Introduction to Manufacturing Science

Improving the Performance Management of a

Casual Slippers Production Line in DSI Factory

Name:MAP Madushan
Reg No :2022/Pgdmm/34

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 Project Title

Improving the Performance Management of

a Casual Slippers Production Line in DSI
Factory

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CONTENT

[Link] 03
02. Statement of the Problem 04
03. Literature Review 04
04. Methodology 05
[Link] 06
06. Problem 08
07. Recommendations 09
08. Conclusion 13
09. References 14

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 [Link]

Diyunuge Samson Rajapaksa, JP opened his first store in Colombo Fort in 1962 selling shoes. He quickly
expanded into manufacturing, importing, and distribution by building a sizable retail network. DSI
footwear currently has over 200 showrooms and the largest footwear retail trading network, serving 4000
dealer points island-wide. D. Samson Industries (Pvt) Ltd. is the market leader in Sri Lanka's
manufacturing, retailing, and footwear export markets. The first shoe manufacturing facility in Sri Lanka
to be certified to ISO 9001:2015 is DSI.
EVA/Rubber Casual Slippers, sandals, vulcanized shoes, leather shoes, rubber boots, school shoes, PU
sandals, indoor slippers and industrial shoes are all part of the DSI product line.
The company today employs more than 2,500 people and produces more than 24 million pairs of shoes
annually. PVC Injection Machines, Polyurethane Machines, EVA Injection Machines, PVC V-Strap
Machines, PVC Sole Injection Machines, and Hydraulic presses are just a few examples of the cutting-
edge equipment and tools used to manufacture DSI footwear in 5 sizable, well-designed, and modern
production facilities.
All DSI products are REACH compliant, and the factory has obtained certificates for Fairtrade, GOTS,
OCS, VEGAN, and FSC as well as for social compliance with BSCI and SMETA.

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 [Link] of the Problem

This report aims to analyze and propose solutions to a manufacturing

management problem in Casual Slippers production line in DSI factory. The
selected Casual Slippers production line in DSI Factory is facing various
challenges in terms of performance management. These challenges include
Initially, the DSI plant produced just Casual Slippers per month in modest
quantities. The factory's production capacity grew over time, and it currently
produces between 40,000 and 50,000 Casual Slippers monthly. The plant is
still working to enhance its industrial culture, though.
The firm has struggled due to excessive amounts of work-in-progress (WIP)
that have built up at several stations. This has resulted in
 space constraints
 higher carrying costs for inventories
 monetary losses from the ageing of outmoded products.
The manufacturer has not yet taken steps to minimize variations in processing times, arrival timings, and
other variables, which has added to the continuous build-up of inventory.
The factory must take immediate action to address these variabilities by putting policies in place to lessen
operator variability, such as training programmers. To properly manage WIP levels, it's also critical to
identify the stations that are bottleneck and capacity constraint resources (CCRs). Putting in place a pull
production culture can also aid in more effective WIP management.
To efficiently reduce WIP and enhance its manufacturing processes, the firm must understand the
significance of lowering variabilities, appropriately managing bottleneck stations, and putting in place a
pull production system.

[Link] Review
To gain insights into similar problems and associated solutions, a review of relevant literature will be
conducted. This review will help to discuss performance management issues in manufacturing settings.
The insights gained from this literature review will used for the analysis and recommendations in this
report to overcome causes of these problems and propose effective solutions to improve the management
of the production line's performance of the Casual Slippers production line in DSI Factory
 Work In Process Control for a High Product Mix Manufacturing System (Oladipupo Olaitan*,
Quan Yu, Erlend Alfnes)

The creation and application of a Work In Process (WIP) control strategy in a manufacturing system with
a high product mix were covered in the research study. Reducing manufacturing throughput time and
variance and efficiently managing inventories were the primary goals. The strategy comprised controlling
the WIP at several points along the production cycle. This regulation was akin to the WIP-specific level-

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maintenance-based Kanban control technique. The set WIP levels in this method, however, were not
meant to be used for stock keeping. Rather, they served as upper bounds on the work-in-progress (WIP)
for every category of product. The goal of this strategy was to avoid the build-up of excessive work-in-
progress (WIP), which might impede the implementation of Kanban management in production settings
with a high product mix.1. Performance Management in Manufacturing.
The outcomes of applying this strategy, called CONWIP (Constant Work In Process), showed that it was
successful in cutting the total amount of time needed for manufacturing throughput. This suggests that in
situations with a large product mix, the suggested strategy may be useful for increasing manufacturing
efficiency and decreasing variation.
These sources can provide valuable insights into the challenges faced by the Casual Slippers production
line in DSI Factory and offer potential solutions to improve performance management in the
manufacturing process.

[Link]
The relevant methodologies to analyze and propose solutions to the manufacturing management problem
in the Casual Slippers production line in DSI Factory can done by A quantitative method
A quantitative method was used to determine the process region, including the best case, worst case, and
practical worst-case scenarios. This method involved collecting data on each station's capacities and
hourly targets. The data was obtained from various sources such as production reports, machine catalogs,
working instructions, and technical reports provided by the Technical Executive. Once the data was
collected, it was inputted into equations and visualized on a graph to represent the results.
By utilizing these relevant methodologies, a comprehensive analysis of the manufacturing management
problem in the Casual Slippers production line can be conducted. This analysis will help identify the root
causes of the challenges and propose effective solutions to improve performance management in the
production line.

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 [Link]
The analysis phase will involve Internal benchmarking which can be used to ascertain the company's
present operational performance, which is an important step. We can evaluate the company's performance
and pinpoint areas for development by undertaking an internal benchmarking analysis. Recommendations
might be made based on the analysis to encourage additional improvements in the business's operations.

Operation Rate(parts per hour) Time in hrs

Material Preparation 350 2.5
Sole Cutting 340 0.03
Trimming 320 0.02
Printing 330 0.008
Washing 312.5 2
Drying 625 0.03
Strap Attachment 340 0.006
Inspection 400 0.05
repair 200 48
Hand paint 200 0.3
Spray 250 0.02
Embellishment Addition 250 0.02
Final Inspection 350 0.005
Packaging 300 0.02
Ra,T0 200 52.989

Over the past several months, throughput has averaged about 2400 parts per day,
W0 = rb *T0
= 200*52.989
= 10,597.8
WIP = TH*TT
= 2400*25
W = 60,000
w
THPWC = ∗rb
w 0+ w−1
60,000
= ∗200
(60000+10597.8−1)

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 =169.979376 parts per hours

So that menace 170 parts per hour

But
Actual Through put = 2400/15
=160
Based on the results, it is evident that the company's actual throughput exceeds the practical worst-case
scenario. However, due to the imbalance in the factory line, it is not operating at its best-case
performance. In other words, the current performance (W) is greater than the expected best-case
performance (W0).
TH best = rb = 200 parts per hour
The factory has the opportunity to make improvements since the actual throughput falls between the best-
case and practical worst-case scenarios. To gain a clearer understanding of the factory's performance, a
graphical analysis is recommended. This involves calculating the relevant work-in-progress (WIP) for a
given throughput rate and substituting the values of W and W0 into the equations for practical worst-case
throughput (THPWC) and best-case throughput. The resulting data points can then be plotted on a graph,
with WIP on the x-axis and throughput rate on the y-axis, for both the best-case and practical worst-case
scenarios. The table below displays the relevant points for this analysis.

Throughput Vs WIP
250

200

150

Actual Perfor-
100 mance

50

0
0 15000 30000 45000 60000 75000

THpwc THbest

The company can therefore make improvements based on the outcomes. Let's now discuss the issues that
this specific production line is experiencing.

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 [Link]
Lot of WIP accumulated in the stations.

Material Preparation Sole Cutting Trimming

printing

Strap Attachment drying washing

Repair

Inspection Hand paint/Spray

Final Inspection Embellishment Addition

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 Packaging

The spray-painting and repair sections are found to have greater work-in-progress levels, and these areas
are designated as bottleneck stations. Large queues (induced by higher utilization and unpredictability)
and waiting for batches (caused by batching) can be seen on the stations because our factory has a
disconnected flow line. Higher levels of inventory usually result in outdated products for the company,
which eventually become obsolete. According to the diagram above, spray painting is nearing
completion. WIP increases when there is a bottleneck at the conclusion of the process. Lead time grows
as WIP accumulates.

[Link]
Little's Law states that: WIP=TH*TT Reducing cycle time increases WIP efficiency. Nevertheless,
because some processes need chemistry, it can be challenging to shorten their cycle times.
However, by decreasing utilization, decreasing unpredictability, and decreasing batching, we can shorten
wait times for batches and queueing times.
The coefficient of variation of processing times ce, the mean processing time te, and the coefficient of

The difference between arrivals (ca) and utilization (u), WIP, can be expressed as

Therefore, using the above equation, we can lower the variability of arrivals to the station (c2 a), the
effective variability of the station's processing times (c2 e), or utilization (u) to lower WIP and CT at the
workstation. We could lessen the processing times' unpredictability. It takes varying amounts of time to
repair and spray paint different styles of Casual Slippers. Furthermore, the rates of inter-arrival vary
amongst Casual Slippers styles. Through improved scheduling, process variability at upstream stations
can be decreased, thereby reducing arrival variability. Reducing repair times, streamlining operations,
retraining employees to utilize flexible capacity, and improving operator training are all ways to cut down
on process variability.

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It is preferable to have a plan in place to lessen the variety of Casual Slippers styles that are processed
each day. For a given WIP level, reducing the number of jobs that cluster behind stations and
consequently cause waiting will increase throughput and cycle time.
One way to shorten batch wait times is to use lot splitting. Process batches don't always have to be the
same. Some of the jobs can be moved to the next workstation without waiting for the batch to finish. If
the next station is available, we can divide the lot and send it there.
Secondly, we can give the bottleneck stations additional resources in order to prevent the issue. To
prevent starvation, increase the number of operators and maintain an adequate buffer of spray paint and
repair of the stations that bottleneck in the Repair and Spray sections. The company makes about thirty
distinct Casual Slippers. styles with various every day; consequently, about twenty distinct repairing are
needed. When various kinds of repair items arrive at the station, it's critical to have the tools necessary to
keep the bottleneck intact without going hungry. Higher throughput rates are seen at bottleneck stations
when resources are improved. For all WIP levels, throughput increases as the bottleneck is sped up.

It is possible to add or change the equipment. The easiest approach to boost a station's capacity and
subsequently lower utilization is to swap out old equipment for new, faster models. To increase WIP, we
can offer much faster spray guns.
Thirdly, we can boost the non-bottleneck processes' capacity. Additionally, this boosts throughput for all
WIP levels. The throughput gain for small WIP levels is larger than the gain from accelerating the
bottleneck. However, for high WIP levels, increasing the bottleneck rate results in a higher throughput
gain than increasing the rate at which there is no bottleneck. It's encouraging to know that enhancing non-
bottleneck resources can result in performance increases.

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 The culture with pull systems can then begin. Pull systems have a lower average work-in-progress level
while still achieving the same throughput. The rationale is that work is only permitted to enter the queue
when there is room for it, meaning that releases to the queue are synchronized with the line's status.
This is analogous to pushing Ca to the front of the queue. Pull systems actually bind releases to the line
until the work within the line is completed. The most crucial thing they do is set up a WIP cap, which
keeps the WIP level in a queue from going over a certain amount. Achieving the WIP reduction without
sacrificing throughput is the difficult part. This necessitates implementing some of the additional capacity
enhancement or variability reduction adjustments recommended [Link] Setups: If all else is equal,
fewer setups will result in higher effective capacity and lower workstation utilization. When a particular
Casual Slippers style is finished, the paint container needs to be cleaned and refilled with another color in
the spray-painting section. Therefore, WIP building can be decreased if we can arrange to process similar
Casual Slippers styles that call for the same paint together. In addition, synchronizing production can help
reduce inventory and work-in-progress. One technique we can use in the factory is the Drum Buffer-Rope
method. To alleviate the bottleneck, it is preferable to have a standard amount of work in process; larger
work in process that causes piles on the stations should be avoided.

Time buffer

Raw Material inventory

Material Preparation Sole Cutting Trimming

CCR printing

Strap Attachment drying washing

Repair Time buffer

Space buffer

Inspection Hand paint/Spray

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 Time buffer
Time
buffer
Final Inspection Embellishment Addition

Space buffer

Packaging

One way to improve the factory's performance is by allocating time buffers before the drying, Repairing,
and Spray-painting sections. These time buffers ensure that there is enough work in process to keep the
production line running smoothly. In the event of a breakdown in an upstream workstation, the time
buffer allows sufficient time to produce additional work in process to maintain the flow at the bottleneck.
It is crucial for all time buffers to be connected to the Raw material inventory to prevent any shortage in
output.
Additionally, allocating space buffers after the Repairing and Spray-painting sections can help prevent
blocking or congestion from occurring downstream. If there is a breakdown in a downstream workstation,
the space buffer provides enough room to avoid blocking after the bottleneck station.
Properly managing the ovens is also essential, as they can become a bottleneck and disrupt the flow if not
managed effectively. Ensuring that the ovens are properly maintained and optimized will contribute to a
smoother production process.
The company is experiencing significant production losses due to frequent breakdowns of the Ovens in
the drying section. It has been observed that the maintenance of the ovens is not effective, leading to
issues in the drying process. Achieving proper curing requires a constant oven drying temperature of
50°C for a minimum of 10 hours. As temperature plays a crucial role in the drying process, the oven
temperature is monitored continuously. However, there are instances where the inside temperature
suddenly drops after 2 hours, causing delays in the processing time. As a result, unnecessary production
accumulates due to the oven failures.
To address the issues with the ovens, it is advisable to identify them as Critical Constraint Resources
(CCRs) and allocate a time buffer specifically for this station. This time buffer can be connected to the
washing section or the Raw material inventory to prevent unnecessary production when the ovens break
down. Implementing a synchronized manufacturing approach is crucial in resolving such problems.
Running the non-bottleneck stations in sync with the bottleneck stations helps avoid the accumulation of
unnecessary inventories.
Improving the reliability and maintainability of the ovens is essential. Increasing the mean time to failure
will enhance the availability of the ovens and subsequently improve their capacity. Additionally, reducing

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the mean time to repair can significantly decrease the effective variability of the machine, leading to
reduced queuing at the workstation and downstream flow variability at subsequent stations.
Overall, implementing these improvements can help reduce queueing at workstations and subsequent
stations by minimizing variability and ensuring a smoother production flow.

[Link]
the challenges faced by the Casual Slippers production line in DSI factory in terms of performance
management can be addressed through a combination of strategic measures. The identified challenges of
inadequate training and skill gaps, poor production line layout, lack of standardized processes and
procedures, ineffective production scheduling, inadequate quality control measures, equipment and
technology limitations, and poor communication and coordination can all be mitigated with the right
approach.
To overcome the challenge of inadequate training and skill gaps, the factory should invest in
comprehensive training programs for operators. This includes initial training for new hires and ongoing
training to enhance skills and knowledge. Additionally, implementing a mentorship or buddy system can
help new operators learn from experienced ones, further improving their skills.
According to Little's Law, reducing work-in-process (WIP) and reducing cycle time are equivalent in
terms of achieving a given throughput rate. However, the level of variability in the system impacts both
WIP and cycle time. Simply reducing WIP without addressing variability may actually decrease
throughput, which is not economically beneficial for the factory. Therefore, reducing variability is a
crucial factor in WIP reduction programs.
To reduce WIP accumulation, cycle time can be decreased by addressing variabilities in the system,
increasing capacities in both bottleneck and non-bottleneck stations, implementing a pull production
framework to prevent WIP explosion, and introducing synchronized manufacturing. Implementing
process improvements, cross-training workers, reducing repair times and setup times, providing proper
training to reduce operator variability, and minimizing variabilities in inter-arrival rates and processing
times can help reduce overall variabilities in the factory and subsequently lead to WIP reduction.
The Drum-Buffer-Rope method is an effective technique to prevent unnecessary WIP accumulation. In
synchronized manufacturing, non-bottleneck stations operate at the same speed as the bottleneck stations,

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ensuring a balanced production flow. Pull production environments also offer better WIP control, as
production is based on actual demand rather than pushing excessive inventory through the system.

In summary, reducing WIP can be achieved by reducing cycle time through addressing variabilities,
increasing capacities, implementing pull production, and adopting synchronized manufacturing. These
approaches, along with proper process improvements and WIP control methods, can lead to a more
efficient and streamlined production process.
by implementing the recommended measures, the Casual Slippers production line in DSI factory can
overcome the challenges related to performance management. Adequate training, optimized layout,
standardized processes, effective scheduling, quality control measures, upgraded equipment, improved
communication, and coordination will contribute to increased productivity, reduced defects, and efficient
resource allocation. Continuous monitoring and improvement will be necessary to sustain the
improvements and adapt to changing manufacturing requirements. By addressing these challenges, the
Casual Slippers production line in DSI factory can achieve higher productivity, improved quality, and
better resource utilization.

09. References
1. Factory Physics by Wallace J. Hopp and Mark L. Spearman

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