HAZARA UNIVERSITY HARIPUR CAMPUS

ASSIGNMENT Operations Management of Bata Pakistan Limited

Subbmited to Sir sheraz awan

Prepared by Muhammad Rizwan Haider Ali Minhas Azhar Ali khan Wamik ALI 2218-HRP

BRIEF HISTORY OF THE COMPANY

The business that became the Bata Shoe Organization was established on August 24, 1894 in Zlin, Czechoslovakia by Tomas Bata, and included 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 cobblers 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. In late 1985. Antonin was drafted into the army for compulsory military service and lift family shoe business. Also that year, 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. As the enterprise prospered, so did the communities where it operated, Tomas believed that a focus on people and public service was critical for business success. The enterprise built housing, schools and a hospital near the shoemaking plant in Zlin. It provided food and inexpensive rent during very difficult times; when there was no help

to be found. Bata companies alter provided rail services, construction, insurance, publishing and tannery in Zlin. Following World War 1, consumer purchasing power was very low; Tomas and his employees devised a plan to adjust to post-war economic difficulties and reduced their shoe prices. Bata stores were flooded with buyers and industry cynics were forced to follow their lead. 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 worlds 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 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

BATAS 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.

Marie Claire Hush Puppies Power Bubble Gummers North Star Scholl Weinbrenner Bata Comfort

Bata has various brand lines in order to satisfy the various segments of market. All the above mentioned brands are devoted to make best quality of shoes for the particular segments they are assigned.

PRODUCT DESIGN
They select their product designs according to their customer needs. And they are continuously bringing changes as the customers demands for new products. They are using the latest equipment and machinery to meet the customers demand and to provide them the product they need. Bata Pakistans Production Division is going extra miles to meet ever growing production requirements of PU direct pouring and other footwear to cater the needs of our worthy customers. During the current season, the overall production is going 120% against estimates and 130% against last year. Similarly in the area of PU direct pouring, 123% production has been achieved against the estimates and 204% against last year. This milestone in production has been a result of restructuring of Maraka 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.

QUALITY MANAGEMENT

An important choice A choice of more than 3,000 items: footwear, clothing, bags and accessories, for men, women, children and sports. A very personal service Their professional specialized staff is there to help you make the best choice Product presentation All the items are clearly marked with the price, size and description of the materials used to make the product, thus saving you time and making your choice easier. Your purchase is guaranteed You have the guarantee to replace the purchased item if it is still intact and accompanied by the till receipt

PROCESS AND CAPACITY DESIGN

Their process consists of three parts. Manufacturing

In manufacturing are, all the raw materials are brought together and the raw material is cut into the shapes of the required products. All the pieces are cut here for the specific products. Stitching

The cut pieces of raw material are stitched here together to give the shape of the shoe. The sole is also attached to the upper portion of the shoe and all the pieces are joined together to give it the shape of shoe.

Finishing

The product is then moved to finishing department where the rough look of shoe is converted in to a finished product. The shoe is polished, cleaned and all the unwanted materials are removed from it to give it a proper shape. The color and shine of the shoes are finalized here and the product coming out of this department is ready for use.

FACILITY LOCATION
The manufacturing plant of Bata shoes Pakistan is located near Lahore in Batapur, near the canal road Lahore. The location at this area has made the transportation quite easy. The raw material is easy to transport and the finished products are easily supplied to the retail stores and distributors.

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.

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.

Family store Bata is the world's leading family chain thanks to the wide assortment of every fashion footwear available in our stores. The products are primarily the Bata brand, with a carefully selected assortment of articles from both local and international brands.

Superstore Bata Superstore offers a wide assortment of fashion, casual and athletic for the entire family. Located primarily in urban and suburban shopping center, these spacious stores offer the best value by providing good quality shoes at great prices. Service is fast thanks to a self-selection shopping environment with qualified staff to serve and assist.

Factory store Factory stores are the largest and the most value-oriented stores of our retail chain. They are ideally located in power centers, commercial parks and outlet centers with easy parking facilities. The product selection offers more than 1,000 styles of ladies, men, children and sport shoes with related accessories and apparel sold at attractive price points. It is based on a self-service concept with helpful staff available for service at any time.

Prices S U P P L I E R S S U P P L I E S P R O D U C T S C U S T O M E R S

Wo r k Un i t

Financials

It appears to me that Bata was very far in the direction of micro managing. I do not believe he would have been much fun to work for. But it would have been a rewarding experience, not just from the point of view of finances, but rather like having a very demanding teacher. You do not enjoy the experience at the time but you look back on the experience with a certain fondness. You realize that you grew under the stress; that you were stretched and it was good for you.

Bata tried to make the need for such micro-management less by the way he developed his system for setting pay and rewards. He said: "I was seeking a method which would work automatically as the sun rises and the sun sets." He wanted to wind the company up and then let it run without his attention.

In this system, every work unit was engaged in 'buying' and 'selling' goods and services to and from other work units. The prices were established by a central accounting office and were not negotiable. The 'customer' for the product or service dictated the quality and schedule. Naturally the setting of these prices was subjected to considerable discussion and debate. However, all of the facts and figures used in setting the prices were available to the work unit so they had a basis for their side of the debate. The prices were set with due regard for prices of similar products which might be available on the open market. Work units were not constrained to buy only from within the company.

What made the Bata system different from other methods of cost accounting was the agreement that if the workers could devise an improved method, which reduced waste, improved times of delivery and produced a profit beyond expectations, the workers could share in this profit. In other words, Bata produced a system which encouraged each work unit to become more entrepreneurial.

Bata had a larger purpose. He intended for each worker to become much more conscious of the economics of the factory, to relate the results of the enterprise to his own fortunes and to become a more responsible guardian of wealth. For Bata the system of internal transacting was more than a way to run the company; it was a way to train people to become fiscally responsible in their own lives.