1. Project Chiron SMU TEAM ALCON
ALCON LABS
Project Chiron
SMU TEAM ALCON

2. Project Overview Project Background
Problem Description & Core Objectives
Action and Approach Plan
Analysis of Situational Approach
Analysis and Managerial Interpretation
Recommendations

3. 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

4. Definition of the Problem
Whitestock Lines 1 & 2
Production inefficiency and delays
Lagging downtime
Line clearances (LC) occupy minutes
LC occurs 4-5 per day
Loss of Capacity

5. 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

6. 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)

7. 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

8. 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

9. 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

10. Analysis of Situational Approach
SMED Method: Process Flow chart

11. Analysis of Situational Approach
SMED Method: BENEFITS

12. 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

13. Analysis of Situational Approach
Long-term approach
Variables/Functions
- locations
- entities
- network paths
- process/logic
- arrivals
product differentiation
setup downtimes

14. 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.

15. 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

16. 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

17. Analysis & Managerial Interpretation
Short-term Approach
Calibration and Trial Runs occupy a total of 85% of total time (changeover and LC time)!

18. 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

19. Analysis & Managerial Interpretation
Short-term Approach: Changeover

20. Analysis & Managerial Interpretation
Short-term Approach:
Other inefficiencies:
Incorrect Madrid Translations
Disconnected communication across divisions

21. 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

22. Recommendations Long-Term Solution
Recommend 1-year further analysis and research
- costs
- equipment
- feasibility requirements
- build a more accurate model
- implementation

23. 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

24. 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)

25. 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

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