LensCrafters 2007 Annual Report Download - page 46

MANUFACTURING | 45 <
Rationalization of manufacturing activities proceeded with a full review of production flows, passing
from work center manufacturing to production line manufacturing. Initiated in 2006 with finishing
work, this process was then applied experimentally to other departments (metal pressing, welding
and pre-assembly) at Agordo and Rovereto. Given the excellent results, the process will also be
extended to Sedico and Pederobba in 2008.
Of particular importance in this context is the “G6G” (rough frames in 6 days) project, which aims
to cut the average production time for rough frames from 12 to six days. This halving of the lead
time makes response to market demand considerably faster, with obvious benefits for sales and
customer service.
The re-organization of processes also involves a radical reduction of production layout surface area
and a full remapping of work areas and work organization.
Plant workforces were upgraded by taking on young engineers to provide industrial control, study
of improvements to layouts and production flows, improved coordination of production progress
and, lastly, the study of new process automation systems.
Efforts continued in all the plants to implement investments in production lines to eliminate non-
value added activities, cut production times and upgrade personnel by requalifying their work. This
will also significantly reduce semi-finished product and warehouse stock levels.
In addition to having efficient plants, the Group utilizes a centralized system for monitoring inventory
and orders. Daily analysis of this information, especially from its retail business, provides data to
support projections of demand, making it possible to plan production and other necessary tasks in
advance. The coordination of supply and demand reduces potential problems in inventory and raw
materials sourcing. This is a major competitive advantage.
The logistics project based on the Knapp automated warehouse and shipment system, which was
handling 40% of the inventory by the end of 2006, was fully implemented in 2007.
Coordinating fast, efficient production in the manufacturing plants with precise monitoring of the
market puts Luxottica Group in the best possible position to meet its wholesale customers’
demands and adapt to changing trends in the market and in fashion in terms of both type and
quantity of products.
R&D ACTIVITIES
Alongside Quality, Research & Development is another key activity for improving response to market
demands, especially in the premium and luxury segments. Work proceeded on a number of
projects in this area in 2007.
The development and renewal of the entire system of requirements forecasting, production planning
and production progress monitoring brings about a substantial reduction in the time elapsing
between arrival of an order and delivery of the product to the store.
To improve its response to an increasingly dynamic market that tends to shorten the average life
cycle of models, the Group in 2007 focused on coordination between the engineering and product
departments, the samples factory and the Italian and Chinese manufacturing facilities.