A LEAN MANUFACTURING APPROACH TO IMPROVE

PRODUCTIVITY USING VSM IN FOOTWEAR INDUSTRY

Submitted by:
Md. Nayan Meya
Mohammed Shahe Nawaj
Md. Rowshan Miya

Supervised by:
Prithbey Raj Dey
Assistant Professor

March, 2019

Department of Industrial & Production Engineering

Dhaka University of Engineering & Technology
Gazipur-1707
A LEAN MANUFACTURING APPROACH TO IMPROVE
PRODUCTIVITY USING VSM IN FOOTWEAR INDUSTRY

Submitted by

Md. Nayan Meya

Mohammed Shahe Nawaj
Md. Rowshan Miya

A thesis
Submitted to the
Department of Industrial & Production Engineering
In Partial Fulfilment of the
Requirement for the degree
of
Bachelor of Science
in
Industrial & Production Engineering

March, 2019

Department of Industrial & Production Engineering

Dhaka University of Engineering & Technology
Gazipur-1707
The thesis titled as A LEAN MANUFACTURING APPROACH TO IMPROVE
PRODUCTIVITY USING VSM IN FOOTWEAR INDUSTRY submitted by
Md.Nayan Miya (Student ID: 117014), Md. Shahe Nawaj (Student ID: 137029) and Md.
Rowshan Miya (Student ID: 137021), session 2013-2014, has been accepted as
satisfactory in partial fulfillment of the requirement for the degree of B.Sc. in Industrial &
Production Engineering on March 25, 2019.

Engr. Prithbey Raj Dey (Supervisor)

Assistant Professor
Department of Industrial and Production Engineering
Dhaka University of Engineering and Technology
Gazipur-1707

II
 Declaration

It is hereby declared that this thesis or any part of it has not been submitted
elsewhere for the award of any degree or diploma.

_________________ ____________________ __________________

Md. Nayan Meya Mohammed Shahe Nawaj Md. Rowshan Miya
Student ID: 117014 Student ID: 137029 Student ID: 137021

III
 TABLE OF CONTENTS
Page

LIST OF TABLES………………………………………………………………..IV
LIST OF FIGURES………………………………………………………………VI
LIST OF TABLES……………………………..……………………………….. VII
LIST OF ABBREVIATION……………….……………………….…………. VIII
ACKNOWLEDGEMENT…………...……………………………………….…. IX
ABSTRACT……………………………….…… …………………………...……… X

CHAPTER 1 INTRODUCTION ................................................................................ 1

1.1 Context and Motivation......................................................................................... 1
1.2 Origin of Lean Philosophy .................................................................................... 2
1.3 Socio-economic importance .................................................................................. 3
1.4 Thesis Objectives .................................................................................................. 3
1.5 Research Approach ............................................................................................... 3

CHAPTER 2 LITERATURE REVIEW ................................................................... 4

2.1 Definition of Lean Concept ................................................................................... 4
2.2 Lean Principles ...................................................................................................... 4
2.3 History of Lean...................................................................................................... 5
2.4 Lean Manufacturing (LM) .................................................................................... 6
2.5 Manufacturing waste ............................................................................................. 6
2.6 Lead time ............................................................................................................... 8
2.7 Cycle Time .......................................................................................................... 10
2.8 Lean Tools ........................................................................................................... 10

CHAPTER 3 RESEARCH METHODOLOGY .................................................... 12

3.1 Research field component ................................................................................... 12
3.1.1 Primary data collection ................................................................................ 12
3.1.2 Secondary data collection ............................................................................ 12
3.1.3 Statistical analysis ........................................................................................ 12
3.2 Value Stream Map (VSM) .................................................................................. 13
3.3 Process Cycle Efficiency (PCE) .......................................................................... 13
3.4 Takt time ............................................................................................................. 13
3.5 Pareto analysis ..................................................................................................... 14

IV
CHAPTER 4 METHODOLOGY AND IMPLEMENTATION ....................... 16
4.1 Boot Production Line .......................................................................................... 16
4.1.1 Present VSM of Boot production line .......................................................... 17
4.1.2 Present PCE of shoe production Line: ......................................................... 20
4.1.3 Present Takt Time of shoe production Line ................................................. 20
4.2 Wasted labor of Boot production line ................................................................. 21
4.3 Pareto analysis for Boot production line. ............................................................ 21
4.4 Improvement Strategies....................................................................................... 23
4.4.1 Gap analysis of footwear industry ............................................................... 23
4.4.2 Increase skill manpower .............................................................................. 24
4.4.3 Continuous Improvement............................................................................. 24
4.4.4 Lead time reduction ..................................................................................... 25
4.5 Improvement points at present VSM of Boot production line ............................ 25
4.5.1 Expected future VSM of Boot production line ............................................ 26
4.5.2 Present PCE of shoe production Line .......................................................... 28
4.5.3 Future Takt Time of shoe production Line .................................................. 28

CHAPTER 5 RESULT AND DISCUSSION ........................................................ 29

5.1 Process Cycle Efficiency (PCE) .......................................................................... 29
5.2 Lead time reduction ............................................................................................. 30
5.3 Takt time reduction ............................................................................................. 31
5.4 Reduction of Non Value Added (NVD) activities .............................................. 31
5.5 Labor reduction ................................................................................................... 32
5.6 Achievement of lean tools adoption .................................................................... 32

CHAPTER 6 CONCLUSION AND RECOMMENDATION .......................... 34

6.1 Conclusion........................................................................................................... 34
6.2 Recommendations ............................................................................................... 34
REFERENCES

V
 List of Figures

Figure No. Title Page

Figure 4.1 Basic stages of shoe production line 18

Figure 4.2 Present VSM of Boot production line 21

Figure 4.3 Pareto chart of Boot production line 24

Figure 4.4 VSM of Boot production line with improvement points 27

Figure 4.5 Future VSM of Boot production line 29

Figure 5.1 Comparison of PCE between present state and future state 32

Figure 5.2 Comparison of lead time between present state and future state 32

Figure 5.3 Comparison of takt time between present state and future state 33

Figure 5.4 Comparison of NVD time between present state and future state 34

Figure 5.5 Comparison of labor between present state and future state 34

Figure 5.6 System improvement of footwear industries in different lean tools. 34

VI
 List of Tables

Table No. Title Page

Table 4.1 Present state Down Time (D/T), Cycle Time (C/T) and Up Time 19
(U/T) data of Boot production line
Table 4.2 Present state VD and Non NVD time for Boot production line 20

Table 4.3 Present and expected Labor of Boot production line 22

Table 4.4 Cumulative percentage of D/T for Pareto analysis of Boot 23

production line
Table 4.5 Future state VD and Non NVD time analysis for Boot production 28
line
Table 5.1 Labor reduction from present state to future state 34

VII
 LIST OF ABBREVIATION

LM = Lean Manufacturing
SS = Six Sigma
LSS = Lean Six Sigma
SSQ = Six Sigma Quality
GDP = Gross Domestic Product
JIT = Just In Time
MDG = Millennium Development Goal
SDG = Sustainable Development Goal
MIT = Massachusetts Institute of Technology
VD = Value Added
VSM = Value Stream Map
WIP = Work In Process
NVD = Non Value Added
PCE = Process Cycle Efficiency

VIII
 ACKNOWLEDGEMENT

Foremost, we express deepest gratitude to merciful Allah for making us strong

enough to complete this thesis successfully.

We would like to express our sincere gratitude to our honorable supervisor Engr.
Prithbey Raj Dey, Assistant Professor, Department of Industrial and Production
Engineering, DUET, for his thoughtful guidance, continuous inspiration, motivation,
encouragement and valuable suggestions to complete this work successfully.

We also express our gratitude to Mr. Md. Imran Hossain, lecturer, Department of
Industrial and Production Engineering, DUET, for his cooperation.

Our sincere thanks also goes to Mr. Md. Obayed, General Manager, Earth
Footwear Ltd. for his cordial approval to conduct our thesis works of his industry.

IX
 ABSTRACT

The footwear industry is one of the largest manufacturing sectors in

Bangladesh. This study about was an evaluation of lean tools implementation in shoe
production lines of Earth footwear industry in Bangladesh. The main target of this
study was to reduce the lead time by using lean tools like Value Stream Mapping
(VSM), Process Cycle Efficiency (PCE) and Pareto Analysis. Lean manufacturing is a
systematic approach to identifying and eliminating wastes (non-value-added
activities) through continuous improvement by conveying the product at the pull of
the customer in pursuit of production. At present state, lead time, PCE and takt time
of court shoe production were observed gradually 86728 sec, 10.68%, and 18 sec/pair.
Ultimately, after the implementation of lean tools, at future state, the lead time, PCE
and takt time of this production line 37912 sec, 24.45% and 13.5 sec/pair respectively.
It is anticipated that after the implementation of lean tools the existing lead time, Takt
time, NVD, Labor of Boot shoe production line may want to be improved
consequently by way of 43.71%, 75%, 36.97%, 61.11%.

X
 CHAPTER 1
INTRODUCTION

1.1 Context and Motivation

The world is very competitive where the basic concern of manufacturing companies
is to increase their customers‟ satisfaction by constantly improving their delivery yet to
keep quality at its best level. At the same time, the companies need to keep their costs and
prices as low as possible to be able to compete with others by keeping their profitability.
In order to achieve this, a company should have a very good control on its production
systems. From previous study it is revealed that vision is as important as action to have
the best control on the production system. A company should have a strong vision and
clear idea of its future goals to establish the most effective production system. Lean
philosophies, which were initiated in TPS are seen as bring the revolutionary change in
the mindset of manufacturers in the search of quite protection with its effects to the
actions as well as to the visions [1].

Before 1980, customers tolerated long lead times which enabled producers to
minimize product cost by using economical batch sizes. Later, customers began to
demand shorter lead times and searching the alternative producers, where they were able
to get their product or service earlier. This is when the problem arose and companies
started to look for changes to be more competitive. As soon as manufacturers focused on
processes, they found waste associated with changeovers, quality defects, process control,
factory layout and machine down time. In an attempt to reduce lead time, businesses and
organizations found that in reality 90% of the existing activities are non-essential and
could be eliminated. So they tried to find ways to reduce or eliminate waste. By
eliminating the NVD activities from the processes and streamlining the flow of value
towards the finished products and services significant optimization results can be realized
[2].To compete with the international company, the manufacturing waste would be
reduced by keeping the improved PCE. Lean tools and SS would be potentially effective
to reduce the lead time and increase the PCE. Lean manufacturing is a generic process
management philosophy derived mostly from the TPS in the 1990s and identified as
"Lean". The implementation of Lean tools is focused on getting the right things to the

1
right place at the right time in the right quantity to achieve perfect work flow, while
minimizing the waste [3].

Footwear industry is a booming and one of the largest manufacturing sectors in

Bangladesh. In the World it is the leading manufacturing industry. Based on raw material,
geographical condition and work force, Bangladesh is highly favorable for the growth of
footwear industry. The demand of processed footwear is rapidly increasing in the busy
World and consequently it seems a rapid expansion of footwear industry in Bangladesh as
like as other countries. It needs several processing steps to produce the finished goods
from raw materials. The delay and manufacturing wastes is the common seen at every
processing unit of footwear industry and thus the efficiency of production is very low
with long lead time.

1.2 Origin of Lean Philosophy

Empirically lean thinking and lean enterprise started in Japan with the attempts of
the Toyota Motor Company to become a promising leader in the auto mobile
manufacturing business thus surpassing American companies like Ford or General
Motors. The concepts and principles of what later was going to be known as the lean
enterprise model that had demonstrated their convinced effect in the auto industry in
Japan where were later researched and documented by members of the International
Motor Vehicle Program at the MIT. Based on the results from that research the landmark
book „The Machine that Changed the World‟ was published in 1990. The book
extensively covered the principles and practices of TPS where lean philosophies were
successfully applied to the production of cars and compared those with the more
traditional methods of American and European companies. A remarkable change was
required to regain competitiveness in the World market and the lean production model
and its subsequent lean enterprise was the answer to that required change.

It was soon reasoned that the same methods were applicable to other industries and
businesses as well. One of the most important movements towards lean implementations
was done by American aerospace industry a highly competitive and complex business
environment. MIT‟s Lean Aerospace Initiative a joint effort of the industry, government
and academia was created almost a decade ago to respond to the lean implementation
needs in the aerospace industry that was willing to project effectively to the 21st century.

2
A lean enterprise is an integrated entity which efficiently creates value for its multiple
stakeholders by employing lean principles and practices [4].

1.3 Socio-economic importance

The leather business and different kind of footwear industries are very important
components of Bangladesh economy as well as for socio-economic condition because of a
big number of indigent and rural mid-level peoples are engaged with these industries and
consequently rise and fall of footwear industry immersed with the sorrow and happiness
of those peoples. But it‟s a piteous matter that by ignoring the booming scope the proper
development in footwear industry is still at infancy stage in Bangladesh as compared to
other developing countries where Lean tools will be a harbinger beyond the proper
development of footwear industry and thus to socio-economic development of involving
human being.

1.4 Thesis Objectives

The authors of this thesis paper was headstrong with some specific objectives.
The objectives of this study are-
i. To identify and quantify the manufacturing waste
ii. To formulate the present VSM of the process lines
iii. To calculate the VD time and NVD time of process lines
iv. To calculate the present and future PCE
v. To formulate the future VSM of the process lines by using lean tools order to reduce
the manufacturing waste & lead time and improve the PCE.

1.5 Research Approach

The initial step in this research is to systematically study and define the history of
the lean manufacturing concept and its different tools and techniques. It will then examine
some most used lean manufacturing tools and techniques. This will be followed by the
study of the existing production system of the case company for example the existing
production layouts, existing manufacturing waste, inventory movement systems,
identifications of VD and NVD works and times and other different variables which need
to be improved for the betterment of existing system. The author was tried to address the
current issues of the industry to find out the standard operation time for each operation.

3
 CHAPTER 2
LITERATURE REVIEW

2.1 Definition of Lean Concept

Once upon a time the word “Lean” was unknown to us but over the time it has
become the most popular jargon which is associated with the lowest cost, highest quality
and shortest lead time and with the desirable outcomes of any manufacturing company.
The word Lean is considered as an approach comprises of a set of tools and practices
which aim to improve efficiency of production line, quality of products and service of any
organization and finally the responsiveness to customers. A number of researchers,
scientists, engineers and institutions have been given the definition of “Lean” or “Lean
Manufacturing”. From a huge number of definitions of Lean a very few definitions are
given by this study. Lean is considered as a set of tools to create the value to the customer
with little or no waste existing in operation [5].

2.2 Lean Principles

Different organizations and different researchers are given the lean principles at
different ways keeping the same focus on process improvement. Lean principles which
were given by the Lean Enterprise Memory Jogger as improving quality, eliminating
waste, reducing lead time and reducing total cost of a process [6]

The description of lean principles were given as-

1. Specify what does and does not create value from the customer‟s perspective and not
from the perspective of individual firms, functions and departments
2. Identify all the steps necessary to design order and produce the product across the
whole value stream to highlight non value adding waste.
3. Make those actions that create value flow without interruption, detours, backflows,
waiting or scrap
4. Only make what is pulled by the customer
5. Strive for perfection by continually removing successive layers of waste as they are
uncovered [7]
The Lean principles were mentioned in their book of “Lean Thinking” as follows-
i. Specify value

4
ii. Identify the value stream
iii. Smooth process flow
iv. Production based on pull and
v. Perfection through elimination of muda or waste [5]
In 2009, “Lean Enterprise Institute” assigned five Lean Principles as follows-
1. Specify the value of customer requirement
2. Identify the value stream for productions and reduce the waste steps
3. Make sure the remaining valued-added steps can work continuously
4. Introduce pull between steps that are possible for continuous flow
5. Conduct perfect management and eliminate the number of steps, the time and
information (Lean Enterprise Institute, 2009)

2.3 History of Lean

It is well-known that Lean started at Toyota in Japan although Henry Ford had been
used similar concept about lean in early 1920‟s who established ever the first assembly
line in 1913 which achieved the production of a vehicle within four minutes with the
great success in the market with lower prices [9]. During the World War II the economy
of Japan destroyed heavily. To remove this economic situation Toyota conducted a
research to induce an approach to remove the manufacturing waste and to reduce the
NVD activities and times because of the situation was too much hard to reinvestment in
order to produce the profitable production as well as to be internationally competitive
[10]. At the same time, Toyota realized that investing in people is more important than
investing in bigger size machinery and continues employee training throughout the
organization. This motivates all employees and they are more open to the improvement
process and everyone started giving their input to the company. Consequently in 1950,
Toyota produced 2,685 vehicles a tiny fraction of what American manufacturer Ford was
producing per day around 7,000 cars but later forty years with 37,000 employees Toyota
was producing four million cars per year half of General Motors‟ production of eight
million units where the remarkable difference was Lean approach [11].

As a result of Lean implementation Toyota averaged 45 assembly defects per 100

cars while GM‟s averaged 130 assembly defects per 100 cars. Following these
consequences of Lean approach is now well known as a set of promising manufacturing
tools which was developed by Taiichi Ohno, Shigeo Shingo and Eiji Toyoda developed

5
the system between 1948 and 1975 [11]. In 1988, the term “Lean” was only first coined
by John Krafcik, an engineer at the NUMMI, Toyota - GM joint venture. Finally, Toyota
established an approach that consisted of a set of tools to reduce the manufacturing waste
and to improve the economic situation [13]. Over the time, Lean approach was
consolidated into a new approach to operations that formed the basis of Lean or Toyota
Production System which is widely using in the manufacturing World.

2.4 Lean Manufacturing (LM)

LM is a widely accepted and adopted approach across industries over the World.
The ultimate goal of a LM is to create a smooth high quality finished products at the rate
of customer demand in the quality looked-for with slight or no waste. The implementation
of Lean tools resulted in more efficient and cost effective manufacturing. There are
different manufacturing approaches where LM is one of the most successful philosophies
based on records from other industries such as automobiles, aerospace or pharmaceuticals
[6]. The basic principle of LM is reducing all the NVD activities and wastes in the whole
supply chain to accomplish high quality reliability products at an appropriate cost and to
gain the highest profit and reputation at the same time. LM is defined as an initiative
whose goal is to reduce the waste in human effort, inventory, time to market and
manufacturing space to become highly responsive to customer demand while producing
world class quality products in the most efficient and economical manner [12]. The Lean
operating system follows certain principles to deliver value to the customer while
minimizing all forms of loss. Each value stream within the operating system must be
optimized individually from end to end. Lean tools and techniques are applied selectively
to eliminate three sources of loss: waste, variability and inflexibility [13]. In order to
attain the LM the organization should have strong customer focus, should be willing to
remove wastes from the processes they operate on daily basis and should have the
motivation of growth and survival.

2.5 Manufacturing waste

A number of researchers and regarding peoples have been given the definition of
manufacturing waste where they mentioned that based on Lean philosophy the
manufacturing waste can be of various types. Waste was defined as any human activity

6
which absorbs resources but creates no value; they identified eight primary types of
manufacturing waste. These are:
i. Mistakes
ii. Rectification (of mistakes)
iii. Production of items no one wants (as a result, inventories and remaindered goods pile
up)
iv. Unnecessary production steps
v. Unnecessary movement or transport of employees
vi. Unnecessary movement or transport of goods
vii. People waiting downstream
viii. Goods or services that do not meet the customer‟s needs
Unused employee creativity was also added to the list of the eight types of waste. These
wastes reduce production efficiency, quality of work as well as increase production lead
time [8]. Different kinds of wastes in a process can be categorized in following
categories.

1. Overproduction – Producing items more than required at given point of time i.e.
producing items without actual orders creating the excess of inventories which needs
excess staffs, storage area as well as transportation etc.
2. Waiting – Workers waiting for raw material, machine or information etc. is known as
waiting and is the waste of productive time. The waiting can occur in various ways for
example due to unmatched worker/machine performance, machine breakdowns, lack of
work knowledge, stock outs etc.
3. Unnecessary Transport – Carrying of Work in Process (WIP) a long distance,
insufficient transport, moving material from one place to another place is known as the
unnecessary transport.
4. Over processing – Working on a product more than the actual requirements is termed
as over processing. The over processing may be due to improper tools or improper
procedures etc. The over processing is the waste of time and machines which does not
add any value to the final product.
5. Excess Raw Material - This includes excess raw material, WIP, or finished goods
causing longer lead times, obsolescence, damaged goods, transportation and storage costs,
and delay. Also, the extra inventory hides problems such as production imbalances, late
deliveries from suppliers, defects, equipment downtime, and long setup times.

7
6. Unnecessary Movement – Any wasted motion that the workers have to perform during
their work is termed as unnecessary movement. For example movement during searching
for tools, shifting WIP, etc.
7. Defects – Defects in the processed parts is termed as waste. Repairing defective parts
or producing defective parts or replacing the parts due to poor quality etc. is the waste of
time and effort.
8. Unused Employee Creativity – Loosing of getting better ideas, improvement, skills and
learning opportunities by avoiding the presence of employee is termed as unused
employee creativity [14, 15].

2.6 Lead time

Lead time is the total required time or a period of time that is required in order to
produce certain amount of product. Lead time could be defied from various sources.
Lead-time is the time elapsed in between the receipt of customer order until the delivery
of finished goods to the customer [16]. Lead-time is made up of several components
besides the fabricating itself: (information) moving time, waiting time, setup time, lot
size, and rework time [18]. Lead-time normally also includes the following elements:
order transit, supplier lead-time, order preparation, delivery time and set-up time [17].
Furthermore queue time to the Lead time [18].

8
Different factors of lead time:

Factor (Information) Definition

of Lead time
Moving time The time needed for moving products, goods or assemblies or
information within or between organizations, departments
and processes [19].

Order Transit time is occurred between manufacturers and retailers

transit/conveyance [20] and conveyance is the movement of goods [21].

Set up time Set up time is the sum total of all of the internal setups
involved processing job [25].

Waiting time Waiting time was defined as inventors of goods waiting

further processing or consumption [22, 23]. Furthermore, it is
also considered as the time between the arrival of the part and
the time it is needed for assembly [24].

Supplier lead time/ Supplier lead time/delivery time was defined as “the time that
delivery time lapses between the time an order is received by a supplier and
his shipment of the items” [25]. Later has the same definition
but includes transport time (order transit) from supplier to the
customer organization.

Queue time Queue time is the time spent waiting in line for work centers
become available [18].

Order preparation Order preparation is the time that is needed between

receiving a customer order and staring the processing of that
specific order [26].

According to Business dictionary lead time can be defined as the number of minutes,
hours or days that must be allowed for the completion of an operation or process or must
elapse before a desired action takes place [27]. It is a time period between the order and

9
delivery of a new product or service. In a broad sense lead time terminology has been
defined in greater details-
 Order lead time
 Processing lead time
 Delivery lead time
 Manufacturing lead time
 Production lead time

2.7 Cycle Time

Cycle time is defined as how frequently a finished product comes out of our
production facility [28]. Cycle time includes all types of delays occurred while
completing a job. So cycle time can be calculated by the following formula.

Cycle time = processing time + set up time + waiting time + moving time + inspection
time + rework time + other delays to complete the job.
To meet customer demand or monitor productivity the cycle time and takt time should be
balanced in parallel. The higher cycle time as compare to tact time may result the late
delivery and customer dissatisfaction whereas shorter cycle time than takt time may cause
the excess inventory or excess use of resource.

2.8 Lean Tools

LM consists of a large number of tools and techniques. Twenty two LM practices
that are frequently mentioned in literatures and categorized them into four bundles
associated with Just-in-Time, Total Quality Management, Total Preventive Management
and Human Resource [29, 30]. Some other researchers also categorized the lean tools and
techniques according to the area of implementation such as internally and externally
oriented lean practices. For example, lean practices were divided into six areas which are
process and equipment; manufacturing, planning and control; human resources; product
design; supplier relationships; and customer relationships [31]. The first four areas are
grouped as internal oriented lean practices whereas supplier relationships and customer
relationships are under external oriented lean practices. But the most frequently using
Lean tools are Value Stream Mapping, Process Cycle Efficiency, 5S, Kanban, Poka-yoke,
Key performance indicators, Overall Equipment Effectiveness, Ishikawa diagram and

10
Spaghetti diagram [32]. Throughout this study Value Stream Mapping, Process Cycle
Efficiency, 5S, Kanban and Overall Equipment Effectiveness were applied in order to
attain the objectives of this research work.

11
 CHAPTER 3
RESEARCH METHODOLOGY

Throughout this study, it was endeavored to demonstrate the application of Lean

tools in Earth footwear industry. Each tool was evaluated in terms of its impact on the
performance of the project. The required data of the production process of the studied
factory is simulated based on the information from personal production floor observation
and document review. The required data were collected and designed based on purpose of
the study.

3.1 Research field component

3.1.1 Primary data collection

The primary data was documented from personal observations of researcher from
studied production floor at different processing steps. The primary data were collected
and documented by the observation of set up time, change over time, machine function,
material and labor flow at each and every processing stages of the production line. The
regarding data collection tools were prepared by following the principles of different tools
and strategies of LSS model.

3.1.2 Secondary data collection

The secondary data will be taken through the internet, books, journals, related
studies and other sources of information.

3.1.3 Statistical analysis

Each type of data was collected for at least three times where mean and standard
error of mean of these collected data were analyzed by using the statistical software tool
of Minitab 17 version.

12
3.2 Value Stream Map (VSM)
VSM is a Lean manufacturing technique used to analyze and design the flow of
materials and information required to bring a product or service to a consumer [27]. At
Toyota, where the technique originated, it is known as "material and information flow
mapping". The Lean Aerospace initiative at MIT describes the objective of VSM as an
important Lean practice to eliminate waste and make the VD steps „flow‟ in meeting
customer requirements [34]. The value stream is further described by Womack and Jones
in Lean Thinking: “A VSM identifies every action required to design, order, and make a
specific product. The actions are sorted into three categories: (1) those that actually create
value as perceived by the customer; (2) those which create no value but are currently
required by the product development, order filing or production systems and (3) those
actions which don‟t create value as perceived by the customer and can be eliminated
immediately” [5].

3.3 Process Cycle Efficiency (PCE)

PCE is one of the most useful lean tools that are widely used to evaluate the
efficiency of an organization or a project or a process. According to Zhen PCE is the
percentages of the ratio of value added and lead time [7]. Mathematically it is expressed
as follows-

PCE = ×100

Here, Total time = VD time + NVD time

3.4 Takt time

Takt time is defined as the time required producing one unit of daily salable
quantity [35]. The purpose of takt time is to precisely match production with demand. It
provides the heartbeat of a lean production system. Takt time first was used as a
production management tool in the German aircraft industry in the 1930s. Takt time can
be first determined with the formula:
T=

Where, T = Takt time, e.g. [work time between two consecutive units]
Ta = Net time available to work, e.g. [work time per period]

13
Td = Time demand (customer demand), e.g. [units required per period]
Net available time is the amount of time available for work to be done. This excludes
break times and any expected stoppage time (for example scheduled maintenance, team
briefings, etc.).

3.5 Pareto analysis

It is a statistical technique in decision making that is used for selection of a limited
number of tasks that produce significant overall effect. It uses the Pareto principle – the
idea that by doing 20% of work, 80% of the advantage of doing the entire job can be
generated. Or in terms of quality improvement, a large majority of problems (80%) are
produced by a few key causes (20%). The Pareto Principle also known as the "80/20
Rule" which is the idea that 20% of causes generate 80% of results [37]. With this tool,
we're trying to find the 20% of work that will generate 80% of the results that doing all of
the work would deliver.

This technique helps to identify the top portion of causes that need to be addressed
to resolve the majority of problems. Once the predominant causes are identified, then
tools like the Ishikawa diagram or Fish-bone Analysis can be used to identify the root
causes of the problems. While it common to refer to Pareto as "20/80", under the
assumption that in all situations 20% of causes determine 80% of problems, this ratio is
merely a convenient rule of thumb and is not nor should it be considered immutable law
of nature. The application of the Pareto analysis in risk management allows management
to focus on those risks that have the most impact on the project [36]. Steps to identify the
important causes using simple rote (20/80) Pareto analysis [38]-

Step 1: Form an explicit table listing the causes and their frequency as a
percentage.
Step 2: Arrange the rows in the decreasing order of importance of the causes (i.e.,
the most important cause first)
Step 3: Add a cumulative percentage column to the table
Step 4: Plot with causes on x-axis and cumulative percentage on y-axis
Step 5: Join the above points to form a curve
Step 6: Plot (on the same graph) a bar graph with causes on x-axis and percent
frequency on y-axis
14
Step 7: Draw line at 80% on y-axis parallel to x-axis. Then drop the line at the
point of intersection with the curve on x-axis. This point on the x-axis separates
the important causes (on the left) and trivial causes (on the right)
Step 8: Explicitly review the chart to ensure that at least 80% of the causes are
captured

15
 CHAPTER 4
METHODOLOGY AND IMPLEMENTATION

This study was driven to find out and quantify the different types of
manufacturing waste at different production stages of Boot shoes of Earth footwear
industry in Bangladesh. The present Value Stream Map (VSM) of the studied production
lines were prepared and analyzed in order to formulate the figure VSM with the improved
PCE, takt time, reduced manufacturing wastes and reduced lead time by using lean tools.

The required data were collected from Boot shoe production lines. Value Added
(VD) time, Non Value Added (NVD) time and manufacturing wastes were deeply
observed in the studied production lines. The expected result of this study can be deduced
by data analysis from the different tables and graphs.

4.1 Boot Production Line

A footwear company has mainly four departments in which a progressive route is
followed for producing finished shoes. These are Clicking or Cutting Department,
Closing or Machining
Department, Lasting & Making Department, Finishing Department and the Shoe Room. It
was a Boot shoe production line. The basic stages of Boot shoe production line were as
follows-

16
 Inventory of raw
materials

Cutting

Fitting and assembly

Sewing

Pre-lasting

Post-lasting

Finishing

Final inspection

Figure 4.1 Basic stages of shoe production line

4.1.1 Present VSM of Boot production line

To draw the present VSM relevant data like as VD and NVD time, Cycle time,
Change Over time, Uptime, Lot size, quantity to deliver, delivery time were observed and
information related to assembly line such as processing time, inventory storages,
inspections, rework loops, number of workers and operational hours per day were
collected and documented in Table 4.1 and Table 4.2. Other relevant data such as number
of operators (O), assistant operator (AO) and worker (W) were shown in current VSM. To

17
draw the completion of present VSM of oxford shoe processing line, a timeline was
added at the bottom of the map recording the VD and NVD time.

Table 4.1 Present state Down Time (D/T), Cycle Time (C/T) and Up Time (U/T) data of
Boot production line

Times Sewing Lasting Finishing

D/T C/T U/T D/T C/T U/T D/T C/T U/T
(Sec) (Sec) (%) (Sec) (Sec) (%) (Sec) (Sec) (%)
1st 642 2912 78 649 2900 77 1058 3940 73
2st 661 2883 77 649 3000 78 1083 4020 73
3rd 668 2845 76 675 2920 76 1090 3740 71
Average 657 2880 77 657 2940 77 1077 3900 72

Note: Sewing speed: 245 RPM; lasting speed: 240 RPM; finishing machine speed: 30
case per min. Batch production- 2000 pairs.
The D/T, C/T, and U/T of Boot production line were documented in Table 4. 1. In
this production line the stage of sewing, lasting and finishing machine were mainly
responsible for D/T. In the stage of sewing, average U/T was 77% and C/T was 2880 sec.
In the stage of lasting average U/T was 77% and C/T was 2940 sec. In the stage of
finishing C/T was 3900 sec and U/T was 72%. The percentage of available time for
machine work or processing of desire product was known as the U/T. By observing the
U/T of different unit stage of production line, it can be assumed the efficiency of the
whole production line. At present state, the U/T of Boot process line varies from 73%
(finishing stage) to 77% (sewing stage). By this study it was attempted to increase the
U/T in the future state as well as to reduce the D/T and to reduce the ultimate lead time.

18
 The VD and NVD time of different processing stages of Boot production line
were documented in Table 4.2. At present state, there were no VD time except NVD time
in the stages of receiving inventory, pre-lasting and shipping inventory but in this process
line, this NVD time or these stages were required for the Boot processing.

Table 4.2 Present state VD and Non NVD time for Boot production line

Processing stages Average VD times (Sec) Average NVD times

(Sec)
Receiving inventory 0 27000
Cutting 600 1800
Fitting & assembly 1680 240
Sewing 2113 1007
Pre-lasting 0 1046
Post-lasting 2028 1362
Finishing 2849 1803
Shipping inventory 0 43200
Total 9270(10.68%) 77458(89.32%)

In this processing line, the total VD time were 9270 sec (10.68%) and the total
NVD time were 77458 sec (89.32%). By this study, it was tried to increase the percentage
of VD time by reducing the NVD time with the proper implementation of lean tools.

Figure 4.2 Present VSM of Boot production line

19
 It helps to draw the required processing stage with mentioning required labor,
C/T, U/T, C/O and batch size. As observed from the present VSM of Boot production
line, different types of NVD activities were present in the flow of process line at different
stages. The different types of bottlenecks at different processing stages were identified
and quantified in terms of time as shown in the Figure 4.2.The Up time (U/T) of sewing,
lasting and finishing machine were consecutively 77%, 77% and 73%.
At present state of this processing line over the different stages total labor was 36. After
the implementation of lean tools and SS methodologies it was expected that U/T could be
improved and total labor could be reduced

4.1.2 Present PCE of shoe production Line:

In the shoe production line,

Value Added time = 9270 Sec

Non Value Added time = 77458 Sec
Expected Lead time = Value Added time + Non Value Added time
= 9270 Sec + 77458 Sec = 86728 Sec
Process Cycle Efficiency (PCE) = ×100

= 10.68%

4.1.3 Present Takt Time of shoe production Line

Working shift per day = 1 shift

One shift time = 9 hours or 32400 Sec
Startup time = .5 hour or 1800 Sec
Lunchtime = 1 hour or 3600 Sec
Net available time per da = One shift time – (Startup time + Lunch
time)
= 32400 Sec – 5400 Sec
= 27000 Sec
Daily customer demand = 1500 pair
Takt time = 27000/1500 = 18 sec/pair

20
4.2 Wasted labor of Boot production line
After lean tools implementation it was expected that a number of labor could be
eliminated from Boot processing line. The unnecessary motion of labor in the processing
line was also considered as the manufacturing waste. The expected number of eliminated
labor was documented in the Table 4.3

Table 4.3 Present and expected Labor of Boot production line

Name of stages No of labor at present state No of labor at future state

O AO W O AO W
Cutting 1 1 3 1 1 3
Fitting & assembly 1 1 0 1 1 0
Sewing 1 1 3 1 1 1
Pre-lasting 0 0 5 0 0 2
Post-lasting 1 1 7 1 1 3
Finishing 1 2 7 1 1 3
Total 5 6 25 5 5 12

4.3 Pareto analysis for Boot production line.

Pareto analysis was performed by drawing the Pareto chart consisting of causes for
delay along the X axis and cumulative percentage of down time along the Y axis. The
highest frequency of NVD activities or down time was found for toe lasting problems at
the Boots shoe production line while bobbin thread breakage of sewing machine showed
the lowest frequency.
Different causes of NVD activities or down time at different processing stages of
Boot production line with their frequency in terms of percentages and cumulative
percentages were documented in Table 4.4. The causes for NVD activities were arranged
in downward movements in terms of their frequency.

21
Table 4.4 Cumulative percentage of D/T for Pareto analysis of Boot production line

Causes of Delay Times Down Time(D/T) Percentage of(D/T) Cumulative of %

Sec Sec
Toe lasting problems 526 30.47 30.47
Needle thread breakage 303 17.55 48.03
Inefficient ironing 171 9.90 57.93
Seat lasting problems 103 5.96 63.90
Inappropriate scouring 97 5.61 69.52
Inappropriate chilling 91 5.27 74.79
Improper polishing 91 5.27 80.06
Seam pucker 89 5.15 85.22
Bobbin thread breakage 53 3.07 88.29
Side lasting problem 43 2.47 90.78
Inefficient spraying 42 2.43 93.22
Long mark defects 41 2.37 95.59
Bumps or hollows 41 2.37 97.97
Skipped stitches 35 2.02 100

From 3, it seems that the pioneer causes beyond the different types NVD activities
were Toe lasting problems (30.47%), Needle thread breakage (17.55%), Inefficient
ironing (9.90%), Seat lasting problems (5.96%), Inappropriate scouring (5.61%),
Inappropriate chilling (5.27%), Seam pucker (5.15%), Bobbin thread breakage
(3.07%),side lasting problems (2.49%), Inefficient spraying (2.43%), Long mark defects
(2.37%), Bumps or hollows (2.37%), Skipped stitches (2.02%).From Pareto chart (Figure
4.3) the most responsible causes were easily observed and the effective initiatives can be
taken to remove these causes. It was expected that if the most frequent first three or 20%
causes like as inefficient spraying, toe lasting problems , needle thread breakage could be
removed, the 80% NVD activities or down times could be removed. 5S, JIT, TPM and
other improving strategies could be effective initiatives to remove these most frequent
causes.

22
 Figure 4.3 Pareto chart of Boot production line

4.4 Improvement Strategies

In order to remove the 80% NVD activities, indeed it is emergence to take some
improvement strategies such as Gap analysis of footwear industry, increase skill
manpower, continuous improvement within the production management system.

4.4.1 Gap analysis of footwear industry

• Lack of cost effective project

• Costly raw materials in comparison to synthetic material
• Tendency of the industry as being export oriented
• Lack of market research
• Lack of season based survey for demand
• Local fashion trends integration inability
• Lack of customer based marketing
• Lack of appropriate technology
• Lack of skilled manpower
• Lack of global market reputation
• Lack of branding
• Political instability

23
• Shortage of power and utilities
• Lack of R&D facilities
• Lack of laboratories for physical and chemical testing
• Lack of product design and development capability
• Uncertainties in government strategies, bureaucratic delays and disposal of effluent.

4.4.2 Increase skill manpower

It was observed that most of the assistant operators were not enough skilled to
handle the machine breakdown immediately. But for this reason, the maintenance time
was as high as not acceptable. So, it is suggested to hire some skill manpower as operator
and assistant operator especially for sewing, lasting and finishing machine. The effective
training program should be arranged prior to make capable of operator and assistant
operator towards reducing the maintenance time.

4.4.3 Continuous Improvement

A regular audit should be run and scores should be assigned for areas of
responsibilities. If every area has people assigned to it then everyone has responsibility to
maintain a high standard of housekeeping and cleaning [39]. The fifth S, Shitsuke
(Standardize), deals with the management accountability to train people to follow
housekeeping rules. By implementing the 5S taking the delivery of product has increased
from 70% of plates on time to 92% on time [40]. So, with the proper implementation of
5S it is expected that the recognized manufacturing waste of studied floors could be
reduced as to the desired level. A strategic plan for kaizen implementation is developed
by author in order to implement the Kaizen in the studied shoe production lines. 5S was
considered as the basic concept of kaizen improvement for this study. In order to
implement the 5S it could be needed a proper plan or vision which could be formulated
by the management of shoe production sector. The vision plan could be incorporated with
the theme of reducing lead time, reducing manufacturing waste and improving PCE. The
plan could be implemented by consisting of team work, training, multi skill and learning
environment. To implement a new idea a team work will be effective wheel to bring the
idea into practical. In order to adopt with new idea training is very important since, in
order to kaizen implementation training is very emergence and thus way regarding
managerial personnel as well as operator and labor could be belonged of multi skill. It is

24
rational that only multi skilled manpower could be able to monitoring and evaluating
whether adopted plans could be promising or not, if it could be promising it should be
legislated and if not, the draw backs should be find out in order to promising
implementation towards the improved PCE, reduced takt time, NVD time and lead time.

4.4.4 Lead time reduction

The reduction of lead time of production of any product is a continuous

improvement process. The lead time of studied different processing lines were first
calculated. The various elements that are associated with the lead time were first
identified separately and different practical strategies are adopted for lead time reduction
or improvement. In general the various components associated with the lead time of any
process are waiting time before process set up time, process time, waiting time after
process and transfer time [45]. In this study it was found that queue time, insufficient sole
supply at different stages of production, sewing, lasting and unsmooth conveyor belt were
the basic hindrance beyond the long lead time. After an intense observation of studied
processing floors with a sharp brain storming, it is proposed that with the proper
implementation of continuous improvement, 5S and JIT philosophies the lead time could
be reduced by 60-80%.

4.5 Improvement points at present VSM of Boot production line

Throughout the observation it was seen that there were some improvement points at
different stages of Boot processing line. The nature of improving point differs from each
and another stages.

25
 Figure 4.4 VSM of Boot production line with improvement points

The crucial improvement points were pointed in Figure 4.4. These pointed causes
or barriers should be removed in order to reduce the manufacturing wastes and improve
the PCE. Based on previous study it was expected that 80% of pointed causes could be
removed by reducing 20% most frequently occurring barriers.

4.5.1 Expected future VSM of Boot production line

In the future VSM after a deep brainstorming and an intense observation in Boot
production line the VD and NVD time were calculated and documented in Table 4.5

Table 4.5 Future state VD and Non NVD time analysis for Boot production line

Processing stages Average VD times (Sec) Average NVD times (Sec)

Receiving inventory 0 13500 (50%)
Cutting 600 900 (50%)
Fitting & assembly 1680 240 (80%)
Sewing 2113 201 (80%)
Pre-lasting 0 87(80%)
Post-lasting 2028 272 (80%)
Finishing 2849 360 (80%)
Shipping inventory 00 12960 (70%)
Total 9270(24.45%) 28642 (75.55%)

26
 In this study, based on intense observation, brainstorming and previous regarding
studies it was assumed that the NVD time of receiving stage of Boot production line
could be reduced at least 50% (13500 sec) and the NVD time of cutting could be also be
reduced at least 50% (900 sec). The NVD time of sewing, pre-lasting, post-lasting and
finishing could be reduced at least 80% from the present state and in the future state these
NVD times could be consecutively 201 sec, 87 sec, 272 sec and 360 sec which could be
seen in Table 4.5 The Figure 4.5 was the future VSM of Boot processing line. The future
VSM indicates the materials, information and labor flow of single batch production of
Boot processing line. Each batch produces 11765 pairs of Boot.

In this future Figure 4.5 VSM the basic promising changes were the reduction of
total number of labor, reduction of NVD time & improved Up time (U/T) of Boot
processing line.

Figure 4.5 Future VSM of Boot production line

In future VSM the total labor including operator, assistant operator and worker
could be 22 which was 36 at present VSM i.e. after the implementation of lean tools it
was expected at least 14 labors could be reduced. The U/T of sewing, lasting and
finishing machine could be consecutively 96%, 95% and 94% but at present state the U/T
of sewing, lasting and finishing machine were consecutively 77%,77% and 73%.

27
4.5.2 Present PCE of shoe production Line
In the shoe production line,
Value Added time = 9270 Sec
Non Value Added time = 28642 Sec
Expected Lead time = Value Added time + Non Value Added time
= 9270 Sec + 28642 Sec = 37912 Sec

Process Cycle Efficiency (PCE) = ×100

= 24.45%

4.5.3 Future Takt Time of shoe production Line

Working shift per day = 1 shift
One shift time = 9hours or 32400 Sec
Startup time = .5 hour or 1800 Sec
Lunchtime = 1 hour or 3600 Sec
Net available time per day = One shift time – (Startup time + Lunch time)
= 32400 Sec – 5400 Sec
= 27000 Sec
Daily customer demand = 2000 pair
Takt time = 27000/2000 = 13.5 sec/pair

The present takt time of Boot processing line was 18 sec per case production and
it was expected that after the adoption of lean tools and SS methodologies this could be
reduced to 13.5 sec per case production.

28
 CHAPTER 5
RESULT AND DISCUSSION

Throughout this study it was endeavored to implement lean tools in the shoe
production sector of Earth footwear industry. To conduct this study, author was inspired
by the previous outcomes with the implementation of lean at different manufacturing and
service industry that were illustrated by reducing the lead time, improving PCE and
eliminating the NVD activities from the production floor. This study was conducted in
Boot production line. The production floors were evaluated in three steps: firstly, the
production lines were assessed at the present state in order to find out the present lead
time, PCE, takt time by using VSM. An attempt was conducted to find out the different
kinds of manufacturing wastes at different processing stages of production floor. It was
also tried to quantify these manufacturing wastes. Secondly, an improvement strategy was
developed by involving lean tools to improve the PCE, to reduce the lead time, takt time
and NVD activities. Thirdly, after the implementation of lean tools an improved PCE,
reduced lead time and takt time were expected.

5.1 Process Cycle Efficiency (PCE)

The present PCE of Boot shoe production line was found as 10.68% that could be
24.45% after the implementation of lean tools within present production system. To be an
internationally competitive company its PCE could be at least 25% [33] but in this study
it was seen that all observing production floor's PCE was far away than 25% PCE. By this
study it was a hopeful finding that after the implementation of lean tools in the Earth
footwear industry could be an internationally competitive. It seems that with the proper
involvement of lean, the PCE of Boot shoe production line could be improved 129%.

29
 Figure 5.1 Comparison of PCE between present state and future state

5.2 Lead time reduction

The existing lead time of Boot production line was found as 86728 sec but it was
expected that after the implementation of lean tools within present production system the
lead time of these observing production lines could be 37912 sec with the promising
reduction of lead time 43.21% (Figure 5.2).

Figure 5.2 Comparison of lead time between present state and future state

30
5.3 Takt time reduction
Takt time is considered as the heartbeat of any productive industry. As lowest the
takt time of a production floor, it is considered as the highest rate of productivity. By this
study, the present takt time of Boot shoe production line was found as 18 sec .Where it
was expected that after the proper implementation of lean tools reduced takt time of these
production floor would be 13.5 sec (Figure. 5.4).

Figure 5.3 Comparison of takt time between present state and future state

5.4 Reduction of Non Value Added (NVD) activities

In this study the NVD activities was quantified in terms of time. At present the
NVD time of Boot shoe production lines was found 77458 sec while it was hoped that
after the intense involvement of lean the NVD activities and time of these observed
processing lines could be reduced 36.97% (Figure. 5.4).

Figure 5.4 Comparison of NVD time between present state and future state

31
5.5 Labor reduction
The implementation of lean tools within present production system labor of these
observing production lines promising reduction (Figure 5.5) and shown in Table 5.1.

Table 5.1 Labor reduction from present state to future state

Present state (per shift) Future state (per shift)

O AO W Total O AO W Total
5 6 25 36 5 5 12 22

Figure 5.5 Comparison of labor between present state and future state

5.6 Achievement of lean tools adoption

A promising achievement is predicted with the reduced NVD time, lead time and
takt time, and improved PCE. An improvement comparison between present and future
state is given in the following Figure 5.6

32
Figure 5.6 System improvement of footwear industries in different lean tools.

33
 CHAPTER 6
CONCLUSION AND RECOMMENDATION

6.1 Conclusion
This present work provides a case study of the improvement of a footwear manufacturing
industry in Bangladesh order to improve the PCE by reducing NVD activities with the
proper implementation of lean tools. It focuses the reduction of lead time by eliminating
non value-added time and improving process cycle efficiency through VSM. Finally, it
was suggested to this manufacturing industry to implement the proposed lean tools prior
to getting the expected short lead time.

6.2 Recommendations
Some recommendations of footwear industry are given below:-
 Each and every task or success has to face some obstacles. Throughout this study
it had to face a number of obstacles to draw the completion of this study which
could also be considered as the limitation. Expected improved PCE is evaluated
without changing the present layout of production lines.
 Because of the company's personnel were not flexible to permit in taking different
required scale of measurement to draw an improved design in order to improve
PCE due to their unexpected disruption or hamper in production. The required
most of data were collected for three times and some of data were collected for
five times, if these data were collected for further more times it would be more
accurate. It was not possible to take data for the continuous time or entire shifting
time of production rather than periodic data collection.
 The proposed tools and strategies should be introduced within the studied
processing lines
 The tools of VSM, takt time, PCE should be immediately considered for
implementation in the regarding production lines
 Managerial body should be flexible to innovative thinking
 The required machines and equipment‟s should be arranged properly so that the
speed of machines like cutting, sewing, lasting machine etc. could be controlled in
balance way.

34
 To conduct project in different footwear industries as well as other manufacturing
industries in order to reduce the Lead time, NVD activities, Manufacturing wastes
and to improve the PCE by using Lean Tools.
 To provide the consultancy services in footwear industries and other
manufacturing sectors.

35
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