PART II - DRIVE MANAGEMENT MODEL: EFFICIENCY

Efficiency

Efficiency may be described as the ability to achieve a desired effect with the minimum possible resources. In an increasingly complex and competitive world, we can only ensure the profitable growth of our organization by doing things better.

New efficiency model

Within the frame of the current Strategy Plan 2016-2018, Gonvarri Steel Services has committed to the reorganization of its system of continuous improvement and the core knowledge management of the company.

The Integrated Management System (SGI) was created to mitigate the risk and is the result of merging the Health and Safety, Environment, Quality, SPG (Gonvarri’s Production System) and BTM (Business Technology Management) areas.

In 2017, the BTM team has built most of the 16 Key processes of our business, those in which, in addition to gathering our differentiating knowledge, compliance could result in economic, operational or reputational damage to the Company.

Created in 2017, the Integrated Audit of the SGI replaces all partial system audits, providing a global view of the situation of each audited center with respect to international standards (OHSAS 18001, ISO 14001, ISO-TS 16949, ISO 9001) as well as the internal standards (Health and Safety systematics, Environmental Behavior Index, TQM methodology and SPG model).

Gonvarri Production Systems (GPS)

It is a philosophy, a culture of continuous improvement that is based on the implication of all teams, as well as in a fluid communication among them.

After almost a decade of implementation, the SPG model has undergone a thorough revision 2017, in order to provide greater flexibility, bring it even closer to the business and take better advantage of synergies with the rest of the systems. SPG Evolution is the result, achieved with the contribution of dozens of specialists from all areas of the company, and is already in full process in each Gonvarri centre.

Quality and customers

The success of Gonvarri Steel Services is based on its ability to identify and meet the needs of its customers.

The key is the certification of all our companies in the quality management systems ISO-TS 16949 (Automotive and Industry) or ISO 9001 (Metallic Structures).

In 2017, the centers of Gonvarri have begun to be certified with the new Auto standard IATF 16949, which is much more demanding in the identification and mitigation of risks.

In Gonvarri, we believe that customer satisfaction surveys are an important tool to help assess their degree of satisfaction, identify points of improvement, increase customer loyalty and increase market share. For this reason, we periodically carry out personalized surveys, depending on the type of product and/or geographical area.

Health and Safety

Gonvarri’s Health and Safety Model is based on the integration of safety within the entire organization and in all its decision-making, as well as in all processes that are undertaken. In addition, it complies with the international rules OHSAS 18001, having almost all of our centers certified under this standard by an accredited body.

The Safety Plan “Doing Well by doing Safe” defines new measures related to culture, but also helps to reinforce the concept: “Stop› Think> Act”, conveying that a correct action is one that is done with the safety of each individual, in each activity carried out, in each decision that is adopted, or in each project or new job that is undertaken.

In 2017, 33,231 hours of health and safety training were taught, which is around 9 hours per employee. Poland stands out with an average ratio of 62 hours per employee.

Environmental

The commitment of Gonvarri Steel Services to the environment starts with the certification of the Environmental Management System under the ISO 14001 standard, currently certified in 69% of our factories.

In addition, within our commitment to correctly measure and minimize the impact of our activities, initiatives are being developed with two areas of action: advanced environmental risk management and a life cycle focus.

Steel and Circular Economy

On the 2nd of December 2015, the European Commission (EC) adopted a new package to boost Europe´s transition towards a “circular economy”, that will boost global competitiveness, promote sustainable economic growth and create new jobs. The objective is to achieve a transition towards a more solid and circular economy, closing the circle where resources are being used more sustainably.

In this context, due to its characteristics, steel plays a fundamental role, since thanks to its ability to recover its original properties without losing its quality after melting; it is the most recycled material in the world.

In terms of consumables, in 2017 the following initiatives were launched:

・ Analysis of the waste flow: reuse, recycle and recover.

・ All waste is linked to the consumables of origin with which we can work on increasing the life cycle of our consumables (for example, by reducing consumption), as well as benchmarking alternatives for reusing and recycling global wastes.

・ The life cycle ratios provide a joint vision of the group´s environmental performance, allowing the identification of possible global objectives, as well as investments to mainstream solutions or R+D+I projects.

・ The environmental performance of production ratios provides us with ideas on how to make unit consumption more efficient.

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