DATIAN SUBIC SHOES INC.

A Comparative Analysis of Current vs Past Operations and Supply Chain,

Application of 5S Methodology
COMPANY PROFILE
 DATIAN SUBIC SHOES INC.
Shoe manufacturer Datian Subic Shoes, Inc., best
known for Vans and Keds, has committed $6
million to expand operations in Subic Bay, Freeport.
Subic Bay Metropolitan Authority (SBMA). The
company leased a 29,400 square meter plot at Subic
Bay Gateway Park (SBfGP) Phase II to expand its
existing 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. In 2017,
Datian Subic invested it’s $10 million in its first
manufacturing facility located in Gateway Park. The
company hired 3,698 people in February of 2019
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.

The study aimed to analyze the current and past operation and supply chain
management of Datian Subic Shoe Inc. to compare the improvements that happen over
time and to suggest improvements by using 5S. The study was conducted to understand
and present how to solve the current struggle of the supply chain and operation of Datian
Subic Shoe Inc., and to recommend a 5s implementation plan.
5s introduction
5-S practices benefit all aspects of life, including business management.
The benefit of 5-S practices is that they not only improve the working
environment's physical quality but also train employees' thought processes to be
more positive. Most businesses worldwide have demonstrated significant
benefits from 5-S, including enhanced overall organization, productivity,
quality, safety, employee morale, efficient workspace utilization, and cost
optimization.
 SORT is called seiri in
Japanese this the 5-S
approach aids in the
removal of items that are
no longer required

SET IN ORDER is
called seiton in Japanese
this 5-S Method also
improves efficiency and
process flow
 SHINE is called seiso in
Japanese this method offers an
approach to cleaning the
workplace so that problems
can be found more easily

STANDARDIZE in Japanese is
called seiketsu this 5-S includes a
notation system for procedures or
items to be compatible with other
fields
SUSTAIN in Japanese is
called shitsuke last but
not least, 5-S provides a
method for creating
behaviors that preserve
workplace organization
over time
OBJECTIVE
 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 to 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
◦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
METHODOLOGY
 The researcher used comparative analysis in this study, a methodical side-by-side
comparison that identifies the similarities and differences between at least two items. To
gather data, the researcher interviewed two people, a current employee and a former
employee with experience with Datian, and their opinions, experiences, and insights about
the company.
The researcher chose a telephone interview with the worker for information
gathering for the reason that the employees have a busy schedule and only be able to
accommodate during the end of their shift due to the peak season of production. The
interview was conducted with one current worker and one former employee of Datian. The
first employee was currently working in 6th phase of the process, called the stitching
station. The second employee was a former employee in the 6th phase of the process,
called the stitching station. After the interview, the results were compared to each other to
acknowledge the changes that happened in Datian Subic Shoe Inc. and to recommend
improvements to the operation of Datian Subic Shoe Inc.
RESULT AND
DISCUSSION
How many years did you work in Datian?

Current Employee Former Employee

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.?

Current Employee Former Employee

Yung position ko sa datian ay sewer sa stiching Stiching ako naka assign

station nag tatahi ako ng mga ibat ibang mga
style ng sapatos
What kind of work you do in your position?

Current Employee Former Employee

Tinatahi namin yung fabric ng shoes Tinatahi yung pinaka front ng sapatos.

What is the sorting system Datian Subic Shoe Inc.?

Current Employee Former Employee

Hinihiwalay yung yung mga waste sa good Naka ayos yung raw materials pagdating samin
pagtapos ng stitching at may designated para sa mga finished and
unfinished products.
 How many phases that the raw material passed through to be
finished product?
Current Employee Former Employee

Sa pag kakaalam ko ang phase mula raw mats Pito yung phase
hanggang finish product ay anim

What is the arrangement of the process?

Current Employee Former Employee
Yung pagkasunod sunod na alam ko process ay una rubber dito
From raw materials to rubber, printing ng
ginagwa yung sole ng sapatos, pag katapos non sa printing ng sa tela
design, cutting, stiching, cement hanggang sa
ng mga tela ng sapatos na merong design, tapos sunod non cutting
ginugupit na yung mga tela, pag katpos non ay yung processing ng packaging.
mga tela kung saan pinag dikit dikit yung mga tela pag katapos non
Ipapasa na sa stiching doon na tatahiin yung mga tela at sa assembly
doon na pinag sasama sama yung mga nagawang part ng sapatos
yung tela, rubber kasama din dito ang pag lalagay ng spatos sa box.
How does Datian Subic Shoe Inc., maintain the efficiency of
equipment?
Current Employee Former Employee
Yung tinatahi naming 100 pecent chinecheck Meron at minimaintain namin yung efficiency
yon ng qc namin bago ibigay sa outputer yung outputer
ayon yung nag bibigay sa assembly. Kapag naman galing mga tools.
sa cutting processing ang tawag naman ay imputer.

Where there a regular maintenance in your

equipment?
Current Employee Former Employee

Walang maintenance kasi lagi naming inaayos Hindi regular maintenance na ginagawa para
kumbaga kapag may nasira ginagawa agad halimbawa sa mga equipments
meron sira yung machine mo itataas mo lang yung
kaliwang kamay or tinatawag naming red hand tapos
may puputang maintenance staff para maayusin.
Where there a regular cleaning staff in your area?

Current Employee Former Employee

Walang regular cleaning staff ang cleaning staff Wala dahil sariling linis namin.
lang naming is sa mga c.r. kumbaga ang pag lilinis
ng area naming is station mo linis mo.

What is the standard quality of Datian Subic Shoe Inc.?

Current Employee Former Employee

Meron sample na shoe na pinag babasehan tas Merong sinusunod na standard base sa class ng
ayun ung standard shoes.
Where there different training they provide?
Current Employee Former Employee
Merong training na pinoprovide kadalas kapag bagong Meron training sa mga regular at bagong
empleyado ka. Kapag naman merong panibagong style o tahi na
employees.
gagawin nag kakaron ng trial run doon merong staff na nag
tuturo then mag kakaroon ng trial run mga 8 pairs bago simulan
ang pag gawa kapag may bagong gaggawin sa line namin nag
kakaroon ng trial run bago mag mass production

How Datian Subic Shoe Inc., sustain their quality product?

Current Employee
Bawat tinatahi merong markings, meron din sample shoes
na binibigay tapos ichececk ng qc pinipili nila o chineck
kung okay ba yung mga tahing ginawa kung hindi
magiging NG or not good tapos yung mga napiling 100
percent good ay ipapasa na sa outputer then pipirmahan
or kailangan maaproved bago ibigay sa assembly
Former Employee
Nag po-provide sila ng training at yung raw
materials ay magaganda ang quality at may tao na
nag che-check para malamang kung approves ba
yung gawa.
Where did Datian Subic Shoe Inc., get their raw material?
Current Employee Former Employee

Nakukuha nila yung mga raw material nila sa ibang Nakukuha ang raw materials sa Hong Kong at
bansa sa Hong Kong Taiwan tsaka China China

Where did Datian Subic Shoe Inc., export their finish products?

Current Employee Former Employee

Pinapadal yung mga gawang sapatos sa ibang bansa sa Ine-export sa ibang bansa sa United States
U.S at Canada ayun yung mga customer.
5S IMPLEMENTATION
SORT (seiri)
As stated, both former and current employee were asked if there is a
sorting system in their workplace; the past employee said that materials that go
to their station were already sorted, and they sort those again after they are done
doing their job before delivering them to the next station. In contrast, the current
employee answered that they only have the essential things needed in their
workplace and remove unnecessary items in the workplace. The current
employee also said in the interview that after stitching, the Quality control
manager sorted the stitched fabric 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 (seiton)
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 (seiso)
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 (seiketsu)
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 (shitsuke)
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.
CONCLUSION
 In conclusion, Datian Subic Shoe Inc. shows a performance that
improves through the years of their operation and can adapt to a fast-
changing future. The case study has shown that the past employee's
experience, insight, and opinion are similar and different in some areas
from the present employee's experience, insight, and opinion and the result
favors Datian in some parts and shows parts that need to improve . This
only proves that Datian could move forward and compete with other
company. And maintain their good relationships with their supplier and
buyer channels. It is therefore recommended that Datian continuously
provide training like Six Sigma or lean training to managers to improve
operational efficiency. And constantly make collaborations or partnerships
with other more companies or suppliers to have a safety net that can help
them if problems occur in their supply chain.
THANK YOU
PRESENTED BY
GLEN ANTHONY ALTAS
JENNY ELARDO
ARJENLYN TACLUYAN