BizInsider: Business | AI | Franchise | Strategy | OE | Lean

BizInsider: Business | AI | Franchise | Strategy | OE | Lean

Case Study

The Operational Excellence Tools Series | #41: From 200 Production Steps To Robotic Automation.

On Running Builds Factory In South Korea.

Feb 28, 2026
∙ Paid

Welcome to the unique weekend article for the Loyal Fan subscribers-only edition.

This is the #41 article of The Operational Excellence Tools Series.

Outlines and Key Takeaways

Part 1 – Official Announcement

Part 2 – Background and Meaning

Part 3 – Analysis Through the Lens of Operational Excellence

Part 4 – Lessons for Businesses

Part 5 – Conclusion

PART 1: OFFICIAL INFORMATION

In the context of increasingly volatile global supply chains and companies seeking ways to improve operational efficiency, the Swiss sportswear brand On Running has deployed a robot-automated shoe manufacturing factory in the city of Busan. This is considered a strategic step in transforming the production model, helping the company reduce dependence on manual manufacturing processes, while increasing the ability to control the supply chain and shorten the time-to-market for new products.

According to information published in manufacturing and retail industry media, this factory uses 32 industrial robots to operate the sports shoe production line. These robots are integrated with an advanced production technology called LightSpray, which allows the automation of most upper-shoe manufacturing processes. Thanks to this technology, more than 200 traditional production steps in the shoe manufacturing process have been reduced into a continuous automated production flow, helping reduce operational complexity, minimize production errors, and increase production speed.

According to reports from international media, the robotized factory in Busan has the capacity to produce approximately 1,000 pairs of shoes per day. Although this scale is still smaller compared with many traditional footwear factories in Asia, the project carries significant value as an experimental model for a new production system. Instead of relying on a large manual workforce, the robotic system helps standardize manufacturing processes, improve precision, reduce human operation errors, and create an operating model with scalability potential in the future.

Share

The decision to choose Busan, South Korea as the location for the factory also reflects On Running’s strategic approach to leveraging the country’s technology and automation ecosystem. South Korea is widely recognized as one of the countries with the highest density of industrial robots in the world, supported by strong capabilities in robotics, smart manufacturing, and industrial automation. This environment allows On Running to implement robotization solutions more easily while benefiting from local engineering talent and advanced technological infrastructure.

The LightSpray technology plays a central role in this new manufacturing model. According to the company’s technical documentation, LightSpray uses a robot-controlled system to spray synthetic material directly onto a mold, forming the shoe upper without the need for many intermediate steps. This approach replaces traditional processes such as material cutting, stitching, and layer bonding, which are common in conventional footwear production. As a result, the structure of the shoe upper can be created in a single automated manufacturing step, instead of passing through multiple complex production stages.

One notable advantage of this technology is the significant reduction of material waste during the manufacturing process. In traditional shoe production models, the processes of cutting and assembling materials typically generate a large amount of production waste, affecting both material efficiency and environmental sustainability. In contrast, the direct material spraying technology optimizes material utilization, thereby reducing waste, lowering production costs, and supporting the company’s sustainable manufacturing goals.

In addition to reducing waste, LightSpray technology also helps reduce the weight of the final product thanks to its thin and seamless material structure. According to information released by On Running, the shoe upper produced using this technology is lighter than those made using traditional methods, while still maintaining the durability, elasticity, and performance characteristics required for sports footwear.

The implementation of the robotized factory in Busan also reflects a broader trend in the global footwear and athletic apparel manufacturing industry. Over the past decade, global brands have increasingly searched for ways to reduce their reliance on fragmented supply chains, particularly following the severe disruptions experienced during the COVID-19 pandemic. Challenges such as logistics bottlenecks, labor shortages, and volatile transportation costs forced many companies to reconsider the structure of their traditional manufacturing models.

In this context, manufacturing automation, factory robotization, and near-market production strategies are becoming increasingly important. The robotized factory of On Running in Busan is viewed as an experimental initiative aimed at restructuring the supply chain toward a more flexible configuration, allowing the company to shorten the distance between production sites and consumer markets.

Industry experts suggest that reducing more than 200 production steps into a single automated workflow not only increases manufacturing efficiency, but also opens the possibility of redesigning the entire operating model of the sports footwear industry. When multiple production steps are integrated into robotic systems, production lead times can be significantly shortened while reducing the need for distributed manufacturing networks across multiple countries.

Although the production scale of the Busan facility is currently still relatively small, the significance of the project lies in testing a robotic production model for the sports footwear industry. If the LightSpray technology and robotic manufacturing system prove effective in terms of cost efficiency, product quality, and scalability, this model could potentially be expanded more broadly in the future.

The operation of the robotized manufacturing facility in Busan by On Running reflects a rising trend across the global manufacturing industry: increasing automation, robotized production lines, and digitalized manufacturing systems to improve operational efficiency, reduce supply chain risks, and shorten production cycles. In an increasingly competitive market environment, robot-based production systems and advanced material technologies may become critical factors shaping the future of the global sports footwear industry.

This post is for subscribers in the BizInsider Loyal Fan plan

Already in the BizInsider Loyal Fan plan? Sign in
© 2026 BizInsider · Privacy ∙ Terms ∙ Collection notice
Start your SubstackGet the app
Substack is the home for great culture