BTM3713
Lean Manufacturing System Group Project
2020/2021 Semester I
Faculty of Manufacturing and Mechatronic Engineering
UNIVERSITI MALAYSIA PAHANG
LECTURE NAME:
DR MUSFIRAH ABDUL HADI
Section 1
Group 7
Name
Matric Number
Muhamad Hazman Bin Shahrul Fadhilah
TA19149
Muhammad Irfan Bin Kamaruzzaman
TA19116
Ismareeza Hanif Bin Shaiful Adzhar
TA19143
Muhammad Zahin Bin Mohammad Ali
TA19114
ABSTRACT
Nike a leading manufacturer of shoes and other sports equipment in the world faced lots of
problems in adopting new software to streamline its supply chain and manufacturing processes
in order to reduce gap between its products demand and supply. Nike obtains its finished
products from manufacturing facilities located whole across the world. Nike followed a
complicated supply chain system. It obtained orders from retailers Nike a leading manufacturer
of shoes and other sports equipment in the world faced lots of problems in adopting new
software to streamline its supply chain and manufacturing processes in order to reduce gap
between its products demand and supply, six months before their dates of delivery. These
orders were to be forwarded to the various factories located across the world. Finished goods
obtained where then shipped to the respective retailers.
In order to improve its logistics and working schedule Nike thought of implementation of
supply chain but their implementations lead to sequence of failures but with strong
determination Nike was able to emerge successful and now Nike is one of the topmost leading
brands. This case deals with the problems faced by Nike in implementing a new software
application to streamline its supply chain and manufacturing processes.
TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION
1.1 Background of project
1
1.2 Objectives
1
1.3 Lean Manufacturing
2
1.3.1 History of Lean Manufacturing
2
1.3.2 Princip of Lean
3
1.4 Value Steam Mapping
5
CHAPTER 2 LITERATURE REVIEW
2.1 Project Background
7
2.2 Nike
7
2.3 Product
10
2.4 The Making of the Shoe
14
2.5 Precedence Diagram Component
17
2.6 Cycle Time
18
2.7 Factory Layout
19
CHAPTER 3 METHODOLOGY
3.1 Purpose of Methodology
20
3.2 Problem Identify
20
3.2.1 There is a Surplus of Product Production
20
3.2.2 Involved in the Final Inspection of the Product
21
3.2.3 Factory Layout
22
CHAPTER 4 RECOMMANDATION
4.1 Problem Solving
24
4.1.1 Kaizen
24
4.1.2 5S
25
4.1.3 Jidoka
28
CHAPTER 5 CONCLUSION
5.1 Conclusion
31
REFERENCES
33
CHAPTER 1
INTRODUCTION
1.1 Background Project
Back in the golden age of handmade footwear the shoemaker bore responsibility for the
shoemaking process from start to finish. Now it can feel like fast fashion reigns supreme but
plenty of love still goes into creating handmade shoes. Now, unlike the original cobblers,
high quality shoes are made using a nesting manufacturing process. So, if your question is
‘how does a factory make shoes?’ this is what we are taking a closer look at. In nesting
manufacturing a factory’s various departments each performs different stages of the
production process. When a department has finished their role, the shoes are forwarded to the
next department in line.
And unlike throwaway fashion footwear bespoke shoes undergo a surprisingly high number
of different stages before they are ready to be worn. Not every manufacturer is the same and
the number of steps involved depends on the production methods they use. Looking for a
ballpark figure? Let’s just say a shoe may be created in 70 steps – or it may take 390
1.2 Objective of Project
To improve the quality of products, eliminate unnecessary waste, reduce production
times, and reduce total costs. Cost reduction, including labour, Reduction in the timing of
the creation of products, Reduction of production and storage space, Guarantee of product
delivery to the customer, Maximum quality at a certain cost or minimum cost at a certain
quality.
1
1.3 Lean Manufacturing
Lean manufacturing addresses one of the worst things that can happen to any enterprise:
waste. To not take full advantage of all your resources is to lose efficiencies and, in so doing,
stunt production. These neglected resources include everything from manufacturing project
management tools, to the skills of the staff members.
Industry is, of course, rife with waste. Whether it is idle workers or unused materials that
cannot be recycled or repurposed, the results are the same: a drag on productivity. This
insistence on eliminating waste is where the idea of lean as a management system developed.
Called lean manufacturing or lean production, the truth is that the lessons learned from this
methodology can be universally applied. Lean manufacturing principles can help your business
processes gain efficiencies and, as a result, become more effective and competitive in any
marketplace. So, even if you are not in the manufacturing business, you can still learn
something from this methodology that changed the world.
Lean is a methodology to reduce waste in a manufacturing system without sacrificing
productivity. The customer defines what is of value in terms of what they would pay for the
product or service. Through lean management, what adds value becomes clear by removing or
reducing everything that does not add value.
1.3.1 History of Lean Manufacturing
The idea of lean manufacturing was first championed by the Toyota Production
System and called lean in the 1990s. This coincided with the growth of Toyota from a small
company to one of the world’s most successful seller of motor vehicles.
But lean as an idea that encompasses reduction of waste goes back to Benjamin
Franklin, who wrote about it in his Poor Richard’s Almanack. He noted that avoiding
unnecessary costs could be more profitable than increasing sales. This idea, and other relevant
concepts appear in his essay “The Way to Wealth.”
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The idea grew into what mechanical engineer Frederick Winslow Taylor called scientific
management, which analyses and synthesizes workflow to improve efficiencies. In his
book Principles of Scientific Management, published in 1911, he codified the process.
The term lean as a principle of manufacturing was first used by John Krafcik in the article
“Triumph of the Lean Production System,” which was published in 1988 and based on his MIT
Sloan School of Management master’s thesis. Krafcik worked as a quality engineer for a joint
venture between Toyota and GM in California before he earned his master’s.
1.3.2 Princip of Lean
1. Value: Value is always defined by the customer’s needs for a specific product. For
example, what is the timeline for manufacturing and delivery? What is the price point?
What are other important requirements or expectations that must be met? This
information is vital for defining value.
2. Value stream: Once the value (end goal) has been determined, the next step is mapping
the “value stream,” or all the steps and processes involved in taking a specific product
from raw materials and delivering the final product to the customer. Value-stream
mapping is a simple but eye-opening experience that identifies all the actions that take
a product or service through any process. That process can be in design, production,
procurement, HR, administration, delivery, or customer service. The idea is to draw, on
one page, a "map" of the flow of material/product through the process. The goal is to
identify every step that does not create value and then find ways to eliminate those
wasteful steps. Value-stream mapping is sometimes referred to as process reengineering. Ultimately this exercise also results in a better understanding of the entire
business operation.
3.
Flow: After the waste has been removed from the value stream, the next step is to be
sure the remaining steps flow smoothly with no interruptions, delays, or bottlenecks.
“Make the value-creating steps occur in tight sequence so that the product or service
will flow smoothly toward the customer,” advises LEI. This may require breaking down
silo thinking and making the effort to become cross-functional across all departments,
which can be one of the greatest challenges for lean programs to overcome. However,
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studies show that this will also lead to huge gains in productivity and efficiency,
sometimes as high as 50-percent improvement or more.
4. Pull: With improved flow, time to market (or time to customer) can be dramatically
improved. This makes it much easier to deliver products as needed, as in “just in time”
manufacturing or delivery. This means the customer can “pull” the product from you
as needed (often in weeks, instead of months). As a result, products don’t need to be
built in advance or materials stockpiled, creating expensive inventory that needs to be
managed, saving money for both the manufacturer/provider and the customer.
5. Perfection: Accomplishing Steps 1-4 is a great start, but the fifth step is perhaps the
most important: making lean thinking and process improvement part of your corporate
culture. As gains continue to pile up, it is important to remember lean is not a static
system and requires constant effort and vigilance to perfect. Every employee should be
involved in implementing lean. Lean experts often say that a process is not truly lean
until it has been through value-stream mapping at least half a dozen times.
Figure 1: Princip of Lean Manufacturing
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1.4 VALUE STREAM MAPPING
Value stream mapping is a flowchart method to illustrate, analyze and improve the steps
required to deliver a product or service. A key part of lean methodology, VSM reviews the
flow of process steps and information from origin to delivery to the customer. As with other
types of flowcharts, it uses a system of symbols to depict various work activities and
information flows. VSM is especially useful to find and eliminate waste. Items are mapped as
adding value or not adding value from the customer’s standpoint, with the purpose of rooting
out items that don’t add value.
Figure 2: Example of VSM
It is important to keep in mind that customers, whether external or internal, care about
the value of the product or service to them, not the efforts it took to produce it, or the value that
may flow to other customers. Value stream mapping maintains that focus. A typical process is
to draw a current state VSM and then model a better way with a future state and/or ideal state
VSM. You can start off sketching by hand and then move to VSM software for better
communication, analysis, and collaboration.
Value stream mapping is a powerful method to ferret out waste in any process, not just
manufacturing. That is its core purpose. You detail each significant process step and evaluate
how it is adding value or not adding value from the customer’s standpoint. That focus on value
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keeps the analysis targeted to what really matters, allowing the company to compete most
effectively in the market. Foreseeing or facing any competitive threat, lean practitioners can
make good use of VSM to produce the most value for the customer in the most efficient way
possible. It can and should be used on an ongoing basis for continuous improvement, bringing
better and better process steps online. VSM allows you to see not only the waste, but the source
or cause of the waste.
Value stream mapping, as with other good visualizations, serves as an effective tool for
communication, collaboration and even culture change. Decision makers can clearly visualize
the current state of the process and where waste is occurring. They can see problems like
process delays, excessive downtime, constraints, and inventory issues. And with the Future
State and/or Ideal State VSM, they can see precisely how to improve.
Although its typical purpose is eliminating waste, VSM can also be seen from the
perspective of adding value. After all, that is what the customer cares about. Eliminating waste
is the means to an end of creating value, such as a lower price and/or better-quality product or
service. Value is something a customer is willing to pay for. The title of a popular VSM book
is even: Learning to See: Value Stream Mapping to Add Value and Eliminate Muda, by Mike
Rother and John Shook. (Muda is lean terminology for waste.)
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CHAPTER 2
LITERATURE REVIEW
This section of the report provides a brief background on the topics we researched in order to
complete this project. Lean manufacturing, value stream mapping and information about the
sponsoring company were relevant information we needed to consider before we began work
on the project.
2.1 Project Background
In this chapter we will discuss relevant background information for our project. First, we will
briefly describe about Nike company. Then we will provide information about the product we
worked with. Finally, we will discuss the manufacturing process and the factory layout.
2.2 Nike
Nike, Inc. is an American multinational corporation that is engaged in the design,
development and worldwide marketing and selling of footwear, apparel, equipment,
accessories, and services. The company takes its name from Nike, the Greek goddess of
victory. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer
of sports equipment. The brand alone is valued at $10.7 Billion making it the most valuable
brand among sports businesses
Nike,
Inc.,
formerly
(1964–78) Blue
Ribbon
Sports,
American
sportswear company headquartered in Beaverton, Oregon. It was founded in 1964 as BlueRibbon Sports by Bill Bowerman, a track-and-field coach at the University of Oregon, and his
former student Phil Knight. They opened their first retail outlet in 1966 and launched
7
the Nike brand shoe in 1972. The company was renamed Nike, Inc., in 1978 and went public
two years later. By the early 21st century, Nike had retail outlets and distributors in more than
170 countries, and its logo—a curved check mark called the “swoosh”—was recognized
throughout the world. From the late 1980s Nike steadily expanded its business and diversified
its product line through numerous acquisitions, including the shoe companies Cole Haan (1988;
sold in 2012) and Converse, Inc. (2003), the sports-equipment producer Canstar Sports, Inc.
(1994; later called Bauer and sold in 2008), and the athletic apparel and equipment company
Umbro (2008; sold in 2012). In 1996 the company created Nike ACG (“all-conditions gear”),
which markets products for extreme sports such as snowboarding and mountain biking. In the
early 21st century Nike began selling sports-technology accessories, including portable heartrate monitors and high-altitude wrist compasses.
Part of Nike’s success is owed to endorsements by such athletes as Michael Jordan, Mia
Hamm, Roger Federer, and Tiger Woods. The Nike Town chain stores, the first of which
opened in 1990, pay tribute to these and other company spokespersons while offering
consumers a full range of Nike products. In the 1990s the company’s image briefly suffered
from revelations about poor working conditions in its overseas factories.
Figure 3: Map of Nike
8
Our priority is zero waste, period. Our vision is a circular future in which the very
concept of waste doesn’t even exist. We are eliminating waste wherever we can, beginning by
designing waste out of our products and optimizing our manufacturing processes. We know
that making these key design and process shifts are critical to us achieving our goal of cutting
our environmental impact in half. Waste is generated across our value chain from agricultural
waste associated with harvesting raw materials to the manufacturing waste created in the
process of putting the finishing touches on our products to the waste created when you’re done
with our products and throw them away.
For more than ten years, we’ve been designing waste out of our processes to make
more efficient and more sustainable products. For us, scraps are valuable resources. We
believe every ounce of material sourced to make Nike products should be put to good use.
That is why we’re eliminating waste to landfill and incineration. We’re focused particularly
on footwear, which accounts for nearly two-thirds of Nike manufacturing waste. We’re proud
to say that today, more than half of footwear factory waste is recycled. We do this by
separating waste for recycling and using waste management centres that consolidate, process
and sell the scrap material to other businesses.
At NIKE, we respect human rights in our operations and extended value chain, and
conduct business ethically and sustainably. NIKE supports human rights as defined by the
Universal Declaration of Human Rights, which recognizes that “all human beings are born free
and equal in dignity and rights.” We work to elevate human potential through our products,
partnerships and operations, something that cannot be accomplished without a fundamental
respect for human rights throughout NIKE’s operations. We expect the same from our
suppliers, and focus on working with long-term, strategic suppliers that demonstrate a
commitment to engaging their workers, providing safe working conditions and advancing
environmental responsibility. This includes working to combat risks of forced labor.
For more information on NIKE’s commitment to sustainability and human rights,
please see our annual Report. This statement is being furnished pursuant to the UK Modern
Slavery Act, the Australia Commonwealth Modern Slavery Act and the California
Transparency in Supply Chains Act. This statement discusses NIKE’s global business
practices to address forced labour. This statement encompasses NIKE, Inc. and its consolidated
subsidiaries because we take a global approach to forced labour compliance. However, not all
of our consolidated subsidiaries are subject to the UK Modern Slavery Act, the Australia
9
Commonwealth Modern Slavery Act and the California Transparency in Supply Chains Act.
As used in this statement, forced labour includes modern slavery, prison labour, indentured
labour, bonded labour, human trafficking, or other similar conduct.
Figure 4: Nike Logo
Figure 5: Nike Supply Chain
10
2.3 Product (Nike Air)
Their first products were track running shoes They currently also make shoes, jerseys,
shorts, base layers, etc. for a wide range of sports, including track and field, baseball, ice
hockey, tennis, association football (soccer), lacrosse, basketball, and cricket. Nike recently
teamed up with Apple Inc. to produce the Nike+ product that monitors a runner's performance
via a radio device in the shoe that links to the iPod nano.
Born in Ohio in 1925, Marion Franklin Rudy (that's him, below) was an aerospace
engineer, and left his career in the late ’60s to pursue creative solutions for other industries.
Among his more audacious ideas: placing tiny air bags in the soles of athletic shoes to soften
impact. He pitched his air-bag innovation to 23 shoe companies; all rejected him. Then, in
1977, he presented his vision to Phil Knight. The Nike co-founder took an air-cushioned
prototype for a test run around the Beaverton campus, and returned to his office intrigued —
Rudy’s shoe had an unprecedentedly smooth ride. Nike had found Air.
Figure 6 and 7: First Design of Nike Air
11
Air, of course, is rooted in running. The first shoe to feature Air cushioning was 1978’s
Tailwind, a running shoe. Before the concept of creating hype was even a thing, the Nike
marketing staff decided to release a limited number of Tailwind shoes prior to a broader launch.
Shoemakers at Nike’s first R&D lab in Exeter, New Hampshire, cranked out 250 pairs of the
highly technical shoe, which were sent to six Hawaiian running stores for the Honolulu
Marathon. The shoes sold out within 24 hours, despite an unprecedented $50 retail price. It
wasn’t just hype that kept Air on runners’ feet. Also in 1978, researchers at the University of
Tennessee in Knoxville asked 10 runners to run on a treadmill in the Tailwind. They found that
the athletes used less energy running in the Air shoes than running in conventional running
shoes. Runners and science had validated Air. What was left in the mid-’80s was to capture the
attention of even more joggers. That’s when design, coupled with ample audacity, came in.
Big windows. Forefoot Air. Full-length Air! Tuned Air. These were some of the
astounding changes to both the make and aesthetic that put the Max in Air during the ’90s, and
its evolution mirrored the tenor of the decade. The era had a new soundtrack. Hip-hop was
expanding, Brit-pop dominated the charts and new iterations of dance music were speeding up
BPMs and helping to welcome sportswear into raves around Europe.
Streetwear was born or at least hit stride in the ’90s convergence of sport and culture. The
audacious look of Air Max models, from the 90 to the Air Max Plus, helped lead a
transformation in dress, each shoe equally big, bold and colourful. New technologies were also
changing the way people interacted. The World Wide Web became a reality in 1991, and by
the time the iMac hit in 1998, the emergent platforms (including an inventive, digitized auction
service in 1995) shifted how people created communities and bought and sold goods. This
digital revolution helped sneaker collecting transition from a word-of-mouth niche lifestyle to
a global phenomenon.
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Figure 8: Nike Air Max 90
While its history is rich, Air’s story is never about then. Longstanding borderline
cultish crushes on specific models mean Air, in almost every iteration, is about the now. And
the continual reinvention and imaginative spirit behind it means that the platform is never far
from what’s next. Creating the Nike Air Max requires cooperation, camaraderie an esprit de
corps. The process begins with Air Manufacturing Innovation. The folks there get to imagine
possibilities the forms, feels and structures of Air and spark inspiration for future design. Their
engineering breakthroughs allow other teams to unlock the keys to a softer, bouncier, more
flexible ride. This launches a cascade of creativity, involving all facets of Nike's design
organization colour, concept, digital, footwear, graphic, material, print, pattern and several
more disciplines to drive innovation for Air Max shoes, such as the new Air Max 720. Tapping
ingenuity from every discipline, and ensuring those ideas gel together, is essential for an ideal
final product, says Courtney Dailey, Nike VP of Colour Design. “For example, colour needs
to strike a balance between amplifying the tech and making its own statement.”
The synergistic approach and unrivalled teamwork allow Nike to push new paradigms again
and again. For Air, it means fresh shapes, news sensations and a continuously bold future.
Most simply, Air is always at the vanguard a defining element of the zeitgeist from ’87 to
infinity.
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2.4 The Making of the Shoes
1) The Design Process -establish target price, target audience and product features -produce
"tech package" to send to subcontractors in factories in Europe and Asia
2) Supplies
A. Raw Materials
-fabric -plastic
-rubber
-foams
-metallics
B. Textiles and Leathers
3) Cutting
- In this department, the top part of the shoe or the "upper" is made.
4) Sewing (of upper section above the sole)
Figure 9: Sewing Process
- In this process, the upper portion is sewed into a design form.
5) Stock fitting (prepares the sole)
-The sole of the shoes is prepared in this process.
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6) Lasting (prepares attachment of upper to the sole)
-The upper portion of the shoe prepared is attached to the sole of the shoe.
7) Heeling (attaches and shapes heel bottom to final form)
-After the upper portion is attached to the sole of the shoe, the heel is attached to the sole and
is given its final form. This process is termed as heeling
8) Finishing
-Machines smooth out the excess material hanging over the insole by tucking it back in
underneath the shoe.
Figure 10: Finishing Process
9) Treeing (attaches accessories)
-The shoelaces and accessories are put in place for the final construction of the shoe.
Figure 11: Treeing Process
15
10) Distribution & Trading Companies
- After the manufacturing process, the shoe is then shipped to distribution and trading
companies where it is then distributed to retailers and sold to consumers.
Figure 12: Stock Ready to Distribution
Figure 13: Current State Map
16
TASK
DESCRIPTION
TASK TIME
(MINUTES)
IMMEDIATE
PREDECESSORS
A
Raw Material
10 minutes
-
B
Cutting
5 minutes
A
C
Sewing
10 minutes
B
D
Stock Fiting
5 minutes
C
E
Lasting
5 minutes
D
F
Heeling
5 minutes
E
G
Finishing
5 minutes
F
H
Treeing
5 minutes
G
I
Packaging
6 minutes
H
Total
56 minutes
2.5 Precedence Diagram Component
The precedence diagram method (PDM) is a tool for scheduling activities in a project plan. It
is a method of constructing a project schedule network diagram that uses boxes, referred to as
nodes, to represent activities and connects them with arrows that show the dependencies. It is
also called the activity-on-node (AON) method. For examples, critical tasks, noncritical tasks,
and slack time, shows the relationship of the tasks to each other and allows for what-if, worstcase, best-case and most likely scenario.
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2.6 CYCLE TIME
Cycle time includes process time, during which a unit is acted upon to bring it closer to an
output, and delay time, during which a unit of work is spent waiting to take the next action.
Calculate Cycle Time and Minimum Number of Workstation
Cycle Time = Production Time Per Day
Unit Required Per Day
Cycle Time = 720
100
Cycle Time = 7.2 per min
2.7 Minimum Number of Workstation
Nmin = Total Time Task (min)
Cycle Time
Nmin = 56
7.2
= 7.7 ~ 8 workstation
We achieve our balancing with 3 workstations.
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2.8 Factory Layout
The factory layout is divided by department by department. In each department they
manage by operation manager and floor manager. In the production department they divided
to each section such as cutting, sewing, stock fitting, lasting, heeling, finishing, and treeing.
The section was called by Line.
Figure 14: Layout of the factory
Figure 15: Nike Factory
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CHAPTER 3
METHODOLOGY
3.1 PURPOSE OF METHODOLOGY
The purpose of the methodology is to achieve the objective of the study. Its start from
understanding the title of the study and will be end with the appropriate report. The
methodology is a guideline of the study to make sure that all process follows the plan. The
study will be done on the Nike shoes production that operated at the factory. The study will
cover up the process flow at the Department. The problem occurs cannot be solved by
applying lean tools because of the rules and policy of the company. So that, the lean tools
are only be suggested for that problem.
3.2 PROBLEM IDENTIFY
3.2.1. There is a surplus of product production
The problem faced by this Nike company is that over-production at a time results in a loss to
the company. Nike company conducts a survey at a time to meet the needs or wants of Nike
shoe enthusiasts by producing various types of shoes to ensure Nike shoe enthusiasts can
choose to buy the shoes of interest. Therefore, Nike company decided to produce sketches or
make shoes in a relatively short time or period between the production of shoes one and shoes
two. For example, Nike company produces Nike water shoes in March starting with the lowest
price of rm120 and can rise high reaching rm450 a pair and will probably be higher in price if
the production of these shoes is very limited. Then the second shoe was released in May with
the production of Nike running150 type shoes with prices starting from rm120 also up to rm
700. Here you will see Nike company took a relatively short time to produce one shoe model
to a new model. This can lead to losses with the production of excess shoes hard shoes released
in March are still for sale and promoted then new model shoes are released at the same price
and quality, have not had time for shoes released in March sold out, shoes other models were
released in May and this caused buyers or fans of Nike shoes to make a comparison between
the old model shoes with the new model shoes that were recently released. Fans or buyers will
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look more at the new shoes compared to the old ones; this is because with very little different
quality. Next, Nike company is too much to meet the needs of buyers by producing shoes of
the same model too much so as to over-production. Then these excess shoes are collected
somewhere because no fan or buyer will buy this model shoes and at the end of the year Nike
company will make an auction sale or called promotional sales to spend all kinds of excess
shoes. In addition, Nike company is too eager to meet the needs of consumers by producing
different types of shoe models. The Nike company does not focus on the best-selling types or
models of shoes, this results in more shoe production on models that are not in demand or
favoured by Nike shoe buyers. This Nike company also feels they are a good company among
the best. This causes Nike company to make so much shoe production that over-production
results in unexpected losses. Nike companies are too concerned about the name of the product
causing the excess production of shoes that should be sold at a quantity of 300,000 pairs of
shoes on a model and there is an artificial excess with 350,000 shoe production at a time. There
is a surplus of 50,000 shoes removed resulting in the possibility of a considerable loss to the
Nike company. This is not to be expected of a company when it does not take more
precautionary measures when making shoe manufacturing.
3.2.2. Involved in the final inspection of the product
The second is that the problems that come from the negligence of the workers cause the process
of making a shoe to be chaotic and irregular. This will cause one of the unwanted things to
happen that is a defect in a shoe is likely to happen. Due to the negligence of new or experienced
employees will cause problems that arise. It is possible that the negligence of these employees
came from a misunderstanding with each other. This needs to be taken seriously because when
in a large company there must be many employees consisting of various races or races and
religions. When there is no good agreement or understanding, then various issues arise from
various aspects such as disrespect for each other, do not want to get to know each other or do
not want to get to know the employees working in the company. This can be even bigger with
the nature of the working ego and according to each case for example the installation part for
own work and the stacking part for work alone, such a thing will be a problem when one part
is overlooked and will cause defects in a shoe and finally on at the end of the inspection there
will be a bit of a conflict i.e., the product does not last for sale due to a defect in the model.
Furthermore, not enough staff or employees in the company is also one of the common
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problems. When there are not enough staff in a company, then there are problems that occur,
the shoes made are not perfect or the shoes produced cannot meet the needs of consumers. The
quantity of employees or staff is also an important aspect of a company to get satisfaction or
sustainability of work. Among the problems that will occur when the shortage of workers is
one of them is that the work will be slow to complete, the second is that the work is likely to
be a lot and will be delayed making it impossible to achieve the set targets. Work movements
also become slower and the work environment is also not harmonious and very boring. This
will be trivial and not taken seriously by the workers resulting in the workers working
carelessly and not caring about the surrounding situation. With this also, the workers directly
work without following the prescribed SOP, because working does not follow the prescribed
SOP, then at some point there will be anxiety or problems that will arise such as employees
will be injured, employees will be fired or not Company employees will be fined for offenses
committed. Finally, the problem that caused the shoes that were made to hang on the final
inspection was the lack of material. This will cause the shoes cannot be made perfectly due to
lack of artificial materials. Therefore, the ingredients needed should be an important aspect to
realize a product. Additives are also very important to improve a product so that it looks more
stylish and easier to sell to buyers or consumers.
3.2.3 Factory layout
The third problem stems from the lack of knowledge of senior staff members to form one
machine position to another position. This problem will cause the arrangement of the position
of the machine or the existing assets in the factory is very irregularly arranged. In other words,
the position of the factory layout is very unsystematic. This is due to the relatively limited
factory area. The size of the factory also plays an important role for a factory to operate well
because if the factory area is relatively narrow, then the operation of the factory will probably
be more disorganized with a large number of workers and an underdeveloped environment.
with the capacity of the worker in line with the capacity that can be filled in the factory with
the available space. Then, the quantity of machines also plays a role when stacking in a factory.
If the arrangement of the machine itself is scattered, the chances of the plant not operating for
a long time are quite high. If arranged in the correct position according to the position, then the
work process will probably be easier and very organized. The size of a machine is also very
important because if you arrange the machine with a cross or a large machine with a small
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machine interval then the big machine will return it will likely confuse the processes in the
factory to print or form a product. If the position of the machine is adjusted to the size of a
machine it may be better and will be more organized. This will cause the process to run
smoothly despite the relatively large and compact machine capacity.
Figure 16: Current Layout
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CHAPTER 4
RECOMMENDATION
4.1 PROBLEM SOLVING
4.1.1Kaizen
The way were using kaizen concept to make more efficiently in production and make the
environment safer for all workers. Kaizen concept is more like more systematic in working
area to improve all condition such as reducing cycle time, reducing working space and
increasing productivity.
Step 1: Clarify the Problem.
Step 2: Breakdown the Problem.
Step 3: Set the Target.
Step 4: Analyze the Root Cause.
Step 5: Develop Countermeasures.
Step 6: Implement Countermeasures.
Step 7: Monitor Results and Process.
Step 8: Standardize and Share Success.
Kaizen = Continuous Improvement, Continuous Improvement means constantly searching for
and implementing ways to reduce cost, improve quality and increase productivity. Small,
incremental changes; break apart and put back together better, Focus on small, quick changes
for long-term success, Elimination of the 8 Wastes. Kaizen is a philosophy that support
continuous, incremental process changes that sustain a high level of efficiency. At one level
kaizen can help personally improve the way you work by eliminating ‘waste’. At the
organization level, kaizen can be a powerful team-approach that harnesses suggestion and
involvement from people at every level. Wide participation can serve to improve morale and
satisfaction as much as it improve production, cost and other hard measures.
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Figure 17: Kaizen Flow Chart
4.1.2 5S
The closest solution path is 5s, with this chosen path will give a new ray to the problem that
occurs i.e., the product is stuck at the final inspection. 5S is a system for organizing spaces so
work can be performed efficiently, effectively, and safely. This system focuses on putting
everything where it belongs and keeping the workplace clean, which makes it easier for people
to do their jobs without wasting time or risking injury. Sorting is the keep only necessary items
in the workplace. For sort, is keep only necessary items in the workplaces. The Japanese
developed the initial 5S which part of a checklist in todays. Furthermore, it also provides an
easy vehicle to assist the culture change. The 5S provide a vehicle for continuous improvement
with which all employees can identify. 5S stands for the 5 steps of this methodology is Sort,
Set in Order, Shine, Standardize, Sustain. These steps involve going through everything in a
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space, deciding what is necessary and what isn't, putting things in order, cleaning, and setting
up procedures for performing these tasks on a regular basis.

Sort: Start by removing all items from your work area. Inspect the equipment and
identify those items that are critical to the success of the function performed at the
workstation. Eliminate any duplicates, unnecessary equipment, infrequently used items,
and trash. Identify the non-essential items as either waste or “valuable but not critical.”
Store the non-critical items outside of the workstation area. This saves time, space, and
labour costs, while enhancing productivity.

Set in Order: Whatever equipment is deemed critical to the operation must now be
organized. Assign positions for all equipment, work in progress, and raw materials,
keeping ease of reach, identification, and proximity to work surface in mind as you do.
The goal is to maximize the efficiency of the workstation layout. On a smaller scale,
it’s the same concept as warehouse layout. The most frequently used tools should be
the most convenient to grab. This eliminates wasted time from excess motion and
searching.

Shine: Keep everything clean, every day. Doing this keeps things ready to be used when
needed. A clean workspace is a productive workspace, and Seiso literally means “to
clean or shine.” Clean the floors, the walls and the equipment, and ensure all items are
restored to their designated place. Make sure the workstation is well lit. This should be
a part of your daily tasks and should not be postponed until idle time is available.

Standardize: Ensure conditions of work area do not return to the original, disorganized
state. Make the previous three S’s part of your standard procedures each day.
Implement them with the help of signs, banners, shadow boards, tool holders, etc. Make
sure all workers understand their responsibilities and are empowered to perform all of
the tasks.

Sustain: Make a habit of properly maintaining correct procedures to avoid backsliding.
Implementing these steps is a continuous process. It is important to ensure that they are
done each day to prevent slipping into old habits. Commit to performing these steps
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every shift and make sure that any changes to your product or process are compensated
for at your workstation and problems are alleviated as quickly as they are created.
Figure 18: 5s Flow Chart
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Figure 19: Layout After 5S
4.1.3 Jidoka
Jidoka is the most appropriate way to overcome the problem experienced as the product in
cannot be removed at the last time because it hangs on the inspection at the last minute. Jidoka
highlights the causes of problems because work stops immediately when a problem first occurs.
This leads to improvements in the processes that build in quality by eliminating the root causes
of defects. Jidoka sometimes is called autonomation, meaning automation with human
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intelligence. Jidoka is a Lean method that is widely adopted in manufacturing and product
development. Also known as autonomation, it is a simple way of protecting your company
from delivering products of low quality or defects to your customers while trying to keep up
your takt time. The jidoka pillar is often labelled "stop and respond to every abnormality.” We
can define jidoka as a four-step process that engages when abnormalities occur.
1. Detect the abnormality.
2. Stop.
3. Fix or correct the immediate condition.
4. Investigate the root cause and install a countermeasure.
Many machines produced today have incorporated autonomation ideals in their design as they
are seen now very much as being common sense, and with today’s technology are inexpensive
and simple to incorporate into a machines design. Where we tend to fail is not having the
problem highlighted but in taking action to correct the problem and solve root cause. It is
important that we not only give our operators and supervisory staff the authority and
responsibility to stop production when they find a problem but that we also train everyone in
appropriate problem-solving tools to enable us to remove the root cause of the problem. We
then need to ensure that any process documentation is updated to incorporate the changes and
that we communicate those changes across similar processes and products to spread the
learning. The first step of Jidoka is that of detecting an abnormality, so for autonomation the
machine uses simple sensors to detect a problem and then stops and highlights the problems
for the operator. For line stop the operator detects an abnormality and stops the line and
highlights the problem for all to see on an andon board. Other Lean tools use various aspects
of visual management to highlight abnormalities, consider 5S, we identify the locations for
tools, components and work in progress, if we see things that are not in their allocated place
we have seen an abnormality and should take action.
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Figure 20: Concept Jidoka
Figure 21: Jidoka
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CHAPTER 5
CONCLUSION
In this chapter of the report, first, the limitations with this research and their influences on
validity and reliability of the work are discussed. Then overall conclusion about the work and
related findings are presented.
Implementing Lean management in an organization is a concept that is designed to support the
concept of continuous improvement in a manufacturing and support organization. Using this
approach will systematically seek to achieve small and incremental changes in processes in
order to improve efficiency and quality. Lean principles will continue to be used to reduce
waste and improve processes. The Lean management process when used correctly seeks to
eliminate any form of waste in reference to time, effort or money by identifying each step in
the business process and revising steps that does not create value.
Total Productive Manufacturing (TPM) is a structured equipment-centric continuous
improvement process that strives to optimize production effectiveness by identifying and
eliminating equipment and production efficiency losses throughout the production system life
cycle through active team-based participation of employees across all levels of the operational
hierarchy. Although TPM is historically equipment-focused, effective implementation offers a
continuous improvement methodology to increase overall manufacturing productivity. TPM
methodology provides enterprises with the tools required to explore, increase, document, and
proliferate organizational learning. Today, with increasing competition and tough markets,
TPM may decide the success or the failure of a company. TPM has been a proven program for
many years and organizations, especially into manufacturing, can adopt this methodology
without any risk.
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Figure 22: TPM
Figure 23: Implementing TPM
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REFERENCE

https://purpose.nike.com/waste

https://news.nike.com/news/history-of-nike-air

http://manufacturingmap.nikeinc.com/

https://www.britannica.com/topic/Nike-Inc

https://news.nike.com/news/nike-air-manufacturing-history

http://tuhinternational.com/2012/08/26/original-nike-air-bag-patentdrawings/original-nike-air-bag-patent-drawings-01-570x837/
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