ALCON LABS

1
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
• Madrids 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 70million units

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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

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

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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)

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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

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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

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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

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Analysis of Situational Approach

• SMED Method Process Flow chart

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Analysis of Situational Approach

• SMED Method BENEFITS

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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

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Analysis of Situational Approach

• Long-term approach
• Variables/Functions
• - locations
• - entities
• - network paths
• - process/logic
• - arrivals
• product differentiation
• setup downtimes

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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.

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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

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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

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Analysis Managerial Interpretation

• Short-term Approach
• Calibration and Trial Runs occupy a total of 85
  of total time (changeover and LC time)!

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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

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Analysis Managerial Interpretation

• Short-term Approach Changeover

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Analysis Managerial Interpretation

• Short-term Approach
• Other inefficiencies
• Incorrect Madrid Translations
• Disconnected communication across divisions

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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

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Recommendations

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

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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

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Recommendations

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

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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 arent 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

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Questions?

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