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		<title>Adidas AG Strikes Again</title>
		<link>http://shoecosting.wordpress.com/2008/06/26/adidas-ag-strikes-again/</link>
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		<pubDate>Thu, 26 Jun 2008 03:48:25 +0000</pubDate>
		<dc:creator>Dewis</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[adidas]]></category>
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		<description><![CDATA[NICOLE URBANOWICZ NEW YORK &#8211; Adidas AG is prepping to battle Wal-Mart Stores Inc. in the same Portland, Ore., court that last month awarded it $305 million in a trademark infringement suit against Payless ShoeSource.&#8221;Obviously, they won a huge award with the court, so maybe they think they can catch lightening twice,&#8221; said Matt Powell, [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=shoecosting.wordpress.com&amp;blog=4068357&amp;post=14&amp;subd=shoecosting&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>NICOLE URBANOWICZ</p>
<p>NEW YORK &#8211; Adidas AG is prepping to battle Wal-Mart Stores Inc. in the same Portland, Ore., court that last month awarded it $305 million in a trademark infringement suit against Payless ShoeSource.&#8221;Obviously, they won a huge award with the court, so maybe they think they can catch lightening twice,&#8221; said Matt Powell, an analyst at SportsOneSource.</p>
<p>Susquehanna Financial Group analyst John Shanley agreed. &#8220;There is a better-than-even chance that Adidas will also win its suit against Wal-Mart, just as it had against Payless,&#8221; he said. &#8220;The venue of the suit, in Portland, gives Adidas a decided advantage. [But I'm] not sure if the size of the potential award will approach what the jury awarded Adidas from the Payless litigation.&#8221;</p>
<p><span id="more-14"></span><!--more-->Attorneys for Adidas said last Wednesday there will be a mid-July hearing on summary judgement motions &#8211; used in civil cases to promptly dispose of a case without a trial &#8211; in the suit against Wal-Mart, which was initially filed in August 2005 over the use of two- and four-striped designs on its sneakers. If there is not a summary judgment award, or another type of pre-trial dismissal later this summer, the suit would likely go to trial in late October.</p>
<p>Adidas&#8217; attorney, Charles Henn, would not disclose the amount of damages Adidas stands to gain if it wins the case, although Harley Lewin, a trademark attorney at Greenberg Traurig LLP, said that Adidas could garner more in damages from Wal-Mart than it did with Payless last month, based on footwear volume.</p>
<p>&#8220;I don&#8217;t know what the volume at issue is in Wal-Mart&#8217;s case, but I&#8217;m imagining it&#8217;s fairly significant,&#8221; said Lewin. (Lewin is doing post-trial defense work on behalf of Payless in its case with Adidas.)</p>
<p>Wal-Mart did not return calls seeking comment by press time, but according to court documents filed over the past month, it has yet to disclose the exact volume amounts of its stripe-design footwear.</p>
<p>Wal-Mart reiterated in documents filed in May that it agreed in 2002 not to use a &#8220;confusingly similar imitation&#8221; of the Adidas three-stripe mark, but noted that agreement &#8220;cannot be read to forbid&#8221; Wal-Mart&#8217;s sale of four-striped footwear.</p>
<p>According to Adidas, since 1995 it has pursued more than 120 separate patent infringement matters involving footwear, filed more than 35 infringement suits over its three-stripe design and entered into more than 45 agreements with footwear companies over use of the stripe design. Adidas has now sued Wal-Mart three times &#8211; and settlements have been reached in cases filed in 1995 and 2002.</p>
<p>www.footwearnews.com</p>
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		<title>Economy Slows Down as Exec Comp Moves Up</title>
		<link>http://shoecosting.wordpress.com/2008/06/26/economy-slows-down-as-exec-comp-moves-up/</link>
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		<pubDate>Thu, 26 Jun 2008 03:41:05 +0000</pubDate>
		<dc:creator>Dewis</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Footwear News]]></category>
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		<description><![CDATA[MEREDITH DERBY NEW YORK &#8211; Even as the economy began to show signs of erosion last year, footwear executives&#8217; compensation packages were on the rise.Buoyed, once again, by stock and option awards, as well as by non-equity incentive plan compensation, packages in 2007 for the highest-paid executives at 27 footwear retailers and vendors tracked by [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=shoecosting.wordpress.com&amp;blog=4068357&amp;post=12&amp;subd=shoecosting&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>MEREDITH DERBY</p>
<p>NEW YORK &#8211; Even as the economy began to show signs of erosion last year, footwear executives&#8217; compensation packages were on the rise.Buoyed, once again, by stock and option awards, as well as by non-equity incentive plan compensation, packages in 2007 for the highest-paid executives at 27 footwear retailers and vendors tracked by Footwear News averaged $3.1 million, up 14 percent from $2.8 million the prior year.</p>
<p>Stock and option awards alone averaged nearly $1.1 million, with Matthew Rubel of Collective Brands Inc. raking in nearly $4.7 million, the highest among the firms analyzed. In contrast, bonuses averaged just $104,670. As has been a general trend over the past few years, bonuses were often replaced with non-equity incentive plan compensation, referring to rewards given to executives when certain financial targets are met frequently over several years.</p>
<p><span id="more-12"></span>Executives at retail chains, meanwhile, generally saw base salaries increase more often than at vendors, though that certainly wasn&#8217;t the rule. Ronald Snyder of Crocs Inc. saw his salary jump to $800,000 last year from $500,000, but he received no bonus in 2007, versus a $500,000 bonus in 2006. In all, Snyder&#8217;s total pay package jumped 76 percent year over year.</p>
<p>Despite the average increase in packages over the last year, one compensation expert wasn&#8217;t surprised at the big checks. &#8220;The shoe business pays more than [the] women&#8217;s apparel [industry], more than men&#8217;s apparel, more than home furnishings,&#8221; said Elaine Hughes of executive search firm E.A. Hughes &amp; Co. &#8220;I don&#8217;t know why. I was shocked &#8211; I discovered it about six years ago.&#8221;</p>
<p>But another expert said it&#8217;s difficult to compare how specific companies reward their executives. &#8220;There are so many idiosyncrasies&#8221; between companies, said Kirk Palmer of executive search firm Kirk Palmer &amp; Associates. &#8220;You don&#8217;t know what goes on behind the scenes &#8211; who has a contract coming up, what they might want to do, whether [the executive] had another [employment] offer and the company had to buy them back.&#8221;</p>
<p>Though their base salaries tended to creep up, footwear retailers still took a bigger hit than vendors in terms of total compensation compared with the prior year. For instance, at Nordstrom Inc., President Blake Nordstrom&#8217;s pay package fell 59 percent in 2007 &#8211; the biggest drop among retailers tracked by FN &#8211; as he earned $13,000 less in salary, and his stock and option awards fell by nearly two-thirds.</p>
<p>The dollar value of Nordstrom&#8217;s stock awards fell mainly because his company&#8217;s share price declined 29 percent during the firm&#8217;s fiscal year, which ended Feb. 2, 2008. Nordstrom, who received a merchandise discount of $35,802, also received 77 percent less in non-equity incentive plan compensation. Some of this can be blamed on the softening of the footwear market last year &#8211; the retailer&#8217;s earnings in 2007 rose just 6 percent to $715 million, while revenues increased 3 percent to $8.83 billion.</p>
<p>&#8220;The retailer salary structure is usually far more associated with a publicly traded company. So when you&#8217;re a publicly traded company, you have to stick with certain guidelines in terms of what you would refer to as salary grades and keeping within those grades,&#8221; explained Hughes. &#8220;In the vendor community, [executives] are always paid more. It&#8217;s discretion. It&#8217;s their need to keep and retain talent.&#8221;</p>
<p>Despite a down year, when net profits at his eponymous firm fell 74 percent to $7.1 million, Kenneth Cole&#8217;s base salary remained at $1 million, and his stock and option awards jumped 73 percent to $2.7 million. However, Cole&#8217;s non-equity incentive plan pay fell 33 percent to $667,667. Still, Cole had the second-highest percentage jump in total compensation among brands tracked by FN.</p>
<p>While not specifically singling out Cole, Palmer said, &#8220;Smaller companies can get away with more. They&#8217;ll say, ‘We love our founder, our CEO.&#8217; If you&#8217;re a larger, more in-the-spotlight company, it&#8217;s more difficult to do that.&#8221;</p>
<p>Two executives who left their respective firms last year saw a positive byproduct in their paychecks. Former president and CEO of Jones Apparel Group, Peter Boneparth, who resigned in July 2007, had the highest increase in pay among vendors last year, thanks to his departure from the company. As part of his severance agreement, Boneparth took home more than $16.7 million, made up of severance and the vesting of his outstanding restricted stock awards. Stock and option awards alone totaled $4.3 million.</p>
<p>And due to her resignation in September, the total compensation for Michele Bergerac of Bakers Footwear Group Inc. surpassed that of Chairman and CEO Peter Edison last year. Bergerac&#8217;s &#8220;other compensation&#8221; included severance of $350,000.</p>
<p>It&#8217;s clear that footwear executives in 2007 also saw their pay packages inflated by equity awards. In 2006, the Securities and Exchange Commission mandated that public companies enhance the transparency of pay packages using a &#8220;plain language&#8221; format. Within that, companies must now release stock and option awards in a dollar amount.</p>
<p>Hughes noted that stock and option awards are &#8220;very important&#8221; parts of executive compensation packages because they give employees the opportunity to invest in their firms. Once invested, the executives have incentive to help grow the company. &#8220;If [the executives] make the effort to make it a better firm, that&#8217;s going to show in the stock.&#8221; Of course, a higher stock price means executives can periodically cash out their shares for a bigger profit.</p>
<p>Pacific Sunwear of California Inc.&#8217;s Sally Frame Kasaks had the highest compensation percentage gain among footwear retailers. Kasaks was appointed interim CEO of PacSun in October 2006 and added the chairman title in May 2007. Aside from a $1.2 million salary, Kasaks&#8217; $900,000 bonus included a $400,000 signing bonus and a $500,000 guaranteed minimum bonus.</p>
<p>At athletic retailer Foot Locker Inc., Matthew Serra had a significant decline in total compensation last year, due largely to not receiving any non-equity incentive plan compensation, compared with $1.6 million in 2006. The firm&#8217;s earnings last year fell almost fivefold to $51 million. However, Serra received more than $55,000 for a car allowance.</p>
<p>Perks were notable benefits awarded to footwear executives last year. At Timberland Co., Jeffrey Swartz, who with a $5.6 million package was the highest-paid executive among vendors last year, had &#8220;other compensation&#8221; that included about $290,000 worth of personal use of the company aircraft and $23,000 worth of use of company-owned automobiles.</p>
<p>Within the $3.5 million pay package for Brown Shoe Co.&#8217;s Ron Fromm was more than $400,000 in personal use of the company&#8217;s aircraft.</p>
<p>At Collective Brands, Rubel &#8211; who earned the biggest pay package among retailers, with $7.8 million &#8211; received several perks, including a company-paid driver (worth more than $34,000) and use of the company aircraft for personal travel (worth $129,000).</p>
<p>Footstar&#8217;s Jeffrey Shepard received in his &#8220;other compensation&#8221; $650,000 based on an April 2007 special $5 a share cash distribution. Shepard owned at that time 130,000 shares of Footstar&#8217;s restricted stock.</p>
<p>&#8220;There&#8217;s one common denominator with any of these packages,&#8221; said Hughes. &#8220;They are tailored to maintain and incentivize those employees that the company feels are going to add value to the bottom line and prevent competition regardless of a noncompete form.&#8221;</p>
<p>www.footwearnews.com</p>
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		<title>Shoe Pavilion Gets Nasdaq Warning</title>
		<link>http://shoecosting.wordpress.com/2008/06/26/shoe-pavilion-gets-nasdaq-warning/</link>
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		<pubDate>Thu, 26 Jun 2008 03:17:34 +0000</pubDate>
		<dc:creator>Dewis</dc:creator>
				<category><![CDATA[News]]></category>
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		<category><![CDATA[shoes]]></category>

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		<description><![CDATA[NICOLE URBANOWICZ NEW YORK &#8211; Shoe Pavilion Inc. received notice from Nasdaq that its stock has failed to meet the minimum bid price requirements for continued listing on the exchange and has until December to regain compliance.On Friday, the off-price footwear retailer said a June 19 letter from Nasdaq stated that if Shoe Pavilion doesn&#8217;t [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=shoecosting.wordpress.com&amp;blog=4068357&amp;post=11&amp;subd=shoecosting&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>NICOLE URBANOWICZ</p>
<p>NEW YORK &#8211; Shoe Pavilion Inc. received notice from Nasdaq that its stock has failed to meet the minimum bid price requirements for continued listing on the exchange and has until December to regain compliance.On Friday, the off-price footwear retailer said a June 19 letter from Nasdaq stated that if Shoe Pavilion doesn&#8217;t achieve a $1 minimum closing bid price by Dec. 16, Nasdaq plans to issue a written notice of delisting. If at any time before that date, the bid price of the company&#8217;s common stock closes at $1 a share or more for a minimum of 10 consecutive business days, the company will regain Nasdaq compliance. However, Nasdaq retains the right to require a $1-a-share minimum stock closing price for as many as 20 consecutive business days under certain circumstances.</p>
<p>If Shoe Pavilion does not meet the minimum bid price requirement and receives a delisting notice, the company may either appeal or apply to transfer its listing to the Nasdaq Capital Market. If it is ineligible to transfer, Shoe Pavilion&#8217;s securities will be delisted from the Nasdaq Stock Market &#8211; subject to its right to appeal the determination to a Nasdaq Listing Qualifications Panel.</p>
<p>Shares of Shoe Pavilion closed down 11 percent Monday at 47 cents.</p>
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		<title>Nike Earnings Surge Again</title>
		<link>http://shoecosting.wordpress.com/2008/06/26/nike-earnings-surge-again/</link>
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		<pubDate>Thu, 26 Jun 2008 03:12:02 +0000</pubDate>
		<dc:creator>Dewis</dc:creator>
				<category><![CDATA[News]]></category>
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		<description><![CDATA[By : MEGHAN CASS NEW YORK (June 26, 2008) &#8211; Nike, Inc. reported on Wednesday an increase in income and revenues for the fourth quarter and fiscal year 2008.Full-year income rose 26 percent to $1.9 million, up from $1.5 million in 2007. Earnings per diluted share spiked to $3.74, a 28 percent increase over last [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=shoecosting.wordpress.com&amp;blog=4068357&amp;post=10&amp;subd=shoecosting&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>By : MEGHAN CASS<br />
NEW YORK (June 26, 2008) &#8211; Nike, Inc. reported on Wednesday an increase in income and revenues for the fourth quarter and fiscal year 2008.Full-year income rose 26 percent to $1.9 million, up from $1.5 million in 2007. Earnings per diluted share spiked to $3.74, a 28 percent increase over last year&#8217;s $2.93. And revenues for the year increased to $18.6 billion, up 14 percent from last year&#8217;s $16.3 billion.</p>
<p>Fourth-quarter profits were $490.5 million, compared with $437.9 million in the year-ago period. Sales for the period were up 16 percent, reaching $5.12 billion. The company noted that a change in currency exchange rates accounted for a revenue increase of 5 percentage points for the full year, and 7 points for the fourth quarter.</p>
<p>&#8220;Nike turned in another strong performance in fiscal year 2008,&#8221; Nike President and CEO Mark Parker said in a statement. &#8220;The power and strength of the Nike brand, as well as the depth and diversity of the Nike portfolio produced solid sales growth across all geographies and key product platforms. By continuing to deliver compelling consumer experiences, backed by strong operational execution, we&#8217;re confident we can deliver long-term profitable growth and create value for our shareholders.&#8221;</p>
<p>Parker remained confident about the future. &#8220;Going forward, we are going to play to those strengths and continue to invest in product innovation, deep brand connections, improved retail presentation and operational effectiveness. Our focus is on working stronger, leaner and smarter through uncertain macroeconomic conditions to maximize our unique potential as a leader and innovator,&#8221; Parker continued. &#8220;As we complete fiscal 2008, we are better positioned than we ever have been.&#8221;</p>
<p><a href="http://www.footwearnews.com">http://www.footwearnews.com</a></p>
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		<title>QUALITY CONTROL GUIDANCE</title>
		<link>http://shoecosting.wordpress.com/2008/06/25/quality-control-guidance/</link>
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		<pubDate>Wed, 25 Jun 2008 14:52:51 +0000</pubDate>
		<dc:creator>Dewis</dc:creator>
				<category><![CDATA[Manufacture]]></category>
		<category><![CDATA[acsis]]></category>
		<category><![CDATA[adidas]]></category>
		<category><![CDATA[fila]]></category>
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		<category><![CDATA[quality]]></category>
		<category><![CDATA[shoes]]></category>

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		<description><![CDATA[QUALITY CONTROL GUIDANCE 1. UPPER MATERIALS &#8211; LEATHER Leather parts at vamp &#38; toe with loose-grain or finish &#8230; finish peeling Leather with &#8220;orange peel&#8221; finish &#8230; pipe &#8230; grainy Leather torn &#8230; cut &#8230; nicked Visual leather defects in vamp or toe cap area Distinct color deviations / discoloration Edges not dyed or dyed [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=shoecosting.wordpress.com&amp;blog=4068357&amp;post=8&amp;subd=shoecosting&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>QUALITY CONTROL GUIDANCE<br />
1. UPPER MATERIALS &#8211; LEATHER<br />
Leather parts at vamp &amp; toe with loose-grain or finish &#8230; finish peeling<br />
Leather with &#8220;orange peel&#8221; finish &#8230; pipe &#8230; grainy<br />
Leather torn &#8230; cut &#8230; nicked<br />
Visual leather defects in vamp or toe cap area<br />
Distinct color deviations / discoloration<br />
Edges not dyed or dyed with wrong color<br />
Long fibered (suede) leather<br />
Color crocking<br />
Leather cut in wrong stretch<br />
Leather under lays not skived correctly creating visible &#8220;x-raying&#8221;2. UPPER MATERIALS &#8211; SHYNTETIC / TEXTILE<br />
Distinct color deviations / discoloration<br />
Weave faults (i.e. clubs; surface not uniform; loose weave)<br />
Delamination<br />
Materials cut in wrong direction / stretch</p>
<p>3. SKIVING &amp; MARKING UPPER MATERIALS<br />
Skiving quality (reduction thickness / skive width) not to standard</p>
<p>4. STITCHING<br />
Incorrect needle type or size<br />
Stitching not locked<br />
Broken stitches<br />
Stitch length under 3 per 1 cm or over 5 per 1 cm<br />
Stitching not to standard over a distance of more than 2 cm<br />
Edge distance of more than 2.5 mm<br />
One stitch of the edge<br />
Loose thread tension on upper<br />
Tongue placed 3 mm or more off center<br />
3 stripe stitches more than 2 mm out of place, visible crocked</p>
<p><span id="more-8"></span>5. THREAD / THREAD ENDS<br />
Thread not according to material specification<br />
Thread ends in excess of 2 mm</p>
<p>6. LINING<br />
Heel (collar) lining poorly (too much / too little) or inconsistently turned (folded) over<br />
Lining cemented wrinkles causing pressure points / aesthetics<br />
Lining too short , does not reach under lasting board<br />
Lining damaged<br />
Wrong color or material used (not to specification)<br />
Open stitching or loose lining ends</p>
<p>7. MOLDED UPPER COMPONENTS / LOGO THREATMENTS<br />
Eyelet&#8217;s, hooks, triangles, rivets, lace locks, speed laces, ghillies missing or damaged (sharp edges) or not to material specification<br />
Plastic or metal parts, trims &#8230; damaged &#8230; incorrectly positioned, attached, or not to material specification (too soft, discoloration, sharp edges)<br />
Emboss and / or screen print not correctly processed, with unclear definition or incorrectly positioned<br />
Quality of PVC / rubberized print (or any) logo treatment not correctly processed, with unclear definition or incorrectly positioned<br />
Quality of embroidery not clearly defined (wrong thread &#8230; poor stitching program &#8230; thread tension &#8230; quantity of stitches)<br />
8. POOR TOE LASTING<br />
Toe height / vamp length differences of more than 3 mm<br />
Distorted shape (off &#8211; center) toe / vamp lasting<br />
Wrinkles of folds visible on outsole sidewall caused by wrinkled lasting</p>
<p>9. POOR SIDE LASTING<br />
Upper is not fitting tightly to the last<br />
Wrinkles or creases noticeable in the shank or quarter</p>
<p>10. HEEL LAST ING / HEEL COUNTER (INSIDE) / BACK PART MOLDING<br />
Wrong heel counter number or size (too small / too large)<br />
Counter deformed, edges folded causing pressure points<br />
Counter not caught under lasting board<br />
Counter placed off center</p>
<p>11. BACK STAY OFF CENTER / CROOKED<br />
Back stay noticeably crooked , or greater than 3 mm</p>
<p>12. BACK (HEEL) &amp; QUARTER (COLLAR) HEIGHTS<br />
Greater than 3 mm higher or lower than requested standard<br />
Logo heights or heel pieces that exceed 3 mm</p>
<p>13. EYESTAY MIS-ALIGNED / CROOKED<br />
Eyestay or throat miss-aligned by more than 3 mm</p>
<p>14. ROUGHING (UPPER)<br />
Under roughing<br />
Over roughing ± 1.0 mm badly repaired / not repaired<br />
Roughing that damages are the fiber structure of the material</p>
<p>15. OUTSOLE MARKING / CEMENTING / PRIMIMG-MIDSOLES, OUTSOLES, LASTED UPPERS<br />
Over cementing / over priming @1.0 &#8211; 2.0 mm / badly repaired</p>
<p>16. SOLE LAYING 9OFF &#8211; CENTER / CROOKED)<br />
Bottom unit incorrectly positioned</p>
<p>17. POOR ADHESION<br />
Outsole to mid sole<br />
Outsole to upper<br />
Mid sole to upper<br />
Torsion bar to mid sole or outsole<br />
Heel-stabilizer to mid sole or outsole or upper<br />
Inlayed component parts / directly injected with sole<br />
Poor bonding of any components that should be firmly cemented together</p>
<p>18. OUTSOLE STITCHING (ARRIANCE STITCH)<br />
Stitch length more than 2 mm for adults and 1 mm for children from below mentioned standard<br />
Stitch length adult 8-10 mm / stitch<br />
Stitch length children 6-8 mm / stitch<br />
Broken stitches<br />
Out of channel<br />
Poor tension / tight tension<br />
Stitch ends before channel end<br />
Thread not cemented to insole board and sock liner (minimum 5 cm)<br />
Cup sole stitching thread not stuck down with tape in the case of removable inlay sole<br />
9. INLAYSOLE<br />
Wrong inlay sole pattern<br />
Wrong size (too long / too short)<br />
Inlay sole not bonded<br />
Delamination of inlay sole cover<br />
Wrinkled or rolled<br />
Inlay sole thickness differs by more than 0.5 mm from the specification<br />
Inlay sole hardness differs by more than 5 points from the specification<br />
Screen or transfer printing peel off<br />
Color variation between pairs<br />
Soiled or stained</p>
<p>20. ARCH COOKIE<br />
Wrong size arch cookie<br />
Arch cookie loose or incorrectly positioned<br />
21. COLOUR VARIATION &#8211; UPPER, MIDSOLE, COMPONENTS<br />
Any noticeable variation within a pair of shoe that would cause customer return<br />
Colors that do not match approved samples or scotdic / pantone#</p>
<p>22. OUTSOLE / FOXING / BUMPE APPEARANCE / CLEANLINESS<br />
Color is not matching between shoes in a pair<br />
Color not matching scotdic / pantone# &amp; signed confirmation sample<br />
Under to over cured rubber<br />
Shore hardness more / less than ± 3 points of specification<br />
Delamination (no bonding) of different rubber segments<br />
Shininess of outsole<br />
Exudations or visible film on the sole surface or blooming<br />
Excessive color bleeding<br />
Sole more than 2 mm too long or too short<br />
Excessive color migration sepecially on cup / sidewall<br />
Specified non-marking sole which is actually marking<br />
Poor or excessive repair for color migration &#8230; paint peeling, loose<br />
Repair paint color does not match<br />
Poor outsole trimming</p>
<p>23. MIDSOLE , FOOTBED APPEARANCE / CLEANLINESS<br />
Color is not matching between shoes in pair<br />
Color not matching scotdic / pantone# &amp; signed confirmation sample<br />
Distinct mid sole wedge adhesive line<br />
Two or more air bubbles 1.5 mm in diameter or more<br />
Nick and / or scars in molded mid sole longer than 2 mm<br />
Adhesive, primer, spoilage, stains on sidewall<br />
Shore hardness more than ± 3 points of specification<br />
Excessive concentration of pin holes<br />
Mid sole thickness or length more than ± 2 mm from spec<br />
Angle of level (provile contour) significantly different than confirmation sample<br />
Excessive under cut<br />
Paint feeling or loose<br />
Top line of molded EVA thickness &gt; 1 mm due to poor trimming or blowing<br />
Molded EVA sidewalls heavily wrinkled<br />
Discoloration</p>
<p>24. CLEATED<br />
Tacks, studs, spikes or rivets missing<br />
Damaged rivets, studs or spikes<br />
Receptacles, rivets, insole tacks not clenched properly<br />
Studs, spikes inserted skewed (not at 90 degrees to the insole / outsole)<br />
Shank reinforcement missing (lydall board)<br />
Galvanized rivets not used<br />
Screw in studs not tight<br />
Key wrench must be functional and matching confirmation</p>
<p>25. SOILING<br />
One or more soiling or cement stains more than 3 mm in diameter or an excessive amount of smaller stains<br />
Visible marking lines<br />
Non repairable cement stains or soiling up to 1 cm in diameter must be B-graded<br />
Non repairable cement stains or soiling over 1 cm in diameter must be C-graded</p>
<p>26. PACKING<br />
Bonding of box flaps<br />
Damaged shoe box<br />
Distinct shade variation of shoe box to standard<br />
Distinct variation between lid and shoe box<br />
Shoe box print not clearly / fully defined<br />
Wrong size of the shoe box (too small or too large)<br />
Barcode label and inner box contents are not identical</p>
<p>27. ODD SHOES / HANG TAG<br />
Right and left foot shoe not one correct pair (different back heights, vamp lengths etc.)<br />
Different size left &amp; right foot<br />
Shoes / size labels do not correspond exactly to bar-code label<br />
Hangtag / technical manual missing<br />
Appearance and print quality of hangtag, technical manual not clean<br />
Missing accessories</p>
<p>28. LACES<br />
Shoe lace length either too long or too short<br />
Shoe laces not as specified<br />
Shoe lace color not matching confirmation</p>
<p>29. OTHER DEFECTS<br />
Other items which influences the comfort and durability, or the use of the shoes</p>
<p>FINAL INSPECTION DEFECTS CLASSIFICATION<br />
DEFINITION OF &#8220;A&#8221;, &#8220;B&#8221;, &#8220;C&#8221; GRADES<br />
A-GRADE PRODUCTS:<br />
Shoes with no functional or cosmetics defects that will impair the marketability of the shoes.<br />
B-GRADE PRODUCTS:<br />
Shoes that have no major functional defects, and will not cause injury to the person wearing the shoes for the intended sport. The product does have cosmetic defects, that cannot be properly repaired.<br />
C-GRADE PRODUCTS:<br />
Shoes have major functional defects which could cause injury to wearer, or major cosmetic defects that cannot be repaired. Shoes are also considered C-Grade, if they have poor quality workmanship or material that could shorten the normal life of adidas reputation.</p>
<p>REMARK<br />
Pressure points inside the shoes are always C-Grade(s)<br />
Defects in the &#8220;Cleated Category&#8221; which cannot be eliminated completely are C-Grade(s)<br />
The factory retains responsibility for compensation claims addressed to adidas except for specific incidents agreed by both parties</p>
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		<title>ASSEMBLING</title>
		<link>http://shoecosting.wordpress.com/2008/06/25/assembling/</link>
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		<pubDate>Wed, 25 Jun 2008 14:35:03 +0000</pubDate>
		<dc:creator>Dewis</dc:creator>
				<category><![CDATA[Manufacture]]></category>
		<category><![CDATA[acsis]]></category>
		<category><![CDATA[adidas]]></category>
		<category><![CDATA[Assembling]]></category>
		<category><![CDATA[fila]]></category>
		<category><![CDATA[nike]]></category>
		<category><![CDATA[reebok]]></category>
		<category><![CDATA[shoes]]></category>
		<category><![CDATA[sport]]></category>

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		<description><![CDATA[ASSEMBLING A. HEEL COUNTER INSERTINGBefore inserting heel counter we must understand the type and grouping of heel counter. We also to know discrepancy between left and right heel counter. Lining and upper material must be coated with cement in the whole area where the heel counter is placed. Heel counter has to dip with correct [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=shoecosting.wordpress.com&amp;blog=4068357&amp;post=7&amp;subd=shoecosting&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>ASSEMBLING<br />
A. HEEL COUNTER INSERTINGBefore inserting heel counter we must understand the type and grouping of heel counter. We also to know discrepancy between left and right heel counter.</p>
<p>Lining and upper material must be coated with cement in the whole area where the heel counter is placed. Heel counter has to dip with correct cement.</p>
<p>The heel counter must be inserted straight, not too high and not too low. Correction are not possible after inserting and molding.</p>
<p>B. HEEL COUNTER MOLDING</p>
<p>Important: Sizes of uppers, heel counters and molds must fit.</p>
<p>The molding must be done properly. The upper must straightly be pulled down and held until male and female molds are closed with the upper in between. A mirror should be placed at the machine in such a way, that the operator can control the backside of the mold.</p>
<p>The heel mold must correspond to shape and size of the heel counter.</p>
<p>C. ATTACHING STROBEL INSOLE BOARD</p>
<p>After heel counter inserted to the upper, heel lining and heel cap will be stitched together.</p>
<p><span id="more-7"></span>D. ATTACHING INSOLE BOARD TO THE LAST</p>
<p>The thickness of shank / insole boards has to met requirement mentioned on model specification sheet. Insole board and shank board will be attached using hot melt and then press. We have to check the temperature of hot melt machine and the type of hot melt.</p>
<p>After that insole board which already attached with shank board will be attached to the last. Last and insole board must be fit and attached correctly.</p>
<p>E. LACING UPPERS</p>
<p>To make sure that the upper acquires the correct width during the following lasting process, it has to be laced with a corresponding lacing clip or an adequate lacing tool in the accurate width.<br />
In case of low cut articles uppers normally can be laced from the 2nd hole of the eyelet opening throat point. For men&#8217;s size 4 holes are to be laced, the ladies&#8217; sizes need 3 holes laced.<br />
Exception in regard to the design and pattern are always possible.</p>
<p>F. LASTING</p>
<p>In general, all production are forced to use lasting machines with hot melting facilities for all lasting operations.</p>
<p>Modern lasting methods guarantee exact bonding of the uppers to the insoles. This bond remains durable even when the shoe passes through cement dyers and heat setters with temperatures of up to 60O C and need 10 second for good bonding quality. Important to check upper position (must be center) before lasting.</p>
<p>G. TOE MOULDING</p>
<p>Leather uppers must be prepared for the stress of the lasting operations. Therefore the forefoot area must be moistened by using a toe moulding apparatus.</p>
<p>The moisture makes the leather softer and Suppler. The upper more precisely take the shapes of the last and the leather grain does not break during the lasting process.<br />
H. HEAT SETTING</p>
<p>During the various board lasting operations, the upper is stretched over the last with lasting pincers and other tools in the lasting machines in multi directional pulls.</p>
<p>It must be guaranteed that the lasted shoes keep exactly the shape of the last. Shrinkage after lasting means an unacceptable loss of fit for the shoe.</p>
<p>The temperature and time of the equipment must be strictly regulated depending on the determined instructions and the positive result of the heat setting process must be controlled randomly.</p>
<p>I. SHOE MARKING</p>
<p>All articles with a shell or half shell soles need to be marked.</p>
<p>In order to achieve accurate marking, the original soles which will be attached on the shoes later on have to be used for doing the marking.</p>
<p>The shoes marked have to be checked for accurate marking at regular intervals. Inaccurately marked shoes cause either over roughing or under roughing.</p>
<p>J. ROUGHING</p>
<p>Roughing should never weaken too much the fiber structure of the leather, because this automatically would lead to material breakage when the shoe is worn.</p>
<p>Besides the inner edge of the lasting margin has to be roughed down to zero from outside to inside an a wedged-shapes way, so that he stair-like transition at the lasting margin end is removed.</p>
<p>After roughing the lasted shoe must be cleaned carefully in order to avoid poor bonding.</p>
<p>K. FIRST CEMENT COATING</p>
<p>The Pur-based cement has to be mixed with 5% hardener and has to be properly stirred shortly before processing.</p>
<p>The cement hardener mixture has to be processed within 2 hours in order to avoid the negative effects of a beginning chemical reaction.</p>
<p>Procedure for second cement coating corresponds to First Cement Coating</p>
<p>The soles have to be cemented simultaneously with the shoes. The cementing of the soles has also to be done completely and evenly.</p>
<p>Special attention is necessary that pasting is effective for the shell soles up to the top edge and for flat soles to the outer edge.</p>
<p>L. ATTACHING SOLES</p>
<p>Before soles can be attached, they must be activated.</p>
<p>The soles have to be positioned beginning on the toe area to the heel in an exactly straight way. Stretching, twisting or compressing the soles automatically leads to deformation.</p>
<p>M. PRESSING SOLES</p>
<p>The soles have to be pressed on the shoes immediately after being attached otherwise the activated cement becomes to cold, so that an intensive bonding between soles and lasted shoes cannot be achieved anymore.</p>
<p>N. COOLING</p>
<p>To consolidate he shape given to the upper during lasting operation the shoes are subjected to a process of cooling after the soles are attached.</p>
<p>The temperature of this operation has to be strictly regulated and controlled.<br />
O. CLEANING OF SHOES</p>
<p>All cement stains, visible markings, stains or any kind of dirt inside and outside the shoes have to be removed.</p>
<p>P. PRESSING RECEPTACLE FOR SCREW IN STUDS</p>
<p>In order to avoid pressure points the inserted receptacles must be properly countersunk into the insole. Insufficiently countersunk receptacles cause severe injuries to the player&#8217;s feet. Shoes with this defect must be destroyed.</p>
<p>Q. PRESSING RIVETS</p>
<p>The rivets have to be accurately positioned into the grooves of the outsoles, which are molded for this purpose. The correct length of the rivets is of deciding importance.</p>
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		<title>CUTTING</title>
		<link>http://shoecosting.wordpress.com/2008/06/25/cutting/</link>
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		<pubDate>Wed, 25 Jun 2008 14:32:07 +0000</pubDate>
		<dc:creator>Dewis</dc:creator>
				<category><![CDATA[Manufacture]]></category>
		<category><![CDATA[acsis]]></category>
		<category><![CDATA[adidas]]></category>
		<category><![CDATA[cutting]]></category>
		<category><![CDATA[fila]]></category>
		<category><![CDATA[newbalance]]></category>
		<category><![CDATA[nike]]></category>
		<category><![CDATA[reebok]]></category>
		<category><![CDATA[shoes]]></category>

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		<description><![CDATA[A. INCOMING MATERIAL INSPECTION All materials from warehouse must be checked and ensure that warehouse department sends the right materials, and cutting department has to check that there is &#8220;released&#8221; sticker on materials. If there are any color grouping, cutting dept. has to inform other dept (stitching, assembly, and packing) B. CUTTING PREPARATION Leather Storage [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=shoecosting.wordpress.com&amp;blog=4068357&amp;post=5&amp;subd=shoecosting&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>A. INCOMING MATERIAL INSPECTION<br />
All materials from warehouse must be checked and ensure that warehouse department sends the right materials, and cutting department has to check that there is &#8220;released&#8221; sticker on materials.<br />
If there are any color grouping, cutting dept. has to inform other dept (stitching, assembly, and packing)</p>
<p>B. CUTTING PREPARATION</p>
<p>Leather Storage<br />
Materials from warehouse should be prepared and stored according to the standard for each type of materials.<br />
1. Leather need to be protected from the sunlight, otherwise the leather will be yellowing.<br />
2. The temperature can&#8217;t be too high, otherwise the chemical in material will come out.<br />
3. It is better hanging the leather than rolling leather in the leather storage , so wrinkles or creases can be avoided.</p>
<p>Cutting Dies Inspection<br />
In order to make the cutter have high performance the cutting template the most important preparation process before cutting. It can help the cutter avoid the defective.<br />
Cutting Dies Inspection :<br />
· Check the size of the cutting die to see whether it is fit with the pattern.<br />
· Check the horizontality the cutting die on the cutting board or glass.<br />
· Inspect the cutting dies quality through both sound and vision.</p>
<p>Machines Adjustment<br />
1. The optimal distance between cutting die and cutting board is 8 &#8211; 10 mm<br />
2. Always set the pressure to zero after every shift finishing and when every shift starting need to reset the pressure in order to avoid any cutting board and any cutting dies damages.</p>
<p><span id="more-5"></span>MATERIAL TYPE :</p>
<p>v Leather<br />
Checking with the leather before cutting is necessary to the cutter. Cutter must check quality cutting area with correct stretch, without defective and loose grain. Each type of leather have to be stored separately. Leather normally stretches by arrow, but some special parts are soft and can stretch four directions. So cutter must try to pull leather in order to know leather stretching before cutting.</p>
<p>v PU, Textile, Foam<br />
Every roll from warehouse should be prepared according to the standard number of layer for each type of material, example :<br />
Ø Super tuff : 4 Layer<br />
Ø Cosmo : 6 Layer<br />
Ø Meriskin : 2 Layer<br />
Ø Foam 4.30 : 4 Layer<br />
Ø Foam 8.50 : 2 Layer<br />
Ø Canvas 6oz : 4 Layer<br />
Ø H. Nylex : 4 Layer<br />
Ø Nylon : 5 Layer<br />
Ø LS : 2 Layer<br />
Ø Bontex : 3 Layer</p>
<p>C. LEATHER QUALITY<br />
Leather can be divided into 6 parts, each part has different quality level with each area of the whole leather due to different structure.<br />
v Back<br />
Firm structure, high quality<br />
This area is the most valuable part with the best fiber structure and very view elasticity.</p>
<p>v Shoulder<br />
Worse than the back part because of natural construction.</p>
<p>v Neck<br />
Similar with the leg position, has a little soft, multi-wrinkle.</p>
<p>v Belly<br />
The muscular fiber is longer than the other parts, so the skin is soft, extensible, easy getting loose grain. This position often causes by movement and has some special structure.</p>
<p>v Leg<br />
Similar with the belly material, not has a great value, used for less quality-required components.</p>
<p>v Flank<br />
Soft, multi-wrinkle at armpit and hamstring position. Very soft, serious wrinkle, loose grain. Normally, we cannot cut any components from this area.<br />
D. DEFECT ON LEATHER<br />
Natural defect<br />
v Warble damage holes on scars caused by the grub of warble fly<br />
v Scratchy scars caused by wide, and fighting<br />
v Disease produce a rough are on the skin<br />
v Growth marks, lines in the neck and shoulder areas, more pronounced in older animals<br />
Processing<br />
v Flay cuts caused during of flesh leave the skin weakened<br />
v Brand mark</p>
<p>E. CUTTING TECHNIQUE<br />
v Machine adjustment<br />
v Make sure the Cutting dies in a good condition .<br />
v For the hole skin start on the left shank, cut trough to the butt and to the right s hank.<br />
v Side start back layer to the direction of shank and belly. ( This would result to wastes incurring on interior quality parts of leather).<br />
v Cutting dies have to be placed as close as possible to avoid excessive waste.<br />
v Sample of the shoes should be placed as close as possible to avoid excessive waste<br />
v Cut the large sizes from the largest skin.<br />
v Save skins with many defects for small sizes<br />
v Lift the cutting dies, do not drag them across the leather as they could scratch it.<br />
v Ensure that suede&#8217;s patterned and shaded leather is match up.<br />
v Place cut components on the bench so as to avoid damage and put knives on the flesh side of stacked component<br />
v Operator should be felt the stretch direction before cutting</p>
<p>F. CUTTING RULES FOR LEATHER<br />
v Extensibility<br />
Ø The Upper must not stretch in longitudinal direction<br />
Ø Bearing in mind the function of the skin on the body of animal helps the cutter to know the direction of stretch in the various parts of the skin.<br />
v Quality<br />
Ø The best part of the leather must be used for the forefoot are (vamp, toecap, which is referred to as the face of the shoes.<br />
Ø The left &amp; right shoe have to be in the same conformity quality and appearance<br />
Ø Part cut &#8221; the wrong way&#8221; always appear rougher on the shoe and darker in color<br />
v Surface utilization<br />
Ø Since leather is generally the most expensive material used for an upper, the surface are need to be used optimally, in order to achieve purpose<br />
Ø Before cutting we must know the stretching direction</p>
<p>Basic rules of cutting<br />
v In the case of a whole skin, the cutter begins on the left shank, working his way over the butt to the right shank. The second layer goes in the reverse direction<br />
v Cow leather almost always comes in sides. In this case the cutter always begins at the back line and works his way systematically.</p>
<p>G. CUTTING RULES FOR TEXTILES AND SYNTHETICS<br />
v Textiles<br />
Ø All textiles components, whether the upper or lining, must have the least stretch in the longitudinal direction of the foot<br />
Ø Placement of the cutting dies thus depends on the direction of warp and weft in the material.<br />
Ø To avoid a possible formation of wrinkles a diagonal stretch is often necessary when working with foxing and lining parts.</p>
<p>v Textile-based synthetic materials<br />
Ø For coated textile, the same basic rules apply as for textiles without coating<br />
Ø Upper parts are cut, under compliance with wrap and weft. When working with printed textiles. The direction of the print also needs to be considered.<br />
Ø However, if the material is used for foxing, the parts are cut out of the material in diagonal direction, in order to avoid folds when lasting.</p>
<p>v Non-woven synthetic material<br />
Ø Non-woven synthetic upper materials are available today with and without a woven backing, in various different thickness and in all required survase finish.<br />
Ø The least stretch should be in the longitudinal direction of the upper.<br />
H. EDGE INKING<br />
If color on the edges of the leathers are not the same (not dyed trough) after being cut, then the edge of these materials must be sprayed with correct and matching ink. Edge inking will be done for visible edge on the shoes.</p>
<p>I. SKIVING<br />
To make the edge of components thinner because of the layering component, we have to skive the edge of component to avoid x-ray (example : PU Foam 8 mm for collar padding)</p>
<p>J. BUFFING<br />
Buffing is the process to remove the surface of leather, making better absorption of primer and cement to the leather. The purpose of having initial buffing process in cutting department is to make the buffing process in assembly easier and faster. For some models, we also need to buff PU Foam to avoid x-ray (example: PU foam 8 mm for collar padding)</p>
<p>K. SCREEN PRINTING AND EMBOSSING<br />
Ø Screen Printing<br />
Usually used for brand name or adidas logo, we have to use the correct and matching ink.</p>
<p>Ø Embossing<br />
HF embossing is another ornamental operation. The precise temperature, pressure and time needed for successful embossing very according to the type, substance and moisture content of the upper material being embossed.</p>
<p>L. EMBROIDERY<br />
During embroidery care has to be taken to ensure that sufficient stitches are programmed in order to achieve an uniformed appearance especially on the edges. The use of the correct thread type and thickness as well as correct needle size is very important for the stitching result. The color of the embroidery used must correspond with the stipulated color specification. Thread ends must be cut or flamed correctly.</p>
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