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 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.

5 Key Business Processes have been deployed in 2018 (Steel Purchasing, Management of Offers, Scrap Management, Commercial Risk Management, Greenfields), and another 3 are being revised (Approval Flows, Development of People, Operational Notifications.

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)

Gonvarri Production System (SPG) is the Lean Manufacturing program of Gonvarri.

In this sense, it is not only a range of tools or a structured method to reach our objective, but it is a philosophy, a culture of continuous improvement that is based on the implication of all the teams, as well as on the fluid communication between them.

Within this framework, it is the very same operators, organized in GAP (Autonomous Production Groups), that take most of the operational decisions in a proactive and autonomous way, but in harmony with the rest of the organization.

Activities carried out in 2018:

・ Around 3,100 employees participated in SPG measures, 467

・ GAPs (Autonomous Production Groups) working under SPG standards.

・ 26,412 hours/person in SPG training.

・ 1,064 workshops were done (5S, standardized work STDW, SMED, Value Stream Mapping, Total Productive Maintenance, Lean Office…)

・ 292 GRPs (Problem Solving Groups) were started. Of all SPG tools the most important are focussed on improving involvement, by strengthening the communication channels within the organization.


Quality and customers

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

The keystone is the certification of all our companies in the quality management systems IATF 16949 (Auto and Industry) or ISO 9001 (Metallic Structures).

During 2018, the certification was completed for the Gonvarri centres (except for Metal Structures and Gonvarri Material Handling) under the new standard Auto 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 2018, 73,965 hours of health and safety training were taught, which is around 15 hours per employee


Environmental

The commitment of Gonvarri Industries to the environment starts with the certification of the Environmental Management System under the ISO 14001 standard, currently certified in 79% 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.


Lifecycle Approach: Circular Economy

Steel is a key material in our company and is the main component for all processes, making up 98% of all consumptions. At Gonvarri we believe in the decisive contribution of steel to global socio-economic growth and the development of more sustainable production models, such as the “Circular Economy”, a concept that is destined to gain importance in the coming years.

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