Project Chiron SMU TEAM ALCON 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 Long-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 Staging (storage) area Line area: inspection Changeover Production Finished goods area 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)!

Analysis & Managerial Interpretation Short-term Approach: Changeover setup adjustments Labelers Cartoners Magazines Ink Jet Coder 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 members Labelers Cartoners Magazines Ink Jet Coder Wrapper/Packaging Update changeover team regarding production schedules for advanced preparation

Allocate secondary space for storage Recommendations Short-Term Solution Allocate secondary space for storage Color code Next Raw materials – red (stop) Current Raw Materials and Finished product – green (go)

Recommendations 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

Questions? SMU TEAM ALCON Benjamin Luong Chris Davis Cuong Ngo Cindy Nguyen Shanta Ramdhanny