facility layout of nike shoes
DESCRIPTION
layout of NikeTRANSCRIPT
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Introduction
Nike, Inc. is an American multinational corporation thatis engaged in the design, development and worldwide
marketing and selling of footwear, apparel, equipment,
accessories and services
The company takes its name from Nike, the Greek
goddess of victory
It is the world's leading supplier of athletic shoes and
apparel and a major manufacturer of sports equipment The brand alone is valued at $10.7 Billion making it the
most valuable brand among sports businesses
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Products Their first products were track running shoes
They currently also make shoes, jerseys, shorts,
baselayers, etc. for a wide range of sports, including
track and field, baseball, ice hockey, tennis,association football (soccer), lacrosse, basketball, and
cricket
Nike recently teamed up with Apple Inc. to produce the
Nike+ product that monitors a runner's performance viaa radio device in the shoe that links to the iPod nano
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PORTFOLIO OF BRANDS
Converse Inc.
Hurley International
Jordan Brand
Nike Golf
Sold Starterin 2007 and Bauer Hockey in 2008
The company sold Umbroin 2012 and Cole Haan in
2013
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The Making of the Shoes1) The Design Process
-establish target price, target audience and product
features
-produce "tech package" to send to subcontractors in
factories in Europe and Asia
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2) Supplies
A. Raw Materials
-fabric
-plastic-rubber
-foams
-metallics
B. Textiles and Leathers
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3) Cutting
In this department, the top part of the shoe or the "upper" is made
4) Sewing (of upper section above the sole)
In this process, the upper portion is sewed into a design form
5) Stock fitting (prepares the sole)
The sole of the shoes are prepared in this process.
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SUPPLIES :
RAW MATERIAL
TEXTILES & LEATHERS
CUTTING SEWING
STOCK FITTING
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6) Lasting (prepares attachment of upper to the
sole)
The upper portion of the shoe prepared is attached to the sole ofthe shoe
7) Heeling (attaches and shapes heel bottom to
final form)
After the upper portion is attached to the sole of the shoe, the heel
is attached to the sole and is given its final form. This process is
termed as heeling
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SUPPLIES :
RAW MATERIAL
TEXTILES & LEATHERS
CUTTING SEWING
STOCK FITTINGLASTING
HEELING
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8)FinishingMachines smooth out the excess material hanging over the insole
by tucking it back in underneath the shoe
9) Treeing (attaches accessories)
The shoe laces and accessories are put in place for the finalconstruction of the shoe
10) Distribution & Trading CompaniesAfter the manufacturing process, the shoe is then shipped todistribution and trading companies where it is then distributed to
retailers and sold to consumers
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SUPPLIES :
RAW MATERIAL
TEXTILES & LEATHERS
CUTTING SEWING
STOCK FITTINGLASTING
HEELING
FINISHING TREEING
DISTRIBUTION &
TRADING COMPANIES
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Price BreakdownUsing a typical Nike Shoe from production to retail:
-Production Labor $2.75
-Materials $9.00
-Rent, equipment $3.00
-Supplier's operating profit $1.75
-Duties $3.00
-Shipping $0.50
-Cost to Nike $20.00
-Research and Development $0.25
-Promotion and Advertising $4.00
-Sales, Distribution Administration $5.00
-Nike's operating profit $6.25
-Cost to Retailer $35.50
-Retailer's Rent $9.00
-Personnel $9.50
-Other $7.00
-Retailer's Operating Profit $9.00
-Cost to Consumer $70.00
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Advantages of product layout Mechanization of material handling system is possible in order to
reduce the cost of same by considerable amount.
This layout requires less floor area per unit of production
Manufacturing time is smaller which reduces the investment in work-in-
process inventories.
Delivery commitments to customers are more reliable and easy to
conform.
The work is simplified by breaking into elemental tasks that may be
mechanized wherever possible. It leads to the reduction of labor cost.
Same types of jobs lead to the training and specialization among the
workers. Quality control is easy to exercise and more effective.
Materials requirement planning may be done more easily and
accurately.
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Conclusion Nike does not directly own any factories; they hire factory
owners to produce the shoes using the materials and designsprovided by Nike.
The largest producers of Nike shoes are the factories located
in China, Vietnam and Indonesia.
Malaysia, Pakistan, India and Thailand are other majorproducers
The Nike Company focuses almost exclusively on designing
the shoes and, after the manufacturing, advertising and
marketing them in the most appealing way possible.
Though their facilities comply with local labour standards,
generally, they have not met U.S. standards.
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