LensCrafters 2012 Annual Report Download - page 31

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PRODUCT
DEVELOPMENT
MANUFACTURING
The engineering process consists of the product development stages between style
sketches and the manufactured final products. By scheduling the process pursuant to
a launch calendar that focuses on customer and geographic demand, the engineering
department has been able to decrease product development timelines in recent years.
The research and development efforts of Luxottica’s engineering staff also play a crucial
role in the development process. Luxottica’s engineers are continuously looking for new
materials, concepts and technology innovations to be applied to products and processes
in an effort to differentiate them in the eyewear market.
During the initial phase of the development process, the prototype makers transform
designs into one-off pieces, crafted by hand with meticulous precision. Once developed,
they are passed on to the product department, which uses visual rendering and 3D software
to analyze the steps necessary to bring the prototype to mass production.
At this point in the cycle, the mold workshop designs and assembles the equipment
needed to make the components for the new model. The first specimens obtained are
assembled and undergo a series of tests required by internal quality control procedures.
The next steps in the process involve the production and quality certification of sales
samples of the new models. These samples are subjected to another sequence of tests to
ascertain the quality of the engineering. The final step is the production of an initial batch
using definitive tooling certified by an external standards organization. These samples are
produced in a pilot facility representing the plant chosen to mass produce the new model
in order to meet the needs of production planning.
Luxottica’s primary manufacturing facilities are located in Italy, China, the United States
and Brazil.
Luxottica has six manufacturing facilities in Italy: five in Northeastern Italy, the area in which
most of the country’s optical industry is based, and one near Turin. Over the years, the
Group has consolidated its manufacturing processes by utilizing a consistent production
technology in each of the Italian facilities. This consolidation has enabled Luxottica to
improve both the productivity and quality of its manufacturing operations.
Plastic frames are made in the Agordo, Sedico, Pederobba and Lauriano facilities, while
metal frames are produced in Agordo and Rovereto. Certain metal frame parts are produced
in the Cencenighe plant. The Lauriano facility also makes crystal and polycarbonate lenses
for sunglasses.
From 1998 to 2001, Luxottica operated the Dongguan plant in China’s Guangdong province
through a 50%-owned joint venture (Tristar Optical Company Ltd.) with a Japanese partner.
In 2001, Luxottica acquired the remaining 50% interest in this Chinese manufacturer
and in 2006, it increased its manufacturing capacity in China through the construction
of a new manufacturing facility to produce both metal and plastic frames. After the
construction of this new facility, the annual average daily production in China increased by
approximately 80% in 2006 compared to 2005. Since then, Luxottica has further expanded
2.4 FROM DESIGN TO LOGISTICS