Submitted To:

Professor Maarif Sohail

Submitted By:

Muhammad Ahmed L1F09MBAM0059

Muzzammil Qadeer L1S09MBAM2046

Umair Fida L1S09MBAM2058

M.Asif L1S09MBAM0169

Saim Aziz L1S09MBAM0073

Operation Management Project on BATA 2011

Table of ContentsVision...........................................................................................................................................................3

Mission........................................................................................................................................................3

Profile of the Company................................................................................................................................4

Bata Today...................................................................................................................................................5

Bata’s Business Units...................................................................................................................................5

Bata Business:..............................................................................................................................................6

Manufacturing:........................................................................................................................................6

Wholesaling:............................................................................................................................................6

Retailing:..................................................................................................................................................6

Production:..................................................................................................................................................7

Bata Pakistan Limited:.............................................................................................................................7

Strategy:......................................................................................................................................................7

Order Qualifier:.......................................................................................................................................7

Quality based Strategies:.........................................................................................................................7

Time based Strategies:............................................................................................................................7

Forecasting:.................................................................................................................................................8

Timely:.....................................................................................................................................................8

Reliable:...................................................................................................................................................8

Accurate:.................................................................................................................................................8

Meaningful:.............................................................................................................................................8

Written:...................................................................................................................................................82

Operation Management Project on BATA 2011

Easy to use:..............................................................................................................................................9

Product Design:...........................................................................................................................................9

Process and Capacity Design:......................................................................................................................9

Design Capacity:......................................................................................................................................9

Actual Output:.........................................................................................................................................9

Process:...................................................................................................................................................9

Manufacturing:......................................................................................................................................10

Stitching:................................................................................................................................................10

Finishing:...............................................................................................................................................10

Facilities Layout:........................................................................................................................................10

Work System:............................................................................................................................................10

Transportation:..........................................................................................................................................11

Aggregate planning:..................................................................................................................................11

Proactive:...............................................................................................................................................11

Reactive:................................................................................................................................................11

Mixed:....................................................................................................................................................11

Inventory management:............................................................................................................................12

JIT/Lean manufacturing:............................................................................................................................12

Supply Chain Management:.......................................................................................................................12

City Store:..............................................................................................................................................13

Waiting Lines:............................................................................................................................................13

Recommendations:....................................................................................................................................13

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Operation Management Project on BATA 2011

References:................................................................................................................................................13

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Operation Management Project on BATA 2011

VisionTo be successful as the most dynamic, flexible and market responsive organization, with

footwear as its core business.

MissionTo 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.

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Operation Management Project on BATA 2011

Profile of the Company

The Bata Shoe Organization was established on August 24, 1894 in Zlin, Czechoslovakia by Tomas Bata with the partner his brother Antonin and sister Anna. Although this business was new, the Bata name had been part of a tradition of shoemaking for eight generations, spanning three hundred years. It was one of the first modern day shoe ‘manufacturers’ , a team of snitchers and shoemakers creating footwear not just for the local town , but also for the distant retail merchants. This departure from the centuries old tradition of the one man cobbler’s workshop was a brand new concept, creating an entirely new industry. The Bata enterprise revolutionized the treatment of employees and labor conditions. Tomas consistently maintained a human focus, creating opportunities for development and advancement, and added compensation for employees based on achievement.

Antonin was drafted into the army for compulsory military service and lift family shoe business. Anna left the company to marry, leaving a young Tomas to build the business on his own.

By 1905 Tomas had taken the new enterprise to 2200 pairs of shoes per day, produced by 250 employees – utilizing resourceful imaginations, skilled hands and modern machinery to keep up with demand. Under this ‘manufacturing’ system, productivity was greater than even before.

Bata shoes were excellent quality and available in more styles than had been offered before. Demand grew rapidly in the early 1900s. Despite material and manpower shortages, cartel and the outbreak of World War 1, sales continued to increase, reaching two million pairs per year by 1917.

Bata already exporting to other European countries, Northern Africa and the USA, the enterprise began establishing new sales organizations in these markets during the 1920s. Companies were opened in Poland, Yugoslavia, Holland, Denmark, United Kingdom and the USA.

By the early 1930s, the Bata enterprise and Czechoslovakia were the world’s leading footwear exporters. “The Bata System” devised by the Zlin team, and later applied in other Bata Show Organization companies, organized operations into autonomous workshops and

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Operation Management Project on BATA 2011

departments, allowing employees to contribute ideas and stimulate production, and contributed significant breakthroughs in footwear technology.

Bata Today

Serves 1 million customers per day Employs more than 40,000 people Operates 5000 retail stores Manages a retail presence in over 50 countries Runs 40 production facilities across 26 countries

Bata’s Business Units

Bata Europe, Lausanne Bata Asia Pacific-Africa, Singapore Bata Latin America, Mexico Bata North America, Toronto

Bata is one of the world leading footwear retailer and manufacturer with operations across 5 continents managed by 4 regional meaningful business units (MBUs). The MBU approach provides quality resources and support in key areas to the companies operating in similar markets such as product development, sourcing or marketing support. Each MBU is entrepreneurial in nature, and can quickly adapt to changes in the market place and seize potential growth opportunities

Bata's strength lies in its worldwide presence. While local companies are self-governing, each one benefits from its link to the international organization for back-office systems, product innovations and sourcing. Although Bata operates in a wide variety of markets, climates and buying power Bata companies share the same leadership points. Two important ones are product concept development and constant improvement of business processes in order to offer customers great value and the best possible service.

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Operation Management Project on BATA 2011

Bata Business:

Bata shoe Organization companies are involved in every face of the business of shoes. Throughout the world, Bata companies service customers from the store sales floor to the factory floor.

Manufacturing:

Tomas Bata’s revolutionary business concept was to industrialize the shoemaking process of that day. That type of thinking has been the driving force behind the Bata Shoe Organization success. The Bata Shoe Organization has been as innovator in the manufacturing of shoes over the years. Bata personnel have made important advances in DVP (Direct Vulcanization Process), PVC, athletic footwear production and slush – molded footwear production.

Wholesaling:

The Bata Shoe Organization enjoys a unique position in the wholesale marketplace. Global economics of scale enable BSO plants to offer quality products at local process, with many operating at ISO standards, Bata Shoe Organization production facilities are world renowned for their commitment to quality and customers, and have attracted production contracts from many international footwear brands.

Retailing:

Bata Shoe Organization companies have built successful retail store concept to satisfy changing customer tastes and needs. Each store features merchandise targeted to different lifestyles and people. The merchandise ranges from footwear to clothing and goods complementing shoe offerings. Sensitivity to and satisfaction of customer wants and needs has allowed the Bata Shoe Organization (BSO) to become a world leader footwear.

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Operation Management Project on BATA 2011

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Production:

Bata Pakistan Limited:

Bata Pakistan Ltd was formed in Pakistan in 1952. It was a newly growing concern all over the world but in Pakistan it was established its fleet with in very short time. It was very tough decision for the Bata International to start its business in a country that was newly established. But Bata’s decision was quite right because there was not so tough competition in Pakistan at that time which helped them to make their foot more strong. Now Bata Pakistan is not only providing the quality shoe with in Pakistan but is also exporting its major portion of production all over the world. Within the country Bata is facing the competition with Service Industries Ltd and other private companies. According to the survey almost 89 % of the market is covered by the other organizations and 6 % by Service and 5 % by the Bata Pakistan Ltd. [1]

Strategy:

Bata use the strategy consistent with organization strategy and provide guide line to operations function. Bata following the strategy as given.

Order Qualifier:Bata is an order qualifier product among different brands of shoes. Bata maintain its

brand on its quality products. According to the survey 5% of the market is covered by Bata, 6% by service and 89% by other brands.

Quality based Strategies:Bata focuses on maintaining and improving the quality of its products offering to its

customer. Customer response gets through feedback.

Time based Strategies:Bata focuses in reduction of time required to accomplish the task in given period of time.

So that the product designs come on time and up to date.

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Operation Management Project on BATA 2011

Forecasting:

Forecasting is looking for the future demand of the products. Forecast based on the past data. Previous data is used as base year data and identify the upcoming demand of the product. Bata uses the following elements in forecast.

Timely

Reliable

Accurate

Meaningful

Written

Easy to use

Timely:Bata start its forecast before finishing of the season. It helps them to understand the trend

of the customer. Timely forecast able Bata to meet its objectives.

Reliable:The forecast should be reliable. There is a chance of error but the error percentage is very

low. It is almost neglectable.

Accurate:The forecast show accuracy in its calculations.

Meaningful:The forecast has a meaningful result on the organization.

Written:The forecast in written form so that it keep as a record and use occasionally.

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Operation Management Project on BATA 2011

Easy to use:The forecast technique easy to use, it is not complicated.

Product Design:

Bata select its product designs according to its customer needs. It continuous bringing changes as the customers’ demand f or new products. They are using the latest equipment and machinery to meet the customers demand and to provide them the product they need.

This milestone in production has been a result of restructuring of Maraca and Rubber Factories. A better production planning, maximum utilization of human resources and teamwork all have been put together strategically to achieve competitive advantage in “Bata” products over the competition in the area of quality, prices and sales appeal.

Process and Capacity Design:

Capacity is the upper limit of the load that an operating unit can handle. There are three types of capacity.

Design Capacity:It is the maximum capacity of an operation process designed for.

Actual Output:It is actual amount of production level of the organization.

Process:The way of producing of products. Process selection varies on the production of products.

These products may be batch and continuous. Bata follows the product layout from unit one to the next unit while working on the same shoes.

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Operation Management Project on BATA 2011

Bata process consists of three parts.

Manufacturing:All the raw material put together and cut it into the required shape. All the pieces are cut

here for the specific products.

Stitching:The raw materials are stitched together in a given shape. The upper and lower parts are

stitched here.

Finishing:The product is forward to the finishing department. The rough shoe is converted into finished product. The shoe is polished, cleaned and ready for sale.

Facilities Layout:

Bata facilitate its employees at factory by giving them handsome salary, bonuses and incentives on the accomplishment of their production task. Bata provides the basic requirement of the working condition such as safety guards, light, air and electricity.

Bata facilitate their customers by giving them best customer service on the spot. Bata gives discount to their customer on the specific products. Bata has a special shop known as factory outlet on which you get discounted products.

Work System:

Bata’s job design involves specifying the content and method of doing job. Bata design work system on the basis of specialization, behavioral approaches, and teams. Bata give job on the basis of specialization in that particular field, while performing job Bata keep rotating its employees to other post in order for job enrichment and enlargement.

Bata measures the work by giving task to each employee to accomplish task in given frame of time. Bata keeps eye on their employee to accomplish the required demand of the shoes.

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Operation Management Project on BATA 2011

Transportation:

Bata transport their goods through outsourcing. It enables to reduce in cost. Transportation Company takes the goods from the warehouse and delivers to the outlet.

Aggregate planning:

The aggregate planning of the Bata is the long term planning and capacity. Aggregate planning required workforce, facilities, demand forecast, policies and costs of the inventory. Its output is in the shape of total cost plan, projected inventory levels of the Bata Shoes.

There are three aggregate planning strategies used by Bata Shoe Corporation.

Proactive

Reactive

Mixed

Proactive:In this way demand is altered in to capacity of the production level. The demand is taken

as the maximum output level of the organization productivity.

Reactive:In this way capacity is altered as demand of the products. The maximum output levels of

the machine are taken as demand of the products.

Mixed:Mixed contain both of proactive and reactive.

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Operation Management Project on BATA 2011

Inventory management:

Bata uses independent demand to control the inventory system of the organization. Bata purchased raw material and transferred them into finished goods, but some goods are not fully completed. It keeps work in process to be completed. These final goods transfer to the distributor, whole seller, and retailer to the final consumer.

Bata maintain a specific amount of inventory at shelf. Bata do not want to be out of stock at anytime. They keep a limit of inventory at hand, not to disappoint their customers. Bata uses Economic order Quantity to maintain the level of inventory and reduce per unit cost of the product.

JIT/Lean manufacturing:A highly coordination of process in which goods moves through the system and performed services as they needed. JIT concept help in reducing the wasting of materials, overproduction, processing waste, product defects. Bata gives order on the basis of seasonal products.

Bata believes in just in time concept in order to avoid the holding cost. Bata have small outlets they keep a limit of inventory with them. They keep perpetual inventory system to calculate the remaining inventory.

Supply Chain Management:

Bata is using its raw materials from his different suppliers. Some of the suppliers are local while some are from Indonesia. Along with their own production, they are also out sourcing for some of their products. They are keeping a check on the quality of the products from outsourcing and using their own brand name.

The raw material coming from their suppliers are stored in the warehouses. These raw materials are then moved to the production area, where the production is being done and the finished good are moved towards warehouse again for storage after proper quality inspection. They are their own distributers and they have their own stores all over Pakistan. They have four types of store concepts. [1]

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City Store:

The Bata City Store gives you unique shopping experience as it showcases the latest collections for footwear of local and international brands. The store ambience is designed to create a lifestyle store that reflects and responds to your needs and expectations. The Bata City stores are located in top shopping malls in big city centers.

Waiting Lines:

The waiting lines are the area for the product or service to be taken. Bata follows the service capacity costs. There are more employees for the customer to take care of them. Each employee looking for the better service for the customer. Bata builds customer loyalty on this basis.

Recommendations:

There are following recommendations suggested by their customers.

The outlet should be vast and well located.

The outlet has proper interior and parking space.

Advertisement of the products through proper channel.

Advertised through well known artists.

Shoes should be fashionable.

Shoes are based on new styles and leather.

References:[1] ww.google.com.pk/search?hl=en&biw=1280&bih=634&gbv=2&q=bata+project+on+operation+managment&oq=bata+project+on+operation+managment&aq=f&aqi=&aql=&gs_sm=e&gs_upl=128l8115l0l25l25l0l19l0l0l489l941l4-

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