Improvement of efficiency for production line by applying line balancing and simulation: A case study in Adidas Company

Abstract

The purpose of paper is improving efficiency KPI in shoes production companies. A case study of Adidas Vietnam was adopted. The aim of this paper is improving the KPI efficiency that related to the working time, number of worker existing on production line and productivity (output). Two phases for improvement were generated, the first one is Improving the cycle time to be below takt time and keeping number of workstation using direct observation method base on concept of eliminating, combining, simplifying the assembly process without any additional machine and manpower and Arena software. Next phase is modifying the initial improvement to generates the second improvement by minimize number of workstation. Lingo software is used for that purpose. All the required data was measured and the parameters such as elapsed time at each work station, efficiencies, number of workers, time of each of the workstations etc. was calculated from the existing line. Keywords: Efficiency, Line balancing, Simulation process design, Optimization, Minimize workstation, Lingo.