Application of Key Performance Indicators in a Leather and Shoe Industry for Leanness Analysis Using Multicriteria Approach: A Pre Implementation Study

Abstract

The purpose of this paper is to analyze leanness of shoe assembly lines using key performance indicators based on Multicriteria Decision Analysis (MCDA) before implementing Lean Manufacturing techniques. For this study, the leather and shoe manufacturing industry has been chosen. The leather industry is one of the most rapidly growing sectors in the Pondicherry union territory. The KPI includes Idle Manufacturing Cycle Time (MCT), Part per Labor, rework/rejection, and Amount of scrap are treated as criteria for pre leanness analysis of the four process lines. The weight values are assigned to KPIs by decision makers and the analysis are realized by the application of two different decision models, namely Simple Additive Weighting (SAW) and COPRAS methods. The results show that Process line 2 (L2) has 4.6% leaner than L3, 8.3% leaner than L1 and 11.2% leaner than L4.