Footwear manufacturing has evolved into a rather uncomplicated process, and the technology is well
understood. At present, no company has proprietary know-how that translates into manufacturing
advantage. The production process consists of cutting fabrics and materials to conform to size and design
patterns, stitching the various pieces of the shoe top together and adding the eyelets, molding and gluing
the shoe soles, binding the shoe top to the sole, and inserting the innersoles and laces. Tasks are divided
among production workers in such a manner that it is easy to measure individual worker output and thus
create incentive compensation tied to piecework. Labor productivity is determined more by worker
dexterity and effort than by machine speed; this is why piecework incentives can induce greater output
per worker. On the other hand, there is ample room for worker error; unless workers pay careful attention
to detail, the quality of workmanship suffers. Training production workers in the use of best practice
procedures at each step of the manufacturing process has recently become important to
minimizing the reject rates on pairs produced.
Footwear producers carry no inventories of standard and superior materials because suppliers have the
capability to make daily deliveries. Plant managers customarily provide suppliers with production
schedules one week in advance to enable them to deliver the materials needed for each day’s work shift.