ALCON LABS
Project Chiron
SMU TEAM ALCON
Project Overview
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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
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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, valueadded 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
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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
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5)
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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
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Strongly recommend forming a changeover team of
4-5 members
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5)
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Labelers
Cartoners
Magazines
Ink Jet Coder
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)
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