Simulation-Based Improvement Procedure For Small-Scale Shoe Manufacturing Companies

Journal of Advanced Manufacturing Systems
Vol. 17, No. 1 (2018) 23–33

.c World Scienti¯c Publishing Company
#
DOI: 10.1142/S0219686718500026
Simulation-Based Improvement Procedure for Small-Scale

Shoe Manufacturing Companies
by 78.165.79.13 on 08/26/19. Re-use and distribution is strictly not permitted, except for Open Access articles.
Daniel A. Velez Heredia* and Fernando Ceballos†

J. Adv. Manuf. Syst. 2018.17:23-33. Downloaded from www.worldscientific.com
Faculty of Engineering, Universidad de Antioquia

Medell{n, Antioquia, Colombia
*daniel.velezh@udea.edu.co
†
yony.ceballos@udea.edu.co
German Sanchez-Torres‡
Faculty of Engineering, Universidad del Magdalena
Carrera 32 No. 22-08, Santa Marta
Magdalena, Colombia
gsanchez@unimagdalena.edu.co
Production costs represent the largest production process expenditure for companies. The
existence of worker leisure time increases the associated production costs, which should be
reduced to maximize the pro¯t. In many Latin American small-scale footwear companies, shoe
manufacturing is mainly characterized as an artisan elaboration. They generate additional costs
associated with the poor standardization of methodology, lack of knowledge of a de¯ned elab-
oration procedure, the absence of suitable facilities for raw material storage, and de¯ciencies in
handling the product during the process. All these weaknesses make the manufacturing and
packing process more di±cult. This paper shows an optimization procedure for the utilization of
resources by using discrete event simulation. Additionally, we propose a de¯ned sub-process
sequential structure to allow the standardization of shoe manufacturing. The results show that the
proposed structure decreases the time of product processing by more than 40%. Furthermore,
analysis of the costs of the associated implementation was performed and showed that it could be
assumed by companies that the investment will provide a return on the capital within a short time.
Keywords: Discrete event simulation; shoe manufacturing; Simul8; productivity improvement.
1. Introduction
Nowadays, companies need to be more competitive each day. Competitiveness
determines their ability to sell their products or services on a particular market. To
accomplish this, it is necessary to increase the monitoring all of the company's
processes to learn from its errors so as to enhance the product quality and meet the
needs and expectations of consumers. Business competitiveness within the context of
the global economic environment demands more e±cient and e®ective resource
management, including ¯nancial, human, and technological resources, among others,
for the company to be sustainable on the national and international markets.1
‡Corresponding author.
23
24 D. A. V. Heredia, F. Ceballos & G. Sanchez-Torres
The shoe manufacturing industry is no stranger to this trend. In Colombia, shoe

manufacture constitutes a signi¯cant national industrial segment with higher pro-
duction concentration in cities like Bucaramanga and Bogota. Annual exports of
these products have a value of nearly two million US dollars2 and provide employ-
ment for over 27.3% of the regional population.3 Even though national shoe
manufacturing is an important segment, there is evidence of weaknesses that results
in low national production, because artisan production is a primary feature of this
industry in Columbia. Therefore, the application of industrial engineering tools is a

necessary element to accomplish an increase in the production process e±cacy and
e®ectiveness.
Due to the size of the Colombian shoe manufacturing companies and the func-
tioning free-market economy policies, this industry has small-scale incomes, so using
optimization-based approaches and ¯nancial analysis are limited to not having a
signi¯cant availability of ¯nancial resources.
The economic competition due to a high demand for the imported products from
the Asian countries a®ects the investment in research. However, due to the nature of
the employment relationship where the employees are paid according to the number
of the generated products, the time analysis technique is a standard approach used
for analysis in the Colombian small-scale shoe companies. This information together
with a more detailed knowledge of the production process can be complemented with
a descriptive statistic to generate a simulation model in a straightforward way. In
this context, engineering simulation is commonly implemented by companies. Two
widely used procedure-simulation approaches are system dynamics and discrete
event simulation.
The computational simulation approaches allow the e®ects and the production
process behavior caused by di®erent types of policy application to be analyzed
without the need for signi¯cant investment or testing on a real system. Due to the
above, these tool sets have become a traditional way of identifying the bottlenecks
within the production process, and for establishing and assessing distinct low-cost
solutions using a variety of evaluation methodologies.4–8
From the perspective of applying process simulation to the improvement of
production processes, di®erent works have been done with the aim of de¯ning and
integrating strategies for analyzing and improving the processes of companies. Süer
et al.9 used a heuristic approach for improving the planning of daily scheduling for a
shoe company production process. Other work analyzed the e®ect of di®erent deci-
sion variables on the time performance of the system in the manufacturing process
for ¯rms in the textile-apparel industry.10 They consider diverse factors like the
length of the planning period, material availability, and the link between the pro-
duction orders and customer orders regarding color mix. The evidence based on a
simulation approach shows that the production-planning process is an important
area of improvement and thus shortening the production-planning period signi¯-
cantly a®ects the weighted average delivery time.
Simulation-Based Improvement Procedure for Small-Scale Shoe Manufacturing Companies 25
Tako and Robinson11 used di®erent models based on discrete event simulation
and system dynamics as decision-support systems for the logistic and supply chain
management. They analyzed a large number of reported works and concluded that
discrete event simulation had been used more frequently to model the supply chain;
however, the study suggests that regarding the level of decision-making there is no
di®erence between the use of discrete event simulation and system dynamics. Other
works have analyzed the production processes in manufacturing companies with the
aim of identifying the most critical points on the production line.12–15

Simulation models had been used for the operational production planning and
service and maintenance support16 in both development and operation phases. It was
concluded that it permits a better way for verifying the production plans, and analysis
of the e®ect of new product introduction. Additional bene¯ts can be obtained when the
simulation models are connected to the physical system and other business software.
Other works17 had shown how simulation could be used for avoiding substantial
capital investment in order to analyze and evaluate automated manufacturing system
installation using a virtual factory simulator. We use a virtual factory simulator as a
framework for the design and analysis of an automated manufacturing system.
There are published works addressed to use the computational simulation to
improve the process in shoe manufacturing companies.18–20 The primary interest in
these kind of companies is related to the fact that the shoe production process has
high variances due to the rapidly changing trends and models.18 Eryilmaz et al.,18
using computational simulation analyzed the e®ect on the output of a production line
of variable styles of shoes for men. Di®erent factors like daily production rate, °ow
time, queue behavior, resource utilization, and reworks were analyzed to specify a
new production policy. Voorhorst et al.19 used a real model of shoe production plant
and simulation for the optimization of highly °exible production plants. The use of
discrete event simulation permitted the analysis of the plant dynamic behavior and
determined an optimization strategy. Other examples that used simulation were
addressed to analyze the lead time prediction in leather shoe manufacturing to its
optimization.20
Regardless of the computational simulation technique, the literature demon-
strates that it constitutes a fundamental tool for production process optimization by
companies.
We use discrete event simulation with the aim of carrying out resource optimi-
zation in a small-scale Columbian company. Additionally, we propose a de¯ned sub-
process sequential structure for the standardization of shoe manufacturing. An
analysis of associated implementation costs was performed, which showed that
companies could assume that the investment will provide a return on the capital
within a short time. For the computational implementation of models, we used the
Simul8 computational tool because it permits the easy identi¯cation of variables and
modeling of the production process. In the same way, it makes it possible to test
di®erent policies, generating a sensitivity analysis of the production levels and use of
resources.
2. Methodology
The methodology used for the analysis of the production process is illustrated
in Fig. 1(a). Figure 1(b) shows the methodology employed for the computational
implementation of simulation models.
The selected methodology makes it possible to carry out the computational
modeling of the system, considering the structure formed by real system components,
meaning the variables, parameters, and their relations. The relationship between the
components permits the behavior of variables and parameters inside a particular
component or between all of the system components to be modeled. Relations are
formally called as operative characteristics. These operative characteristics can be of
deterministic or stochastic nature.6,21 The deterministic characteristics are the

relationships between the variables or parameters where only one process input
determines one process output. The stochastic relations are those where the system
generates an indeterminate process output when a particular input is given.
Regardless of the types of component relations, they are regulated by objectives and
limited by a set of restrictions. These are the constraints imposed on the variable
values or the way in which the resources can be assigned or consumed. The objective
functions explicitly de¯ne the system objective and model the assessment form.
These constitute the measurement of the system e®ectiveness.22–24
(a) (b)
Fig. 1. The methodology for the process analysis and model implementation.
Finally, after the stage of the construction of the model, it must be veri¯ed and
validated. The veri¯cation procedure aims to provide assurance that the software is
correctly implemented, taking into account the particular characteristics of the
programming language used for simulation or the computational tools used. The
validation allows measuring the accuracy of the computational model contrasting
the real data and the output. It permits the correct parameterization of the set of
variables, generating a computational model behavior that is as close as possible to
that of the existent system.21
3. Results and Discussion

Once the simulation model has been veri¯ed and validated, experiments can be run
without having a real impact on the system. The experimental scenarios can be run
at a minimal cost on the computational resources and time. In this section, we used
the methodology for the computational experiments described above.
3.1. Problem de¯nition

In most companies, it is impossible to ¯nd the °ow diagrams of the process, and
therefore the help of the operators was required to obtain the information on the
process sequences to create a °ow process diagram. The processing time, rates, and
quantities of each of the activities were determined after successive company visits.
By analyzing the °ow diagrams and the activity sequences, it could be determined
that there was a wait of 6 h in a queue, evidencing that production delay causes
general de¯ciencies in the productiveness of the company. Additionally, any pro-
blems with raw material locations and weaknesses of un¯nished product treatments
were also noted.
3.2. Modeling the process

Figure 2(a) shows a general °ow diagram of the company's shoe-production process,
showing various sub-processes, of which the most complex is the gluing soles. This
activity has the longest queue. We show it in Fig. 2(b).
Figure 3 shows the arrangement of the plant, which is organized in the traditional
disposition of raw material use during the processing and treatment of ¯nished
products.
3.3. Computational implementation

The computational model was constructed based on the °ow diagrams set out in
Fig. 2. To conduct a correct modeling of the time consumption of activities, we
carried out a test of goodness of ¯t using the data collected in the problem de¯nition
stage. The results are shown in Table 1. By the established statistical procedures, we
can conclude that there is no statistical evidence for rejecting the hypothesis that the
real data have the statistical distribution reported in Table 1.
(a) (b)
Fig. 2. Flow diagram of production process: (a) general process diagram and (b) sole-bonding sub-process.
The ¯nal stage of the computation implementation phase is modeling using a

computational tool. We use the Simul8 tool. Figure 4 shows the model of the actual
manufacturing process inside the company. It can be observed that the principal
activities of the production process are leather cutting, garnish, queue 1, and queue 2.
After analyzing the model, it can be concluded that the shoe production level is
directly dependent on these activities. In other words, the time associated with the
activities allows the ¯nal production to be increased or decreased, so the detection of
bottlenecks is a signi¯cant step in improving the manufacturing process. The vari-
ables associated with these activities have the greatest e®ect on time consumption in
Fig. 3. The physical arrangement of the production plant.

Table 1. Statistical distribution and goodness of ¯t test results.
Variables Fitted statistical distribution (minutes) Chi-squared test Squared error
Test statistic -value
Leather cutting Normal (9.65, 1.13) 0.41 < 0:005 0.026

Garnish Exponential (7.5) 2.77 < 0:005 0.026
Brushing Uniform (1.6, 2.48) 0.13 0.0734 0.025
Disassembly of mold Uniform (0.78, 1.19) 1.33 0.0249 0.025

Carding Triangular (0.23, 0.278, 0.29) 1.38 < 0:005 0.020
Halogenation Uniform (0.89, 1.09) 3.00 0.0187 0.065
Addition of glue Uniform (1.2, 1.83) 2.38 0.0136 0.035
Preheating of sole Uniform (0.79, 1.24) 0.83 0.0391 0.055
Manual bonding of sole Triangular (0.62, 0.676, 0.7) 3.40 < 0:005 0.041
Placement in machine Normal (0.507, 0.0262) 0.99 < 0:005 0.034
Fig. 4. Model of process used at the company.
comparison with the other variables in the process, so any change impacts the ability
to meet the demands of the customers or the planning of the daily production level.
3.4. Model veri¯cation and validation

The model validation and the validation results are the most important aspects to
consider during the development of the system model. The validation is closely
related to the credibility of the model. In other words, whoever develops the simu-
lation model must demonstrate the model reliability, showing that it represents the
real system appropriately. Validation of a simulated system does not di®er from
the validation of any other kind of system. However, some subtle di®erences focus on
the way in which it is developed, principally due to the special characteristics of the
simulation. In a general way, it can be observed that both the statistical distributions
and the designed model structure correspond to the behavior of a real system
detailing the observed system of the production plant.
3.5. Model veri¯cation and validation

The principal task related to the experiment design is to determine how many model
execution replications are necessary for statistical signi¯cance.25 For this work, we
set the number of model executions to ¯ve simulation runs for each of the proposed
solution scenarios.
3.6. Solution scenario

Frequently, the leather cutting activity is performed faster than the garnish activity.
Therefore, the leather pieces tend to be in a queue waiting to be processed. The
analysis and measurements show that the average number of pieces waiting is
97 units, and the main reason for the queue size is that the next process is carried out
by a single operator.
In this context, if shorter times are used for the garnish activity, the likely
expected outcome is the generation of a slight increase in the size of the queue
associated with the latency phase of the next activity. Shorter times make it possible
to select and process more waiting pieces. The time consumption analysis of the
garnish activity makes it possible to identify di®erent factors such as the activity
latency and the operator rest time, where the operator rest time is the most im-
portant factor related to an increase in the number of pieces waiting. So, the ¯rst
piece in the queue has to wait for 30 min, which a®ects the length of the queue,
leading to a 30% increase in queue size.
Another identi¯ed key variable in the shoe production process is represented by a
queue, namely waiting queue 2. This queue represents a critical bottleneck because of
the long required waiting time of 6 h that is necessary for the quality assurance of sole
gluing. An increase in the production can be accomplished if a shorter time is spent in
the waiting queue 2, because more pieces can be processed to the next activity,
revision and completion, so we estimate that if the waiting time is reduced it will be
possible to produce a greater number of pieces than that produced at present.
As already mentioned, the actual structure of the production model is not ap-
propriate and has weaknesses related to the presence of a bottleneck at the queue
with a long waiting time. Therefore, we considered including an additional sub-
process for revision and completion, namely revision and completion 2. However, an
experimental test run on the simulation model with the added sub-process shows
that no signi¯cant improvement takes place. The subsequent analysis shows that the
queues related to the cutting of leather pieces become congested because the garnish
activity takes a long time. Therefore, the actual garnish station was insu±cient for
the new process °ow. Based on that, we added garnish 2 station, giving two garnish
stations rather than one. This scenario is shown in Fig. 5. The number of shoe units
produced increases by an average of 14% according to the result of a simulation run
of seven working days. The results of the experiments show that the limitation is now
introduced by the capability of the leather cutting activity. Therefore, it is necessary
to increase this to carry out the process optimization.
Fig. 5. Proposed process model.
Table 2. Cost of investment for the implementation of the new model.
Investment Cutting Flat sewing Garnish 2 Revision and

machine machine operator completion operator
Cost (USD) 1200 2000 300 300
The proposed model shows an increase in productivity, but that was not the only
accomplishment: the waiting time in the queue was also reduced, with the amount of
waiting before the leather cutting and insole activities being decreased. In other
words, not only the productivity but also the °ow of pieces in the whole process
increased. Due to the increased productivity, it can be considered that the resources
are being used in a better way.26 Consequently, increased productivity will always be
an achievement of the company.
If the company decided to implement the changes made to the model, it should
invest in the infrastructure and direct labor costs. The following costs are required:
cutting machine, °at sewing machine, costs of an additional operator in following
stations: The garnish and revision and completion 2. This investment is actually
about the increasing capacity. The total investment cost is described in Table 2.
To address the abovementioned bottleneck of the 6 h wait of each of the pieces in
the process due to the gluing activity, it is necessary to propose a way to diminish the
length of this queue. Because the waiting time is strongly related to the drying period
of the gluing activity, a reduced waiting time is an e®ect of decreasing the drying
period. Therefore, we propose to include two industrial fans. The inclusion of the fans
allowed the drying time to be reduced by as much as 33.3%, namely from 6 h to 4 h.
4. Conclusion
Depending on the primary objective of the analysis base on simulation, it can be an
alternative to the classical ¯nancial analysis permitting to evaluate multiple
objectives without the need of use of complex models which are di±cult to reach to a
small-scale company. Based on ¯eld observations, the analyzed company had an
empirical plant distribution. The simulation presented in this study generated results
to determine that the size of storage areas has an e®ect on productivity and distri-
bution. It made it di±cult to make optimal analyses of the distribution plant, time
processing, and ¯nancial analysis.
Through this analysis, it was possible to identify the bottlenecks in the shoe-
manufacturing process that are limiting the production °ow in the organization, and
they are shown as critical points for controlling the process when planning the
production.
Understanding the behavior of the system made it possible to generate strategies

to e®ectively improve the way in which the production of the company operates and
the usage of di®erent machines to carry out the process.
According to the experimentation with the process, it was determined that the
proposed scenario does not need a signi¯cant investment and it is possible to opti-
mize the production process subject to typical restrictions of a serial production
process which has critical waiting times and which determines the amount of pro-
duction.
Shoe manufacturing is usually operated in batch production mode, and in many
cases this increases the disorganization in small businesses. The proposed scenarios
will help the modeler to ¯nd new bottlenecks to improve the production process.
As a future work, we propose that di®erent aspects should be incorporated into
the model, to know the skill level of employees and the sta® rotation policies. It could
permit the analysis of the production time behavior and its e®ect on the number of
ended products according to a ¯xed amount of resources.
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Simulation-Based Improvement Procedure For Small-Scale Shoe Manufacturing Companies

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Journal of Advanced Manufacturing Systems

Vol. 17, No. 1 (2018) 23–33

Simulation-Based Improvement Procedure for Small-Scale

Daniel A. Velez Heredia* and Fernando Ceballos†

Faculty of Engineering, Universidad de Antioquia

Keywords: Discrete event simulation; shoe manufacturing; Simul8; productivity improvement.

The shoe manufacturing industry is no stranger to this trend. In Colombia, shoe

industry in Columbia. Therefore, the application of industrial engineering tools is a

aim of identifying the most critical points on the production line.12–15

deterministic or stochastic nature.6,21 The deterministic characteristics are the

that of the existent system.21

3. Results and Discussion

3.1. Problem de¯nition

3.2. Modeling the process

3.3. Computational implementation

The ¯nal stage of the computation implementation phase is modeling using a

Fig. 3. The physical arrangement of the production plant.

Table 1. Statistical distribution and goodness of ¯t test results.

Variables Fitted statistical distribution (minutes) Chi-squared test Squared error

Test statistic -value

Leather cutting Normal (9.65, 1.13) 0.41 < 0:005 0.026

Disassembly of mold Uniform (0.78, 1.19) 1.33 0.0249 0.025

Fig. 4. Model of process used at the company.

3.4. Model veri¯cation and validation

3.5. Model veri¯cation and validation

3.6. Solution scenario

Fig. 5. Proposed process model.

Table 2. Cost of investment for the implementation of the new model.

Investment Cutting Flat sewing Garnish 2 Revision and

Cost (USD) 1200 2000 300 300

Understanding the behavior of the system made it possible to generate strategies

8. T. W. Kim, C. S. Ko and B. N. Kim, An agent-based framework for global purchasing and

titividad 14(2) (2012) 37–52.

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