Manufacturing perspective focuses in shoe manufacturing process and key factors in the designs of the products and services while discussing the importance of quality planning and quality control process for the company in order to achieve high performance products and services.

Batch production is the manufacturing technique of creating a group of components at a workstation before moving the group to the next step in production. Batch production is common in bakeries and in the manufacture of sports shoes, pharmaceutical ingredients (APIs), inks, paints and adhesives.

Manufacturing at Boston is assumed as batch production as they manufactures parallel product with variants in technical innovations , such as a blend of gel inserts, heel counters, and a greater selection of sizes, particularly for very narrow and/or very wide widths.Therefore, New Balance required to produce modified and number of different product in order to fulfil customers need. Located near to their customers gave an advantage which enable New Balance to reach customers order fulfillment and quick turnaround on new design. . In batch production, New Balance running shoes have as many as 30 templates to it, and the components listed below are the most basic. The shoe has two main parts: the upper, which covers the top and sides of the foot, and the bottom part, which makes contact with the surface.

The bottom has three main parts, outsole, midsole, and wedge. The outsole provides

Initial step in running shoe manufacture includes die cutting the shoe parts in cookie cutter fashion.The upper part of the shoe are stitched or cemented together and at this point, the upper part looks more alike a round hat; the extra material is called the lasting margin. After the upper is heated and fitted around a plastic mold called a last, the insole, midsole, and outsole are cemented to the upper. The midsole is designed specifically for shock absorption, and the wedge supports the heel. The insole which located inside the sole, also contains the arch support.

Shoemaking is a labor-intensive process, and the cost of producing the many components of the running shoes shows the importance of skilled man power. Every steps of production requires precision and expertise, and taking shortcuts for cost saving can cause in an low-graded shoe. As a result, computerized sewing equipment and automated stitchers that allow one person to do the work of 20 which ensure better quality and to avoid human errors.

2.2 Key Factors in designs of products and services

New Balance remain competitive by adapting new technologies to shoemaking. They had also borrowed technology from clothes manufacturers by using see and sew machines aid to their products. Sewed show gives more adhesion between the templates and it also last long compared to glued type. They also keep updated with new trend by production different and latest design of shoes. production operations close to home where they believed they could exert greater control over manufacturing quality. This also enables them to fulfill customers order and allows quick turnarounds on new designs. They also able to ship orders on time and faster.

2.3 Importance of Quality Planning and Quality Control

2.3.1 Quality Planning

Defines systematic process that translates quality policy into measurable objectives and requirements, and lays down a sequence of steps for realizing them within a specified timeframe. Proper planning is important in order to maintain the quality of products. In order to avoid overdue deadlines and perform shipments on time , Therefore, New Balance Corporation should introduce Total Quality Management (TQM) into their organization. TQM is a system for creating competitive advantage by focusing the organization on what is important to the customer. Principles of TQM are Do it right the first time and an approach for zero defects. According to TQM, good quality reduces time of rework and able to spent more time in manufacturing. TQM recommends management to find new ways to meet or exceeds customer’s needs. TQM also stresses top management to provide support and direction to implement quality improvement concepts into their management and process planning. Awareness and skill training of top-level manager to non-manager, full employee empowerment and effective communication both vertically and horizontally of all levels must be in practice to improve the quality goals.

They can also use Six Sigma can be use as a guideline process for developing and delivering virtually perfect products and services.

(i)Initially the problem need to be defined followed by the voice of the customer, and the project goals, specifically.

(ii)Then key aspects of the current process and collect relevant data need to be measured.

(iii)Once measured, the data need to be analyzed to investigate and bear out cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.

(iv)Current process need to be improved upon data analysis using techniques such as design of experiments work to create a new, future state process. Set up pilot runs to establish process capability.

(v)Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards, and visual workplaces, and continuously monitor the process.

2.3.1.1 Continuous Improvement (CI)

New Balance should move toward continuous improvement (CI) or ‘Kaizen’ to remain competitive. CI focused in infinite improvement of material, machine, labor use and production method . New Balance should apply some of CI approaches such as Statistical process control (SPC), PDCA cycle, Pareto analysis, Fishbone diagram, Benchmarking and Just-in-Time (JIT) method. SPC is a tool to identify problems in production process in order to prevent poor quality by using Statistical Control Chart.[1] PDCA or Plan-Do-Check-Act cycle provides guidance on problem solving process. The cycle starts by identifying solutions for a certain problem. Secondly, implement a solution and then evaluate the solution and finally take action if the solution succeeded. The cycle should continue with new improvement or solution for continual improvement. Pareto principle describes that 80% of the problem come from 20% of the cause.[1] Pareto analysis concentrated only on the 20% of cause and the solution to 20% will solve 80% of the problem. Fishbone diagram is to identify potential causes to a problem.[1] Benchmarking is an approach for setting goals and productivity measures based on best-industry practices.[2] Benchmarking involves identification of a process that needs improvement and identification of world-lead organization that performing this process. And, analyzing data obtained by contacting the organization.[1] By implementing JIT method in Bedford plant, New Balance will deal with fewer raw materials, less WIP inventory and low finished goods inventory. Fewer inventories save more space, which can be rented for subcontract to other company. JIT is about delivery of required parts in the right quantity at the right time and place with minimum facilities usage.[3]

2.3.2 Quality Control

Quality can be defined as a measure of excellence or state of being free from defects and significant variations. Consistent adherence to measurable and verifiable standards would be important to achieve uniformity of output that satisfies specific customers. Organizations must place great emphasis on managing quality controls. It is vital to ensure that the products and services offered to customers are reliable and truly meet the customers’ needs.

Poor quality products would contribute to direct impact on the financials of New Balance Corporation. It would steadfastly influence both the company’s revenues and its profits. Quality products is essential to accomplish competitive edge over the challenges of rising competition, emerging markets, more complex guideline, innovative products and ever more demanding customer expectations. Quality products will enhance the effective growth strategies that would be vital to cut across all operating processes and functional boundaries.

Financial growth will also require sensible and insightful quality commitment on customers’ evolving approach and preferences. Following are a number of consequences that would emerge when

New Balance develops and delivers poor quality products.

2.3.2.1 Poor Quality Products Implies A Poor Quality Company

A  Company’s reputation is based on many things; the company’s financial performance, its stock price, product innovation, delivery on commitments, etc. The quality of its products is one of the major determinants of a company’s reputation. Therefore, poor product quality can destroy the reputation of New Balance products. Customer’s perception will bring even more serious impact. When New Balance produce poor quality products, they strongly associate those poor quality products as coming from a poor quality company. Consequently, for New Balance Corporation, the existing customers will decline orders because of New Balance Corporation’s inconsistencies and inability to produce

defect-free products.

2.3.2.2 Opportunity Lost

Poor quality is opportunity lost. Poor quality will deprive the opportunity to improve the bottom line. There are good values to be gained by improving scrap, rework, and warranty costs, there are even greater values in looking for the root causes of these, because the return is normally much greater. Losses due to quality deficiency can be prevented if good quality practices are followed and product standards are used. Losses due to quality margins can also be easily discovered with a commitment, knowledge and effort. Once discovered, this can be

the source of huge opportunity and a clear competitive advantage.

2.3.2.3 Cost of Poor Quality

Poor quality is opportunity lost and the loss of precious resources, such as time and money, on unnecessary tasks and wasted materials. Cost of poor quality can be measured by estimating the cost of all efforts undertaken in an organization, including materials and processes used in assembling the products that does not provide value to customers. In the context of lean manufacturing, these are non value-added activities. At New Balance, cost of poor quality is the sum of all non value-added costs divided by the total revenue that’s generated. The resulting measurement is the percentage of revenue that’s lost due to waste. Losses can build up from wastes such as excess inventories, unnecessary motion, and supplier nonconformance. New Balance will also see that losses can occur from more obscure wastes, such as unnecessary paperwork, large lot sizes, and excessive auditing. These wastes lead to additional losses.

2.3.2.4 Quality as the Core Values of New Balance

Quality should be totally pervasive. Determining customer needs accurately is an important aspect of quality management. Obviously, it is less costly to rectify a mistake in defining customer requirements before a product is produced than it is afterwards. So spending the time and effort to figure out the requirements correctly at the start is time well spent. Thus, the goal of New Balance Corporation should be on identifying what the customer wants and then fine-tune the process to ensure that they get it. Reduced quality product would jeopardize New Balance Corporation’s financial.