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Chitika

3/11/2012

World's leading footwear


Bata is one of the world's leading footwear retailers and manufacturers with operations across 5 countries managed by 5 continents managed by 4 regional commercial business units (CBUs). 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..  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 best possible service.
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1.1 Company overview:
Bata Ltd. is a privately owned global shoe manufacturer and retailer headquartered in Ontario, Canada. The company is led by a third generation of the Bata family. With operations in 68 countries, Bata is organized into four business units. Bata Canada, based in Toronto, serves the Canadian market with 250 stores. Based in Paris, Bata Europe serves the European market with 500 stores. With supervision located in Singapore, Bata International boasts 3,000 stores to serve markets in Africa, the Pacific, and Asia, Finally, Bata Latin America, operating out of Mexico City, sells footwear throughout Latin America. All told, Bata owns more than 4,700 retail stores and 46 production facilities. Total employment for the company exceeds 50,000.
Bata Bangladesh is affiliated to the Bata Shoe Organization, the world's largest footwear manufacturing and marketing organization. Started operation in Bangladesh in 1962, Incorporation in Bangladesh in 1972. Currently, Bata Bangladesh operates 2 manufacturing plant Tongi and Dhamrai, Bata Bangladesh is producing around 110,000 pairs of shoes daily. It has a modern tannery with the latest technological facilities to process 5 million square feet of leather yearly.
Address:

Bata Shoe Company (Bangladesh) Ltd.
Tongi, Gazipur. Bangladesh.
Tel: +880 2 9800501-5
Fax: +880 2 9800511

Key Dates:
1894: The Bata family establishes a company in Zlin, located in what is now the Czech Republic.
1932: Founder Tomas Bata dies in an airplane accident.
1939: The Company relocates to Canada after the movement of German military forces into Eastern Europe.
1945: Czechoslovakia business operations are nationalized by the new communist government following World War II.
1991: Bata returns to the Czech Republic following fall of the communist regime.
1994: Thomas J. Bata, the son of the company's founder, retires.
1962: Started in Bangladesh.
2001: Thomas J. Bata, Jr., becomes chairman and CEO.

Vision:
The vision of this company is to become the front ranking multiple shoes company in the world.
Mission:
The Bata Environmental Mission Statement is:
·          To protect our people, Customers and communities.
·          To protect our natural environment in order to help sustain human development.
  • International guidelines have been developed in the areas of environment, health and safety.
Goal:
  • Provide right products to the consumer,
  • Provide high quality consumer service’
  • Input high quality product
                                                                                                                                                    Objective:
Broad Objective:
·         To identify the TQM in the organization
·         How it is important in terms of quality improvement of product
·         The different between value chain application with and traditional quality control
·         Why Organization follow Total Quality Management process?
·         What is the different between the theory and practice of TQM  in the real picture
Specific objective:
·         To analyze the real practice of TQM in terms of product quality development.
·         To identify the TQM technique of Bata shoe company
·         To analyze the development phrase of Bata shoe company.

1.3 Scope:
In my report, I discuss about Total Quality Management system at Bata Shoe Company. So, my report capacity is belongs to the Total Quality Management system at Bata Shoe Company
1.4 Limitation of the report:
Every organization has some own secrecy, which cannot be & should not be disclosing to an outsider. So I had some limitations to enter in to the affairs of the company in depth. The limitations are-
  • Lack of information
Information on which is so important for prepare a report. The main limitation of our making report is lack of information. The limited sources of secondary information & the controlled accessibility caused difficulty in getting the confidential information.
  • Lack of time
My course duration is in limit time. In this short time we cannot prepare our report properly because we cannot visit the branches of Bata Shoe Company.
  • Lack of professional knowledge
As a student I am not professional about such type of task. For lack of professional knowledge I cannot make my report properly.
1.5 Purpose of the report
The main purpose of this report is to know about The Total Quality Management System of Bata Shoe Company, there activities, objectives, instrument and so on

2 Methodology
Normally there are two sources for gathering information’s-
  • Primary Sources- that information’s are not exist in somewhere.
  • Secondary Sources- that information’s are exist in somewhere.



For preparing this paper, I used Secondary data collection method. I have collected many of the data through secondary sources while preparing our report. I applied secondary resources to gather information’s including:
ð  Internet
ð  Library source 
ð  Production and Operation Management books 
ð  The magazine published by the organization
ð  Organization web sites.

3 Theoretical Reviews

3.1  Quality
Defining Quality – 5 Ways
Conformance to specifications: Does product/service meet targets and tolerances defined by designers?
·         Fitness for use: Evaluates performance for intended use
·         Value for price paid: Evaluation of usefulness vs. price paid
·         Support services: Quality of support after sale
·         Psychological: e.g.  Ambiance, prestige, friendly staff

3.2  Cost of Quality
·         Quality affects all aspects of the organization
·         Quality has dramatic cost implications of;
o   Quality control costs
§  Prevention costs
§  Appraisal costs

o   Quality failure costs
§  Internal failure costs
§  External failure costs






3.3 Total Quality Management
Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices.
Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations.
Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.
3.4 TQM Defined
TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.
TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, which include:
  • Commitment by senior management and all employees
  • Meeting customer requirements
  • Reducing development cycle times
  • Just In Time/Demand Flow Manufacturing
  • Improvement teams
  • Reducing product and service costs
  • Systems to facilitate improvement
  • Line Management ownership
  • Employee involvement and empowerment
  • Recognition and celebration
  • Challenging quantified goals and benchmarking
  • Focus on processes / improvement plans
  • Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.
3.5  Principles of TQM
The key principles of TQM are as following:
3.5.1        Management Commitment
  • Plan (drive, direct)
  • Do (deploy, support, participate)
  • Check (review)
  • Act (recognize, communicate, revise)
3.5.2 Employee Empowerment
  • Training
  • Suggestion scheme
  • Measurement and recognition
  • Excellence teams
3.5.3 Fact Based Decision Making
  • SPC (statistical process control)
  • DOE, FMEA
  • The 7 statistical tools
  • TOPS (FORD 8D - Team Oriented Problem Solving)
3.5.4 Continuous Improvement
  • Systematic measurement and focus on CONQ
  • Excellence teams
  • Cross-functional process management
  • Attain, maintain, improve standards
3.5.5 Customer Focus
  • Supplier partnership
  • Service relationship with internal customers
  • Never compromise quality
  • Customer driven standards
3.6  The Concept of Continuous Improvement by TQM
TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and decision-making, to detailed execution of work elements on the shop floor. It stems from the belief that mistakes can be avoided and defects can be prevented. It leads to continuously improving results, in all aspects of work, as a result of continuously improving capabilities, people, process technology and machine capabilities.
Continuous improvement must deal not only with improving results, but more importantly with improving capabilities to produce better results in the future. The five major areas of focus for capability improvement are demand generation, supply generation, technology, operations and people capability.
A central principle of TQM is that mistakes may be made by people, but most of them are caused, or at least permitted, by faulty systems and processes. This means that the root cause of such mistakes can be identified and eliminated, and repetition can be prevented by changing the process.
There are three major mechanisms of prevention:
  1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-Yoke).
  2. Where mistakes can't be absolutely prevented, detecting them early to prevent them being passed down the value added chain (Inspection at source or by the next operation).
  3. Where mistakes recur, stopping production until the process can be corrected, to prevent the production of more defects. (Stop in time).
Seven concept of effective TQM program
3.6.1        Continuous improvement
Another concept of the TQM philosophy is the focus on continuous improvement. Traditional systems operated on the assumption that once a company achieved ascertains level of quality, it was successful and needed no further improvements.
The Plan–Do–Study–Act Cycle The plan–do–study–act (PDSA) cycle describes the activities
a company needs to perform in order to incorporate continuous improvement in its operation.
This cycle, shown in Figure 5-6 is also referred to as the Shewhart cycle or the Deming wheel. The circular nature of this cycle shows that continuous improvement is a never-ending process. Let’s look at the specific steps in the cycle.

·         Plan The first step in the PDSA cycle is to plan. Managers must evaluate the current process and make plans based on any problems they find. They need to document all current procedures, collect data, and identify problems. This information should then be studied and used to develop a plan for improvement as well as specific measures to evaluate performance.
·         Do the next step in the cycle is implementing the plan (do). During the implementation process managers should document all changes made and collect data for evaluation.
·         Study The third step is to study the data collected in the previous phase. The data are evaluated to see whether the plan is achieving the goals established in the plan phase.
·         Act the last phase of the cycle is to act on the basis of the results of the first three phases. The best way to accomplish this is to communicate the results to other members in the company and then implement the new procedure if it has been successful. Note that this is a cycle; the next step is to plan again. After we have acted, we need to continue evaluating the process, planning, and repeating the cycle again.

3.6.2        Six Sigma
The term "Six Sigma" comes from a field of statistics known as process capability studies. Originally, it referred to the ability of manufacturing processes to produce a very high proportion of output within specification. Processes that operate with "six sigma quality" over the short term are assumed to produce long-term defect levels below 3.4 defects per million opportunities (DPMO). Six Sigma's implicit goal is to improve all processes to that level of quality or better.
Methods
Six Sigma projects follow two project methodologies inspired by Deming's Plan-Do-Check-Act Cycle. These methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV.
·         DMAIC is used for projects aimed at improving an existing business process. DMADV is used for projects aimed at creating new product or process designs.
DMAIC
The DMAIC project methodology has five phases:
·         Define the problem, the voice of the customer, and the project goals, specifically.
·         Measure key aspects of the current process and collect relevant data.
·         Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.
·         Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability.
·         Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards , visual workplaces, and continuously monitor the process
 DMADV or DFSS
The DMADV project methodology, also known as DFSS ("Design for Six Sigma"), features five phases:
  • Define design goals that are consistent with customer demands and the enterprise strategy.
  • Measure and identify CTQs (characteristics that are Critical to Quality), product capabilities, production process capability, and risks.
  • Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.
  • Design details, optimize the design, and plan for design verification. This phase may require simulations.
  • Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s)

3.6.3        Employee Empowerment

Part of the TQM philosophy is to empower all employees to seek out quality problems and correct them. With the old concept of quality, employees were afraid to identify problems for fear that they would be reprimanded. Often poor quality was passed on to someone else, in order to make it “someone else’s problem.” The new concept of quality, TQM, provides incentives for employees to identify quality problems. Employees are rewarded for uncovering quality problems, not punished. In TQM, the role of employees is very different from what it was in traditional systems. Workers are empowered to make decisions relative to quality in the production process. They are considered a vital element of the effort to achieve high quality. Their contributions are highly valued, and their suggestions are implemented. In order to perform this function, employees are given continual and extensive training in quality measurement tools. To further stress the role of employees in quality, TQM differentiates between external and internal customers. External customers are those that purchase the company’s goods and services. Internal customers are employees of the organization who receive goods or services from others in the company. For example, the packaging department of an organization is an internal customer of the assembly department. Just as a defective item would not be passed to an external customer, a defective item should not be passed to an internal customer.

3.6.4        Benchmarking
Another way companies implement continuous improvement is bystudying business practices of companies considered “best in class.” This is called benchmarking. The ability to learn and study how others do things is an important part of continuous improvement. The benchmark company does not have to be in the same business, as long as it excels at something that the company doing the study wishes to emulate. For example, many companies have used Lands’ End to benchmark catalog distribution and order filling, because Lands’ End is considered a leader in this area. Similarly, many companies have used American Express to benchmark conflict resolution.
3.6.5        Taguchi Concept
Taguchi methods are statistical methods developed by Genichi Taguchi to improve the quality of manufactured goods, and more recently also applied to, engineering, biotechnology, marketing and advertising. Professional statisticians have welcomed the goals and improvements brought about by Taguchi methods, particularly by Taguchi's development of designs for studying variation, but have criticized the inefficiency of some of Taguchi's proposals.
Taguchi's work includes three principal contributions to statistics:
·         A specific loss function ;
·         The philosophy of off-line quality control; and
·         Innovations in the design of experiments.
3.6.6        Just-in-Time
`Just-in-time' is a management philosophy and not a technique.
It originally referred to the production of goods to meet customer demand exactly, in time, quality and quantity, whether the `customer' is the final purchaser of the product or another process further along the production line.
It has now come to mean producing with minimum waste. "Waste" is taken in its most general sense and includes time and resources as well as materials. Elements of JIT include:

  • Continuous improvement.
    • Attacking fundamental problems - anything that does not add value to the product.
    • Devising systems to identify problems.
    • Striving for simplicity - simpler systems may be easier to understand, easier to manage and less likely to go wrong.
    • A product oriented layout - produces less time spent moving of materials and parts.
    • Quality control at source - each worker is responsible for the quality of their own output.
    • Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes
    • Preventative maintenance, Total productive maintenance - ensuring machinery and equipment functions perfectly when it is required, and continually improving it.
  • Eliminating waste. There are seven types of waste:
    • Waste from overproduction.
    • Waste of waiting time.
    • Transportation waste.
    • Processing waste.
    • Inventory waste.
    • Waste of motion.
    • Waste from product defects.
  • Good housekeeping - workplace cleanliness and organization.
  • Set-up time reduction - increases flexibility and allows smaller batches. Ideal batch size is 1item. Multi-process handling - a multi-skilled workforce has greater productivity, flexibility and job satisfaction.
  • Levelled / mixed production - to smooth the flow of products through the factory.
  • Kanbans - simple tools to `pull' products and components through the process.
  • Jidoka (Autonomation) - providing machines with the autonomous capability to use judgement, so workers can do more useful things than standing watching them work.
  • Andon (trouble lights) - to signal problems to initiate corrective action.
3.7  TQM Philosophy
·         TQM Focuses on identifying quality problem root causes
·         Encompasses the entire organization
·         Involves the technical as well as people
·         Relies on seven basic concepts of
o   Customer focus
o   Continuous improvement
o   Employee empowerment
o   Use of quality tools
o   Product design
o   Process management
o   Managing supplier quality
3.7.1.1  Focus on Customer
·         Identify and meet customer needs
·         Stay tuned to changing needs, e.g. fashion styles
3.7.1.2  Continuous Improvement
·         Continuous learning and problem solving, e.g. Kaizen, 6 sigma
3.7.1.3  Employee Empowerment
·         Empower all employees; external and internal customers
3.7.1.4  Product design
·         Critical to ensure product design meets customer expectations
·         Useful tool for translating customer specifications into technical requirements is Quality Function Deployment (QFD)
·         QFD encompasses
o   Customer requirements
o   Competitive evaluation
o   Product characteristics
o   Relationship matrix
o   Trade-off matrix
o   Setting Targets
·         Quality Function Deployment (QFD) Details
o   Process used to ensure that the product meets customer specifications
3.7.1.5  Process management
·         Quality products come from quality sources
·         Quality must be built into the process
·         Quality at the source is belief that it is better to uncover source of quality problems and correct it
·         TQM extends to quality of product from company’s suppliers





3.8  Historical Development of TQM
Lean production system is the western term for Toyota Production System. This production philosophy is now widely used in auto industry around the world. This system has been modified everywhere in the auto industry, adapted to some extent on the local industrial situation or practices, however its core principles remain the same. This system is not only used in auto industry but also in other non-auto industries involved in assembling process.
In order to understand lean production system, it is important to understand it in its historical perspective first.  If we study the history of automobile industry, it can be separated in three eras, which can be termed as milestones of automobile industry. These milestones are:
  1. Invention of Automobile (1880)
  2. The Henry Ford’s Mass Production System (1910)
  3. The Toyota or Lean Production System (1933)
3.9  Quality Awards and Standards

3.9.1        Malcolm Baldrige National Quality Award (MBNQA)
·         Award named after the former Secretary of Commerce – Regan Administration
·         Intended to reward and stimulate quality initiatives
·         Given to no more than two companies in each of three categories; manufacturing, service, and small business
·         Past winners; Motorola Corp., Xerox, FedEx, 3M, IBM, Ritz-Carlton
3.9.2        The Deming Prize
·         Given by the Union of Japanese Scientists and Engineers since 1951
·         Named after W. Edwards Deming who worked to improve Japanese quality after WWII
·         Not open to foreign companies until 1984
·         Florida P & L was first US company winner

3.9.3        ISO
·         ISO 9000 Certification
·         ISO 14000 Standards

3.9.3.1  ISO 9000
  • The ISO 9000 family addresses "Quality management". Certification developed by International Organization for Standardization
This means what the organization does to fulfill:
  • The customer's quality requirements, and Applicable regulatory requirements, while aiming to Enhance customer satisfaction, and Achieve continual improvement of its performance in pursuit of these objectives
  • Set of internationally recognized quality standards
  • Companies are periodically audited & certified
  • ISO 9000:2000 QMS – Fundamentals and
  •                                       Standards
  • ISO 9001:2000 QMS – Requirements
  • ISO 9004:2000 QMS -  Guidelines for Performance
  • More than 40,000 companies have been certified
3.9.3.2   ISO 14000
The ISO 14000 family addresses "Environmental management". This means what the organization does to:
  • Focuses on a company’s environmental responsibility
  • Minimize harmful effects on the environment caused by its activities, and to achieve continual improvement of its environmental performance.

3.10          ADVANTAGES OF TOTAL QUALITY MANAGEMENT.
  • TQM helps to focus clearly on the needs of the market. The traditional approach of quality
  • TQM is a collaborative system. It can be conceptualized as a network of processes and activities through which various people in the organization can see different aspects of a problem and can constructively explore their own limited vision of what is possible.
·         TQM thus is an interdepartmental and inter organizational effort to address problems of improvement.
·         TQM provides a foundation for moving towards answering the questions of why, how and with what consequences people participate in multiple dimensional problem solving.
·         TQM does not rely solely on the chain of command; it develops multi-channel interactive networks throughout the organizations.




4.0              Analysis & Interpretation on Total quality management of Bata shoe company

Bata shoe organization (BOS) is one of the world’s largest manufacturing and retailers of footwear.Activities are carried out in 50 countries on virtually every continent. More than 40000 people around the workd of many races and nationalities are employed every day
about 1 million customers are being served thoughout its 4,600 retails stores worldwide.

Bata Industrials is part of the Bata Shoe Organisation, the world’s largest shoe manufacturer, and is the market leader in the Benelux for industrial shoes. Bata Industrials has production facilities throughout the world. The company headquarters is located in Best, the Netherlands, where it employs a staff of 170. Bata Industrials’ facility in Best produces over 700,000 pairs of safety shoes and 1,000,000 million pairs of socks annually. Bata Industrials has a progressive Research and Development department and has certified testing areas at its disposal. 
Current development 
Research is the foundation of our market success. We are continuously working on new cutting edge technological developments for footwear and hosiery. This helps us meet the latest market requirements and ever evolving industrial working environments.

Our development strategy is based on three elements:
  • Overall product performance
  • The practical experience of users
  • Technical progress
Each and every detail of Bata Industrials’ products undergoes a lengthy development process, described in detail in the Technology section of this site. This strategy helps ensure that our products meet the highest safety standards. Our efforts are aimed at footwear beyond safety: we put comfort and health in an equally prominent position. 
4.1 How Bata shoe company Implementing TQM:

Bata Industrials is devoted to the highest level of quality management systems. This is reflected in our ISO 9001 accreditation initially awarded in 1996. We are convinced that all of our business relations play a vital role in managing the chain of quality. Suppliers, distributors, our own staff of course and – last but not least – our customers. We have therefore deployed a comprehensive total quality philosophy that affects our organization, processes, activities and interests. This enables us to maintain and continuously improve our high level of performance.
4.1.1 The 8 principles to improve the quality of product of Bata shoe company.
The eight quality management principles are defined in ISO 9000:2000, Quality management systems Fundamentals and vocabulary, and in ISO 9004:2000, Quality management systems Guidelines for performance improvements.

Principle 1: Customer focus

Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.
Key benefits:
§ Increased revenue and market share obtained through flexible and fast responses to market opportunities.
§ Increased effectiveness in the use of the organization's resources to enhance customer satisfaction.
§ Improved customer loyalty leading to repeat business.
Applying the principle of customer focus typically leads to:
§ Researching and understanding customer needs and expectations.
§ Ensuring that the objectives of the organization are linked to customer needs and expectations.
§ Communicating customer needs and expectations throughout the organization.
§ Measuring customer satisfaction and acting on the results.
§ Systematically managing customer relationships.
§ Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole).

Principle 2: Leadership

Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives.
Key benefits:
§ People will understand and be motivated towards the organization's goals and objectives.
§ Activities are evaluated, aligned and implemented in a unified way.
§ Miscommunication between levels of an organization will be minimized.
Applying the principle of leadership typically leads to:
§ Considering the needs of all interested parties including customers, owners, employees, suppliers, financiers, local communities and society as a whole.
§ Establishing a clear vision of the organization's future.
§ Setting challenging goals and targets.
§ Creating and sustaining shared values, fairness and ethical role models at all levels of the organization.
§ Establishing trust and eliminating fear.
§ Providing people with the required resources, training and freedom to act with responsibility and accountability.
§ Inspiring, encouraging and recognizing people's contributions.
Principle 3: Involvement of people
People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit.
Key benefits:
§ Motivated, committed and involved people within the organization.
§ Innovation and creativity in furthering the organization's objectives.
§ People being accountable for their own performance.
§ People eager to participate in and contribute to continual improvement.
Applying the principle of involvement of people typically leads to:
§ People understanding the importance of their contribution and role in the organization.
§ People identifying constraints to their performance.
§ People accepting ownership of problems and their responsibility for solving them.
§ People evaluating their performance against their personal goals and objectives.
§ People actively seeking opportunities to enhance their competence, knowledge and experience.
§ People freely sharing knowledge and experience.
§ People openly discussing problems and issues.

Principle 4: Process approach

A desired result is achieved more efficiently when activities and related resources are managed as a process.
Key benefits:
§ Lower costs and shorter cycle times through effective use of resources.
§ Improved, consistent and predictable results.
§ Focused and prioritized improvement opportunities.
Applying the principle of process approach typically leads to:
§ Systematically defining the activities necessary to obtain a desired result.
§ Establishing clear responsibility and accountability for managing key activities.
§ Analysing and measuring of the capability of key activities.
§ Identifying the interfaces of key activities within and between the functions of the   organization.
§ Focusing on the factors such as resources, methods, and materials that will improve key activities of the organization.
§ Evaluating risks, consequences and impacts of activities on customers, suppliers and other interested parties.

Principle 5: System approach to management

Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives
Key benefits:
§ Integration and alignment of the processes that will best achieve the desired results.
§ Ability to focus effort on the key processes.
§ Providing confidence to interested parties as to the consistency, effectiveness and efficiency of the organization.
Applying the principle of system approach to management typically leads to:
§ Structuring a system to achieve the organization's objectives in the most effective and efficient way.
§ Understanding the interdependencies between the processes of the system.
§ Structured approaches that harmonize and integrate processes.
§ Providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriers.
§ Understanding organizational capabilities and establishing resource constraints prior to action.
§ Targeting and defining how specific activities within a system should operate.
§ Continually improving the system through measurement and evaluation.

Principle 6: Continual improvement

Continual improvement of the organization's overall performance should be a permanent objective of the organization.
Key benefits:
§ Performance advantage through improved organizational capabilities.
§ Alignment of improvement activities at all levels to an organization's strategic intent.
§ Flexibility to react quickly to opportunities.
Applying the principle of continual improvement typically leads to:
§ Employing a consistent organization-wide approach to continual improvement of the organization’s performance.
§ Providing people with training in the methods and tools of continual improvement.
§ Making continual improvement of products, processes and systems an objective for every individual in the organization.
§ Establishing goals to guide, and measures to track, continual improvement.
§ Recognizing and acknowledging improvements.

Principle 7: Factual approach to decision making

Effective decisions are based on the analysis of data and information
Key benefits:
§ Informed decisions.
§ An increased ability to demonstrate the effectiveness of past decisions through reference to factual records.
§ Increased ability to review, challenge and change opinions and decisions.
Applying the principle of factual approach to decision making typically leads to:
§ Ensuring that data and information are sufficiently accurate and reliable.
§ Making data accessible to those who need it.
§ Analyzing data and information using valid methods.
§ Making decisions and taking action based on factual analysis, balanced with experience and intuition.

Principle 8: Mutually beneficial supplier relationships

An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value
Key benefits:
§ Increased ability to create value for both parties.
§ Flexibility and speed of joint responses to changing market or customer needs and expectations.
§ Optimization of costs and resources.
Applying the principles of mutually beneficial supplier relationships typically leads to:
§ Establishing relationships that balance short-term gains with long-term considerations.
§ Pooling of expertise and resources with partners.
§ Identifying and selecting key suppliers.
§ Clear and open communication.
§ Sharing information and future plans.
§ Establishing joint development and improvement activities.

4.1.2 Production Planning:
Production planning helps to plan the supply and demand of products at the union & depot.
1.Annual Production planning
2.Monthly Production planning

Annual Production planning.
1.Federation’s projections of lather procurement after consultations with AGM (Mktg.)
2.Projection of Inter union and private party shoe sales.
3.Deciding on the production targets with the help of Marketing Dossier.
4.Deciding on the union production of various products based on customer age & choice.
5.Finalizing the projections at each stage.
6.Submission of Annual production Plan document to MD, AGM (MKTG.)

Monthly Production Planning
1.Projection of current month shoe  procurement.
2.Projection of Inter union and private party shoe sales.
3.Entering the actual figures for lather procurement, shoe sales, production, dispatch & closing stocks till date
4.Projection sales and stocks for the depots.
5.Indent consolidation for the coming month.
6.Estimation of packwise, unionwise, productwise production.
7.Get it verified by AGM (Mktg)
8.Verified copies are given to respective Product Officer, Despatch, Purchase & GPM.
Month end processing done by Despatch Department

4.1.3 Programming Committee Meeting (PCM):

Programming Committee is comparised of Managing Directors of all member unions, GM , MD and AGM (Mktg.). PCM is held within first 10 days of the month. In the PCM, last two moth’s procurement figures are chalked out. Apart from procurement, Inter shoe sales, leather  procurement prices, shoes sales quantity & prices are decided.
Union wise product wise production and dispatch are reviewed against planned ones. Sales and stock figures (at both unions & depots) are discussed. Current month’s planned production and dispatches are also discussed. There will be presentation on performance of one consumer product  every month.
4.1.4 Self Management Leadership Program:
 The Self Management Leadership Program is aimed at achieving the following results.
  • To become a better leader through improved self  esteem.
  • To develop a clear focus for the next stage in your life.
  • To take responsibility for your own life and stop blaming others or circumstances.
  • To take more personal responsibility for your ‘state of mind’ and emotions.
  • To learn how to improve the quality of your communications and relationships as well as overall quality of life.

4.1.5 Quality Control:
1.Name of the product
2.Packaging configuration both primary and secondary.
3.Name of manufacturer.
4.Name of Marketer.
5.Placement of corporate, GCMMF and Operation Flood logos
6.Ingredients used
7.MRP, Batch Number, Date of Manufacture.

To control the quality Bata Shoe Company maintain some technique those are given bellow:

4.1.5.1 Technology:
A fascinating array of technologies is applied in the development and use of safety footwear.
·         First-class, rubber types, plastics and natural materials
·         Thought- out and patented features
·         Intensive research into maximizing safety, comfort and health
·         Standards and symbols
·         Maintenance tips to keep shoes in top condition for longer


4.1.5.2 Bata Energy system:
Safety is paramount, that goes without saying. And safety has got everything to do with protection, but also with comfort and feeling fit.
4 issues determine the comfort and safety of footwear:
  • Fit
  • Climate management
  • Support
  • Shock absorption
4.1.5.3 Materials:
For our shoes and functional socks we only use first class natural materials, plastics and rubber types.
Leather uppers
  • Crazy Horse leather
  • Pull up leather
  • Full grain leather
Leather lining
·         Nappa leather
·         Split leather

Synthetic lining
·         Bata cool comfort
·         Bata VentAir
·         Bata Air Xtreme
·         GORE-TEX
·         Synthetic fur
Yarns & fibres
  • Cotton
  • Amico
  • Pro-cool
  • Silver
4.1.5.4 Anti-perforation mid-sole:
A steel mid-sole protects the foot against sharp objects prnetrating the bottom of the sole.
Features:
  • Protection in accordance with EN ISO 20345 SIP or S3 norm
  • Shape of the mid-sole added support and energy to the mid-foot
  • Protective epoxy finish to prevent oxidation
  • Antistatic qualities of the mid sole remain intact
4.1.6 TQM Initiatives taken by the Bata shoes company
§ ASC/BRM/Friday Meetings
§ ICD – Amul Quality Circle
§ Small Group Activity
§ 7 waste
§ Kaizen
§ House Keeping
§ Customer service

4.1.6.1 KAIZEN
o  Kaizen is basically small improvements carried out by individuals in his/her day to day work.
o  The purpose of kaizen movement is to create a culture of continuous improvement in the organization.
o  Kaizen are being done on
         -Thrust areas.
         -Systems & processes.
         -Communication
         -Learning
         -Housekeeping, etc.
o  100% participation by employees to the kaizen movement.
o  Creating tension free atmosphere by removing pain areas through kaizens.
o  Employees of the Department select the Best Kaizen of the Department. Award the best kaizens of the year during the celebration.

4.1.6.2  Seven waste:
Seven wastes are used by Bata shoes for eliminating waste, and to maintain the continuous improvement. There are seven types of waste:
    • Waste from overproduction
    • Waste of waiting time.
    • Transportation waste.
    • Processing waste.
    • Inventory waste.
    • Waste of motion.
    • Waste from product defects.
4.1.6.2 SMALL GROUP ACTIVITIES (SGA)

o  7 QI STEPS
   -Reason for improvement.
   -Current Situation.
   -Analysis
   -Counter measures.
   -Results
   -Standardization
   -Future Plans
o  Identified themes for Small Group Activities
o Formation of Teams – Team Leader, Facilitator and 5-7 Team Members. This can be cross functional teams.
o More than 250 SGA’s completed.

4.1.6.3   HOUSEKEEPING

o  Principle of Housekeeping
   -Segregation
   -Arrangement
   -Cleanliness
   -Maintenance of Standards
   -Discipline
   (A Place for everything & everything’s in its place)
o  Creating Audit Formats suitable for
   -Office
   -Dry
   -Wet Godowns
   -Information Audit
o  Discussions on Housekeeping are done in every Friday meeting Dept. meeting and make action plans for further improvements.
o  Conduct House Keeping audit by Housekeeping Coordinators every month
o  Organize ‘Red Tag Day’ every year.


4.1.6.4  ORGANIZATION CLIMATE SUREVEY (OCS)
o  Survey conducted among all employee to identify pain areas
o  The Performance Appraisal System (LEADS) has been redesigned based on the OCS feedback

4.1.6.5  AMUL QUALITY CIRCLES (AQC)
o  AQC an excellent forum for dissemination of information, policies, strategies.
o  AQC used as a forum for cascading Quality initiatives like Kaizen, Housekeeping.
o  AQC used for solving pain areas in the market through self-leadership.




4.1.6.6 Customer service
 Bata’s commitment to service continues to this day, from the designer’s sketchbook through to the performance of our shoes on a customer’s foot. Bata companies strive to supply the right products, at the right time, at the right price, and in a manner that fulfils our service commitments to both retail and wholesale customers.
Total Quality Philosophy of Bata Shoe Company with TQM Philosophy
Basic Total Quality Management Philosophy
Total Quality Management Philosophy of Ford Motor
1.      Continuous improvement
2.      Six Sigma
X
3.      Employee Empowerment
X
4.      Benchmarking
X
5.      Taguchi Concept
X
6.      Just-in-Time
Table no-1

Total Quality Award of Bata Shoe Company with TQM Award
Total Quality Management Award and Standard
Total Quality Management Award of Ford Motor
Malcolm Baldrige National Quality Award (MBNQA)
X
The Deming Prize
X
ISO  Certification

§  ISO 9000 Certification
§  ISO 14000 Certification

Table no-2      




4.2 SWAT analysis
Managing the marketing function begins with a complete analysis of the organization’s situation. The market should conduct a SWOT analysis

The SWAT analysis is the observation over an organization of its-
  • Strength,
  • Weakness,
  • Opportunities, and
  •  Threat.




















                                                    
Strength:
    1. Intention of sale environment: Bata Shoe Company has an intention of creating a profitable sale environment in them.
    2. Service motive:  Bata Shoe Company has the motive of better service giving to the consumer.
    3. Flexibility: Bata Shoe Company is a flexible departmental store. It can perform its business activities both in much or less space.
    4. Market research:  The authority does a research over the market position, ups and downs of prices, needs and wants of the customer to take important marketing decision.
   5 Supply of goods according to new fashion:  It serves the products to the consumer according to the new style and fashion.


Weakness:
     1. Delay in decision making: The authority has to take decision by consulting with other members. Sometime long term discussion and arguing make the decision time consuming.
     2. Lack of advertising: Advertisement provided by Bata Shoe Company is not sufficient. The net information does not meet to our need.


Opportunities:
       1. Good will:   Bata Shoe Company has created a good will among the consumer by providing better service.
    2. Direct communication: It maintains a direct communication with the consumer
    3. Creating relationship: Bata Shoe Company creates direct relationship with consumer.


Threat:
  1. Competitors:  Powerful multiple stores like Apex, Afjal are competitors of  Bata shoe company.
2. Price rate: According to the changes to the demand authority has to less the price rate of commodity. It causes loss for the company.

Current Market Position:
                              Now-a-days Bata is one of the most leading companies in Bangladesh. It takes a huge amount of market share in current Bangladeshi Economic market. Following figure shows its current market share.    


5. FINDINGS

After preparing the report I got the following findings:

·         There are many barriers, which will create a great problem for the Bata shoe company to enter into this market.
·         In Bangladesh there are many local shoe companies those who are doing business and they are making a huge profit.
·         The TQM development of Bata is need to emphasis on Lean manufacturing.
·         Bata Shoe Company tries to maintain the TQM but cannot introduce six sigma techniques.
·         Customers are not satisfied with the shoe design so they left from Bata and buy other companies shoes.
  • All branches of Bata Company are not same decorated.
  • Labors are not well trained
  • In Tongi factory they don’t have that much modern technical machine for producing high quality shoes.  
6. RECOMMENDATIONS

·         They should introduce the DMAIC process one of the method of six sigma so that they can create new shoes or process new designs.
  • Their technology should be improved
  • They should use more modern machines to produce high quality shoes.
  • If they imports foreign shoes. Directly then they sells it at less price so the consumer get more satisfaction
  • They should launch more improved shoes for consumers.
  • After all they should follow the all TQM tools to improve their shoes quality
  • They should use the Automatic Leather Degreased Dry-cleaning machine.
  • They should introduce R&D center for maintaining better quality
·         As they will bring the new shoes in this market so they will have to increase more customers for getting more profit in shoes sector and this step will work when the customers are getting different of choice to select their shoes.
Conclusion
Bata company is one of the largest multiple shoe company in Bangladesh as well as in the world. More than 40000 people around the world of many races and nationalities are employed every day; about 1 million customers are being served throughout its 4,600 retails stores worldwide. They mainly produce three types of product men product, female product and children product.  Their products quality is very high and marketing Process is also well They try to maintain their shoes quality by following TQM methods, After all they faces some problems, I indicate these problems, and try to give some recommendation’s. I wish if they follow the recommendation they will able to remove their problems and they will also able to achieve their vision, mission, goal and achieve the overall market as soon as possible

 8. Lists of References
1. Gilbert, G. (1992). Quality Improvement in a Defense Organization. Public Productivity and Management Review, 16(1), 65-75.
2. Hyde, A. (1992). The Proverbs of Total Quality Management: Recharting the Path to Quality Improvement in the Public Sector. Public Productivity and Management Review, 16(1), 25-37.
3. Martin, L. (1993). "Total Quality Management in the Public Sector," National Productivity Review, 10, 195-213.
4. Swiss, J. (1992). Adapting TQM to Government. Public Administration Review, 52, 356-362.
5. Tichey, N. (1983). Managing Strategic Change. New York: John Wiley & Sons.
6. Hill Stephen, 1991. "Why Quality Circles failed but Total Quality management might succeed." British journal of industrial relations, 29(4), 541-568.
7. Ishikawa, K, 1985.What is Total Quality Control? The Japanese way. Englewood Cliffs, New Jersey, Prentice- Hall.
8. Smith, AK, 1993. Total Quality Management in the Public sector. Quality Progress, June 1993, 45-48.
9 www.Bata.Com




















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