NEW BALANCE LEAN ASSESSMENT 06/2021

21. Order Management

SCORING CRITERIA
4 - Level 3 plus Performance To Plan is continually improved (#plan adjustment reduced). Planning ERP or APS/MES platform fully applied
3 - Level 2 plus External capacity analysis (subcon) is implemented. Planning IT base system applied
2 - Level 1 plus production schedule is in place base on CRD, XFD. External capacity analysis (subcon).
1 - Order management systematic approach implemented to generate the master plan base on RCCP and received order. No production schedule in place
0 - No order management systematic approach
GUIDELINES
+ Minimum Participations:
FTY - LEAN Sr Manger; Order management Sr Manager; Order Mnagement leader
NB - LEAN; Operation Manager; Ordermanagement Manager/lead in the factory
+ Location: Meeting room
+ Order management systematic approach (internal capacity analysis (upper/bottom), fill rate/Pull forward strategy, PQ/PR consideration, model mix, line allocation, reaction plan for any
abnormality)
+ The preparation of production get ready since the Forecast received. It related not only to the inline capacity, but including the critical machine calculation, tooling, outline process capability

+ All those comprehensive analysis should be reviewed with Cross Functional Dept such as: Production, Lean, material Warehouse/Purchasing, offline process (subcontract), Technical/Production
Engineer as preliminary alert regarding to the critical issue related to the order. PPIC should be leading on this review meeting.
Average Rating C2B SF Offline
3.5 N/A N/A N/A
COMMENTS SUGGESTIONS
+ Flow chart order management system, how to allocate the order to the
production lines, IE data base for reference to plan capacity. Showed the
+ Performance to plan
constraints of the subcons/offline/mold capacity.
+ Fixed sharing volume to SA2
+ Timeline of OM from RCCP until Prod&Ship: RCCP - Ramp-up - Order
+ HF & Nosew standard calculation sheet
release - XFD cfm - Shipping (about 5 months)
+ Formula for the Authorized/committed capacity
+ Subcon capacity discussion at ramp-up plan to make decision (inhouse
+ Logic to calculate the capacity
vs subcons)
+ BTS% for the uppers from SA2
+ Recieve the order every 2 weeks
+ Capacity calculation in offlines (excel format)
+ Man power controling align with LEAN format
+ Intergrated SA2 plan in the system to track

Last Score Self Score NEW UPDATE

3.5 3.5
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Order Management at SA 2020

Key activities by stage

1 RCCP 3 Order release 5 Prod & Ship

2 Ramp-up plan for 4 XFD confirm

strategic launch
1m 1.5m 0.2m 2.5m
5 month

1. RCCP 2. Ramp-up 3. Order release 5. Prod & Ship

a. Line capacity analysis a. Line planning for strategic

b. CMEVA capacity analysis
c. Key sub-capacity analysis (ex.
No-sew)
a. Upper material schedule a. Upper and sole matching
launch model
b. Sole material schedule b. Sole production progress check
b. CMEVA capacity analysis
c. Bottom tooling capacity c. Daily production progress check
c. Key outsourcing process
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Order Management at SA 2020

RCCP - Line Capacity Analysis/SA/SA2.
• First 06 months of 2019 forecast: 135% for SA in Q2 (sharing to SA2)
• First half 2020 forecast: 74% in Q2, 59% in Q3: SA/SA2 consolidate to SA.
• Second half 2020 forecast: Demand is getting strong back, re-operate SA2 from November 2020.

• SA2 Authorized capacity increase

• SA2 production category improvement – Performance running from Q2,2021
600,000K 600,000K

480,000K456,000K 480,000K480,000K
440,000K
396,000K400,000K 2021 SA2 Authorized capacity

288,000K 300,000K
Overall SA2 capacity growth is more than 3 times
144,000K Closed factory
2020 SA2 Authorized capacity
136,400K124,000K124,000K155,000K
due to COVID19 low demand
100,440K111,600K124,000K 120,000K120,000K

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Order Management at SA 2020

CMEVA capacity analysis
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Order Management at SA 2020

Key sub-capacity analysis – MW880v11 Lihong China

Production
Lead Time
NO MODEL SUPPLIER Country MATERIAL DESC Shoe Component REMARK
(Not including
Transportation)
1 SINCETECH China D1525-05 21 VAMP (MAN)
2 SINCETECH China D180-22 21 VAMP (WOMAN)
3 SINCETECH China D673-03 21 TONGUE MESH SPORT PACK

• S221 Ramp planning is on going 4

5
SANFANG
LONG JOHN
Vietnam
Viet Nam
VS705-NS P000WKD
LJ-B1495B-P
21
18
TONGUE LOGO
SADDLE
09 COLORS
Men SK2 = 258K

860V12, FCPRV3, ROAVV2, KRVLV3, U574 6 SANFANG Vietnam VS705-NS P000WKD 21 TONGUE LOGO
7 PAIHO Viet Nam IK208, 6MM 30 SHOES LACE
8 MOGAE Korea MG3728 NIXIALON 2 TONE 28 VAMP/TONGUE MESH
1. Collaboration with T2&Subcons 9 BAIKSAN VIETNAM 0.6MM AQUA SUEDE 21 SADDLE LIFESTYLE PACK
10 PRIME ASIA Vietnam 1.2-1.4MM VEGTAN 35 TONGUE LOGO/HEEL LOGO 08 COLORS
√ Share ramp up plan 11 PAIHO Vietnam RTOSQ44 8.0MM 21 SHOE LACES (Man)
√ Capacity preparation 12 M_WROAVv2 PAIHO Vietnam WTL671A,6mm 30 SHOE LACES (Woman)
13 PAIHONG Vietnam PH M038TQQ 30 (W/O FC) VAMP
√ Regular tracking 14 SINCETECH China WDG 01164 30 FOXING
RESIN
15 PAIHONG Vietnam PH M0260000 30 (W/O FC) TONGUE MESH
02 COLORSS
16 J-TEX China JT-KN059T 30 COLLAR LINING
2. LLT material preposition after checking with NBUS 17 PAIHO VIETNAM TTL279A-2,6mm 21 SHOES LACE
18 HUYNDAE Korea SOLO SUEDE,1.0mm 21 TONGUE LOGO/HEEL LOGO
19 SINCETECH CHINA A860-11 21 FOXING/ COLLAR LINING
20 DAERIM Korea DRT-2068 17 TONGUE LINING
21 PAIHO Viet Nam IK208, 6MM 30 Shoe lace ALL PACKS
22 PAIHO Viet Nam TSB901-7,2mm 21 EYEROW CORD
23 ZING YOUNG TAIWAN Tango-P,1.0mm 18 TOP EYELET/ N LOGO

Material preposition
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Order Management at SA 2020

Off Line - In-House – Outsourcing capacity Analysis

880 v11 - 3D Printing: Men HW – Women: Giai Hop

 NEW BALANCE LEAN ASSESSMENT 06/2021

Order Management at SA 2020

Capacity open before releasing week
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Order Management at SA 2020

Flow chart from Order release to Production

3 Order release 5 Prod & Ship

1. Order update 2. Order confirm 3. Production

a. ERP Calculates material consumption auto-

matically a. Regular check process to prevent and re-
sponse to delivery problems
a. Download order in XPC
b. Material team orders according to production
plan -Upper and sole matching
b. Automatic upload in ERP
c. Inform Business team ETAs - Sole production progress check

d. Business team confirms the latest parts ETA - Daily production progress check
of each PO
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Order Management at SA 2020

1. Daily production - TMU 2150 2. Production Progress by PO TMU 3235)
BRAND
GROUP ORIGINAL SHIP ASEM STT STF PACK
PO NUM Width TYPE REQUEST Destination VENDOR
SUM CXFD MODE Balance Balance Balance Balance
XFD
7059154 MW880 V10 2E FT 2020-04-13 2020-06-29 NB-Canada Sea HONGWON
7059154 MW880 V10 4E FT 2020-04-13 2020-06-29 NB-Canada Sea HONGWON
7059154 MW880 V10 D FT 2020-04-13 2020-06-29 NB-Canada Sea HONGWON
7077408 MW880 V10 D FT 2020-04-13 2020-07-17 NB-Nets Sea HONGWON
7061284 MW880 V10 2E FT 2020-04-27 2020-06-29 NB-USA Sea HONGWON
7061284 MW880 V10 4E FT 2020-04-27 2020-06-29 NB-USA Sea HONGWON
7061284 MW880 V10 D FT 2020-04-27 2020-06-29 NB-USA Sea HONGWON
7061295 MW880 V10 2E FT 2020-04-17 2020-06-29 NB-USA Sea HONGWON
7061295 MW880 V10 4E FT 2020-04-17 2020-06-29 NB-USA Sea HONGWON
7061295 MW880 V10 D FT 2020-04-17 2020-06-29 NB-USA Sea HONGWON
7066104 MW880 V10 D FT 2020-06-29 2020-06-29 NB-Nets Sea HONGWON
7063440 MW880 V10 D FT 2020-06-29 2020-06-29 NB-Nets Sea HONGWON
7065103 MW880 V10 D FT 2020-06-29 2020-06-29 NB-Austral Sea HONGWON
7066104 MW880 V10 2E FT 2020-06-29 2020-06-29 NB-Nets Sea HONGWON
7076773 MW880 V10 D FT 2020-04-13 2020-06-29 NB-Austral Sea HONGWON
7061291 MW880 V10 D FT 2020-05-11 2020-07-08 NB-USA Sea HONGWON
7061422 MW880 V10 2E FT 2020-04-27 2020-06-29 NB-USA Sea HONGWON
7061422 MW880 V10 D FT 2020-04-27 2020-06-29 NB-USA Sea HONGWON
7066106 MW880 V10 D FT 2020-06-29 2020-06-29 NB-Nets Sea HONGWON
7065457 MW880 V10 D FT 2020-06-08 2020-06-29 NB-France Sea HONGWON
7055941 MW880 V10 B FT 2020-05-25 2020-05-25 NB-France Sea HONGWON

- December Daily production plan is 30K (Might be adjusted in the last 02 - PO information in details
weeks) - Production progress updated
- This is to check daily if we are on target or not - MW880V10/MW860 V11 is urgent – early shipment request to NB
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Order Management at SA 2020

3. Upper & Sole inventory 4. Sole schedule simulation
(TMU 3432) (TMU 3171)
PLANT LINE GROUP SUM STYLE PO NUM UPPER SOLE SET %
GROUP SUM PART VSP MOLD CODE GEN ORD # PO NUM STYLE NO CUT DATE CXFD Cut Of Date TOTAL
P1 P101 MWL574 V2 ML574D-SSO 7076818 432 306 294 71%
P1 P101 MWL574 V2 ML574D-SSL 7076821 504 402 402 80% 570 NBXCNEW(XC7V1) - PL ALL MOLD_QTY 1 0 18
P1 P101 MWL574 V2 WL574B-BCM 7076832 42 42 42 100% 570 NBXCNEW(XC7V1) - PL ALL CAVITY 2 0
P1 P101 MWVYGO MVYGOE-2BG 7058789 222 222 222 100% 45
P1 P101 MWVYGO MVYGOE-4BG 7058789 114 114 114 100% UXCS7 V3 570 NBXCNEW(XC7V1) - PL M 253287 7077023 UXCS7D-GS3 2020-06-24 2020-07-10 12
P1 P101 MWVYGO MVYGOE-2BW 7058799 222 210 210 95%
MWXCR7 V3 570 NBXCNEW(XC7V1) - PL M 253934 7078842 MXCR7D-BG3 2020-07-10 2020-07-31 816
P1 P101 MWVYGO WVYGOD-0BG 7058800 240 240 240 100%
P1 P101 MWVYGO WVYGOD-0BW 7058810 252 192 168 76% UXCS7 V3 570 NBXCNEW(XC7V1) - PL M 253873 7078843 UXCS7D-GS3 2020-07-15 2020-07-31 606
P1 P102 IAARI V2 IAARIW-BY2 7077026 1074 1014 1014 94% MWXCR7 V3 570 NBXCNEW(XC7V1) - PL _ _ _ _ _ 816
P1 P102 MWL574 V2 WL574B-CLG 7065408 12 12 12 100%
UXCS7 V3 570 NBXCNEW(XC7V1) - PL _ _ _ _ _ 618
P1 P102 GC/PC574 GC574W-ANG 7076947 78 78 78 100%
P1 P102 IAARI V2 IAARIW-PM2 7076990 624 624 624 100%
P1 P102 IAARI V2 IAARIW-BP2 7077011 258 228 228 88% UXCS7 V3 570 NBXCNEW(XC7V1) - PL M 253287 7077023 UXCS7D-GS3 2020-06-24 2020-07-10 12
P1 P102 IAARI V2 IAARIM-PM2 7076990 12 12 12 100%
MWXCR7 V3 570 NBXCNEW(XC7V1) - PL M 253934 7078842 MXCR7D-BG3 2020-07-10 2020-07-31 816
P1 P102 MWL574 V2 WL574B-AND 7030465 150 150 150 100%
UXCS7 V3 570 NBXCNEW(XC7V1) - PL M 253873 7078843 UXCS7D-GS3 2020-07-15 2020-07-31 606
P1 P102 MWL574 V2 ML574D-GRE 7055611 1008 780 780 77%
P1 P102 IC574 IC574W-SA1 7076919 12 12 12 100% MWXCR7 V3 570 NBXCNEW(XC7V1) - PL _ _ _ _ _ 816
P1 P107 MW880 V10 M8802E-A10 7054120 414 402 402 97% UXCS7 V3 570 NBXCNEW(XC7V1) - PL _ _ _ _ _ 618
P1 P109 MW860 V11 W8601D-A11 7052209 36 36 36 100%
P1 P109 MW860 V11 W8602E-A11 7052209 246 246 246 100%
P1 P109 MW880 V10 M8804E-T10 7058884 438 420 420 96% UXCS7 V3 570 NBXCNEW(XC7V1) - PL M 253287 7077023 UXCS7D-GS3 2020-06-24 2020-07-10 12

P1 P109 MW1500 V6 M1500D-GW6 7027274 126 126 126 100% MWXCR7 V3 570 NBXCNEW(XC7V1) - PL M 253934 7078842 MXCR7D-BG3 2020-07-10 2020-07-31 816
P1 P109 MW1500 V6 M15002-GW6 7027274 30 30 30 100%
UXCS7 V3 570 NBXCNEW(XC7V1) - PL M 253873 7078843 UXCS7D-GS3 2020-07-15 2020-07-31 606
P1 P113 MWTHIER V5 MTHIE2-BX5 7077117 444 444 444 100%
P1 P115 MW880 V10 W8801B-D10 7054330 120 120 120 100% MWXCR7 V3 570 NBXCNEW(XC7V1) - PL _ _ _ _ _ 816
P1 P115 MW880 V10 M8802E-E10 7061290 834 834 834 100% UXCS7 V3 570 NBXCNEW(XC7V1) - PL _ _ _ _ _ 618

- Upper and sole inventory by model and PO

- Function of alert for PO to be completed later than SA plan
- Upper and sole matching quantity and percentage
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Order Management at SA 2020

5. Upper from An Giang – production plan 6. Upper from An Giang – Daily input tracking

NB UPPER 21-Nov 23-Nov 24-Nov 25-Nov 26-Nov 27-Nov 28-Nov

An Giang STT plan 14,000 14,000 14,000 14,000 14,000 14,000 14,000
Actual output 14,118 14,169 14,123 14,174 14,129
Different 118 169 123 174 129

- Upper completion plan by PO: 95% fulfillment now (50% before)

 NEW BALANCE LEAN ASSESSMENT 06/2021

Order Management at SA 2020

Delivery KPI