Implementation of a Lean Manufacturing plant to reduce cost Overruns in the Footwear company Rosalia Full Moda S.A.

Abstract

The present work has the objective of determining by how much cost overruns are reduced through the implementation of a Lean Manufacturing plan in the footwear company Rosalía Full Moda S.A. This company is dedicated to the manufacture of women's footwear and presents several problems related to production, including 10% of defective product, musculoskeletal diseases in workers, waste of square meters of leather, reprocessed products, poor distribution of the clothing workshop and non-fulfillment of orders. The total monetized loss from these six root causes amounts to S/. 19,748.30. To address these problems, the following tools were chosen: OWAS (Observational Walk-through Analysis System), TQM (Total Quality Management), SLP (Systematic Layout Planning) and SRM (Supplier Relationship Management). In addition, specific software and simulators were included to support the implementation of these tools, such as Promodel, Ergoniza, Tecnomatix Plant Simulation and Stella. The results of the implementation of the Lean Manufacturing plan showed significant benefits, reflected in economic indicators such as the Net Present Value (NPV) of S/ 409,927.30 and an Internal Rate of Return (IRR) of 688%. These indicators highlight the viability and profitability of the project, showing a considerable reduction in cost overruns and an improvement in the company's operating efficiency.