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A case study on the operations and supply chain management of datian subic shoes inc., a prominent shoe manufacturer in the philippines. The study, conducted by altas, glen anthony, tacluyan, arjenlyn, and elardo jennylyn, aims to analyze the improvements in the company's operations over time and suggest improvements using the 5s methodology. The study is based on interviews with current and former employees of datian subic shoes inc. And literature related to the topic.
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A Comparative Analysis of Current vs Past Operations and Supply Chain of Datian Subic Shoes Inc.'s, and Application of 5S Methodology: A Case Study BY Altas, Glen Anthony Tacluyan, Arjenlyn Elardo, Jennylyn An Academic Paper Submitted in Partial Fulfillment for Final Examination in Operation Management and Total-Quality Management December 16 2023
Background of The Study Subic Bay Freeport Zone was the home of 1,482 companies/manufacturers that have the privilege of enjoying the benefits from the Freeport Zone 124 of that business aligned in manufacturing plants that import raw materials to the Philippines and process those to be finished products for export. Datian Subic Shoe Inc. was one of the 124 manufacturing companies in the Subic Freeport zone that stands out as employee-centric. Since 2007, Datian Subic Shoe Inc. has shown incredible growth that triggered investments. As cited in the article of SunStar, Datian Subic Shoe Inc., at the outset, invested $10 million in its first manufacturing facility in Gateway Park in
1,500 more workers. The company leased a 29,400 square meter plot at Subic Bay Gateway Park (SBGP) Phase II to expand its 42,749 square meter facility, with half of the $6 million expansion investment to be completed within two years. The project will allocate it to the construction of manufacturing buildings. 2017 Datian Subic invested $10 million in its first manufacturing facility in Gateway Park. The company hired 3,698 people in February of 2019 (Dungog, 2019) Objectives The study revolves around Datian Subic Shoes Inc., focusing on the production of footwear for brands like Vans and Keds. The study's objective was to compare the current vs. past operation and supply chain and identify issues that hinder the operation and supply chain efficiency and how to improve it using 5S. Scope and Limitation The study was conducted to compare the current and past operations of Datian Subic Shoe Inc. by interviewing the present and past employees. The scope of the study was only on the operation and supply chain of Datian Subic Shoe Inc. and the experience, insight, and opinion of the current employee and the past employee who has worked at least (2) years for Datian Subic Shoe Inc. This study does not cover employee welfare and company conflict between officials and the entire supply chain management. It only includes the current trading country of the supplier and Datian Subic Shoe Inc. buyer.
Definition of terms Centric - having a particular type of person, place, or thing as your most important interest. Lease - is a legal agreement that allows someone to pay money so that they can use an asset such as a car or building for a particular period of time. Compliance - is the state of being in accordance with established guidelines or specifications. Allocate - to use something for a particular purpose, give something to a particular person etc, especially after an official decision has been made or allocate. Compensate - to provide something good or useful in place of something or to make someone feel better about something that has failed or been lost or missed. Comparative Analysis - is a way to look at two or more similar things to see how they are different and what they have in common. Sufficient - enough to meet the needs of a situation or a proposed end. Stitching - a line or lines of thread that has been sewn in something Good Stitching – it was called to works that pass the standard of stitching Not Good Stitching - it was called to works that do not pass the standard of stitching
Based on the interview that the researcher gathered about Datian Subic Shoe Inc., the past employee who worked before the company. The researcher asks the first question: How many years have you worked in the company? The past employee worked for two (2) years. The second question is about your position at Datian Subic Shoes Inc. The interviewee is part of the stitching. The third question: What kind of work do you do in your job? The interviewee answered that they stitch the fabric of the shoes. The fourth question: What is the sorting system at Datian Subic Shoe Inc.? The interviewee answered they had designated stations for the unfinished and finished products. The fifth question How many phases does the raw material pass through to be a finished product? The interviewee answered seven (7) 1st-phase raw materials, 2nd-phase rubber, 3rd-phase printing, 4th-phase cutting, 5th processing, 6th stitching, and 7th assembly. The sixth question What is the arrangement of the process? The interviewee answered that it ranged from raw materials to rubber, printing, cutting, stitching, cement, and packaging. The seventh question How does Datian Subic Shoe Inc. maintain equipment efficiency? The interviewee answered they have to maintain the efficiency of the equipment. The eighth questions: Where is there regular maintenance in their equipment? The interviewee answered there is maintenance. The nineth questions: Is there a regular cleaning staff in your area? The interviewee answered there's no cleaning staff, but they clean their area alone. The tenth question: What is the standard quality of Datian Subic Shoe Inc.? The interviewee answered they have a standard they follow based on the class of the shoes. The eleventh questions: Where are the different trainings they provide? The interviewee answered Yes, they have a different training.
The twelfth thirteen questions: How did Datian Subic Shoe Inc. sustain its quality product? The interviewee answered they provide training on the raw materials' quality, and some people constantly check the product to see if it is approved. The thirteenth fourteenth question: Where did Datian Subic Shoe Inc. get their raw materials? The interviewee answered they get their raw materials from Hong Kong and China. The fourteenth question: Where did Datian Subic Shoes Inc. export their product? The interviewee responded that they export their product in the United States. The researcher gathered data from the current employee of Datian Subic Shoe Inc., based on the interview the researcher conducted. In the first question, the researcher asks how many years have you been working in the company? The current employee has been working for the company for (6) six years since 2018. In the second question, the researcher asks what is your position in Datian Subic Shoe Inc.? The current employee is a sewer. Third question: What kind of work do you do in your position? The interviewee is stitching the fabric of the shoes. Fourth question: What is the sorting system of Datian Subic Shoe Inc.? The interviewee said their sorting system is when the sewing is finished, it is segregated; when the stitching is not in the standard, it is also separated, and those that are yet to be made are also separated. Fifth question: How many Phases do the raw materials pass through to be finished? The interviewee said (7) seven phases from raw material to finished product. The sixth question is, what is the arrangement of the process? The interview said it is from raw material to rubber, printing, cutting, processing, stitching, and assembly. Seventh question: How does Datian Subic Shoe Inc. maintain equipment efficiency? The interviewee said that putting oil in their equipment is how they maintain their efficiency. Eighth question: Where is there regular maintenance in
between good and not good stiching. To maintain this practice, Datian Subic Shoe Inc. should conduct regular audits to identify and remove the new unnecessary items that may have accumulated. Set in Order - When it comes to setting orders for Datian Subic Shoes Inc., the current and past employee has a stated that there is sorting facility or station for the finished and unfinished products and other raw materials needed for creating shoes and the equipment they need to use to set order in material use in making shoe. They also mention that the set order of operation is 1st^ raw material 2nd^ putting rubber sole 3rd^ printing of design 4th^ cutting of fabric 5th^ processing 6th^ stitching 7th^ assembly. And they have a sorting facility for the products and equipment in order to know where they are designated. To enhance this practice, they can invest in technology like program robots to identify identical products and tools to put in order and avoid error and to help employee in processing there works. Shine – As stated, the former employee was asked whether there is a cleaning staff that keeps their area clean, and the employee answered. There is no staff assigned to clean their workstation, while the current employee answered that there is also no cleaning staff for their workstation and the one who cleaned their workstation was them. Cleaning their workstation prevents employees from confusion about the placement of their working tools and avoids errors in their work. To improve this practice, Datian Subic Shoe Inc. should provide training for the employees on how to properly clean their working stations and provide a staff that checks the working station of every worker to analyze the things that need to change and clean to improve the efficiency of their operation and avoid accident and error. Standardize – As stated, both former and current asked what is the standard quality of the Datian Subic Shoe Inc. and the former employee answered there is a standard
base on the class of the shoe of their making. In contrast, the current answered that their standard is that they have a consistent practice to maintain the standard of the shoe they are making. Standard instructions are provided to ensure that it passes the standard given. To improve these practices, Datian Subic Shoe should enhance training programs to ensure that the employees are updated to the standardized processes, and it should have initial training for both new employees and ongoing training for the existing employees for the purpose of both new and ongoing employees having uniformity. Sustain - Regarding sustaining 5s in Datian Subic Shoe Inc., based on the gathered data, current and past employees in the phase stitching put markings and gave samples to check the quality of the shoes. To maintain this practice, be flexible in itemization and strategy to counteract potential threats or opportunities to maximize the team's sustain. Learn from mistakes and successes to continually improve and sustain in 5s. It is recommended that Datian Subic Shoes continuously provide training like Six Sigma training and seminars to maintain their production in the company.
Dungog, M. (2019, March 20). Subic shoe factory to hire 1,500 more workers [Review of Subic shoe factory to hire 1,500 more workers ]. Philippine News Agency; Philippine news agency. https://www.pna.gov.ph/articles/ Sunnexdesk, & Sunnexdesk. (2019, March 23). Subic shoe manufacturer to expand operations. SunStar Publishing Inc. https://www.sunstar.com.ph/pampanga/business/subic-shoe-manufacturer-to- expand-operations Navales, R. G. (2022, February 1). SBMA: Subic Workers reach 142,177 in 2021. SunStar Publishing Inc. https://www.sunstar.com.ph/pampanga/business/sbma-subic-workers-reach- 142177-in- Nurcahyo, R., Apriliani, F., Muslim, E., & Wibowo, A. D. (2019). The Analysis of the Implementation of 5-S Principles Integrated With ISO 9001 Requirements at Higher Education Level. SAGE Open, 9(3). https://doi.org/10.1177/ Saarijärvi, M., & Bratt, E.-L. (2021). When face-to-face interviews are not possible: Tips and tricks for video, telephone, online chat, and email interviews in qualitative research. European Journal of Cardiovascular Nursing , 20 (4), 392–
Question Current employee Past employee How many years di you work in Datian? Nag sumula akong mag work nung feb 18 2018 Nag start ako nung year 2018 - 2020. What is your position in Datian Subic Shoes inc.? Yung position ko sa datian ay sewer sa stiching station nag ttatahi ako ng mga ibat ibang mga style ng sapatos Stiching ako naka assign What kind of work you do in your position? Sa pag kakaalam ko ang phase mula raw mats hanggang finish product ay anim Tinatahi yung pinaka front ng sapatos. What is the sorting system Datian Subic Shoe Inc.? Hinihiwalay yung yung mga waste sa good pagtapos ng stitching Naka ayos yung raw materials pagdating samin at may designated para sa mga finished and unfinished products.
din dito ang pag lalagay ng spatos sa box. *What is the problem commonly occur in operation in your station? Sa materials wlang markings.tsaka d magkaparehas ang kulay ng tela Kadalasan ay yung mga machineries How does Datian Subic Shoe Inc., maintain the efficiency of equipment? Yung tinatahi naming 100 pecent chinecheck yon ng qc namin bago ibigay sa outputer yung outputer ayon yung nag bibigay sa assembly. Kapag naman galing sa cutting processing ang tawag naman ay imputer. Meron at minimaintain namin yung efficiency mga tools. Where there a regular maintenance in your equipment? Wlang maintenance kasi lagi naming inaayos kumbaga kapag may nasira ginagawa agad halimbawa meron sira yung machine mo itataas mo lang yung kaliwang kamay or tinatawag Hindi regular maintenance na ginagawa para sa mga equipments
naming red hand tapos may puputang maintenance staff para maayusin. Where there a regular cleaning staff in your area? Walang regular cleaning staff ang cleaning staff lang naming is sa mga c.r. kumbaga ang pag lilinis ng area naming is station mo linis mo. Wala dahil sariling linis namin. What is the standard quality of Datian Subic Shoe Inc.? Meron sample na shoe na pinag babasehan tas ayun ung standard Merong sinusunod na standard base sa class ng shoes. Where there different training they provide? Merong training na pinoprovide kadalas kapag bagong empleyado ka. Kapag naman merong panibagong style o tahi na gagawin nag kakaron ng trial run doon merong staff na nag tuturo then mag kakaroon ng trial run mga Meron training sa mga regular at bagong employees.
material? bansa sa Hong Kong Taiwan tsaka China China Where did Datian Subic Shoe Inc., export their finish products? Pinapadal yung mga gawang sapatos sa ibang bansa sa U.S at Canada ayun yung mga customer. Ine-export sa ibang bansa sa United States
