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BATA SHOES COMPANY

Production and Operations Management is a peer-reviewed academic journal covering


research on all topics in product and process design, operations, and supply chain
management.

Production and Operations Management is published by Wiley-Blackwell on behalf of


the Production and Operations Management Society. It is listed as one of the 45 journals
used by the Financial Times to compile its business-school research ranks [1] and Bloomberg
Businessweek's Top 20 Journals.[2] According to ISI Journal Citation Reports, the journal is
ranked 5th out of 37 titles in the engineering and manufacturing category and 17th out of 74
in the operations research and management science category.

s part of the development of the supply chain process, a new app developed by China
Footwear Service, in partnership with Tata Consultancy Services (TCS), is proving to be
a great success in terms of supply chain functionality. At the Shoeline Review Meeting
in October 2015, 98 percent of orders involved the use of the application.

The app forms part of a host of changes to the supply chain process
that were the vision of Roberto Longo, then president of CFS, and have
been driven to implementation by Simon Tidball, global sourcing
director, and Gary Yee, supply chain management manager.

In January 2014, CFS embarked on an initiative to deliver a higher level


of value-added services to Bata Group companies. One step in this
direction was to partner with Tata Consultancy Services (TCS), to
improve the end-to-end supply chain value path for its sourcing
organization.

A new operating model was developed, and TCS created the Bata
Procurement System (BPS) to permit its implementation. Features of
the system include supplier management, system-based purchase
order issuance, real-time order tracking, capacity planning, buyer
demand captures and workflow based approvals. These functionalities
help improve operational efficiency and visibility for everyone
concerned, while maintaining data integrity.

Tidball commented: To be a truly global sourcing organization, a fully


integrated order flow IT system is a must, to ensure process discipline and
management control. By working together with TCS for the implementation of
the BPS we have been able to take a major step forward in improving Batas
sourcing effectiveness.

The mobile application was created to enhance the BPS and buyer
experience. The app, which is supported on both iOS and Android
platforms, enables buyers to scan the barcodes of shoes to see all
relevant details, including supplier, materials, construction and price. If
a buyer likes the shoes, he or she can commit to the articles
instantaneously while on the move around the showrooms during the
SRM. It also allows them to reconcile their budgets and perform MOQ
checks immediately.

The app has now been further enhanced so as to facilitate virtual


buying, thus eliminating the need for all buyers to attend the SRM in
person, reducing the cost to companies. The Virtual Buy pilot will be
implemented for the January meeting, with support from Bata India for
the Bata Ladies Closed and North Star categories.

With several changes and upgrades already in place for the next SRM,
and many others being considered, CFS is forging ahead in its
transformation journey to offer better value both to internal

On Oct. 4, China Footwear Services (CFS) held a one-day personal development


training program at the Bata Training Center in Guangzhou, on the subject of
time management. The program has been designed with the objective of
providing participants with a range of strategi...
READ MORE

CFS Managers Admire New Commemorative Coins


CORPORATE | CHINA
The day after it concluded its hosting duties for the quarterly Shoeline Review
Meeting, China Footwear Services recognized 10 senior managers and
executives with a commemorative
Buyers Are First in Line at New CFS Training Center
CORPORATE | CHINA
The training center of China Footwear Services was inaugurated with a new
program for buyers. The first course to be held at the Guangzhou office
concluded on November 8. Organized by Bata Brands, the course focused on
product knowledge and was aimed at Bata buyers from...
READ MORE
Meet the Bata Awards Quality Finalists from CFS
INTERVIEWS | CHINA
As the window to vote in the Bata Awards is soon closing, BWN is presenting the
short-listed projects in the final category: Quality. We talked to Ruddy Li, who,
together with Tony Gao, Samantha Jiang, Rossano Fogarin and Stefano Dolci,
entered in the competition ...

Bata (also known as Bata Shoe Organization) is a family-owned


global footwear and fashion accessory manufacturer and retailer with acting headquarters
located in Lausanne, Switzerland. Organized into three business units: Bata Europe, based
in Italy; Bata Emerging Market (Asia, Pacific, Africa and Latin America), based in Singapore,
and Bata Protective (worldwide B2B operations), based in the Netherlands, the organization
has a retail presence of over 5200 retail stores in more than 70 countries and production
facilities in 18 countries.

The T. & A. Baa Shoe Company was founded on the 24th of August 1894 in Zln (Moravia,
today the Czech Republic) by Tom Baa (Czech: [toma baca]), his brother Antonn and
his sister Anna, whose family had been cobblers for generations. The company employed
10 full-time employees with a fixed work schedule and a regular weekly wage, a rare find in
its time.

In the summer of 1895, Tom found himself facing financial difficulties, and debts
abounded. To overcome these serious setbacks, Tom decided to sew shoes from canvas
instead of leather. This type of shoe became very popular and helped the company grow to
50 employees. Four years later, Bata installed its first steam-driven machines, beginning a
period of rapid modernisation. In 1904, Tom read a newspaper article about some
machines being made in America. Therefore, he took three workers and journeyed to Lynn,
a shoemaking city outside Boston, in order to study and understand the American system of
mass production. After six months Tom returned to Zlin and he introduced mechanized
production techniques that allowed the Bata Shoe Company to become one of the first
mass producers of shoes in Europe. Its first mass product, the Batovky, was a leather and
textile shoe for working people that was notable for its simplicity, style, light weight and
affordable price. Its success helped fuel the companys growth. After Antonin's death in
1908, Tomas brought two of his younger brothers, Jan and Bohu, into the business. Initial
export sales and the first ever sales agencies began in Germany in 1909, followed by the
Balkans and the Middle East. Bata shoes were considered to be excellent quality, and were
available in more styles than had ever been offered before. By 1912, Bata was employing
600 full-time workers, plus another several hundred who worked out of their homes in
neighbouring villages.

In 1914, with the outbreak of World War I, the company had a significant development due
to military orders. From 1914 to 1918 the number of Baas employees increased ten times.
The company opened its own stores in Zln, Prague, Liberec, Vienna and Pilsen, among
other towns.

In the global economic slump that followed World War I, the newly created country
of Czechoslovakia was particularly hard hit. With its currency devalued by 75%, demand for
products dropped, production was cut back, and unemployment was at an all-time high.
Tom Baa responded to the crisis by cutting the price of Bata shoes in half. The
companys workers agreed to a temporary 40 percent reduction in wages; in turn, Bata
provided food, clothing, and other necessities at half-price. He also introduced one of the
first profit sharing initiative transforming all employees into associates with a shared interest
in the company's success (today's equivalent of performance-based incentives and stock
options).

Consumer response to the price drop was dramatic. While most competitors were forced to
close because of the crisis in demand between 1923 and 1925, Bata was expanding as
demand for the inexpensive shoes grew rapidly. The Bata Shoe Company increased
production and hired more workers. Zln became a veritable factory town, a "Bataville"
covering several hectares. On the site were grouped tanneries, a brickyard, a chemical
factory, a mechanical equipment plant and repair shop, workshops for the production of
rubber, a paper pulp and cardboard factory (for production of packaging), a fabric factory
(for lining for shoes and socks), a shoe-shine factory, a power plant and a farming activities
to cover both food and energy needs... Horizontal and vertical integration. Workers,
"Batamen", and their families had at their disposal all the necessary everyday life services:
housing, shops, schools, hospital, etc.

Bata also began to build towns and factories outside of Czechoslovakia (Poland, Latvia,
Romania, Switzerland, France) and to diversify into such industries as tanning (1915), the
energy industry (1917), agriculture (1917), forest farming (1918), newspaper publishing
(1918), brick manufacturing (1918), wood processing (1919), the rubber industry (1923), the
construction industry (1924), railway and air transport (1924), book publishing (1926), the
film industry (1927), food processing (1927), chemical production (1928), tyre
manufacturing (1930), insurance (1930), textile production (1931), motor transport (1930),
sea transport (1932), and coal mining (1932). Airplane manufacturing (1934), synthetic fibre
production (1935), and river transport (1938). In 1923 the company boasted 112 branches.

In 1924 Tom Baa displayed his business acumen by figuring out how much turnover he
needed to make with his annual plan, weekly plans and daily plans. Baa utilized four types
of wages fixed rate, individual order based rate, collective task rate and profit contribution
rate. He also set what became known as Baa prices numbers ending with a nine rather
than with a whole number. His business skyrocketed. Soon Baa found himself the fourth
richest person in Czechoslovakia. From 1926 to 1928 the business blossomed as
productivity rose 75 percent and the number of employees increased by 35 percent. In 1927
production lines were installed, and the company had its own hospital. By the end of 1928,
the companys head factory was composed of 30 buildings. Then the entrepreneur created
educational organizations such as the Baa School of Work and introduced the five-day
work week. In 1930 he established a stunning shoe museum that maps shoe production
from the earliest times to the contemporary age throughout the world. By 1931 there were
factories in Germany, England, the Netherlands, Poland and in other countries.

In 1932, at the age of 56, Tom Baa died in a plane crash during take off under bad
weather conditions at Zln Airport. Control of the company was passed to his half-brother,
Jan, and his son, Thomas John Bata, who would go on to lead the company for much of the
twentieth century guided by their fathers moral testament: the Bata Shoe company was to
be treated not as a source of private wealth, but as a public trust, a means of improving
living standards within the community and providing customers with good value for their
money. Promise was made to pursue the entrepreneurial, social and humanitarian ideals of
their father. The Baa company was apparently the first big enterprise to systematically
utilise aircraft for company purposes, including rapid transport of lesser personnel on
business like delivery of maintenance men and spares to a location where needed,
originating the practice of business flying.
Jan Antonn Baa[edit]
At the time of Tom's death, the Bata company employed 16,560 people, maintained 1,645
shops and 25 enterprises. Jan Baa, following the plans laid down by Tom Baa before
his death, expanded the company more than six times its original size
throughout Czechoslovakia and the world. Plants in Britain,
the Netherlands, Yugoslavia, Brazil, Kenya, Canada and theUnited States, followed in the
decade. In India, Batanagar was settled near Calcutta and accounted from the late 1930s
nearly 7500 Batamen. The Bata model fitted anywhere, creating, for example, canteens for
vegetarians in India. In exchange, the demands on workers were as strong as in Europe:
"Be courageous. The best in the world is not good enough for us. Loyalty gives us
prosperity & happiness. Work is a moral necessity!" Bata India was incorporated as Bata
Shoe Company Pvt. Ltd in 1931[1] and went on to become Bata India Ltd. in 1973.
Batanagar factory is the first Indian shoe manufacturing unit to receive the ISO 9001
certification in 1993.[2]

As of 1934, the firm owned 300 stores in North America, a thousand in Asia, more than
4,000 in Europe. In 1938, the Group employed just over 65,000 people worldwide, including
36% outside Czechoslovakia and had stakes in the tanning, agriculture, newspaper
publishing, railway and air transport, textile production, coal mining and aviation realms. [citation
needed]

Bata-villes[edit]
Company policy initiated under Tom Baa was to set up villages around the factories for
the workers and to supply schools and welfare. These villages include Batadorp in
the Netherlands, Baovany (present-day Partiznske) and Svit in Slovakia, Baov (now
Bahk, part of Otrokovice) in the Czech Republic, Borovo-Bata (now Borovo Naselje, part
of Vukovar in Croatia then in the Kingdom of Yugoslavia), Bata Park in Mhlin,
Switzerland, Bataville in Lorraine, France, Batawa in Canada, East Tilbury[3] in Essex,
England, Batapur in Pakistan and Batanagar andBataganj in India. There was also a factory
in Belcamp, Maryland, USA, northeast of Baltimore on U.S. Route 40 in Harford County.[4]
The British "Bata-ville" in East Tilbury inspired the documentary film Bata-ville: We Are Not
Afraid of the Future.[5]
World War II[edit]
Just before the German occupation of Czechoslovakia, Baa helped re-post
his Jewish employees to branches of his firm all over the world. [6][7] Germany occupied the
remaining part of pre-war Czechoslovakia on 15 March 1939; Jan Antonn Baa then spent
a short time in jail but was then able to leave the country with his family. Jan Antonn Baa
stayed in America from 19391940, but when the USA entered the war, he felt it would be
safer for his co-workers and their families back in occupied Czechoslovakia if he left the
United States. He was put on British and US black lists for doing business with the Axis
powers, and in 1941 he emigrated to Brazil. After the war ended, the Czechoslovak
authorities tried Baa as a traitor, saying he had failed to support the anti-Nazi resistance. In
1947 he was sentenced in absentia to 15 years in prison. The company's Czechoslovak
assets were also seized by the state several months before the Communists came to
power. He tried to save as much as possible of the business, submitting to the plans of
Germany as well as financially supporting the Czechoslovak Government-in-Exileled
by Edvard Bene.

In occupied Europe a Bata shoe factory was connected to the concentration


camp Auschwitz-Birkenau.[8] The first slave labour efforts in Auschwitz involved the Bata
shoe factory.[9] In 1942 a small camp was established to support the Bata shoe factory
at Chemek with Jewish slave labourers.[10]
Post-war[edit]

Bata International Centre 1965-2004

Tom's son Thomas manager of the buying department of the English Bata Company was
unable to return until after the war. He was sent to Canadaby his uncle Jan, to become the
Vice President of the Bata Import and Export Company of Canada, which was founded in a
company town namedBatawa, opened in 1939. Foreign subsidiaries were separated from
the mother company, and ownership of plants in Bohemia and Moravia was transferred to
another member of the family.

After World War II, governments in Czechoslovakia, East Germany, Poland and Yugoslavia
confiscated and nationalized Bata factories, stripping Bata of its Eastern European assets.
From its new base in Canada, the company gradually rebuilt itself, expanding into new
markets throughout Asia, theMiddle East, Africa and Latin America. Rather than organizing
these new operations in a highly centralized structure, Bata established a confederation of
autonomous units that could be more responsive to new markets in developing countries.

In 1964, the Bata Shoe Organisation moved their headquarters to Toronto, Ontario,
Canada and in 1965 moved again, into an ultra-modern building, the Bata International
Centre. The building, located on Wynford Drive, in suburban North York was designed by
architect John B. Parkin.

Bata was one of the official sponsors of the 1986 FIFA World Cup held in Mexico. Bata also
sponsored 2014 Electronic Sports World Cup.[11]
Czechoslovakia after 1989[edit]
After the Velvet Revolution in November 1989, Thomas J. Baa arrived as soon as
December 1989. The Czechoslovak government offered him the opportunity to invest in the
ailing government-owned Svit shoe company. Since companies nationalised before 1948
were not returned to their original owners, the state continued to own Svit and privatised it
during voucher privatisation in Czechoslovakia. Svit's failure to compete in the free market
led to decline, and in 2000 Svit went bankrupt.
Present[edit]
After the global economic changes of the 1990s, the company closed a number of its
manufacturing factories in developed countries and focused on expanding retail business.
Bata moved out of Canada in several steps. In 2000, it closed its Batawa factory. In 2001, it
closed its Bata retail stores, retaining its "Athletes World" retail chain. In 2004, the Bata
headquarters were moved to Lausanne, Switzerland and leadership was transferred
to Thomas G. Bata, grandson of Tom Baa. The Bata headquarters building in Toronto
was vacated and eventually demolished to much controversy. In 2007, the Athletes World
chain was sold, ending Bata retail operations in Canada. [12] As of 2013, Bata maintains the
headquarters for its "Power" brand of footwear in Toronto. The Bata Shoe Museum, founded
by Sonja Bata, and operated by a charitable foundation, is also located in Toronto.
Although no longer chairman of the company, the elder Mr. Bata remained active in its
operations and carried business cards listing his title as chief shoe salesman. In 2008,
Thomas John Bata died at Sunnybrook Health Sciences Centre in Toronto at the age of 93.

Bata estimates that it serves more than 1 million customers per day, employing over 30,000
people,[13] operates more than 5,000 retail stores, manages 27 production facilities and a
retail presence in over 90 countries mostly in Asia, Europe and Australia. Bata has a strong
presence in countries like India where it has been in existence since 1931. Bata India has
five factories and two tanneries. The Mokameh Ghat tannery in Bihar (1952) is the second
largest in Asia.[14] Singapore is home to BATA Asia Pacific and Africa operations and
manages close to 3,000 outlets in the region. In Singapore, there are more than 40 stores.

The red indicates countries where Bata operates

Bata brands[edit]
Bata Store Wenceslas Square inPrague, Czech Republic - 2005

Bata (Baa in the Czech Republic and Slovakia)

Bata Comfit (comfort shoes)

Ambassador (classic men's shoes)

North Star (urban shoes)

Weinbrenner (premium outdoor shoes)

Marie Claire (women's shoes)

SunDrops (women's shoes)


The Bata factory in Limuru, Kenya: a regional manufacturing hub
MANUFACTURING
The history of Bata Shoe Organization in Kenya is interwoven with the history of shoes
in Kenya and in East Africa as a whole. The large-scale wearing of shoes in the East
African region can almost be said to date from the advent of the East African Bata Shoe
Company.

The enterprise with this name was the result of visits by a group of
Bata employees to Kenya 80 years ago. They came to buy hides for the
factory in Czechoslovakia. In 1935, a trading company was established
in Mombasa to import shoes from Zlin to sell in the local market.

In 1938, Bata rented a small soap factory building in Mombasa to begin


the production of rubber and canvas footwear. Two years later, the
factory moved to its current location in the pleasant green highlands of
Limuru, on the edge of Rift Valley.

Today Bata Kenya has grown to be the market leader in manufacturing,


selling, and distribution of footwear in Kenya and East Africa. The company
adapts to customers requirements, focuses on continuous improvements, and
maintains harmony between its business and social responsibilities.

The companys production facility is very integrated. Annual production


is around 31 million pairs, including injected plastic, DIP closed,
cemented shoes for school and safari, and thongs. The installation of
new machines and expansion of the sales network has increased
market participation significantly, and annual production increased by
2.5 times in the last decade.

Two new lines were installed to produce bigger sheets for the
production of thongs. An automatic cutting machine was also added.
These changes improved productivity and reduced production costs
significantly. DIP and Injected plastic production were reorganized
around a new layout with new machines. Pre-heaters for PVC
compound, insulation bins and bi-metallic screws with bigger diameter
were introduced, which helped reduce rejection, improve quality and
increase the hourly output by 30 40 percent.
Bata Kenya produces for more than just its domestic market; it also
produces shoes for neighboring countries including Malawi and
Uganda. With the advancement of the Rhino project, regional demands
are likely to increase, and the Limuru factory will become the
manufacturing hub for the region.

Kenyas Company Manager, Mr. Alberto Errico, notes, The Limuru


factory is a modern manufacturing plant with continuous
modernization and improvements being undertaken. It is also centrally
located in the region, making it a natural choice as a manufacturing
hub for the East African region and beyond. The fact that the factory
adopted a volume line specialization model has helped it achieve its
productivity targets and become very competitive in pricing, costs,
consistency, and market leadership. We also ensure that we are EH&S
compliant in our manufacturing processes. With a growing economy,
the potential and opportunities for us are immense."

Bata Kenya believes in supporting the communities it lives in, and


supports the following programs with this mission in mind:

sponsors an early childhood education center that caters to the


children of employees and the community free of charge
encourages educational standards within Limuru in various ways,
such as the awarding of prizes and trophies
responds to national appeals when there are calamities, such as
blood donations and famine relief
supports a bursary fund for Limuru girls
supports the Limuru Olympic youth football team
donates shoes to the needy
operates a company health clinic 24 hours a day
makes available its sports club, gym, tennis court, and football
stadium to employees after work
assisted the Limuru Municipal Council in acquiring a waste
disposal site and dust bins to support

1.1 Introduction
This report is on the operations of Bata, a leading shoe manufacturer and retailer
with operations spanning across five continents (bata.com, 2010). It will focus on its
factory that produces ladies fashion shoes in Zimbabwe. Bata adopted a low cost
leadership strategy in which it uses its economies of scale in gaining a market
competitive advantage (Heakal, 2010). The company focuses on cost advantage by
delivering the lowest possible costs of production (marketingteacher.com, 2010).
The main characteristics of the Bata system include continuous innovation,
integration, quality improvement, profit-sharing, worker participation and team self-
management (Zeleny, 2010).

MISSION
To be successful as the most dynamic, flexible and market responsive organization,
with footwear as its core business

VISION
To grow as a dynamic, innovative and market driven domestic manufacturer and
distributor, with footwear as our core business, while maintaining a commitment to
the country, culture and environment in which we operate

Figure 1 Bata Shoe Company Mission and Vision Statement (Source: bata.com,
2010)

The factory has four main sections, namely: cutting, stitching, bottoms, assembly
and dispatch. In the cutting section all the different components of a shoe are cut
from animal leather or synthetic material. The bottoms section deals with the
preparation of soles before they are attached to the bottom of the shoes. In stitching
all the upper components of a shoe are sewn together. The stitched upper and the
treated soles are joined together in the assembly section. The completed shoes are
warehoused in the despatch section. Table 1 shows some of the operational goals in
each section. More information is given in section 2 of this report which looks at
process mapping.

Table 1 Operational Goals

Cutting
Stitching
Bottoms
Assembly
Dispatch
Check status of cutting devices before beginning of shift

Cut leather and synthetic upper components

Prefabrication of components prior to stitching

Record outputs per operator per hour

Sewing components together

Record outputs per operator per hour

Chemical treatment of soles

Produce 800 pairs/day

Rejects not more than 3%

Record outputs per hour

Dispatch finished shoes every Friday

Meet all deliveries on time

1.2 Low productivity


The main problem the ladies fashion
shoe factory faced was low
productivity. This resulted in late
deliveries. Productivity is affected by
the following factors: technology,
management and quality as shown in
Figure 2. Figure 1 is a fishbone
diagram showing a cause and effect
analysis of the problem of low
productivity (Ishikawa, 1990).
Poor manpower

Frequent equipment failure

Bottlenecks

Too wide product variety

Multiple products on same production line

Technology
Management
LOW PRODUCTIVITY
Poor Quality
Figure 2 Fishbone diagram for Bata shoe factory

1.2.1 Poor quality


Poor quality manifested in the form of large numbers of reworks and rejects thereby
limiting the production outputs. In a bid to meet customer needs and demands the
factory had to produce a wide variety of shoes. This meant at any given point in time
there would at least two different shoe designs on the production line at the same
time. This was done to ensure that the production line was running at full capacity.
The other challenge was frequent introduction of new shoe designs on the
production floor. This meant the operators were perennial learners struggling to
master the production of ever changing shoe designs on the production floor. This
undoubtedly resulted in the operators becoming sloppy and making shortcuts in
order to keep up.

1.2.2 Technology
This was further compounded by
frequent equipment failure which
resulted in a lot of bottlenecks. A
machine breakdown meant a lot work
will pile up at a selection of
workstations thereby presenting
management with huge problems of
reloading and rescheduling the
production runs. This increased
waiting times between operations. It
was common to see the under-
utilisation of manpower with some
pockets of the workforce being idle.
Machine breakdowns were prevalent
and they were partly due to them
being very old. Zimbabwe was
experiencing foreign currency
shortages so it was difficult to buy
spare parts for some of the machines.
1.2.3 Management
The aids pandemic caused seriously
absenteeism amongst the workforce.
Management seemed helpless in
dealing with the situation.
An explanation of the process(es)
under consideration (ideally
incorporating some form of process
map)
This section describes the basic processes involved in the manufacturing of ladies
shoes. There are four main sections namely cutting, stitching, bottom preparation
and assembly. The process maps below give a snapshot of the key operations and
how they are interconnected. The process maps show a sequential order of
operation which is not always followed in cases where reworks have to be done.

2.1 Cutting section


The cutting section had a cell layout and this is where all the different upper parts of
a shoe were cut and prefabricated before the parts were stitched together (Singh &
Divakar, 1996). Figure 3 shows key operations in the cutting section. Pattern making
involves laying out upper materials according to designs in preparation for cutting.
Stamping puts markings such as shoe size and company logo. Stitching guide
marks are then put on the shoe upper material.

Pattern Making4ommunitynt g stakeholders:ch a way that they he bata e 2s hops or


customers are done in the dispatch seaction.at the same time.

ispatch ng nsclor themes for diiferent ing terms such as roughing,


etc.)Stampingispatch ng nsclor themes for diiferent ing terms such as roughing, etc.)

Upper Marking

Upper Cutting

Figure 3 Cutting section operations

Other prefabrications operations such as attaching buckles or eyelets for threading


shoe laces were also done in the cutting section.

2.2 Stitching section


The stitching section had different sewing machines used in different operations.
These machines were arranged in a process layout (Groover, 2007). Figure 4 shows
the main sewing operations.

Stitching Outer Uppersg nsclor themes for diiferent ing terms such as roughing, etc.)

Hand Stitching

Thread

Clipping

Stitching Inner Linings

Figure 4 Stitching section operations

2.3 Bottoms section


Soles and other bottom components of shoes were chemically treated in the
bottoms preparation before they were attached to the stitched upper components.

2.4 Assembly section


The assembly section involved attaching the soles to the upper parts of the shoes
(see Figure 5). The 'lasting' operations give shape to the stitched upper of a shoe.
Roughing involves rubbing the bottom of the 'lasted' with sandpaper to enhance
adhesion of the 'lasted upper' to the sole. The stitched upper is then joined to the
sole. Heat setting ensures that the shape and form of the shoe conforms to that of a
human foot. Inner socks are then fitted to make the shoes comfortable.

Shoe Lasting

Roughing

Gluing Uppers

Heel Lasting

Joining upper with Sole


Stitching of Upper with Sole

Glue Activation

ispatch ng nsclor themes for diiferent ing terms such as roughing, etc.)ispatch ng
nsclor themes for diiferent ing terms such as roughing, etc.)

Gluing Soles

Chilling

ispatch ng nsclor themes for diiferent ing terms such as roughing, etc.)ispatch ng
nsclor themes for diiferent ing terms such as roughing, etc.)

Heat Setting

Placing Inner Socks

Cleaning and Polishing

Figure 5 Assembly section operations

2.5 Dispatch section


The final operations before the shoes are delivered to retails shops or customers are
done in the dispatch section. Figure 6 shows the dispatch section operations. The
total production output is measured just after the packing operation.

Quality Checking
g nsclor themes for diiferent ing
terms such as roughing, etc.)
Warehousing
Dispatch to Shops
Packing
Figure 6 Dispatch section operations

2.6 Input-transformation-output
model
According to the input-transformation-output model (Slack et al, 2010) the inputs and
outputs can be represented as shown in Table 2.

Table 2 Bata operations described in terms of their processes

Operation
Some of the operation's input
Some of the operation's processes
Some of the operation's output
Shoe manufacturing

Operators

Processing technology

Component preparation facilities

Stitching process

Assembling process

Source raw materials

Produce bottom components of shoes


Produce upper components of shoes

Produce inner lining of shoes

Sandals, leather shoes, tennis shoes, etc.

The process maps show the internal users and customers. They also show the
processes that added value or simply cost money. Figure 7 shows the process
chains and the internal and external customers for the Bata shoe factory (Bart-Jan
Hommes, 2004).

Stitching

Cutting

Bottom Prep

Assembling

Dispatch

Final deliverable shoes

EXTERNAL CUSTOMERS

INTERNAL CUSTOMERS

Figure 7 Process Chains and internal and external customers

2.7 Stakeholder Analysis


The Bata operations shown above are done in such a way that they contribute to
satisfaction of its stakeholders (Wild, 2002). This is espoused in Bata's mission and
vision statement in Figure 1. Table 3 shows a list of the stakeholders considered.

Table 3 Internal and External Stakeholders

Internal Stakeholders
No
External Stakeholders
No
Customers

Central Government

Investors

Local Government

Trustees

Government Agencies

Staff

Community

6
The stakeholders listed in Table 1 were mapped onto an Influence-Interest Grid (see
Figure 8) based on the level of their influence in the performance of Bata (Mitchell et
al, 1997).

4
1
5
6
2
3
High
INFLUENCE
Low
Low
INTEREST
HighKEEP SATISFIED
MANAGE CLOSELY
MONITOR
(MINIMUM EFFORT)
KEEP INFORMED
Figure 8 Influence/Interest Grid for Internal and External Stakeholders

Bata strives to meet and exceed its customer needs. The investors are made up of
the owners and other finance providers to the business. The government impacts on
the business through legislation such as tax and control of foreign currency
transactions. Bata runs a charity foundation which is at the heart of the business.
Bata takes its corporate responsibilities serious and it engages the community
through sponsoring sporting events, etc.

A discussion of relevant Operations


theory (make sure that you consider
other theory as well as TQM, and that
you demonstrate a critical approach
to the theory);
Various theoretical principles are described in this section. The section covers the
theory on four V's (Slack et al, 2010), the total design process (Pugh, 1991), Theory
of Constraints (Goldratt & Cox, 1984), Total Quality Management (Jablonski, 1992)
and performance objectives (Slack et al, 2010).

3.1 The Four V's Model


The four V's model describes the differences amongst operations processes (Slack
et al, 2010). The four V's are volume, variety, variation and visibility. Volume gives
the quantity of products or services produced by the operation. Variety gives the size
of the different types of products or services produced by the operation. Variation
gives a measure of the change in demand over time. Visibility gives a measure of
the contact frequency with customers.

3.2 Design Process


Pugh (1991) introduced the concept of total design which he defined as process
beginning with the identification of customers needs and then developing satisfiers
to meet those needs. The emphasis in the design process is to focus on the
customer needs throughout the process in order to ensure that the end result is
according to the specifications derived from the project brief based on customer
feedback. At the heart of total design is the bringing together of all aspects of the
design process thereby doing away with the previous ad hoc design process in
which some designers had no link with other designers or customers. Ignoring
customer needs and other design factors to do with resources of an organisation
can lead to commercial failures. Basically a design process can be represented in
six key stages as shown in Figure 9 (Pugh, 1991). The double arrowheads show
that the process is not strictly unidirectional but it can iterate as necessary in order
for the design to converge towards customer's needs.

Market

Specification

Design Brief

Concept Design

Detail Design

Manufacture

Sell

Figure 9 Stages in the Design Process


Customers are increasingly demanding higher quality shoes at lower costs and
places higher demands on the part of the likes of Bata. In order to cope with this
additional pressure cost and quality have to be designed into its shoe products. This
is achieved by adopting the concepts of design for manufacture and assembly
(Boothroyd, 1980). Design for manufacture and assembly involves changing designs
and assembly procedures and sequences in such a way that manufacturing and
assembling becomes easier (Gerhardt, 1991). A product with fewer components
takes less time to make thereby reducing manufacturing costs. If the features of the
components make them easy to handle during manufacturing this also reduces
manufacturing time and costs (Boothroyd, 1980).

3.3 Theory of Constraints


The Theory of Constraints (TOC) is a continuous improvement approach that can be
applied to any process (Goldratt & Cox, 1984). In the applying the TOC a bottleneck
is identified in a system and then solutions are developed to fix it and this is done in
a continuous fashion. Fixing of bottlenecks improves the performance of the system.
The TOC does not advocate for the optimisation of non-bottlenecks so as not to
create waste in the system. Figure 10 shows the various steps of the TOC. The TOC
approach involves identifying and focusing on the constraint and then follow it
through (focusedperformance.com, 2010).

Identify

Improve

Exploit

Elevate

Subordinate

Figure 10 Theory of Constraints (Goldratt & Cox, 1984)

3.4 Total Quality Management


Total quality management (TQM) is a management philosophy that ensures long
term prosperity of an organisation through adopting continuous improvement in all
facets of its operations (Jablonski, 1992). TQM ensures that all stakeholders (see
section on stakeholders) benefit from the organisation's operations (Chartered
Quality Institute, 2010). TQM goes beyond product quality, it also deals with the
attitudes, culture, practices, processes, systems, etc. Thus it deals with all functions
of an organisation such as finance, purchasing, marketing, distribution, etc. The
implementation of TQM requires that quality conformance is measure against well
defined specification. This ensures that a product or service is provided to a
particular design specification.

Figure 11 shows the interconnection of various parts of the TQM ecosystem. At the
heart of it is the customer-supplier interfaces. It also shows the importance of
communicating quality issues, commitment to quality and the role cultural changes
play in achieving and maintaining total quality.

Figure 11 Total Quality Management [Source: DTI, 2000]

3.5 Performance Objectives


This gives a measure of performance. Table 4 shows a list of objectives and
measures used to assess performance.

Table 4 Performance Management

Performance Objective
Some examples of the measures
Quality

Number of defects per pair of shoes

Amount of reworks

Amount of scraps

Number of customer returns

Speed
Order lead time

Delivery frequencies

Dependability

Measure of delivery rates

Proportion of shoes in stock

Flexibility

Range of shoe designs

Average batch size

Average capacity/ maximum capacity

Time to change schedules

Cost

Cost of reworks/ rejects

Deviation from budget

A comparison of the theory with the


practice;
4.1 The Four V's Model
Figure 14 shows a typology of Bata operations showing the four V's. The volume of
shoes produced is high due to the customer demands. A wide shoe variety caters for
demand of different styles by the customers. Variation is high to suit the different
seasonal demands and visibility is low since customer contact is very little.

Low

High
High

High

High

Low

Low

Low

Volume
Variety
Variation
Visibility
Figure12 A typology of Bata operations

High variety and high variation results in high unit costs. On the other hand, high
volume and low customer contact result in low unit costs. The positioning of the four
V's in Figure 12 is dictated by the nature of customer demands.

4.2 Design Process


The design process is done in an ad hoc manner at the Bata ladies fashion shoes
factory. The design office is situated at the main Bata factory which is in a different
town; this means the designers have to travel a lot to test their designs in the factory.
The front end of the design is done at the main factory. The concept of designing for
manufacturability and assembly is not in use (Boothroyd, 1980). This goes against
what Pugh (1991) advocated for through his concept of total designing in which all
aspects of the design process are integrated. The designers have very little contact
with the market thereby making the design process less customer-focused. The
concurrent engineering concept allows various tasks to be handled simultaneously
(Rosenblatt & Watson, 1991). This means bringing together designers and
production personnel together throughout the design process. Besides reducing time
to market for new products it reduces quality problems related to manufacturability.

4.3 Theory of Constraints


Constraints were identified in Figure 2, namely poor quality, equipment failure and
shortcomings on the part of management. These three factors all contribute to the
low productivity in the factory. The key constraint is poor quality which leads to a lot
of reworks, repairs and rejects. Once the key constraint (poor quality) is identified
then measures have to be taken to improve quality of work. Poor quality should be
the main focus of the factory and all the other constraints become subordinate to this
until the required standard has been achieved. Once this is done the next top
constraint should be identified and the same approach is repeated. The TOC speeds
up process improvement by eliminating waste in the system (Goldratt & Cox, 1984).

4.4 Total Quality Management


Figure 6 showing a quality control activity being carried out before shoes are packed
in boxes. At the end of the operations in Figures 3, 4 and 5 there are no quality
control activities. This shows that quality control is not prioritised. Materials are
passed from section to section without thorough checking. It is one thing having
quality control points and it is quite another to get the people involved in ensuring
high quality processes and products. There is general culture indifference to quality
and this explains why operators pass on and accept defective parts. There are
information boards with information on quality issues but the message does not
seem to reach the operators. As a concept TQM is not a way of life in Bata although
some parts of the organisation seem to have embraced it.

4.5 Performance Objectives


Figure 15 is a polar representation of performance objectives for Bata. It shows a
measure of the relative importance of performance objectives (Slack et al, 2010).
The closer the line is to the common origin the less important is the performance
objective to the operation. In this case it can be seen that all the objectives are very
important to the operations at Bata.
Cost

Flexibility

Dependability

Quality

Speed

Figure 13 Polar representation of performance objectives

Consideration of changes which will


improve quality and/or customer
focus; and
5.1 Range of quality
The TQM concept applies to all aspects of an organisation. Table 5 shows three
aspects of the manufacturing process, namely: quality of design, material and
products. Quality should be built in right from the designing stage right up to the
finishing stages of manufacturing.

Table 5 Range of quality

Quality of Design

Quality of Materials

Quality of Shoes

Design Quality Shoes

Production Quality Shoes

Planning Quality Processes

Buying Quality Material


Receiving and Inspecting Quality Material

Manufacturing Quality Parts and Shoes

Inspecting and Testing Quality Shoes

Delivering Quality Shoes

5.2 Processes
The designing process should focus more on the needs of the market and reduce
the range of designs to manageable levels consistent with the capacity and
resources of the manufacturing process. The narrowing of product range by
increasing customer focus in the designing process will ensure that quality problems
related to having too many changes in the setup of processes are eliminated. In
Figure 12 the variety and variation dimensions are associated with high costs; if
shoe range is narrowed these will move to left of the typology indicating lower
process costs. From the cutting section to the sewing section work is moved in small
boxes with no outside labels with information on the batch. Labels are found on the
components which are bundled together using rubber bands. Time is wasted
checking boxes between shifts.

5.3 People
Finished shoes are checked before they are boxed (see Figure 6). There are no
other points within the process at which components are checked. Besides
individual operators are not required to inspect any work they handle and they are
not accountable to anyone for poor quality work. This means they can work on
defective components resulting in increased costs due to material losses and labour
costs. The culture of indifference to quality issues need to be addressed. The
operators don't see the link between the work they do and the resulting defects
detected in finished shoes.

5.4 Systems
Design for manufacture and assembly (DFMA) can drastically reduce costs and
improve quality through reduction of reworks, repairs and rejects. Concurrent
engineering principles could be adopted thereby bringing together designers and
production personnel during the design stages. This allows the latter to inform the
former about issues to do with production capacities and capabilities. Designers
would bring their knowledge of using appropriate fixtures and tooling so as to reduce
manufacturing costs. A customer-focused system can be created by linking key
business processes and continuous improvement projects. It is critical to have
information management system that allows documentation, measurements,
monitoring, and controlling of processes (Wurtzel, 2006).

5.5 Continuous improvement


The Deming Cycle is a four-step iterative process for managing changes in an
organisation (Deming, 1986). It is not a one off process but a continued and
sustained effort to drive continuous improvement within an organisation. The
Deming Cycle as shown in Figure 14 involves the setting of quality goals and
targets, implementing the changes, checking results against goals and targets and
acting accordingly. The Deming Cycle provides a useful tool for implementing TQM
in the Bata factory. It provides a platform for perpetual learning and continual
change. The Deming Cycle and the TQM ecosystem shown in Figure 11 provide a
framework for effectively and efficiently implementing and maintaining TQM.

Figure 14 The Plan-Do-Study-Act [Deming, 1986]

5.6 Customer Focus


Bata can become more customer-focused by having a greater understanding of
customer needs. These needs form the basis of what quality of shoes they want and
expect from Bata. Shoes designed and produced according to customer needs are
deemed to be quality shoes. The 'eight dimensions of product quality' (Garvin, 1987)
show that there are various quality attributes that can be used to appraise quality
(see Table 6). There are implicit customer requirements that can only be captured
via the 'eight dimensions of product quality' since they go beyond the explicit needs
found in a basic quality pair of shoes. These include reliability aesthetics
performance and durability.

Table 6 The Eight Dimensions of Product Quality

DIMENSION
EXAMPLE
1.
Performance
Durable, comfortable, warm, waterproof, breathable

2.
Features
Lace up, high heeled, Velcro, canvas, athletic, sports

3.
Reliability
Stress tests used in design stage

4.
Conformance
Bata offers different sizes for both men and women and also produce orthopaedic
shoes for disabled people

5.
Durability
Shoes are tested using standard international tests [1]

6.
Serviceability
Bata runs a defective shoes returns policy

7.
Aesthetics
Bata offered different upper finishes e.g. crocodile, nubuck, pig

8.
Perceived Quality
Bata brands e.g. Marie Claire, Weinbrenner, North Star, Power

5.7 Technology and Manpower


Equipment failure and absenteeism also have an effect on productivity (see Figure
2). These have also been identified as constraints by the Theory of Constraints. The
Zimbabwean economy has improved immensely after the dollarisation of the
economy (Editor, 2010). This should allow investment in machinery since there is no
more foreign currency limit on capital investments. Absenteeism is mainly caused by
the Aids disease. Some companies have Aids workplace intervention programmes in
which employees are encouraged to be counseled, tested and treated at work
(SWHAP, 2010).
Recommendations as to how the
process(es) could be improved.
6.1 Deming Cycle (Plan-Do-Study-Act)
The Deming cycle is a useful tool in process improvement. It is crucial to develop a
plan to manage the required changes. It is important to first identify and understand
the problem(s) that need to be addressed (Deming, 1986). The Ishakawa diagram in
Figure 2 helps to define what the problem is and what processes to focus on
(Ishakawa, 1990). The plan should be carried out initially on a small scale until the
concept is proven before it is rolled out to cover all relevant areas. All observations
should be documented for later analysis. The observations and feedback should be
analysed and all data should be compared to predictions. The results should be
acted upon. Some parts of the plan might need to be changed. If the plan is
successful it should then be rolled out and the changes should be permanent
pending a future review.

6.2 Processes
The variety and variation dimensions of the four V's should be reviewed so as to
optimise them with a view to improve quality, reduce manufacturing costs and meet
productivity targets.

Labels should be put on the outside of boxes containing work-in-progress in order to


reduce set-up times and improve the flow of work

Quality check points should be set up at the end of each section. This prevents
defective components being passed on to other sections. Various points should be
identified within each section at which spot checks should be carried out randomly to
ensure quality standards are being adhered to.

Bata should benchmark its processes against industry standards.

Some operations have to be scheduled to run overtime in order to stem bottlenecks.


A proper scheduling involving advice from machine repairers should be done on
those machines prone to breakdowns
6.3 People
Each individual employee should be responsible for the quality of their work and
they should not accept or pass on defective work.

There is need for a cultural shift towards continuous improvement. Management


should ensure that there is a buy in from all stakeholders in order to achieve the
changes required.

It is important that the message of quality is communicated clearly, unequivocally


and consistently. Training should be an integral part of workforce development
programmes.

An Aids workplace intervention programme should be run at the factory in order to


stem absenteeism caused by the Aids pandemic. Flexible working patterns could
also be implemented

6.4 Systems
The following concepts should be adopted in order to reduce costs and improve
quality: design for manufacture and assembly, total design process and concurrent
engineering.

A customer-focused system should be created by linking key business processes


and continuous improvement projects

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