http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/RSS.ashxDanfoss Group Global PagesWed, 07 May 2008 14:55:35 +0200http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=1http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=1MAKING MODERN LIVING POSSIBLE Global building boom Did they reach the Moon? EPS: is it worthwhile? Lunch with the Manager 5 13 24 30 Global Danfoss 5/08 • A Stakeholder Publication English edition2008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=2http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=2Global Danfoss April 2008 Table of contents Page 5 Group enjoys global building boom Danfoss is spreading around the world – literally. The Group is building new premises like never before and is planning to occupy a further 100,000 square metres during 2008. 5 29 13 Global Danfoss Page 13 Did they reach the Moon? Since 2004, 123 Danfoss employees have taken part in the Man on the Moon competition which is set to secure more intrapreneurs in the company. We take stock. Page 19 As a leader, you are a role model All new Danfoss leaders will join a course in good leadership. Page 29 Energy-friendly plunge for the Americans Danfoss Low Power Drives supplies speed controls for swimming pool pumps, helping Americans save energy. Page 30 On the menu: lunch meeting with the manager Each Friday, CC Chang, General Manager of the factory in Wuqing, has lunch with five randomly selected employees from production and the warehouse. Published by Danfoss A/S Total number printed: 27,770 Address: Danfoss A/S, L24-212 DK-6430 Nordborg globaldanfoss@danfoss.com Responsible: Ole Daugbjerg Editor: Niels Chr. Larsen Prepress: Christa Hartmann Photographer: Glenn Simonsen Print: Laursen Grafisk A/S Published in Danish, English, French, Spanish, Polish, Slovenian, German, Chinese, Slovakian and Russian. Printed with vegetable colours on environmentally approved paper. Reproduction only by permission of the Editor and always with acknowledgement to Global Danfoss2008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=3http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=3Leader Building a cash culture By Executive Vice President and CFO Frederik Lotz Over the past 2-3 years, Danfoss’ financial performance has been solid. We have delivered record results and strong growth. We have expanded quickly and have succeeded in buying a number of attractive companies. However, there is an aspect of the Group’s financial situation that has not been in focus much: Do we generate cash? Is money actually hitting our bank accounts? The short – and somewhat surprising answer - is no, not really. On one side it is true that we earn more every time we sell for 100 Euros. Unfortunately, that is no guarantee that money will actually be flowing into our accounts. This is somewhat similar to your private finances. In a single year, you may get a salary increase, but you will not have more money in your wallet if you spend your entire salary increase renovating your house – or, worse still, if you have to pay your expenses today, but only get paid at the end of the month. This is the situation that Danfoss has been in over recent years. We have made significant investments in new factories and new production equipment, and we are taking market shares from the competition. We have gained more muscle and are in a strong position now. But large sums of cash are also tied up in working capital — in bigger inventories and in invoices not yet paid by our customers. At a Group level, we are twice as fast when it comes to paying our own bills than we are at collecting money from our own customers! The result is that, over the past four years, we have only just managed to finance our own business operations. Most of the increased earnings have, in fact, been tied up in working capital and new factories. There has not been much cash left to buy new companies – and this is what we must focus on now. The ambition is to build on the recent successes of healthy growth and improved earnings and to also start generating more cash. Many employees in the organisation are, in fact, already making a big difference by collecting outstanding liabilities from customers on time and by making sure that new factories are built in a cost efficient manner. Regarding inventories, the Danfoss Productivity Programme is specifically aiming to reduce inventories by improving processes. I would like to emphasise that Danfoss remains a very solid company. We have loans of about 500 million Euros from banks today. The debt has increased as we have acquired new companies and this is not a problem - and having debt is no problem. In fact, Danfoss could easily take on more debt if we continue to find attractive business opportunities to invest in. But, after all, it’s more fun to generate cash yourself and invest it in continued expansion rather than borrow it from the bank. From 2009, Danfoss will start focusing more on this important issue. Whether we succeed or not will be easy to measure: is there any money in our bank accounts!? 32008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=4http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=44 Photo by Dennis J. Petersen2008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=5http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=5Strategies & Trends Group enjoys global building boom Danfoss is spreading around the world – literally. The Group is building new premises like never before and is planning to occupy a further 100,000 square metres during 2008. Lorries carrying tonnes of concrete have been trundling to construction sites all over the world recently. And 2008 will be the year when a whole range of toasts are raised and many red ribbons cut at Danfoss factories - because the Group is experiencing a real building boom. In China alone, Danfoss is constructing new buildings at five different locations. In addition, new buildings are being erected in the USA, Romania, Poland and Denmark. In total, more than 100,000 extra square metres will be made available this year for machines, warehouses and offices. This equates to about half of the production area at Danfoss’ headquarters in Nordborg. Furthermore, plans have been made for almost 10,000 square metres which will be occupied next year. “Yes, it does sound like quite a bit. However, the reason that so many construction projects are taking place all at once is that we have grown faster than we foresaw in our long-term plan, and that is why investments have been made at an earlier stage. It was simply necessary,” explains Vice CEO Niels B. Christiansen. The background is that many factories reached their maximum capacity last year. They have had difficulty supplying goods and have had to introduce five-shift teams and pay for costly airfreight in order to deliver the goods on time. This has been very expensive – and flexibility has suffered. With a greater production capacity, they can go down to two- and three-shift teams – and will have the option to scale production upwards or downwards, depending on sales. The large building projects have meant that the group’s management accepts, once again, that this year’s investments are bigger than had been planned. This year, such investments will amount to seven per cent of the budgeted sales. Last year, the investments were six per cent; whereas the plan is for five per cent next year. “We also expect future sales to be favourable. Energy prices are high at the moment and there is an increased focus on energy-savings, so we anticipate these issues will have a positive effect on Danfoss’ sales. In addition, customers are increasingly aware of the fact it makes good sense to invest in products which reduce energy consumption. With our new investments, we feel we are ready,” points out Niels B. Christiansen. Read more about Danfoss’ new buildings on the following pages. By Lene Ilsøe Hansen 52008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=6http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=6Strategies & Trends What we are building… and where By Niels Chr. Larsen Denmark: Gråsten, Drives 11,900 m2 Drives is in need of a new logistics warehouse to handle global shipments. More offices are also being built. The new warehouse and offices will be operational in December 2008. Denmark: Århus, Danfoss Redan 6,500 m2 Redan used to be located at two addresses, but work is underway to gather operations under one roof. Later this year, Redan’s 110 employees will start using a brand new building for the production of heat exchanger stations, stock and offices. It is due to be completed in the autumn of 2008. Poland: Grodzisk, Danfoss Floor Heating and Heat Pumps 6,500 m2 Floor Heating and Heat Pumps will set up production in a new building located on the same land as Danfoss’ existing production facilities. The Floor Heating electrical cable production line was first set up and tested in Denmark; subsequently, it was moved to the new factory in Poland. The production lines will be operational in June. Romania: Bucharest, District Heating 6,200 m2 An annual growth of up to 35 per cent in Romania and neighbouring countries is the reason why District Heating is building new premises. In 2006, Danfoss acquired the Romanian manufacturer of compact stations and heat exchangers, SchmidtBretten, which, thanks to the new building, is set to expand production capacity substantially. The new building will be completed in the summer of 2008. USA, Loves Park, Drives: 12,000 m2 The factory needs space - for example, it needs room to extend the current production of frequency converters. The factory at Loves Park was constructed in 2001 and is now set to be extended to a total of 23,500 m2. The building will be ready in 2009. France: Saint Malo, Deléage – part of Danfoss Floor Heating 5,000 m2 In August 2006, DEVI’s Deléage factory in Saint Malo burnt to the ground. Now it is being rebuilt on another plot only a few kilometres away from the original factory. The factory employs around 88 people and celebrated its 50th anniversary in 2007. The new building will be ready in June. 62008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=7http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=7Russia: Moscow, Danfoss Heating Division 8,360 m2 In 2007, Danfoss opened a newly-built main office in Istra, outside Moscow, but rapid growth has meant it already needs more space. Therefore, the business is expanding its warehouse and administration facilities. The extension will be built in 2009. China: Wuqing, Household Compressors 13,000 m2 The compressor factory is set to have its own production line in China: a line that will provide the whole of Asia with compressors. The building is being built next to Danfoss’ second factory in Wuqing, which was inaugurated around two years ago. The new building will be ready in June and production will begin in October. China: Wuqing, sixth phase of Danfoss’ construction projects in China 12,700 m2 An extension of the existing production facilities, the building will comprise a stock facility, administration and a shipping section. The building will be completed in June. China: Anshan, District Heating 11,500m2 Chinese construction workers managed to finish laying the foundation of the new factory before the winter set in, bringing hard frost. The new construction project in Anshan is set to house the production of district heating controls, motorised valves and balancing valves. Danfoss took over the Anshan factory in August last year after having run the business together with a Chinese joint venture partner for some years. The factory employs 100 people. The building will be ready for occupation in August. China: Hangzhou, Danfoss Qinbao 9,000 m2 So far, Danfoss Qinbao has produced brazed plate heat exchangers in rented premises; however, in April, the production of heat exchangers relocated to new premises in the development zone near the city of Hangzhou, approx. 170 km from Shanghai. Danfoss Qinbao is a tenant at the joint venture company Danfoss Sanhua, which has constructed a new 40,000-square metre hall for the production of micro channel heat exchangers - a joint venture which Danfoss entered into in January 2007. Construction was completed in March 2008. China: Shanghai, Holip 20,000 m2 This building is being constructed with the help of local advisors and entrepreneurs, and will house the production of micro-drives and production of Drives products. The environment and energy consumption are important issues in the construction project and the production hall will be insulated, which is unusual in China. Danfoss Holip’s neighbour will be a five-star hotel. It will be completed in December 2008. 72008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=8http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=8Working Life Enter the world of art The winners of Danfoss’ art competition have been chosen and their works of art are on display in the main building in Nordborg – which you can view, step by step. By Ole Kanstrup You’ll need strong legs if you want to see the winning entries from the Danfoss art competition, which inspired students from around the world to interpret Danfoss’ Values. The artwork is now on display on the various floors in the stairwell of the administrative building in Nordborg – which means you have to climb 155 steps, unless you prefer to take the lift. The Danfoss ArtAward was launched in the spring of last year. At the finishing line, an international jury awarded eight gold, 12 silver and 12 bronze medals to the winning students, who had created artwork in a variety of art forms: painting, photography, sculpture, design, architecture and installation. At a reception on March 17, a ribbon was cut in the stairwell, opening the ‘gallery’ so employees and others could view the best of the entries – and be presented with the Danfoss Values in an entirely different way. “Right from the start, the purpose was to stimulate a renewed internal discussion about our values and ambitions. And considering the responses we have received so far – both internal and external – it seems the debate is in full swing,” explains Torben Fich, the project director responsible for the completion of the Danfoss ArtAward. He adds that the students who won a gold medal were invited to join the reception. Art students from 21 countries took part in the competition. They competed for prize money totalling 100,000 euros and submitted 454 works of art. The majority chose to interpret the value about environmental and social responsibility or the value about global behaviour and local presence. 82008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=9http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=9Gold medal winner with no will to win Competitions do not particularly interest Fredrik Olausson … Yet he scooped two medals in Danfoss’ Art Award. Fredrik Olausson, a 32-year-old student of architecture, does not know anything about taking a deep breath and pedalling extra hard in order to be the first to cross before the green light turns red. According to him, he is not competitive at all. However, he is one of the winners of the Danfoss Art Award – and he has even interpreted the Danfoss goal to create a winners’ culture. He submitted two photographs and they have won him a gold medal, a silver medal – and prize money totalling 8,000 euros. “I must admit it felt good to have won after all, even though it is a competition,” says Fredrik Olausson. He read about the art competition and the Danfoss Values on his university’s website. What sparked his interest was the idea of balancing the business side – the will to win against competitors – with a softer element. “It’s ok to have a winner’s mentality – that is what keeps the world going. But it should be matched with a respect for Environmental and social responsibility – when the strong crush the less strong or push them too hard, there’s a price to be paid. nature and social responsibility – otherwise, it will be empty and without any value,” says Fredrik Olausson, adding that the Danfoss Values appear credible and interesting because they do not point in just one direction. Water, stone, ice, and berries Both of Fredrik’s photos are images of nature – which is where he gets his inspiration. The photo that won a gold medal is an interpretation of ’the will to win’ and depicts a stone that is frozen fast in the ice. “Everyone knows that water cannot support stones. But if it changes into ice, it can support even large stones – and this is a way to communicate a winner’s mentality,” he explains. He was also presented with the silver medal for his interpretation of the Danfoss Value concerning environmental and social responsibility. In this photo, a stone has squashed some berries which are, therefore, red with juice. By Ole Kanstrup The Will to Win – water cannot support a stone … or can it? Fredrik Olausson is studying architecture at Chalmers University of Technology in Sweden, but he also studied art for four years 92008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=10http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=10Attention to detail By Ole Kanstrup Lu Ling likes to cook and when he’s wearing his chef’s apron, the vegetables are always carefully selected, the meat meticulously chopped and the cookery book thoroughly checked. He pays close attention to the details. Now Lu Ling has been chosen as the Values Ambassador of the first quarter of 2008. And the manager who nominated Lu says it is not just when he is in front of the stove that Lu Ling is particular about details. “If I have to give a presentation based on background information provided by Lu, I don’t check it before making the speech. The details are always 100 per cent correct,” says Poul Brage Michelsen, Senior Director of Operations, Danfoss Automatic Controls, in China. Until October last year, Lu was a Value Stream Director at Danfoss Automatic Controls in China, with responsibility for production, logistics, quality, and engineering. When salespeople received an order, it was his job to ensure the right products were assembled and shipped to the customer at the right time. This requires attention to detail. “If you are supposed to have two or three hundred valves of a special type ready at a certain time, the particulars need to be in place before pressing the start button,” says Lu Ling. One of the first Lu has been on Danfoss’ team in China since the construction of the factory in Wuqing began. He was person number 15 to start working for Danfoss China and on February 1 he had been employed in China for 12 years. For him, the Danfoss Values mean that the company and its employees continuously offer their best services to the customer – and, not least, to society. It is all about acting decently. ”It is a great honour to have been appointed a Values Ambassador. I could not have asked for a better present for my 12th anniversary,” he notes. Lu Ling, aged 44, lives in Beijing with his wife and son. On November 1, he was appointed the Director of Operations of Danfoss Household Compressors in China and will help set up a new factory. Each quarter, the Executive Committee selects a Danfoss Values Ambassador. This time, it was Director of Operations Lu Ling.2008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=11http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=11Notes Improving English on the go Danfoss employees who visit China will be able to chat in English to the chauffeurs who drive Danfoss cars thanks to a special training course. Thirty chauffeurs, including Zan Chang (below), have completed a course in English and, this time, it was organised by English-speaking volunteers from the Chinese organisation. Between October and December last year, the chauffeurs received one to two hours’ training every week. Thank you, Hans As always, Bitten Clausen, aged 95, was all smiles when she took part in the farewell ceremony for Executive Vice President Hans Kirk at the beginning of January. And she also played a key role in the speech that Jørgen M. Clausen made about Hans Kirk, a fellow member of the Executive Committee for the past 12 years. Jørgen M. Clausen based his speech on reliability, which is one of the company’s five core values, and noted that if all the Danfoss employees took part in a vote to see who was the most reliable, Hans Kirk would come in a good … second. “My mother would win first place,” he said. In his speech of thanks, Hans Kirk entertained the audience by saying that, over the years, the Executive Committee had fought tremendous battles – over table tennis. He also looked back at a little of what he had learnt during his long life at Danfoss. He said it was about following the leader who seeks the truth – and running away from whoever thinks they have found it; about the fact that most things in life have two sides; that it is important not to feel bad about decisions; and that everyone should be pushed to bursting point. “Take good care of Danfoss,” were his parting words. Hans Kirk will continue to be the vice-chairman of the Bitten and Mads Clausen Foundation. China’s first DPP project There was a swarm of good ideas during the implementation of the first DPP project to be initiated in China. During the project, at the factory in Wuqing, the operators helped solve 40 job-related problems. One result has been that the capacity of machines, which used to cause bottlenecks in production, has now improved by 30 per cent. The gold standard in English For more than 10 years, employees at Danfoss in Poland have received English lessons. During that time, around 1,200 people have attended the school, with the best ones becoming members of an exclusive group of students with gold medals in English. To get a gold medal, a student must have taken part in 70 per cent of all lessons during the year and scored 90 points out of 100 in the examination. Ten gold medallists are employed at the factory at Warsaw. In addition to English, foreign employees can learn Danish, German and Polish. 112008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=12http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=122008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=13http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=13   MAn On  thE MOOn Did they reach the Moon? When the first Man on the Moon competition was launched, the participants were asked to consider this situation: imagine that the price of oil has increased to 100 dollars a barrel. What opportunities does this provide Danfoss? That was a wild scenario back in … 2004. Since then, of course, the price of oil has continued to rise – reaching the psychologically important 100 dollar mark around the turn of the year. During the same period, 123 Danfoss employees 104 men and 19 women – have taken part in the competition that is set to secure more intrapreneurs in the company. We have come as far as transforming the first projects into concrete Danfoss products. The winning projects from the first three years will be launched on the market this year and they are presented in detail on the following pages. They have one thing in common: they reuse Danfoss components extensively, but in ways that open up new markets. Is Man on the Moon considered a success? Yes, very much so, says the American entrepreneurial expert Professor Bill Carney, who was an external consultant for the Man on the Moon competition. He describes it as a unique initiative launched to gather the creative and innovative talents in the company – and give a strong signal that creativity and innovation make up the company’s best foundation for future viability. ”In general, the projects have been high quality and have even, in some cases, involved radical solutions,” he says. The Man on the Moon concept is in the process of being adopted by Danfoss Universe, which, for a fee, will offer other companies the chance of sending their most innovative employees on a six-month training course at the facility. By Niels Chr. Larsen 132008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=14http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=14Prize-winning solution to power problem A new Danfoss product smoothes out distortions in the power supply system and improves electricity utilisation. By Niels Chr. Larsen Harmonics sounds pleasant enough, but when it applies to the power supply, harmonics is a major problem. The phenomenon occurs when powerful equipment in industrial companies, for example, consumes electricity. The load returns electrical distortions to the power supply system which, at worst, can result in breakdowns. So, it makes sense to try to solve the problem … and this is exactly what Danfoss has done with an active filter which will be presented later this year. The project won the Man on the Moon competition in 2005 and has been fully developed by Danfoss Drives at Loves Park, USA. “An active filter opens up new opportunities using the competencies and components that Danfoss already has – only applied differently. All of the existing filters on the market have been constructed by hand in small series, whereas we are able to present the market with a mass-produced solution,” says Steffan Hansen, who won the Man on the Moon competition with the project and is now a member of the project steering committee. To the delight of customers and power plants But, first, a little about what an active filter does – because it is slightly complicated. Large systems which consume electricity 142008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=15http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=15   MAn On  thE MOOn from the power supply network generate noise: a kind of auricular fibrillation. Danfoss Drives’ filter measures this noise and when the curve is unstable, it returns a counter current in order to restore the balance. Both electricity consumers and the power supply plants benefit from this, because using an active filter results in more efficient energy utilisation. Firstly, major electricity consumers can save money – money which would otherwise be spent on the increased heating of cables and so on. However, most importantly, the fibrillation means that it is impossible to fully draw on the transformer. In fact, capacity could improve by up to 10 or 15 per cent if an active filter is installed. Therefore, there is a clear advantage for the major electricity consumers and power supply plants if big customers install filters, because they will then make the most efficient use of the power supply. This could even mean that it will not be necessary to construct new power supply plants. This point is also of interest to governments. Indications are that some countries are beginning to demand solutions to the problem. Currently, there is an international recommendation – the IEEE/519-1992 – that deals with the maximum harmonic distortion; but in the constituent state of Victoria in Australia, for example, the recommendation has been given the force of law. Victoria is set to consume large amounts of electricity because of a number of recently constructed desalination plants providing drinking water. Filters have also been installed in China on a large scale. Here, the pressure on consumption is huge, so the important thing is to improve the power supply network’s capacity as much as possible. Facts Currently, there are passive filters placed in sequence within the system – this means that the entire system breaks down if the passive filter breaks down. The active filter is arranged in parallel. Therefore, it is not a problem if it fails because of an overload, among other things. Furthermore, it is easy to replace. Danfoss’ active filter will be sold in three sizes. The product reuses 70-80 per cent of the parts already used in the large drives produced at Loves Park. 152008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=16http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=16Water purification 2.0 Following a couple of years’ testing in the field, Danfoss is launching the product that won the first ever Man on the Moon competition. The target group is people who live near the coast and in areas with a low rainfall. By Niels Chr. Larsen The coastal areas of north eastern Australia are beautiful – but terribly dry and dusty. The people living there are not allowed to wash their cars or water their gardens because water supplies are so scarce. As a result, the gardens are desert-like. However, thanks to an improved version of the water purification machine that won the Man on the Moon competition in 2004, residents here will now be offered the chance to use more water. After winning the competition, a limited number of the water purifying machines were built and went on to be tested in various places, including a Greek island. Now, compared to the first version, the new machine is simpler and cheaper. However, such a large investment is required that the target group will be the better off members of populations in the Caribbean, the Greek Archipelago and Australia, which will be the first three markets where a commitment will be made. “In Bermuda, one cubic metre of water costs 14.24 euros. For comparison reasons, our machine can provide one cubic metre of water for between 2.69 and 3.36 euros, including depreciation, maintenance and operational costs,” says Torben Revald, the project sales manager. The machine transforms saltwater or brackish water into fresh – drinking quality – water by pumping it through membranes at a pressure of up to 59 bars. Other similar machines do exist, but they consume much more electricity than the 3.5 kWh that the Danfoss machine uses. The machine consists of a range of Danfoss components, such as a water pump, frequency converter, pressure transmitters and a Danfoss water engine that accumulates the pressure difference. It reduces the water consumption by 50 per cent. Later, the machine will be followed up by a more advanced version which can be controlled using a cell phone, among other things.2008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=17http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=17   MAn On  thE MOOn Hot water solution for hairdressers The winning project from the Man on the Moon competition is now ready to be launched on the Chinese market and its potential is huge. The figures are difficult to grasp. Estimates show that there are almost two million hairdressers in China. Next year, 10,000 salons will open in Beijing, Shanghai and Guangzhou alone. They will all need lots of hot water - and Danfoss will be poised to step in with the water heater which won the Man on the Moon 2006 ideas competition. The water heater was tested at two Chinese hairdressers last summer and the result was promising: a 70 per cent saving on energy bills for electricity or gas, which means the investment is repaid within two years. This generates annual savings of around 1,500 euros for each hairdressing business. Danfoss’ solution is an adaptation of a Thermia air-to-water heat pump. The first pumps were manufactured at Thermia in Sweden, but now 1,000 square metres of the Wuqing factory in China have been earmarked and local production will be set up later this year. Danfoss has entered into an agreement with a heating and sanitation distributor in Shenzhen for the sale of the new water heaters, and, so far, the distributor has employed four sales staff to do the job. According to predictions, 2,000 systems will be sold in China next year, which will mean sales of 8 million euros. By Niels Chr. Larsen Facts Central heating is not common in China. Therefore, hairdressers have to provide their own hot water. 172008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=18http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=18Notes Clothes for Chinese children Over the course of one month, Danfoss employees throughout China collected clothes and money for the Sun Village organisation, which runs several children’s homes in China for youngsters whose parents are in prison. In total, 22 boxes of winter clothes were collected from Danfoss staff in Wuqing, Beijing and Shanghai. Sun Village provides the children with a good standard of living and relevant training. When the present from Beijing and Wuqing was handed over to Sun Village in Beijing, Danfoss representatives planted 12 jujube trees in the home’s orchard. Fairground organ breathes again With the help of two frequency converters from Danfoss, an old German fairground organ has been revived. The organ was built at the beginning of the 1920s by A. Ruth & Sohn in Schwarzwald, Germany, and a travelling fun fair initially used it in Germany and Switzerland. An English company purchased it for use in various events and saw the benefit of being able to control the speed of the ventilator motor, resulting in a more powerful air current to compensate for the leakages which had occurred over time. The solution was one-phase frequency converters. Now the organ has been repaired, with new leather on the bellows and new music rolls, and is being exhibited at a museum in Schwarzwald. Snow problem solved by DEVI cables When the Electricity Vocational School in Grimstad, Norway, was enlarged with a new wing, school leaders were suddenly left facing a problem with the old existing building. New Norwegian construction regulations prescribe that roofs must have a 400-kilo per square metre load capacity in order to cope with the weight of snow and ice on the roof – in the past it was 250 kilos. As a result, the developer planned a very costly and extensive solution: the construction of extra supporting pillars in the old building. However, the electricity contractor working on the construction project suggested a far better and cheaper option: placing DEVI cables on the roof instead. So, today there are 600 square metres of Devimat™ DTCE-300 on the roof in Grimstad, waiting for the snow to fall. 182008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=19http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=19As a leader, you are a role model All new Danfoss leaders will join a course in good leadership. Karisma del Carmen Rodriguez Garcia, aged 27, took part in a world premiere when she and 15 colleagues from Danfoss Mexico joined a leadership course in November last year. It was the first time that employees had completed the course “Leading People at Danfoss”. And, therefore, the first step had been taken towards offering training to all new leaders in Danfoss. Recently, Karisma was appointed the head of training and development in the HR department in Mexico. During the three-day course, she was introduced to the Danfoss Values and the expectations that the company has of its leaders. The course also dealt with EDD dialogues, the importance of communication and the different roles a leader should be able to play. This last part, in particular, can be difficult to handle, according to Karisma. She says: “As a leader, you should be aware that you are a role model and you should act accordingly. And there is a difference between being responsible just for your own job and sharing the responsibility and the vision with people who think along different lines and are motivated in other ways.” Personally, she says she gained most from the presentation outlining the competencies a Danfoss leader should possess. And she already thinks that the course has helped her in her everyday working routines, because she has been given a clearer idea of what is expected of her. The course in Mexico will now be offered to new leaders in Danfoss around the world - both newlyappointed leaders with no managerial experience and people who have joined Danfoss as leaders. By Niels Chr. Larsen Facts The course has been set up as a result of the focus on improving leadership in the company. The perspective plan has set out three areas for detailed attention in the coming years: improving leadership, branding and the Danfoss Business System. 192008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=20http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=20Working Life New ”antenna” will detect unethical conduct In recent weeks, staff have begun to receive a handbook on how they should behave in their capacity as Danfoss employees. At the same time, an Ethics Hotline is being launched which can be used if you observe anything contrary to Danfoss’ ethical guidelines. By Niels Chr. Larsen At Danfoss, we all behave decently, right? But, what if you discover that a purchaser is accepting money from a supplier or that a salesman is offering bribes in order to get ahead? Or what if a production line suffers from systematic thefts from the workplace? What are you supposed to do? You would normally approach your manager, but now you also have the option of using a newly-established Ethics Hotline. In principle, this is an external body which will research such allegations and submit them to an ethics committee in Danfoss. The committee consists of Ole Daugbjerg, Chief Reputation Officer, and Ken Blæsbjerg Graversen, head of corporate IT safety. Not just words Ole Daugbjerg, why was it necessary to establish an Ethics Hotline? “Because we take ethics seriously – it isn’t just words on paper, but a real-life issue for us. You could argue that we have created an antenna that will detect employees’ signals. If they observe something that is totally wrong, they will have a channel for taking action.” Which issues can you present to the Ethics Hotline? “It is rather simple: the conditions described in the Handbook that provides the guidelines for good behaviour. It is not something that is supposed to replace or compete with the overall managerial system. All of the conflicts or conditions that the employee and his or her immediate leader normally complain about or resolve should, of course, continue to be dealt with in the normal way; just as professional issues should be treated entirely according to the rules that exist between the employee representatives and the management.” But when are you not supposed to approach your manager? “If it is a case of shady issues, which involve the violation of our ethical rules, and where there is a risk of the manager wanting to conceal it or where you sense there is a chance that you would be personally harassed, the Ethics Hotline is an option. But, please remember that the shop stewards throughout the Group also play a key role in issues concerning everyday work.” No anonymous approaches Do the leaders have reason to be nervous? “No, they should just continue to behave decently. And I would like to emphasise that anonymous approaches will not be considered.” Why not? “We want to avoid people submitting reports based on the fact they have a grudge against someone. Furthermore, anonymous approaches will be almost impossible to investigate. However, you should not be frightened of losing your job when you are on your guard against violations of Danfoss’ ethical rules. That is why the Danfoss Ethics Committee has been given carte blanche by the Danfoss Board, so that we can be sure that someone who takes ethics seriously does not get into a difficult situation. On the other hand, you should know that you could risk losing your job if you deliberately submit a false accusation.” Approaches will be made to an external consultancy firm - why? “Primarily because we want to make sure that rules on how to handle personal information are complied with correctly.” The Ethics Handbook is being sent to every Danfoss Group employee’s private address. Continues on page 22 202008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=21http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=21Facts The procedure, step-by-step: • A possible violation of the ethical rules is reported via letter, e-mail or phone. • A report is prepared and sent to the Danfoss Ethics Committee. • The Ethics Committee investigates the case. • In the case of a violation, the situation is rectified. Around 30 cases a year are expected to be reported to the Ethics Hotline. This figure is based partly on the number of cases presently reported to the head of IT safety, and partly on the experiences of other companies. 212008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=22http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=22Working Life Increase in dismissals for bad behaviour By Niels Chr. Larsen The number of people dismissed because of unethical behaviour has increased steadily in the three years since Danfoss companies have been required to report such incidents. According to the latest Danfoss Annual Report, 36 people were dismissed last year on the grounds that they had behaved in a way that was contrary to the ethical rules applying to employees. In comparison, 22 were dismissed in 2006 and 11 in 2005. However, this does not necessarily mean that unethical behaviour has become more common, emphasises Malene Østergård, who is Director of environmental and social responsibility at Danfoss and who oversees the gathering of such information. “Presumably, there’s a greater awareness of the reporting requirements and another factor is that more people have joined the Group,” she says. The figures reflect a wide spectrum of causes: theft, fights, disloyal behaviour, falsifying documents, fiddling with time sheets etc. The 36 dismissals took place in 10 countries. The information about dismissals as a result of unethical behaviour has been published in the Danfoss Annual Report and, according to Malene Østergård, the reason is clear. “We always talk about living the Values. In this way, we are also showing what will happen if you don’t live them. Credible communication involves us also telling the less glorious stories in the Annual Report,” she says. Fighting colleagues shown the door In the spring of 2007, two employees at Danfoss in Slovakia got into a fight. Afterwards, both had unmistakable signs of having been in a fight, but there were no witnesses who could explain what had happened. They blamed each other and both were dismissed. Falsified payslip earns woman the sack With a view to obtaining a bank loan, a production employee in Danfoss Poland amended her salary details on a Danfoss payslip. The bank called to confirm the information and the deception was revealed. The employee maintained that her ex-husband had falsified the payslip. She was dismissed, but was told she could have her job back if she was acquitted by the legal system. She did not return. Alcohol costs three people their jobs Each month in Slovakia, around 30 randomly selected Danfoss employees are tested for alcohol. The tolerance limit is 0.0. If alcohol is found in someone’s bloodstream, they are dismissed. Three people were fired last year for this reason. Cheating the time clock Over a long period of time, an employee at Drives in Denmark clocked on at 6 am, but was not available in the factory before 7:30 am. He was suspected of simply clocking on and going home afterwards. He was dismissed when he did not show up at an external oneweek course – and could not account for his whereabouts that week. Out after 15 years Last year, an employee who had worked for the Group for 15 years was dismissed from Danfoss in South Africa. The reasons were: timesheet accounts had been settled dishonestly, resistance to work, turning up late for work, and unaccountable absences. 222008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=23http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=23Notes Customers rev up Eighty roaring motorcycles marked the launch of the third round of the Danfoss Motortour in Holland, an event organised every year for Danfoss’ customers from all three divisions. This time, 80 motorcycles drove 225 kilometres on main roads and across the Dutch countryside. The event was launched when it was discovered that Danfoss customers and employees both had a mutual interest in motorcycles. Ingrid van Meggelen is one of the organisers and she said the participants were lovely people. “They only have to be served a cup of coffee and something to eat, and they are happy,” she says. The next round is set for September. Quality improves at Chinese suppliers Sub-suppliers to the scroll compressor factory in Tianjin need to be top of their league. Therefore, Supply Chain Manager Gary Zhang set his mind on improving the quality - and decided to implement improvement activities at three sub-suppliers. And after six months’ intensive cooperation, the result was a 300 per cent improvement in productivity and a reduction in faults to only one per cent. “This is the first time that we have gone that one step further and involved the sub-suppliers. We aim to have close working relationships and we see great potential in the three companies that we have chosen to work with,” says Gary Zhang. One of the suppliers was Lian Cheng, LMC, a local supplier that casts parts for scroll compressors. The biggest quality issues included broken parts and porous metal. In the case of the two other sub-suppliers, the team managed to reduce the amount of scrap through intensive 5S training and problem-solving. The factory has now achieved total savings of approximately 110,500 euros thanks to the projects. First production line in India On December 12 – three days earlier than planned –the production of pressure controls was launched in Chennai in the southern part of India. Pressure controls are one of the most popular regulators for industrial processes. They are used to protect process systems against pressure that is too high or too low. Now, thanks to the production line, Danfoss’ capacity worldwide will increase by 10 per cent. Eleven employees work at the new line, including Revathy Jayaraj. 232008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=24http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=24EPS: is it worthwhile? Employees quizzed a top Danfoss executive about EPS, the regular survey measuring staff satisfaction. They grilled him about anonymity; the fact they thought there were too many questions – some too complicated; and said some staff were unhappy with their salaries. He wants to keep the surveys, but says they might need to be structured differently. By Niels Chr. Larsen, Lene Ilsøe Hansen og Ole Kanstrup Next time, salaried employees and hourly-paid workers might receive two different questionnaires when they are asked to give their opinions about Danfoss. This was one of the ideas that Niels B. Christiansen, Vice-CEO, was presented with when employee representatives from around the world were offered the chance to fire questions at the person with overall responsibility for the EPS survey implemented last year. The background to the meeting, which took the form of a video conference, was simple: it was the second time that Danfoss had asked its employees their opinions. A great deal of money is spent on EPS: the 2007 survey cost around 604,000 euros in consultant fees alone. Furthermore, the survey revealed that employees were slightly less content and motivated, compared with the previous survey. Therefore, questions like “Is it worth the money?” and “Does it make a difference?” were natural in the run-up to the meeting with Niels B. Christiansen. Mari Kohvakka, an assistant in Finland, began by noting that a large number of employees did not participate in the survey for two reasons: there were too many questions and many were considered to be irrelevant. It is impossible for an hourly-paid worker to evaluate someone in Business Top Management who is located too far away, she said. It would be better to ask them to evaluate their local management. Niels B. Christiansen replied: “The most important thing is that we measure our performance and we could possibly do with fewer questions for the hourly-paid workers. I have made a note of it … the problem is that once you begin asking questions, you would like to include a whole range of queries. In this way, there is always the risk of it leading to other issues, along the lines of ’it would also be good to know this’. It is difficult to give a clear response in connection with the assessment of the Business Top Management. This makes sense within some organisations – in others, it does not.” 242008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=25http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=25Are we really anonymous? Several of the panel members drew attention to the fact that anonymity – and the possible lack of it - was problematic. The survey is based on anonymity, but can such things ever be really anonymous? Isn’t it an illusion in departments with few employees? “In small teams consisting of less than 10 people, employees do not want their manager to read their comments. It is easy for the manager to recognise who said what and then anonymity is a problem,” said Eduardo G. Gonzalez Valencia, who is in charge of quality, safety and the environment in Mexico. Niels B. replied: “Currently, the limit is five people. In departments with so few staff, the manager does not have access to the comments. Maybe the limit will be raised to six or seven, maybe 10, employees. The disadvantage would be that we would have to work with material that was less useful and we do not want that. We need the comments in order to obtain improvements from the EPS. I hope that employees will feel able to include comments that lead to fruitful discussions, even in small departments. And I actually believe that, in reality, we do not have a problem with anonymity. We have a watertight process … but, since people are concerned, it is an issue. On the other hand, I want to say that we have con- ducted two surveys now, and we have not had a single case where an employee has suffered because of the replies he or she has given.” Unhappy with their salaries Diane Young, supervisor at Loves Park, USA, proposed that it might be a good idea to hold a meeting in advance of the EPS to discuss and explain the issue of anonymity with production staff. “That is a good idea,” Niels B. Christiansen said. Diane then said: “Here, salaries are also an issue amongst production employees.” Niels B.: “When we planned the second EPS, we contemplated dealing with the issue of salaries again. We decided to do so and ended up having a low score, but that situation is not unusual for companies when the employment rate is high and there are plenty of jobs. I do not think that issues such as wages belong in this kind of survey. We have other forums Continues on next page 252008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=26http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=26Continued from page 25 Values. Currently, this is done in different ways. There should be a more uniform approach,” said Niels B. Christiansen. Mari Kohvakka: “Personally, I think there is a lot to gain from the EPS, but when I talk with my colleagues, most of them say that nothing really happens.” Niels B.: “I see that many things are being implemented and that things improve. We have more than 1,100 action plans and we will follow them up. We did that in November and again at the end of February. We can apply pressure through the divisions, but the responsibility lies primarily with the local sites. Thanks to our discussion, you have pinpointed the vital issues and I have been given many ideas which I will take away with me. And the answer to the question about whether it’s worthwhile is: yes, if we don’t measure, we risk things moving in the wrong direction.” where we can talk about salaries: in connection with local negotiations, for example, and through comparisons with other companies. EPS is not a tool used to negotiate salaries.” Mini survey for low-scoring departments Eduardo: “I have come across some good action plans implemented after the EPS. In one department, all of the employees met to discuss what could be improved, while the managers served tea and coffee. But measures like these are not implemented everywhere. How do we make sure that there is the same degree of commitment elsewhere? Niels B.: “That’s a good question. It is very important that the management supports the process and drives it forward. You do sometimes get the feeling that the plans have been written down – and then placed in a drawer. That should not happen and we, the top management, must be aware of that – and I hope that employees will be, too.” “Will there be a special follow-up on the departments which had a low score?” “Yes, this year, departments that scored below a certain level will be offered an extra mini survey to establish whether progress has been made. Next year, we plan to implement a full EPS but we do not intend to carry out one every year. It is a costly process, but I worry less about the money than I do about taking up too much of our employees’ time,” said Niels B. Christiansen. He went on to point out that a score lower than 50 presents a problem, whereas special attention should be paid to every department with a score below 60. “This time, the total EPS score fell from 69 to 67. What is the target?” Niels B.: “The target is to exceed 70 by 2011, and, next year, the target will be 68-69. We should return to the level we used to achieve.” A course in Danfoss Values Bernd Andresen, shop steward for the hourly-paid workers in Flensburg, noted that several questions in the EPS concerned Danfoss’ Core Values. However, he said shop floor leaders were not given any particular introduction to the Danfoss Values. “Recently, we designed a compulsory programme for new leaders so they could improve their knowledge of the Danfoss Values, and new employees should also know about the Core Facts On a scale of 1 to 100, the EPS survey shows how the company is perceived in the context of a range of issues. The score indicates employees’ satisfaction, and the motivation level is regarded as the most important parameter. In relation to Danfoss overall, this figure is 67 – a medium result at the good end of the scale. Leaders with low scores have been offered help to implement improvements; on two occasions leaders have been moved due to the latest EPS. Facts The people who quizzed the Vice CEO: Bernd Andresen, shop steward in Flensburg, Germany Diane Young, supervisor in Loves Park, USA Eduardo G. Gonzalez Valencia, quality, safety and environmental manager in Monterrey, Mexico Mari Kohvakka, assistant, Leppävirta, Finland 262008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=27http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=27MEXICO The manager served tea and coffee Waitress – this was the job that Kenia Zaragoza took one day in December when the 20 employees from Filter Driers Value Stream in Mexico, who she managed at the time, discussed results at an EPS workshop. “I served coffee, soft drinks and refreshments. By not taking part in the meeting, I avoided influencing their discussions – and the conclusion,” she says. And the conclusion was that the pressure of work had become too great and physical working conditions were not good enough. The staff had become involved in so many jobs, they had begun to hold meetings in their lunch breaks. Also, the office was too cramped and the air-conditioning system had broken down. Now the department is focusing on the priorities – not all tasks can be dealt with in one go. The office has also been rearranged and the air-conditioning system repaired. “The employees really feel they have ownership of the changes because they decided where to step in,” says Kenia Zaragoza. SLOVENIA Draughts and ergonomics hit EPS score The EPS score from the production facility at Danfoss Compressors in Slovenia was low - 62. Afterwards, workshops with the production staff revealed that part of the problem was that minor issues were being allowed to escalate into major problems. “We did not pay enough attention if workers complained about draughts in the factory hall or working positions that were not ergonomically correct. Focus has been on production rates, not the little things”, says Communication Manager Nataša Hudelja, who is in charge of coordinating EPS at the plant. The production staff now have 10-minute meetings with the team leaders so that minor issues are dealt with during the working day. And an ’open door’ policy has been introduced for them to discuss problems with the factory leaders at least once a month. However, salary issues also reduced the EPS – here the score was 59. So now the factory will implement a new bonus system where quality will be an important consideration. The aim is to create a clear link between performance and rewards. DENMARK More pats on the back The leaders at Danfoss Distribution Services in Rødekro, Denmark, found themselves at the low end of the EPS scale. It turned out that one of the reasons for this was a lack of feedback about employees’ daily performance. “The employees needed praise and criticism - a pat on the back, an encouraging remark or a quick question like ‘How was your weekend?’” says supervisor Lars Seest. He adds that the situation was partly caused by the fact that the department has taken on around 70 new employees over the past two years. As a leader, you can easily focus on the tasks instead of the human side of work, he says. Now an extra supervisor has been appointed in the department and it has been decided that both leaders and employees should take courses in communication and conflictsolving. The aim is for the leaders to be better at providing feedback and for employees to learn how to express their daily needs. SOUTH AFRICA Step up the communication A regular monthly meeting will ensure that the employees in the sales department at Danfoss Refrigeration & Air Conditioning in South Africa are continuously updated on targets, sales figures, projects and new initiatives. The meeting is also set to ensure that they receive regular feedback regarding their performance. “Almost all of the areas that had a low EPS score had issues concerning information and communication. So now we will help tackle those issues through monthly meetings,” explains business unit manager Vernon Vandrau. And employees have said they think this is a really good idea. “It is a simple and efficient way to improve communication – just what we need,” says sales engineer Inderen Isaac. 272008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=28http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=28Notes The car’s batteries can be fully charged after five-seven hours, giving the car enough power to drive for up to two hours. Inventor uses VLT® to drive his car Danfoss has helped a Bosnian inventor realise his idea to completely eliminate CO2 emissions from cars. Rudolf Bosnjak has installed a VLT® AutomotionDrive in his Opel vehicle to regulate the power from 47 12-volt batteries in the boot of the car. The Danfoss Drives frequency converter transforms direct current from the batteries to a 3-phase alternating current, which runs the motor and controls the speed. Spomenko Hulak, from the competence centre for High Power Drives in Croatia, met Rudolf Bosnjak by chance. The Bosnian ideas man had come across a Danfoss frequency converter which had been leftover after a service visit to Sarajevo. He made a telephone call … and was given permission to use it for his experiment. Spomenko Hulak says that he spent several evenings talking on the phone to the Bosnian inventor, who managed to make his car drive with the frequency converter one month later. Rudolf Bosnjak, who trained as an electronic engineer, now hopes to convert more cars. He says: “My target is to produce electrically-powered cars which do not emit CO2 but, right now, I don’t have the funds to develop and improve the car further. Now it needs new batteries, which will also reduce the weight.” The electrical motor provides rapid acceleration; when the car is breaking, the motor works as a generator, returning energy to the batteries. Presents for American children Employees in Baltimore, USA, have donated both money and toys to the relief programme Toys for Tots, organised by the US Marine Corps. Before Christmas, five boxes of toys were collected and passed over to Marine Corps representatives who, since 1947, have distributed 370 million toys to children throughout the USA. The money will make it possible to buy extra gifts, ensuring that the children receive presents suitable for their gender and age. 282008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=29http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=29Energy-friendly plunge for Americans Danfoss Low Power Drives supplies speed controls for swimming pool pumps, helping Americans save energy. By Lene Ilsøe Hansen Energy saving is on the agenda in the United States – and also an issue on several of the popular morning television programmes where one of America’s leading swimming pool manufacturers, Pentair, has been given precious air-time. Reporters have visited a number of swimming pool owners to learn about major energy savings. And, they have found the IntelliFlo pump does save owners money. The annual running costs of a normal pump are around 1,000 dollars, but the pump with the in-built Danfoss Low Power speed control means the energy consumption is cut by between 70 and 90 per cent. And this could turn out to be very important, because several states in the USA have adopted strict energy-regulating laws. In Las Vegas, Nevada, for example, all in-ground swimming pools must have pumps installed which have energy-saving modules – such as the one produced by Low Power Drives. And since January 2007, it has been a statutory requirement in California that every new swimming pool should have multiple speed pumps. After air-conditioning systems, swimming pool pumps are the biggest energy consumers in American households, because they only pump water at one speed. However, by regulating the amount of water pumped out and by that circulated in the pool through the filter, energy can be saved. Special solutions Danfoss Low Power Drives, which develops customised frequency converters, was established in 1998 as a separate part of Danfoss Drives so it could focus on special customer solutions, in contrast to the parent company, Drives, which manufactures standardised frequency converters. This has resulted in Low Power Drives becoming the sole supplier to a range of customers, of which Pentair is the biggest. Director Per Graven Nielsen says there is a big market for customised solutions. He says that areas such as fan and motor control could be interesting because they will be subject to statutory energy saving requirements in the future. “Only between 10 and 15 per cent of the electrical motors that have been installed around the world have speed controls. So we can add something new which can be integrated into the customers’ systems and provide energy savings,” he says. Since 2004, Low Power has doubled its net sales each year. Within the next few years, Per Graven Nielsen anticipates it will reach net sales of around 300 million DKK. Currently, 50 people are employed in the area. Facts There are about 3 million in-ground swimming pools in the USA. The number of pools above ground is even larger. So, all these pools make a considerable demand on the power supply network. Several power supply utilities offer large discounts to end-users who install the Low Power Drives solution. 292008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=30http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=30Lunch meeting with the manager Each Friday, CC Chang, General Manager of the factory in Wuqing, has lunch with five randomly selected employees from production and the warehouse. He cannot do anything about their salaries, but many issues can be solved at lunchtime. By Niels Chr. Larsen Many years ago, CC Chang worked for a company where a dispute between the management and employees escalated. In the end, the head of the company invited the employee representatives for lunch … and it occurred to CC Chang that they should have had that lunch together a lot earlier. This was why, 18 months ago, he introduced ‘Friday Lunches’ for employees in Wuqing. Each Friday, five randomly selected employees are invited to have lunch with the General Manager – the idea is that they can ask any questions they have and that he will get a better sense of what is happening in the factory. “I receive lots of positive feedback. Many are pleased with the opportunities they are offered by Danfoss, and I have the clear impression that the staff loosen up. To begin with, they were reluctant, but now we discuss issues and this is a very unusual practice in China,” says CC Chang. No gifts for the manager, please He estimates that 60-80 per cent of all the requests made have to be rejected. Many of them concern salaries and he cannot deal with those because he is not responsible for the different production lines. However, he makes much of explaining the salary system and telling staff how to improve their skills – which increases their chances of a better position and a higher wage. He also attaches great importance, at every meeting, to the fact that managers are encouraged to honour and reward employees who have made a special effort – in order to promote the Danfoss culture. But also, that it is strictly prohibited for managers to receive gifts from their employees – which is usually common practice in China. Criticism is passed on All queries can be dealt with during lunch and the employees are guaranteed anonymity and an answer. Once every quarter, in a newsletter, CC Chang reveals who he has had lunch with and answers the queries that have been raised. “I only communicate praise on my newsletter. If there has been any criticism of the works managers, I pass it on to the value stream managers, as anonymous information,” he emphasises. 302008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=31http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=31The lunch meetings begin with a discussion of Danfoss values. All in all, the lunch discussion lasts for an average of an hour and a half. Questions and answers I am a Muslim and I am concerned about eating meals in the canteen in case they contain pork. The canteen assures us that there are vegetarian meals and meals that do not contain pork. Is it ok to arrive late when it rains or snows? No, you must leave home earlier if the weather is poor. Can we have a sports tournament? Because now that the factory has grown so large, we don’t all know each other in production? It has now been organised. The hot water in the bathing facility is not warm enough. It has been dealt with, so that the temperature increases 30 minutes before a shift. The efficiency of my production line increases far more than my salary. Why did it not increase proportionately? Your salary is determined by the category of your job and the market situation. It is not linked to the annual surplus. The toilets are not properly cleaned during weekends and overnight. The cleaning contractors have been asked to improve their service, but they complain that toilet paper vanishes and the toilets become clogged with waste which has no business there. Could I recommend my brother or a friend for a job? No, we aim for a transparent recruiting process. Therefore, recruiting should take place via the public employment service. If your brother or friend is a good employee, it is quite likely we will hire him. ! ? 31 I am with the company for 10 years. Why is my wage the same as people with 7 years tenure? Your wage is based on job categories and each job has a wage cap. Once you reach the cap, there is virtually no difference between 7 years or 10 years.2008-05-07T14:55:35+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=32http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2008/GlobalDanfossNo12008/?Page=32Danfoss around the world Singapore High-rise warehouse Construction sites are expensive in Singapore, where it is vital to utilise every square metre. Therefore, even warehouses are built high up. The transport business Cougar, which handles logistics for Danfoss in the small city-state, recently moved into the fifth floor of a newly-built department store. Here, 17 people work at the Danfoss warehouse, where lorries with 40-foot containers are able to drive up and park on the fifth floor. Now, thanks to the new warehouse, the capacity of goods arriving via Singapore has increased to 3,100 pallets. Poland Disabled Polish artists showcase their work Bogusia Siedlecka has suffered a staggering 160 fractures during her life. Bogusia, who has chronic brittle bone disease, took part in a special event in Poland which offered disabled people the opportunity to display their works of art. The event, the third of its kind, took place in Grodzisk Mazowiecki, where Danfoss Poland has its headquarters. As in previous years, Danfoss sponsored a variety of gifts and donated a significant sum of money to the performing artists. Bogusia Siedlecka, who recited her own poems, is pictured here with Poland’s most popular female author Katarzyna Grochola (right). To the left is the model and actress Agnieszka Maciąg. The gifts were distributed by well-known people from the Polish cultural scene and show business. Denmark E-auction gives Drives a good deal Danfoss Drives has found a good way of buying at favourable prices on the Internet: e-auctions. As part of the FPP project, the purchasing department, headed by Michael Jensen, set their minds to searching for new opportunities to buy cheaply via e-auctions. The e-auction took an hour, during which the suppliers submitted their component prices. “It was an intense hour and we were able to constantly monitor the bids from all of the suppliers who took part,” says Michael Jensen, Purchasing Manager. At the auction, Danfoss Drives saved a total of 201,000 euros – four times more than expected. Now Drives plans to use the method once more to purchase standard parts, points out Michael Jensen. The purchasing program, Full Purchasing Program, is part of the Danfoss Business System. 32 China This is what cleaner air looks like Last year, District Heating renovated a district heating system in the city of Changchun, north eastern China, considered to be one of the most polluted cities in the country. Forty large heat exchanger units were installed as part of the programme – and the units can look really good, as seen in Osmo Tammela’s photo. Osmo is District Heating’s Sales Manager and a keen photographer. The Danfoss project means that eight hugely polluting charcoal-fired heating plants in the city will be turned off, helping ensure that the air in Changchun will become cleaner.2008-05-07T14:55:35+02:00