Case study

On

Company

Course Title: Cost Accounting

Course Code: BBA 31148
Section: A

Date of Submission: 28rd Octobers, 2009.

 Case Study
On
Corus Company

Submitted To:

Md. Zammanur Rahaman

Asst Prof. in Accounting

Department of Business administration

Northern university Bangladesh

Submitted By:

Dipock Mondal BBA 070360590

Tahidul Islam BBA070360591

2
28 rd Octobert,2009

Md. Zammanur Rahaman

Asst Prof. in Accounting

Department of Business administration

Northern university Bangladesh

Sub: Submission of the report

Dear Sir,

We are Submitting our case Study report on “Company”. We have

colleted as a much information as possible from the website, internship report, book,
personal interview. We have put our best effort to complete this report.

We believe that this report has enriched both my knowledge and experience.

If you have further queries regarding the report, please let us know. We would be obliged
to avail at your convenience.

Yours sincerely,

Dipock Mondal

ID:BBA 070360590

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 Acknowledgement

The successful completion of this report is the outcome of the contribution of a number
of people to whom We are grateful and thank them from the very deep of our heart. So,
We would like to take this opportunity to thank all those people who helped us in
preparing this report on “Product development through continuous improvement”.

First of all We would like to express my great respect to almighty “Allah” for providing
us the strength and energy to prepare this report.

We would like to convey my sincere gratitude to my honorable teacher Md. Zammanur

RahamanAsst Prof. in Accounting

I would like to thank Md.

Finally, we would like to thank our parents for giving us the mental as well as the
financial support for preparing the report.

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 Table of content

Chapter-NO Topic Page No

Executive summery 6
Chapter-one Introduction 07
1.1 Introduction 08
1.2 Objectives 08
1.2.1 The broad objectives 08
1.2.2 The specific objective 08
1.3 Methodology 09

1.4 Limitation of the report 09

Chapter-two Company overview 10
2.1 Introduction 11
2.2 History 11
2.3 Product and service 12
2.4 Techonology and Responsibility 14-15
Chapter- Case study 16
Three
3.1 introduction 17
3.2 Continous improvement 18
3.3 Product Development 19
3.4 Product improvement 22
3.5 outcome 23

Chapter four Conclusion and Recommendation 26

4-1 Conclusion 27
4-2 Recomndation 28
4-3 Apendix 29

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 Executive summery

is a large, family owned shoe company. It is currently headquartered in Lausanne,

Switzerland, and operates 4 business units worldwide – Bata Europe, Bata Emerging
Markets, Bata Branded Business and Bata North America. It has a retail presence in over
50 countries and production facilities in 26 countries. In its history the company has sold
more than 14 billion pairs of shoes.

The company was founded in 1894 in Zlín by Tomáš Baťa whose family had been
cobblers for generations. A large order from the army, military shoes and rising demand
for them, during World War I started rapid growth and small manufacture turned into
modern industrial concern, one of the first mass producers of shoes.

Bata Bangladesh is affiliated to the Bata Shoe Organization, the world's largest footwear
manufacturing and marketing organization. Bata has started operation in Bangladesh in
1962 and incorporation in Bangladesh in 1972.

In Bangladesh Bata have 170 branches. Bata has huge collection of man, women and
children. Bata is doing business in Bangladesh for almost 45 years. Due to the product
legibility Bata is able to capture customers mind.
For analyzing the customer satisfaction level of Bata shoe Bangladesh Ltd. We have
collected data from both primary and secondary data. We collect primary data through
questionnaire, 20 respondents participated in this survey. After collecting data we used
SPSS software to get out put which represent the Level of Customer Satisfaction of Bata
shoe Bangladesh Ltd.
Finally the report also includes some suggestions and recommendation for making better
strategy and removes their lacking.

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 Chapter One

Introduction……..

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1.1 Introduction:
Now a day in the competitive world practical experience is a must. It is possible to gather
theoretical knowledge by passing through book but it is insufficient to acquire practical
experience.

In order to complete the BBA program we have to complete a course called Cost
Accounting. In completing the course our course instructor gives us a Case Study
“Product development through continuous improvement”

By preparing the report we will able to gather knowledge about the different types of
Product

1.2 Objective:
Without objective any mission will not be successful, as the study is important for some
reason, these are some objective too. These objectives help to make the study fruitful and
reach the goal.

We have divided our objective into two parts:

1.2.1 Broad objective:

 Gather practical knowledge about Product Development.

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  Analyzing how to. Product development through continuous improvement
 At the same time gathering the practical experiences.
 Present situation about the Crous.
 To know the product strategies that the organization allows to apply.
 To analysis quality of the product
 To identify the problem of Crous

1.2.2 The specific objectives:

 To fulfill the requirements of BBA degree.
 To fulfill the course requirements.
 To complete the report.

1.3 Methodology:
Methodology is the process or purpose of collecting data and information, which are
required in connecting with findings tools for best possible outcome.

There are various approaches to collect data for the report. But we should carefully select
the way according to nature of the report. We have designed the study carefully planned
to yield result that are objective as possible. The main lookout the report is to discover
consumer behavior toward Bata brand. In this section, we would like to emphasis on
survey process that we have conduct while we were preparing the report. This process
consists of the following steps.

1.4 Limitation of the report:

In carrying out the study we faced many limitations which are listed below:

Lack of Experience: The work of collecting the information requires much

experience. But we had no adequate idea, knowledge, and previous experience about the
report. Therefore it is very normal that error come into existence in the report.

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Time limitation: The time limitation is one of the limitations of this report. We have
to complete this report within very short time.

Lack of facilities provided by the management: At the time of data collection we

have faced several problems due to lack of facilities by the management.

Lack of interest: At the time of data collection it has been observed that most of the
participants of the interview did not pay attention in answering the question.

Lack of information: The Company is world renowned company. But our report was
only in Dhaka biased. So, the report lacks information.

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 Chapter Two
Company Overview….

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2.1 Introduction:

Corus is Europe's second largest steel producer with annual revenues of around £12
billion and a crude steel production of about 20 million tonnes, primarily in the UK and
the Netherlands.

Corus comprises three operating Divisions, Strip Products, Long Products and
Distribution & Building Systems and has a global network of sales offices and service
centres, employing around 40,000 people worldwide.

Corus is a leading supplier to many of the most demanding markets around the world
including construction, automotive, packaging, mechanical and electrical engineering,
metal goods, and oil & gas. With innovation and continuous improvement at the heart of
its business performance, Corus aims to create value by offering a differentiated product
range supported by unrivalled customer service.

Corus is a subsidiary of Tata Steel, the world's sixth largest steel producer. With a
combined presence in nearly 50 countries, the Tata Steel Group including Corus, Tata
Steel Thailand and NatSteel Asia, has approximately 82,000 employees across five
continents and a crude steel production capacity of over 28 million tonnes.

2.2 History :

Corus was formed on 6th October 1999 through the merger of British Steel and
Koninklijke Hoogovens. On April 2 2007, Corus became a subsidiary of Tata Steel. Tata
Steel is happy to announce that the Company has completed its £6.2 billion acquisition of
Corus at a price of 608 pence per ordinary share in cash. The enlarged company will have

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a pro forma crude steel production of 27 million tonnes in 2007 and will be the world’s
fifth largest steel producer with 84,000 employees across four continents. On 31 January
2007, Tata Steel announced its revised offer for Corus at a price of 608 pence for each
Corus Share (the “Revised Tata Offer”). The Revised Tata Offer is to be implemented by
means of a scheme of arrangement under section 425 of the Companies Act 1985 During
the course of last night, the auction process set out by the Panel on Takeovers and
Mergers to resolve the competitive situation which existed in respect of the Company
between Tata Steel and CSN Acquisitions Limited (“CSN Acquisitions”) was
implemented...As previously announced by the Company, on 4 December 2006 Corus
Shareholders voted to adjourn until today the Court Meeting and EGM which have been
convened in connection with the proposals for the acquisition of Corus by Tata Steel. At
the reconvened Court Meeting and EGM held earlier today Corus Shareholders voted to
adjourn those meetings sine die until further notice.Proposed adjournment of reconvened
EGM and Court Meeting of 20 DecemberAnnouncement relating to forthcoming
Extraordinary General Meeting and Court Meeting due to be held on 20 December
2006.The boards of Tata Steel and Corus are pleased to announce that they have agreed
the terms of an increased recommended Acquisition (the "Revised Acquisition") at a
price of 500 pence in cash per Corus Share.

At the Court Meeting and Extraordinary General Meeting of the shareholders of Corus
held earlier today in connection with the proposals for the acquisition of Corus by Tata
Steel UK Limited, the shareholders of Corus voted to adjourn the Meetings until 20
December 2006.
Announcement relating to forthcoming Extraordinary General Meeting & Court Meeting
due to be held on 4 December 2006
Recommended cash acquisition by Tata Steel UK Limited, a wholly-owned indirect
subsidiary of Tata Steel Limited of Corus Group plc, to be implemented by means of a
scheme of arrangement under section 425 of the Companies Act 1985
nformatie voor houders van belangen in aandelen Corus Group plc die worden gehouden
via Euroclear Nederland
The boards of Tata Steel and Corus are pleased to announce their agreement on the terms
of the recommended acquisition of the entire issued and to be issued share capital of
Corus at a price of 455 pence in cash for each Corus Share, valuing Corus at £4.3 billion.

2.3 Products & services:

We are committed to partnership with customers to help streamline business chains and
achieve imaginative ways of working. Corus already supplies a variety of innovative
solutions to a broad range of markets.

Bar & billet

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The versatility of the bar and billet manufactured by Corus is evident in the sheer number
and diversity of their applications in engineering industries.

Business services

Corus provides a range of business services including consulting and research and
development services.

Construction products & services

From helping to build the world’s most impressive buildings through to providing the
metal and expertise for giant earthmovers, Corus have the products and services to meet
the needs of the supply chain.

Electrical steels

Electrical steels play a vital role in the generation, transmission, distribution and use of
electrical power and are one of the most important magnetic materials produced today.

Packaging steels

Corus is one of Europe’s leading suppliers of high quality packaging steels. We focus on
innovative new materials, applications and processing technologies, working closely with
our business partners to increase value all along the supply chain.

Plates

Corus has one of the broadest plate product ranges in the world. Complemented by the
highest standards of service and full product support, we offer our customers a complete
package, which is highly competitive in all markets.

Plated steel strip

Corus Special Strip produces a comprehensive range of cold-rolled steel strip products. It
includes products with technical and mirror-finish surfaces, and all kinds of copper,
nickel, zinc, chrome and brass-plated strip.

Rail products & services

Corus supplies many fundamental products and services to both nationalised and
privatised rail networks and has become a strategic supply chain partner to many
international railway organisations.

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Sections

Corus Construction & Industrial is a world class supplier of structural sections, offering a
comprehensive range of sizes up to 1016mm deep in British and International Standard
dimensions from our mills in Teesside and Scunthorpe.

Pre-finished steels

Pre-finished steel products are made up of a series of layers, each with a particular
function, synergistically applied to provide the functional and aesthetic performance
required.

Semi finished steel

Semi finished steel products include Billets & Narrow Slabs, Blooms and Continuously
Cast Slabs.

Strip products

Corus offers hot rolled, cold rolled and metallic-coated steel in a wide variety of
specifications to European or other national or international standards.

Special Profiles

Many industries around the world use special profiles. Designers and engineers recognise
the benefits of using a custom designed steel profile for manufacturing components.

Tube Products

Corus is a leading manufacturer of welded steel tubes. Our extensive product range
includes structural hollow sections, large diameter pipe, coated tubes, precision tubes,
conveyance tubes and pressure tubes.

Support products

Corus supplies a range of support products to complement our other offerings.

Wire Rod

Wire Rod a high performance material for the varied applications of the wire products
world wide industry.

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2.4 Technology:
Corus is an innovation driven company, which combines a personal service for customers
with a creative flair for developing new ideas.

We work closely with our customers and are committed to investing in long-term
business relationships to help develop new products and technologies.

Research, Development & Technology

At Corus, we combine top class innovation with cutting edge technology to deliver
'metals solutions' in a constantly changing world. We work closely with our customers to
ensure they get all the support they need to enable them to design new products and
applications.

New Business Development

Though part of Corus Research, Development & Technology, New Business

Development (NBD) stands apart from regular research and development work. NBD
identifies and develops market opportunities for existing knowledge.

2.5 Responsibility:
We take our responsibilities seriously. Our objective is to be world class.

For Corus, corporate responsibility involves the integration of our financial and strategic
goals with:

• A commitment to the health, safety and well-being of its employees and

communities.
• A focus on improving environmental performance and providing sustainable
products.
• Conducting all aspects of its business with honesty and integrity.

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 Chapter Three
Case Study Analysis

17
3.1 Introduction:
Corus is part of the Tata Steel Group, the world's sixth largest steel producer.
Within Europe, Corus is the second largest steel producer with average annual
revenuesof around £12 billion. The company produces more than 20 million tonnes
of steel each year, mainly in the UK and the Netherlands. It has a global network of
sales offices and service centres, employing around 42,000 people worldwide. Corus

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is a leading supplier of steel to some of the most demanding markets around the
world.

Corus Long Products Business (CLPB), a business unit of Corus, has steel
manufacturing facilities in England, Scotland and France. These produce different
steel products – from steel plate to steel rails and wire rod. The key markets for
CLPB products include construction (for buildings), engineering and machinery,
mining and earthmoving equipment, shipbuilding, fastenings and rail. The principal
manufacturing site in Scunthorpe covers 2,000 acres and employs 4,000 people. The
site consumes 6.5 million tonnes of iron ore and 2 million tonnes of coal each year to
produce 4.3 million tonnes of steel products.

sThis case study focuses on how Corus used its knowledge and experience of
continuous improvement (CI) to win new business. Continuous improvement is a
tool that gives competitive advantage. This means the business can move ahead of
competitors and increase its market share. Using skills and expertise in a structured
way enables an organisation to create better processes and products. Corus used CI
to support its new product development (NPD), enabling it to meet the needs of its
customers more closely. Developing innovative products through continuous
improvement is at the heart of Corus' business strategy.

Continuous improvement enabled Corus to overcome problems in its steel works.

Several years ago Corus bid for a Royal Navy contract for steel for T45 destroyer
vessels. Up until that date, this was the largest Royal Navy contract awarded. Corus
did not get the work because the business at that time was not seen to have the
capability of meeting the high specification of steel plate required. Losing the
contract showed Corus it needed to invest to improve its machinery and processes.
It invested around £8 million at the Scunthorpe plate mill in order to be ready to
meet the requirements of any similar contracts in the future.

The investment, together with its established Continuous Improvement practices,

has enabled Corus to win a recent contract to supply steel for two new Royal Navy
aircraft carriers. The £3.8 billion carriers, HMS Queen Elizabeth and HMS Prince
of Wales, will enter service in 2014 and 2016 respectively. Corus will supply more
than 80,000 tonnes of structural steel for the carriers. They will be the biggest and
most powerful surface warships ever built for the Royal Navy

3.2 Continuous improvement (Kaizen):

Since the 1950s many manufacturing techniques based on quality have been
developed. 'Kaizen' is one of these and is Japanese for 'continuous improvement'.
This focuses on making small continuous improvements across all functions, systems

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and processes within a business. For example, waste is a cost to Corus. Continuous
improvement contributes towards lean production. Lean production occurs

waste has been minimised.

• the flow of work is smooth.

• the business is focused on customer needs.

Lean production uses fewer resources more efficiently. This increases productivity
and can improve profitability. Continuous improvement at Corus helps to eliminate
waste in seven key areas. It uses the mnemonic 'TIM WOOD' to help employees
remember the areas.

One aspect of lean production that helps to save costs of stock is the just-in-time
(JIT) principle. Just-in-time means producing and supplying goods at the time they
are needed. The business holds the minimum amount of raw materials and just
enough finished product to meet demand. It requires well-organised systems to
ensure supplies arrive and goods reach customers on time. This reduces costs and so

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helps to improve the return on investment for shareholders.

JIT also carries risks – if the business has no stock it could be less able to cope if
suppliers fail to deliver. Corus needs to balance these risks against the proven
benefits.

Continuous improvement influences the whole of the business. To be effective, all

employees need to own and adopt CI principles, starting with senior management
commitment. Under their leadership, CI works through the whole organisation.
Strong communication is important in building this commitment. Corus carries out
regular presentations to staff on how CI is improving the business. It also uses
written forms of communication with articles in team briefings and newsletters.

Everyone has a part to play in continuous improvement. Through various CI

groups, all Corus employees can contribute ideas for improving their working
practices. The person doing a job often knows best how to make improvements. This
empowermentof employees and managers helps them to feel valued and gives them
job satisfaction. Corus benefits from becoming a more profitable business by
reducing costs, securing high value orders and maximising the time its rolling mill
operations are in use. Corus Research & Development benefits from the business’
commitment to improvement by developing expertise and knowledge. This will
support future business.

Continuous improvement not only makes Corus more efficient but also provides
many benefits to its external stakeholders.

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3.3 Product development:
The steel for the new aircraft carriers needed to meet a very high specification.
Materials for warships have to be able to endure the unique conditions in which
they operate, such as extreme temperatures or high seas. This contract required
grades of steel with strength and toughness higher than those Corus had put
forward for its previous contract bid. This represented a new product opportunity.

• competitors - developing a product in response to competitors helps the industry

as a whole to move forward
• changes in technologies - arising out of research and development

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 • innovation - using new ideas to make new products
• employees - who see opportunities from working with products
• the market - where customer demand suggests new products.

In this case, the customer, the Royal Navy, drove demand. It wanted a single preferred
supplier for all the materials it needed. Corus satisfied the contract through research and
innovation based on its continuous improvement processes.

During the bidding process, Corus worked with the Aircraft Carrier Design Team. This is
known as ‘early vendor involvement’. Corus did this to make sure that it understood,
could direct and could meet the final product specification requirements. It is a high-risk
strategy as Corus had to invest money, time and effort before knowing if its bid was
successful. However, this process gave Corus the time to develop the steels which had the
increased levels of strength combined with toughness that the design team desired.

To add to the challenge, the Royal Navy changed the product specification during the
period of the bidding process, creating new factors for Corus to overcome:

• Design requirements changed to make the ships lighter and improve speed. To
save on weight, the steel plate needed to be higher strength but thinner.
• The maximum thickness of certain critical parts increased by over 40%. As the
thickness of steel increases, its ability to meet the required high strength and
resistance to fracture becomes increasingly more difficult.

This meant Corus had to develop a completely new product to meet this much higher
specification if it was to win the contract.

Although continuous improvement usually focuses on small increases, Corus' established

systems and quality procedures helped it to meet this step change:

• Its Research & Development expertise and knowledge came up with the new steel
formula that had the required toughness and strength.
• Lean production principles helped to minimise waste.
• Just in time procedures helped to meet tight deadlines

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3.4 Product testing:
Steelmaking is a large-scale manufacturing process. Manufacturing involves taking all of
the raw materials involved in making steel and turning them into tangible outputs.
Producing large quantities reduces the cost of each piece. This is known as 'economies of
scale'. In order to test the new steel formula properly during development, Corus needed
to find a way of making small batches for testing. Corus also needed to evaluate how, if it
won the bid, it would produce the steel on a large scale.

Product testing is an important part of development. The small batches enabled Corus to
create prototypes to test and discover how well each met the required specification.

It needed to examine which elements of the steel manufacturing process affected the
strength and toughness of the plate. It was important to test various factors to see what
impact changes in each would make to the finished product:

• the steel chemistry - what ingredients made the steel 'recipe' better?
• the reheating conditions - how did the temperature affect the steel?
• the rolling schedule - did different mill processes have an effect?
• the cooling speed - did the speed of cooling affect the product?
• the additional heat treatment processes - would additional heating change its
qualities?

The product testing stage enabled Corus to make sure the final product met the required
brief from the design team. It used computer modelling software to identify the impact of
changes in each factor. By understanding the best combination, Corus came up with the
winning formula.

3.5 Outcomes:

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Corus developed the new steel product to help it win the Royal Navy contract. As a
result, it benefited in many ways as a side effect of the changes:

• By using its existing CI procedures to guide its research and development and
testing, Corus developed the new specification of steel required at a competitive
price.
• Investment in new technologies and equipment, used alongside lean production
techniques, enabled Corus to minimise levels of waste and reduce high
manufacturing costs.
• It was able to meet customer deadlines, a vital element of making a business'
operations more competitive.

The steelmaking industry also benefited. Corus adopts a practice of benchmarkingas part
of its continuous improvement. It shares its best practice across the industry. Other steel
businesses can now use the best methods of production to raise quality across the whole
sector.

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Quality assurance is a vital requirement of continuous improvement, especially in the
shipbuilding industry. Steel products for this industry require approval by shipping
classification societies, such as Lloyds Register of Shipping. This independent body
carries out its own assessment of the test programme to ensure that materials meet full
requirements for the shipping industry. Without this approval, Corus would be unable to
use its materials for this type of job.

By meeting the higher specification, Corus gained Lloyds Register approval for the new
steel plate it developed for the Royal Navy. This approval means that Corus can offer
these high quality steels to other customers. This expands its customer base. Its
investment in CI systems, research and development and the use of its employees'
knowledge have provided Corus with a distinct competitive advantage

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 Chapter Four
Conclusion and Recommendation….

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4.1 Conclusion:
In a competitive industry, businesses need to use all the resources they have, including
skills and knowledge. Continuous improvement at Corus provides a process in which
everybody can play a part in moving the business forward. Working in teams enables
employees to share their ideas and expertise. Using the expertise of staff helps the
business to develop. It also empowers individuals to take on responsibility and provides
them with increased job satisfaction.

New product development may involve risk, such as investing time, resources and money
in new technologies. However, it also creates business opportunities. Continuous
improvement has helped Corus to meet the Royal Navy's increasingly sophisticated
requirements for high specification steel products. However, in meeting these needs, it
has also opened up other business opportunities. By winning this contract, Corus is now
able to make this higher grade steel available as part of its product portfolio. As a long-
term strategy, it will help the business to outperform its competitors and increase its
market share.

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4.2 Recommendation:

After study we are able to find out certain things. Based on the study we can give the
following recommendations.
1. It is seen that crous should improve product

2. In all the branches employees of Crous is not well trained. Difference among the
employee can easily observe.

3. Crousis quite well known in cities. But in urban areas their lack branches.

4. In most case employees are unable to give the information related to the company.

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4.3 Appendix:

www.thenuetimes100.cu.uk/company.list-php

www.crous company.com

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