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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.
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.
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.
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
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.
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.
Bata brands[edit]
Bata Store Wenceslas Square inPrague, Czech Republic - 2005
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.
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.
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.
Cutting
Stitching
Bottoms
Assembly
Dispatch
Check status of cutting devices before beginning of shift
Bottlenecks
Technology
Management
LOW PRODUCTIVITY
Poor Quality
Figure 2 Fishbone diagram for Bata shoe factory
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.
Upper Marking
Upper Cutting
Stitching Outer Uppersg nsclor themes for diiferent ing terms such as roughing, etc.)
Hand Stitching
Thread
Clipping
Shoe Lasting
Roughing
Gluing Uppers
Heel Lasting
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
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.
Operation
Some of the operation's input
Some of the operation's processes
Some of the operation's output
Shoe manufacturing
Operators
Processing technology
Stitching process
Assembling process
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
EXTERNAL CUSTOMERS
INTERNAL CUSTOMERS
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.
Market
Specification
Design Brief
Concept Design
Detail Design
Manufacture
Sell
Identify
Improve
Exploit
Elevate
Subordinate
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.
Performance Objective
Some examples of the measures
Quality
Amount of reworks
Amount of scraps
Speed
Order lead time
Delivery frequencies
Dependability
Flexibility
Cost
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.
Flexibility
Dependability
Quality
Speed
Quality of Design
Quality of Materials
Quality of 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).
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
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.
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.
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.
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