ALCON LABS

Project Chiron

SMU TEAM ALCON

Project Overview

• Project Background

• Problem Description & Core Objectives

• Action and Approach Plan

• Analysis of Situational Approach

• Analysis and Managerial Interpretation

• Recommendations

Project Background

• October 2003: Alcon Madrid manufacturing plant closed down– Madrid’s product baseline of 170 SKUs

and 12 million units were transferred to Fort Worth headquarters

• Before the Madrid divesture, the Fort Worth manufacturing plant was producing 230 to 250 SKUs and 70+million units

Definition of the Problem

• Whitestock Lines 1 & 2– Production inefficiency and delays

– Lagging downtime• Line clearances (LC) occupy 20-30

minutes• LC occurs 4-5 per day

– Loss of Capacity

Core Objectives

Primary objectives:

• Minimizing splits – line clearances and/or QA

• Maximizing utilization of fill rooms

Secondary objective:

• Optimizing the facility layout

• Optimizing the lot size (batch) or economic order quantity levels

Core Objectives - Benefits

• Significant cost savings

• Improved uptime and process efficiency

• Improved capacity levels

• Improved overall throughput speed and other technical performance measures

• Reduced or eliminated inventory levels and other unnecessary costs

• Minimized idleness of employees (i.e. employee output efficiency)

Action & Approach Plan

• Short-term perspective– Determine and measure Alcon Labs

Manufacturing processes to locate source of problem associated with LC• PAT and SMED method

• Long-term perspective– Converting 2-step process to inline

process• ProModel: Simulation Models

Analysis of Situational Approach

Short-term approach

• Whitestock Line 1 & 2:– Observed and measured the “splits”

process steps for cycle time improvements

– Recorded the sequence of repeatable activities with measurable inputs, value-added activities, and measurable outputs

Analysis of Situational Approach

Short-term approach• PAT Method• SMED Method

– Internal and External Setup activities– Improve cycle time or changeover/roll-over time

by reorganizing and reducing setup activities as well as resources and inventory waste and rescheduling production schedules for low quantity batches while sustaining high product quality

– Other benefits of setup reduction include lower cost (less inventory), better flexibility, better worker utilization, shorter lead time, increased capacity, and most importantly, less process variability

Analysis of Situational Approach

• SMED Method: Process Flow chart

Analysis of Situational Approach

• SMED Method: BENEFITS

Analysis of Situational Approach

Long-term approach• Converting 2-step process to inline process• Observation & Data Collection

- process and layout,

- setup/changeover times,

- speeds and capacity, etc.

- ProModel Simulation software• Assumptions• Current Process Simulation Model• New Process Simulation Model

Analysis of Situational Approach

Long-term approach• Variables/Functions

- locations

- entities

- network paths

- process/logic

- arrivals• product differentiation• setup downtimes

Analysis of Situational Approach

Long-term approach: Assumptions• Setup times for each machine were calculated

using an average from the statistics provided.• Simulation models are programmed to run at

particular speed as opposed to individual actual speeds.

• Offline filling and storage time and activities are not accounted for in the simulation model.

• The proposed filler speeds and product specifics are assumed to be similar to the current equipment capabilities

• When locations and resources appear to be idle, setup downtimes are in occurrence.

Analysis & Managerial Interpretation

Short-term Approach

Alcon Operation or Process steps

1) Staging (storage) area

2) Line area: inspection

3) Changeover

4) Production

5) Finished goods area

6) Reconciliation with Materials Office

Analysis & Managerial Interpretation

Short-term Approach

• Changeover is the main cause for low efficiency.

• Steps in setup process– Preparation, after-process adjustments,

checking of materials and tools

– Mounting and removing blades, tools, parts

– Measurements, settings, and calibrations

– Trial runs and adjustments

Analysis & Managerial Interpretation

Short-term Approach– Calibration and Trial Runs occupy a total of

85% of total time (changeover and LC time)!Alcon Labs Setup Time Allocation

10%

5%

20%

65%

Preparation

Mounting

Calibration

Trial Runs

Analysis & Managerial Interpretation

Short-term Approach: • Changeover setup adjustments

1) Labelers

2) Cartoners

3) Magazines

4) Ink Jet Coder

5) Wrapper/Packaging

• Adjustments are made by trial-and-error as well as intuition

Analysis & Managerial Interpretation

• Short-term Approach: Changeover

Analysis & Managerial Interpretation

Short-term Approach:

• Other inefficiencies:– Incorrect Madrid Translations

– Disconnected communication across divisions

Analysis & Managerial Interpretation

Long-term Approach:

• Decreased product handling and movement

• Increased flexibility and capabilities

• Increased utilization, productivity levels, and capacity

• Automated flex pack line

• Decreased downtimes

Recommendations

Long-Term Solution• Recommend 1-year further analysis and

research

- costs

- equipment

- feasibility requirements

- build a more accurate model

- implementation

Recommendations

Short-Term Solution• Strongly recommend forming a changeover team of

4-5 members1) Labelers

2) Cartoners

3) Magazines

4) Ink Jet Coder

5) Wrapper/Packaging

• Update changeover team regarding production schedules for advanced preparation

Recommendations

Short-Term Solution

• Allocate secondary space for storage– Color code

• Next Raw materials – red (stop)

• Current Raw Materials and Finished product – green (go)

Short-Term Solution• Streamline line clearance to a parallel process• Cross-train personnel

– Require employees to perform other functions in the changeover process

• Ensure prompt arrival of Bill of Materials– If items aren’t available, contingency plan should be

developed

• Improve coordination between Marketing, Planning, and Production divisions

• Function standardization• Replace bolts with one-time tighteners!• Mark individual calibration settings for each product on

each line for easy adjustments

Recommendations

Questions?

• SMU TEAM ALCON– Benjamin Luong

– Chris Davis

– Cuong Ngo

– Cindy Nguyen

– Shanta Ramdhanny