment and the customer wants the confidence that whoever they are talking to has the know-how and ability to fix problems or provide solutions and if you have the background this becomes a lot easier,” explains Faizal. Of course, the company has a wider reaching impact than just its employees and its customers. Otis South Africa works closely with Johannesburg Child Welfare, offering
annual sponsorship so that the NGO can continue to offer its fantastic services. Otis also service elevators of many needy organisations and takes on many disabled learners as part of its training drive. It is this emphasis on constant development; of people, products and services; that allows Otis to maintain its position at the forefront of the market in South Africa and with the African continent the number one region on the planet in terms of growth potential, it seems as though there will be many opportunities for the company to continue expanding and continue demonstrating why it is one of the most trusted names in the industry.
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“An elevator is a complex piece of equipment and the customer wants the confidence that whoever they are talking to has the know-how and ability to fix problems or provide solutions” FEB 14 PAGE 9
www.otis.com +27 11 579 4100
(0)1603 618 000 info@industrysa.com East Coast Promotions Ltd, Ferndale Business Centre, 1 Exeter Street. Norwich, Norfolk NR2 4QB