China's leather goods manufacturing needs to be transformed

2022-10-28 14:13

China's leather goods manufacturing needs to be transformed

In recent years, every leather goods factory has been under the same pressure of labour costs. The careful owner of leather goods factory B has been paying close attention in recent years to the flow of workers carrying out production on the shop floor, and he has found that improvements in the profitability of each product are immediately apparent when a more rational adjustment is made to the human resource structure.

As a member of a labour-intensive industry, most of the processes in leather goods production are done by hand. As labour costs climb, overall, the era when Chinese leather goods manufacturing relied on “low labour costs” to gain revenue is gone.

The advantages of industrial resources and labour intensity that China's leather goods industry has relied on will also change. The leather goods factories in China have reached a stage where they need to be managed for efficiency. The previous rough and tumble business model cannot support the leather goods factories to go on, and the change to a lean production model has become one of the effective ways to solve the problem.

An industry insider believes that lean production is not a simple production method, but more of a philosophy and culture of pursuing excellence, eliminating waste with details, streamlining operating procedures and optimising operational processes.

According to people with extensive experience in leather production management, lean production is a good production management model for an ideal situation. It is a good model for the luggage industry, and should be implemented step by step in response to the actual situation of the factory. For example, some factories, after getting an order, basically lead all the materials to the workshop at one time according to the order quantity, and usually, the finished product will not be available until two or three days before, which has the consequence that the factory has no output for the first two or three days, and the production efficiency cannot be achieved. The materials, cut pieces and semi-finished products in the workshop are piled up everywhere, the production site is disorganised, the material loss is difficult to control, and the loss is magnified when ordering materials in order to ship, resulting in unnecessary waste. The process breakdown and arrangement of abnormalities are not adjusted in a timely manner, resulting in the accumulation of semi-finished products, waiting for later processes, and process crossover. By optimising production procedures, factories can not only reduce waste, but also greatly improve the productivity of workers. In addition to researching ways to optimise human resources to a greater extent, the owner of B leather goods factory is also looking at ways to replace manual labour. In fact, it is possible to automate some of the processes in leather goods production, but the initial investment is large and not suitable for all factories.

The industry believes that if the brand value of local leather goods is improved, the leather goods creation factories in the downstream will get higher profits, which will be a great boost to the development of the whole leather goods industry.

Yuantai Leather