PTI prides itself in manufacturing products that go inside people's bodies.

Precision Technology Inc. (PTI) has established a niche in the orthopedics industry in which customers approach the company looking for systems to improve their products. Vice President and COO Larry Whitney, who has been with the company since 1991, says he is proud of this testament. “When you have companies approaching you to help them with manufacturing solutions, that makes us feel good,” he notes. “It's an honor to be a part of the solution.”

A precision-plastics machining manufacturer of medical devices for 35 years, PTI says it works with large orthopedics companies such as Zimmer, a global leader for trauma, surgical and orthopedic products; and Stryker, one of the world's leading medical products suppliers primarily servicing the orthopedics market. PTI, however, remains a small company. It employs only 60 people and operates in a 52,000-square-foot plant in Norwood, N.J.

“We're small enough to be able to react to our customers' needs right away,” Whitney stresses. “We set ourselves up to be able to jump with their requests.” Being a small company helps PTI adapt to market changes. “I have seen the highs and lows in the orthopedic market,” Whitney notes. “I think right now it is going through some changes, and it has been flat for the last 14 months. Some of the large OEMs today are looking into China for cheaper manufacturing.”

According to Whitney, the key to adapting to the slowing market is diversification. Early this year, PTI expanded its services to machining metals. “We've done this upon customers' requests,” he continues. “They're the ones who approached us because they know what kind of organization we are. Each company that we work with has given us test jobs to see how we would do, and we attained all approvals, and there were no rejects on any of the metals work we've done. “So far so good,” he adds. “You just have to look at the market and see where it's pointing and where it's headed,” he states.

Whitney notes that being in a slow market is not all bad news. “It's actually a good time to diversify,” he says. “We can do it at a pace that works for us, as well as our customers. Each company has a different strategy [to adapt to changes]. There's hardly any orthopedic company worldwide that doesn't expand in any way.” He predicts, however, that the market will improve soon. “It has been flat for a while, but I think the market is ready to burst open, hopefully, during the fourth quarter of this year,” he continues.

Another way PTI keeps up with industry demands is by updating its technology every two to three years. The company has invested in $2 million worth of manufacturing equipment in the past two years, and is in the process of doing it again. For example, Whitney says about a year ago, PTI acquired a five-axis trunnion milling center that he believes will reduce set up on the manufacturing floor while increasing profitability.

“We didn't have one before,” Whitney says. “Now, we added a technology that is able to do more operations in one setup. Limiting setups is key, because it improves product quality by reducing handling, and it can also reduce cost.” In addition, PTI says that the company’s direction in engineering, production planning and cost analysis offers advantages such as eliminating large capital outlay for production equipment; taking delivery on multiple timelines; and keeping inventory at a minimum

Always Improving
“Traceability, process validation and employee training are essential in the orthopedic industry,” Whitney says. “As an example, the raw materials we purchase are from suppliers approved by our customers. Every job at PTI is assigned an exclusive number in our MRP system and the raw material is directly tied in to the job number, so we have complete traceability. As the job goes through the shop, each employee is responsible to check product identifiers and document all activity on the paperwork.”

As a testament to the product quality, PTI has been selected by Zimmer as one of the first suppliers to take part in its newest program called supplier-verified inspection. “Once the parts are shipped in,” Whitney says, “Zimmer will check one or two pieces, audit paperwork and accept [or not accept] the parts. It helps us to fine-tune our processes through in-process inspection by the machinists on the floor. Even though we already do that, it always gives you something to improve upon. The goal here is to eventually ship dock-to-stock.”

Additionally, Whitney says PTI consistently monitors its manufacturing processes. The company has an open policy where employees are encouraged to make suggestions on things PTI can improve. “They fill out the required paperwork and we sit down and talk with them and consider the suggestion,” Whitney explains. “It's extremely important that the employees take pride in their work, because they manufacture products that eventually get implanted into people's bodies.”

Ira Housman, president and CEO agrees. “We give everyone an opportunity to be a part of the solution,” he states.

Honest Relationship
“We're proud of the quality of the products we make and the fact that we help our customers,” Whitney notes. “If there's something we can add to the pie, we tell our customers. We have that kind of relationship with the people we work with.”

He says the future for the company is bright. “We see the orthopedic industry growing,” he states. “Some companies report that they expect a 10 percent growth in each of the next five years. Our vision is double-pronged.

“First, we're already a player in the industry, and we want to stay a player. Second is diversification. We already expanded into metals and we're now looking into other opportunities like ceramics or molding. “We're already looking into the next generation of manufacturing solutions,” he adds.