ThyssenKrupp best

The ThyssenKrupp best program achieved further success throughout the Group in the reporting period. Both in Germany and abroad, numerous projects were implemented, further opportunities for improvements at the subsidiaries were identified and the transfer of knowledge was expanded. Added impetus was provided by the sales initiative. The aim of all ThyssenKrupp best projects is to increase the efficiency of the Group and make our work better, faster, more cost-effective and more customer-focused. That applies equally to products, services, operating processes, management and organization.

More than 3,000 projects throughout the world

At the end of the reporting year the number of improvement projects under the best program had risen to 3,047. Of these, 1,543 projects were already successfully completed. In many cases, the results are transferable to other areas of the Group where they can be used for example to improve operating processes, reduce logistics and material costs or further lower the number of accidents at work.

As in the previous year, the main focus of project work lay in the areas of operating efficiency, sales, performance quality and capital productivity. 80% of all projects in 2003/2004 were in these areas. In addition, there were initiatives relating to knowledge and innovation management and the increased use of e-technologies. Other projects were concerned with expanding service business. This breadth of the program means that ThyssenKrupp best contributes significantly more to enhancing the value of the Company than conventional cost reduction or quality improvement programs.

Firmly established nationally and internationally

The program is firmly established nationally and internationally. Over 50% of all projects are being carried out outside Germany. As well as companies in Europe, North, Central and South America, numerous subsidiaries in Asia are also participating in ThyssenKrupp best. The newly acquired subsidiaries in South Korea also took part for the first time in the reporting period. The high importance of project work was underlined by numerous visits by Executive Board Members of ThyssenKrupp AG and the segment lead companies to projects in Germany and abroad.

ThyssenKrupp best projects worldwide

Additional impetus from sales initiative

ThyssenKrupp best was given added impetus by the sales initiative. In times of growing competition it is increasingly important to focus firmly on customer needs and requirements. This is where the sales initiative comes in. Its aim is to intensify customer contacts, develop new profitable growth markets in the core business areas and guarantee a profit-optimized product mix in production. More than 120 new projects were launched in this area in the reporting year.

Further improvement potential identified

In addition, we again systematically screened the business processes of all German and foreign subsidiaries for further opportunities for improvement. All elements and interfaces of the value creating process – from procurement to production to after-sales service – including organizational and management processes were examined. This ultimately resulted in a further 763 best projects aimed at unlocking the potential identified.

Successful methods employed

To carry out the projects efficiently we use approaches such as the proven Six Sigma methodology. This method is especially successful with repetitive production-related processes, where it can reduce process costs or increase productivity by for example reducing defect rates and saving material. Six Sigma has now been successfully used in more than 280 projects across the Group.

The Groupwide knowledge network that is a central component of ThyssenKrupp best was further expanded in the reporting period: new elements include method collections for the sales initiative, further successful project examples and intensive training courses for program participants. Of particular importance is the web-based project management software tool best pl@za. It provides comprehensive information on all ongoing projects and permits rapid transfer of project-related expertise. Regular project leader meetings and cross-segment workshops intensify the Groupwide exchange of experience.

best Awards for four successful project teams

Four project teams from the Steel, Technologies and Services segments won ThyssenKrupp best Awards in the reporting year for innovative solutions that can be transferred to other areas of the Group. The award competition, introduced by the Executive Board of ThyssenKrupp AG in fiscal 2002/2003, is an additional motivation for all staff involved in the program. It will be held again in the new fiscal year.