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Case studyOn
Company
Course Title: Cost AccountingCourse Code: BBA 31148
Section: A
Date of Submission: 28rd Octobers, 2009.
Case StudyOn
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
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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
3
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 NoExecutive summery 6
Chapter-one Introduction 071.1 Introduction 081.2 Objectives 08
1.2.1 The broad objectives 081.2.2 The specific objective 081.3 Methodology 09
1.4 Limitation of the report 09Chapter-two Company overview 10
2.1 Introduction 112.2 History 112.3 Product and service 122.4 Techonology and Responsibility 14-15
Chapter- Three
Case study 16
3.1 introduction 173.2 Continous improvement 183.3 Product Development 193.4 Product improvement 223.5 outcome 23
Chapter four Conclusion and Recommendation 264-1 Conclusion 274-2 Recomndation 284-3 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:
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Gather practical knowledge about Product Development. 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 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
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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 2006Recommended 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 1985nformatie 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
The versatility of the bar and billet manufactured by Corus is evident in the sheer number and diversity of their applications in engineering industries.
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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.
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.
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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.
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.
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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
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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 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
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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 and processes within a business. For example, waste is a cost to Corus. Continuous improvement contributes towards lean production. Lean production occurs
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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 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’
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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.
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
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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 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:
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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
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?
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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:
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:
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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.
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
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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
Chapter FourConclusion 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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