http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/RSS.ashxDanfoss Group Global PagesFri, 12 Oct 2007 11:43:39 +0200http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1MAKING MODERN LIVING POSSIBLE Global Danfoss India on the move 15 Values Ambassador 19 DPP success 20 Shelter for children 26 207 A Stakeholder Publication English edition2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=2http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=24 20 10 1 Published by Danfoss AS Total number printed 27, 400 Address Danfoss AS, L24212 DK6430 Nordborg globaldanfossdanfoss. com Responsible Ole Daugbjerg Editor Niels Chr. Larsen Prepress Christa Hartmann Photographer Glenn Simonsen, Daniel Weinreich Print Laursen Grask AS Published in Danish, English, French, Spanish, Polish, Slovenian, German, Chinese and Slovakian. Printed with vegetable colours on environmentally approved paper. Reproduction only by permission of the Editor and always with acknowledgement to Global Danfoss Global Danfoss26 Global Danfoss June 2007 Table of contents Page 1 India ready for a tiger leap e Indian economy is growing by almost 10 per cent every year. Danfoss in India is growing four times as much and is set to become a true Danfoss production country. See more on page 15. Page 4 New Russian factory is already too small Four years ago, the blueprint for the new Danfoss factory on the outskirts of Moscow was created. But now the factory is ready, the new President of Danfoss in Russia has concluded that it is too small to meet even current needs. However, there is room to expand Page 10 Cleaner air in the Spring City Danfoss is behind the renovation and expansion of a district heating network in one of Chinas most polluted cities. Page 20 Prizes on every shelf e machines are more reliable, the quality has improved and the working environment is much better. Commercial Compressors in France is reaping the rewards of targeted DPP activities. Page 26 Street children oered shelter in Kiev Danfoss donation helps give street children in Ukraine a roof over their heads aer school. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=3http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=33 Leader A few times lately, I have been asked what will we do once we have reached our targets in 2008 That is, of course, a really good question. We have not reached the targets just yet and we will have to work hard to reach them, but all the indications are that we are well on our way to achieving net sales of 24 billion DKK making 10 DKK for each 100 DKK we sell and getting a return of 20 DKK for each 100 DKK note we invest. But, naturally, there is life after the 241020 targets. Whats on the other side of 2008 Recently, I was asked the question at a conference in Austria, where Global Business Services had invited an Austrian professor and futurologist to draw up an outline of development around the world. He talked about the anticipated growth of the BRIC economies Brazil, Russia, India and China among others. He discussed the pressure on resources, and global warming etc. all very interesting and relevant for a company like ours to be aware of. He concluded that you cannot predict anything apart from the fact that there will be an increasing focus on the environment and energyeciency. I believe he is right. We see it already. Politicians all over the world are seriously opening their eyes to global warming and are pointing to the importance of us all saving energy and cutting down on green house gas emis sions. This means an increased demand for products that utilise energy in an ecient way and this is precisely what Danfoss can provide. This is at the heart of our company and what we continuously strive to develop. No matter what development department I visit, engineers and technicians are focusing on developing solutions that save energy. So, it is perfectly natural for us to proceed along this path and that is why this years Man on the Moon competition is focusing on Cleantech, clean technology not to follow a fancy trend but because it is our home territory. Currently, we manufacture products which will be in great demand in the future and we have a good opportunity to take Danfoss a very big step forwards if we reach our 2008 targets, remain focused on the major growth markets and consider the main trends, such as scarcity of resources and energyeciency, in our development activities. . . . that is why this years Man on the Moon competition is focusing on Cleantech, clean technology. . . By Vice CEO and COO Niels B. Christiansen2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=4http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=442007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=5http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=55 Facts Focus Russia Currently, Danfoss in Russia employs 350 people, as well as 33 temporary workers. This year alone, 50 people have been hired. The employees anticipated the move to an area outside Moscow with a great deal of excitement. Only a few chose not to move with the company. Shuttle buses transport employees to the factory from the near est metro station. A new development is that Danfoss in Russia has decided to oer a pension scheme to employees who double their own contributions. Such schemes are unusual and, after two months, 40 per cent of sta had accepted the oer. New Russian factory is already too small Four years ago, the blueprint for the new Danfoss factory on the outskirts of Moscow was created. But now the factory is ready, the new President of Danfoss in Russia has concluded that it is too small to meet even current needs. However, there is room to expand Text and photo Niels Chr. Larsen The 400 or so guests at the opening of the factory in the Istra region on June 20 will t into the place. And they will have something nice to look at. The factory, 20 kilometres from the outer ring in Moscow, is a replica of factory number 2 in Wuqing, China, and it adorns the new industrial area where other global companies have also planned their futures in Russia. But, when the guests have gone home, everyday life will con tinue and it is rather dicult to nd enough space for all the goods on the shelves. That is the job of Mikhail Shapiro, head of Danfoss in Russia. Even before the inauguration, it had been decided to enlarge the 12, 000 square metre building with a 3, 000 square metre ware house, which will be ready at the end of the year. So far, the warehouse has spread to the production area. The warehouses capacity is too small to match a market which has increased by 4050 per cent in recent years and in a country where Danfoss had its highest real growth rate last year. But, the President of Danfoss Russia has great expectations for the future, with increased production. Women to the right, men to the left The original production was primarily set up for marketing rea sons. Customers liked the fact that production took place in their country. Today, the volume of production is dierent. Women dressed in red are on one side of the central axis of the factory, producing 500, 000 radiator thermostats each year men in blue are on the other side, producing 40, 000 steel ball valves. Shapiro estimates that the two lines will produce 20 and 100 per cent more, respectively, this year. In addition, he expects an assembly line for heat exchangers and balancing valves will be set up, both of which will belong to the District Heating family. He says A huge number of opportunities exist for setting up production facilities in Russia. The countrys growth rate is high, and the need for modernisation and new construction is huge and the salaries in the Russian regions are low compared to Western Europe. Finally, savings can be made on important factors, such as trans port, where savings of ve to ten per cent can be achieved, and on customs duty for steel goods, where there are savings of up to 15 per cent. My guess is that the developed part of our plot will be three times as large in ten years time, says Mikhail Shapiro. The new plot is 114, 000 square metres. Last year, Danfoss sales amounted to approx. 134 million euros in Russia. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=6http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=66 Focus Russia Text and photo Niels Chr. Larsen If you look at a radiator in an average Russian house, you will quickly see that something is missing it is simply not possible to turn o the heat. It passes merrily through the pipes, whether it is Siberian winter outside or spring has arrived with twittering birds and rising temperatures. In most cold countries where there is a need to heat homes dur ing the winter, a few oil crises have taught consumers a lesson on how to cut heating bills. However, in Russia, a country with more need for heating than most and where cold weather lasts for seven to eight months in many regions, consumers do what they have always done they simply open the windows when it gets too hot indoors. Now Danfoss aims to change this, but it will be a long, uphill journey. Skilful lobbying A couple of gures illustrate the extent of the problem 70 per cent of all households in Russia have district heating. It is esti mated that the country has a district heating supply network of more than 1. 8 million kilometres and the loss of heat in most systems is between 20 and 70 per cent so a good deal needs to be renovated. Back in 1993, Danfoss, which had just been established in Rus sia, saw this coming. The then President of Danfoss Russia, Leif Simonsen, launched an oensive, assisted by Aleksandr Artyukh and Viktor Granovskiy the current technical director and his deputy. Thanks to ecient lobbying and close cooperation with the countrys biggest producer of heating panels, Santechprom, Danfoss managed to dominate the market entirely and most importantly managed to make the authorities in Moscow introduce guidelines for the use of thermostats on radiators. The guidelines are only recommendations but, in practice, eight out of ten contractors comply with them. So far, so good. However, although the thermostats have been installed, many residents cannot really see the point of them and some even remove them. The heat is still escaping Danfoss has managed to encourage contractors to install radiator thermostats in most new build ings in Moscow. But consumers have to be convinced it is a good idea. e answer is householders paying individual bills for the heat they use so they can see the benets on their heating bills. Paying the same The trouble is that they still pay the same for their heating, whether or not they turn it down and save energy. In Russia, everyone pays the same, with bills depending on the size of the apartment, not how much the household uses, and so far heating has not been tremendously costly. Payment takes place according to a special national rate and, in addition, the borough often grants additional nancial support. This is the kind of situation that Danfoss is up against. It is not an easy task to convince a contractor that he should invest in the whole package that Danfoss oers, including heat exchangers and meters in each apartment. This only increases the price of the apartments and is not a sales argument that attracts buyers, says technical director Aleksandr Artyukh. Consequently, only a few of these projects exist and they are primarily examples of how it could be with savings of 3040 per cent on heating bills. Global warming and treaties such as the Kyoto agreement are not very important subjects in Russia. This country has large oil and gas reserves, and this means that there is little motivation for making savings, says Viktor Granovskiy. He goes on to point out another important aspect a deeplyrooted fear among politi cians and ocials that Russians could freeze during the long winters. However, some factors are in Danfoss favour the Moscow city council has decided to eliminate the district heating subsidiary, and this should strengthen the district heating consumers focus on their heating bills. Also, four regions will soon introduce rules like the ones in Moscow regarding the use of radiator thermo stats. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=7http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=7Facts 7 Every year, new house building covers 5 million square metres of land in Moscow and another 5 million in the areas surrounding Moscow throughout Russia it is about 50 million square metres. This means there is a need for approximately half a million heating elements in the capital alone providing a huge potential for Danfoss products. It is a good idea to keep a watchful eye in Moscow. Before long, a new building crane will be erected the rst sign that yet more are eminent. And the cranes are exactly what sales engineer Vladimir Arsenov looks out for when he drives around his part of the Russian capital. He is one of eight sales engineers who are in charge of monitor ing new buildings. They have simply divided Moscow between them and it is Vladimirs task to observe the development in the north western corner. Here, there is intense building work. One example is the former airport area where new 2030storey resi dential ats have shot up. The monitoring method has proved very ecient. When a new project begins, all information about the new project is entered into a special IT system and other parts of the organisation then start contacting the contractor and the consultants who have been assigned to the heating system, as well as other systems which could be of interest to Danfoss. Danfoss Russia is contemplating expanding the system to include distributors. The aim is for the contractor in the Danfoss system to choose directly between the dierent distributors. This would have the eect of making the distributors feel more obliged to provide the best possible service, hopes Mikhail Sha piro, head of Danfoss Russia. Presently, information about 1, 300 new building projects in Mos cow has been entered into the system. And 2, 000 buildings have been registered in other regions. Follow that crane On the up A new project begins. The sales engineer has located yet another new building being constructed in Moscow. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=8http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=88 The 2006 results were Danfoss best ever, and Ole Steen Andersen was pleased this was the situation when he retired as Chief Financial Ocer at the Annual General Meeting AGM. However, he predicted that he would be part of the record for just one year because 2007 will be even better. But he also forecasted that he will be able to claim the best quarter ever namely this years rst quarter for many years to come. The quarterly gures are very good and it will take many years before my successors will beat them, predicts Ole Steen Andersen, in a teasing way. Beforehand, the Chairman Henrik E. Nyegaard had thanked Ole Steen Andersen for his ever wellprepared and incisive approach. At each Board meeting, both the remaining members of the Danfoss Board and I were pleased with your factual and easyto understand review of the state of the company, where you also pointed precisely to the weaknesses and challenges that had to be dealt with, said Henrik E. Nyegaard. Ole Steen Andersen has been replaced by Frederik Lotz on the Executive Committee. Considering a new round of employee shares At the AGM, the Chairman revealed that the Board is considering oering a new round of employee shares in connection with next years AGM. This will coincide with Danfoss 75th anniver sary. Incisive right to the end e Executive Vice President presented record accounts and stepped down at the AGM. e Board is considering a new employee share oer. By Niels Chr. Larsen Employees have been oered the chance to buy shares in the company twice before. The rst time was in 2001 when the shares were sold at a price of 200 DKK the second was in 2004, when the price had gone up to 600 DKK. Both rounds oered favourable prices and purchasers have proted from the deal. At this years AGM, the price was set at 2, 273 DKK an increase of 27 per cent in one year. At the moment, about 3 per cent of Danfoss is owned by its employees. Danfoss is currently worth 23 billion DKK. Mc Kinsey man on the Board Bill E. Hoover, director at the consultancy Mc Kinsey, was elected a Board member as a replacement for Daniel Meiland. He has helped establish Danfoss in China and has been a key gure in the introduction of the extensive project, the Danfoss Business System. Bill E. Hoover has been with Mc Kinsey since 1977. Over the past 10 years, he has been in charge of Mc Kinseys consultancy services for Danfoss and has been involved in every project. He leaves his post with Mc Kinsey at the end of June. Because of my close relationship with Danfoss, I have obtained a global perspective on Danfoss business transactions and I am looking forward to working on the Board, he says. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=9http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=99 Facts By Niels Chr. Larsen The rst termostatic expansion valve that Mads Clausen pro duced in his room improved refrigerant utilisation, thereby limit ing energy consumption. And this has continued ever since one of the common features of many Danfoss products is that they save energy. So, it is natural that Danfoss is at the top of the Cleantech wave which, in recent years, has been owing across the USA, heading for Europe and the rest of the world, says Danfoss President and CEO Jørgen M. Clausen. He mapped out the future in connec tion with the Annual General Meeting when he explained the Executive Committees train of thought behind its commitment to Cleantech. Cleantech equals energy savings and clean technology, and that is precisely what we do. The frequency converters from Motion Controls alone save 1000 MW annually, which equals the output the frequency converters alone save energy equal to that from two rather large power stations e Cleantech wave, which began in the USA, has rapidly spread around the world. It is about producing energyfriendly products and that is right up Danfoss street. e company has been doing that since 1933. Cleantech is the theme of this years Man on the Moon competition, as shown on the banner on the wall of the Administration building in Nordborg, Denmark. The banner is almost 320 square metres. from two rather large power stations, says the President of Danfoss. Cleantech is about improving the utilisation of energy and covers the solar power and wind energy sectors, among other things. In recent years, companies dealing with Cleantech have experienced increasing interest from investors. In the second quarter of last year, every seventh venture dollar in the USA was invested in companies which do business within Cleantech, and that meant the Cleantech eld attracted the third largest amount of investment. Examples of energyfriendly Danfoss products include Danfoss Variable Speed Compressors use at least 25 per cent less energy than other compressors. Danfoss heat pumps use 30 per cent less energy than heating with oil or gas, for example, and will be a strong alternative when an energysaving programme directed at new buildings is introduced in Europe. Danfoss Silicon Powers power modules are used to control the servo steering in Ford and Citron, among other things, and generate energy savings of 35 per cent. High Pressure Water Solutions machine for water puri cation transforms one cubic metre of water at one third of the price of comparable products. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=10http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1010 Customer Business By Niels Chr. Larsen Photo Osmo Tammela Cleaner air in the Spring City Danfoss is behind the renovation and expansion of a district heating network in one of Chinas most polluted cities. Changchun is situated in north China, with 2. 5 million inhabit ants, and is poetically called The Spring City beyond the Great Wall. During winter, however, it is hard to see the poetry the sky is full of smoke from the many coalred boilers which heat every block of ats. The boilers are inecient and emit harmful substances into the atmosphere. But things will improve as of next winter. A district heating net work in the city was renovated and expanded this spring with Danfoss as the main contractor. Last year, District Heating won an order worth 10 million euros and, as a result, 30 containers with equipment were shipped to north China in March this year. In the containers, for example, were 40 large 310 MW Danfoss heat exchangers weighing up to nine tonnes each and equip ment for the upgrading of 12 units at the plant. This was a very complicated project, not least because it was funded with money from Danida, the Danish Ministry of Foreign Aairs development organisation, and, therefore, part of the pro duction had to take place in Denmark. Other parts of the project came from Danfoss in Poland and Finland. Early in the process, I realised that we had won a very tricky project and that if we could manage it, we could cope with anything, says Dariusz Wellenger, head of the project. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=11http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=11Facts 11 Facts Improved working environment Changchun is one of the most polluted cities in China and the many small coalred boilers are responsible for most of the pol lution. Around 70 per cent of them were made in the 70s, and they supply 85 per cent of heating in the city. The administrators of the properties supplied with heating typically own the boilers and boiler men manually manoeuvre coal into the hungry boil ers 24hoursaday. The result of the project will be that the district heating network will supply heat to 80, 000 households which is around one tenth of the city and that eight of the small coalred boilers can be switched o. This way, the citys atmosphere will be spared 58, 000 tonnes of carbon dioxide CO2, 321 tonnes of sulphur dioxide SO2 and 58 tonnes of nitrogen dioxide NOX every year. It also means that a range of outdoor coal stocks can be elimi nated. The result less coal dust in the air and a more profes sional and healthy working environment. The renovated district heating network will be ready for use by 2008. As the main contractor, Danfoss is responsible for the entire project, including the delivery of heat exchanger units, district heating pipes and other equipment, train ing, testing, surveillance of installations and the nal transfer of the system. A heat exchanger unit is a heat exchanger with related equipment ready to install on the system. It is also called a substation. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=12http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1212 Notes Radiator thermostat overtaken Comfort Controls, which makes what is probably Danfoss most wellknown product the radiator thermostat, is no longer the biggest business area in the Heating Division. In recent years, District Heating has developed signicantly through the acquisition of companies such as LPM, Gemina, Redan and JIP. In less than four years, District Heatings net sales have multiplied nearly fourfold. The number of employees has gone up from 500 to 1, 400, and the business area now consists of 13 legal units. However, Comfort Controls is still in the lead regarding net sales and also has high growth rates. Ivan Kudsk an experienced former Danish policeman who specialises in organised crime started working for Danfoss on May 1. His role is to track down forgers and boost Dan foss in its ght against counterfeiting. We are moving from being skilled amateurs to professionals in this eld. A wide range of global corporations have hired policemen over the past few years to do this kind of job. Now we are increasing our activities in order to put ourselves in their league, says Frank Petersen, head of the Patents depart ment at Danfoss. Ivan Kudsk will coordinate eorts against global piracy from his oce in the Patents department at Danfoss in Nordborg and will work closely with the oce in China, where three lawyers work. His employment record includes, among other things, working in the police intelligence service and, in the past few years, he has concentrated on trademark piracy cases. He has an extensive international network of contacts in relation to this area and he was involved in the biggest case of its kind in Denmark, concerning the trademark piracy of knives and lamps worth around 30 million euros. No one likes to be robbed and, fundamentally, falsifying goods is theft, points out Ivan Kudsk. This year, Danfoss has implemented legal action against counterfeiters four times and has conscated 5, 000 refrigera tion compressor starters, among other things. In March, 600 fake lter driers were destroyed using a road roller in the desert in Dubai. The Patents department estimates that counterfeiting costs Danfoss millions of euros in the form of reduced sales. In addition, fake and defective products can harm the Danfoss name. Policeman set to stop piracy By Niels Chr. Larsen Ivan Kudsk has investigated organised crime for many years. Now, he is set to track down forgers for Danfoss. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=13http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1313 Strategies Trends Facts Text and photo Niels Chr. Larsen Leif Dalsgaard, Sales Team Leader at Sales Denmark, has sold Danfoss products to RENOFF for years. RENOFF produces high pressure cleaners, among other things, and Leif thought he had a clear idea of what Danfoss products the company needed. However, when he investigated more thoroughly as part of the Danfoss Sales Program, he found that he had not been entirely correct. When he sat down with his customer to get an overview of all the parts that make up the products manufactured at the plant, they discovered that Danfoss would also be able to deliver pres sure transmitters and a range of CI contactors to the company. The nal outcome was that current sales to RENOFF have gone Sales program boosts sales by 1015 per cent e Danfoss Sales Program systematises salespeoples knowledge and provides a deeper insight into their customers needs. up by 1015 per cent and the relationship between Danfoss and the company has been strengthened. Into the customers world The RENOFF example is only one of a range from the sales pro gram, which has been running since 2005. The goal is to make sales more ecient by creating a number of remedies and tools for salespeople. For Leif, this has included an interview guide which helps salespeople to really understand the customers world. He has also beneted from a spreadsheet which provides an easy and clear method to compare Danfoss products with those of its competitors, especially with reference to price, serv ice, delivery times etc. The DSP pilot has made us aware of what we do and it has emphasised the importance of systematising our knowledge. Previously, we often struggled to come up with the right argu ments when a customer had been oered a cheaper alternative. It is easier now, and we have a much more extensive network within Danfoss that we can utilise, says Leif Dalsgaard. He points out that the customers who took part in the pilot responded positively to the Danfoss salespeoples increased interest. RENOFF production manager Bruno Jensen conrms this Leif has been good at delving into the dierent problems and providing the information required to solve them. Dicult to measure The DSP programs goal is to achieve an additional 320 million kroner on the bottom line by the end of 2008. On average, there is the potential to increase sales by 1015 per cent during each pilot. Claus Iversen, the head of DSP, recognises that the gures can be dicult to estimate. External factors, such as economic trends, also have a role to play. In addition, the eect does not show until 1218 months afterwards. But, most importantly, sales peoples competencies do improve, he argues. Traditionally, we have sold a great deal based on our technical knowho, but we have not, for example, been good enough at pointing out how the customer can benet from our reduced error rate and improved service. DSP is set to help overcome this, among other things, he says. In the autumn, Leif Dalsgaard helped head a DSP pilot at IA in the Nordic countries. As yet, the lessons learnt have not been passed on to all of the salespeople in the region. The fth wave of DSP began on June 1. It consists of 20 pilots in Europe. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=14http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1414 Facts Danfoss has net sales of approx. 30 million euros in India. Growth amounts to 40 per cent annually. Currently, condensing units are assembled in India and Water Valves will set up an assembly line in 2007. The production of KP switches is set to begin in December. Bhalchandra Pasupathy, President of Danfoss India, is looking forward to housing new production lines. The view from his oce in Danfoss headquarters located in an industrial area in southern Chennai is of a newlyconstructed fourlane road. On both sides of the road, large companies have set up their busi nesses, among them many of Danfoss customers. In fact, over the past few years, the plot has become worth a fortune, but so far little of it has been utilised. In addition to the salaried employees in the main building, a few men assemble More room for expansion in Chennai condensing units in the warehouse hall to the back of the main building. But right from the beginning, the plot was designed to meet future requirements. It is so big that 6, 000 square metres are still available for new buildings at the far end of the site. Poisonous snakes still rule that territory, but Bhalchandra Pasupathy is looking forward to developing that part of the plot, too. Growth rates in India are very remarkable and you will have to show that you are a local player if you really want to have a share of the growth, he points out. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=15http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1515 Focus India Let us begin with a visit to an Indian supermarket. There are not very many in this vast and populous country and the Indian con sumers view them with a good deal of curiosity after all, the supermarket phenomenon is completely dierent from ordinary street and market trading. But, according to sales, the large Indian middleclass welcome the new era. Middleclass Indians now number 350 million and their purchasing power is increasing signicantly. At the moment, supermarkets, shopping centres and depart ment stores can only be found in the major cities but, by 2012, it is expected that the country will have more than 14 times as many modern retail shops as it did in 2002. And here are some more gures today, a limited 2 per cent of the traders use con temporary modes of business. This, however, is set to change radically to as much as 35 per cent by 2015, according to the worlds largest supermarket chain, Wal Mart. The major supermarket giants are poised to introduce them selves to Indian consumers together with the whole setup that comes with delivering goods to the shelves. This includes the purchasing of goods, transport and of particular interest to Danfoss the need for refrigeration at all points in the chain, from the producer to the consumer. In addition, of course, there is the air conditioning which is supplied to the shopping centres. Retail is merely one example of the substantial changes which have unfolded in India in recent years. The countrys growth rate is more than 9 per cent annually and the consultancy Goldman Sachs predicts an average growth of 8 per cent until 2020. At the same time, the Indian economy is nearly as strong as Chinas, when adjusted for purchasing power. India ready for a tiger leap e Indian economy is growing by almost 10 per cent every year. Danfoss in India is growing four times as much and is set to become a true Danfoss production country. The vanguard In order to take the lead in booming India, AC has decided to set up a production unit for pressure controls at Danfoss Indias headquarters in Chennai. These are used to protect process systems against excessively high or low pressure, in compres sors and airconditioning systems, for example. To date, they have only been manufactured in Poland, but a range of factors pointed to expanding production in India, Eric Bertrand, head of the project at AC, points out. The most important reason is that AC has seen all its major glo bal customers setting up in India. And these customers, as well as local Indian customers, have asked Danfoss to show strong local commitment by establishing manufacturing in India. It is therefore vital for us to be close to our customers, so that we can cooperate on the development of our products and deliver a local service too, he says. With the new production line in Chennai, the global manu facturing capacity of pressure controls will also increase by approximately 1015 per cent. But this production unit is just the vanguard of a range of new production lines in India. AC has its eyes on manufacturing other products in India where local production would be benecial. We look upon pressure controls as both an exciting opportunity and a pilot to test the market conditions that may ultimately lead to the establishment of various other production lines. The KP pressure control is used in most of our refrigeration applications, so having a KP pressure control made in India will have a signi cant impact on our image, says Eric Bertrand. Text and photo Niels Chr. Larsen2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=16http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1616 Focus India Any visitor to Indias capital, Delhi, knows about the problem congested trac, knots of honking taxies, cars, motor bikes, autorickshaws and busses sometimes observed by a couple of cows in the middle of the road, looking for something to eat. India has huge trac problems, just like many of Asias mega cities. Previously, Ashwini Kumar Raina in charge of Motion Controls Food Beverages sales in northern India was only too familiar with the situation. He often spent two to three hours commuting to and from work at Danfoss in Delhi but, today, he logs on to his computer in the morning in the peace and quiet of his home and hes immediately at work. Twice as many customer visits Ashwini benets from pioneering an improvement project, which is being introduced in India. Initially, it is covering the Indian capital, but it will also be implemented in Mumbai and Chennai this year. The project is set to reduce the number of reg ular work stations in the sales oces and encourage salespeople to work from home more frequently. This will reduce the need for work places and free up more time for customer visits. Working from home beats the jams in India Terrible trac problems and the rapidly increasing price of business leases in India are pointing in the same direction its a smart move for sales sta to keep away from the oce. In Ashwinis case, this means that he can visit twice as many cus tomers as he did before, when he had to get to his oce at the other end of Delhi rst. It is a great advantage to my work and a relief that I can work from home. The trac gets worse each day and my wife is happy because I am not home late. I did not use to see much of my children on work days, says Ashwini. Quiet is essential Broadband has been installed in his at and he has organised an oce where he can work without being interrupted by his children, who are aged ten and ve. Perfect peace and quiet are important when he is working, emphasises Ashwini. The family must accept that, he says. At the same time, working from home requires good back up from sta in the oce, who must pass on faxes and other important messages. So, there are lots of advantages. However, there are also down sides to working from home. It is essential that communication A cross Asian project team has examined the advantages and disadvantages of introducing the concept in sales oces in Australia, Indonesia, Vietnam and India. In these countries, 248 people work in sales oces. The team estimates that one fourth of them need permanent work places. Surveys show that salespeople spend an average of 50 per cent of their working hours in the oce. On this basis, the project team therefore estimates that the concept will result in enough space for an extra 93 people in the current oce premises. Facts2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=17http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1717 between the person working from home and other employees in the oce is maintained. Ashwini deals with this by meeting them once a week, though not necessarily in the oce. Sec ondly, it requires a certain amount of maturity, he points out. You have to be able to motivate yourself. I do not think everybody would like it, but if you have the self discipline, it could be advantageous to both parties we save time, which we can spend with our families, and Danfoss saves money on rent, he says. Half the chairs stand empty Before the project started, a survey revealed that work stations at the oce were only being utilised for about 50 per cent of the time which meant that half the time, the chairs were empty. Therefore, the exercise now is to identify the sta who need a permanent work place. In a sales oce like the one in Mumbai, this is typically 40per cent of the sta. Twenty employees work in the oce, but now the number of permanent work places has been limited to 8. In addition, there are four hotdesk work stations in the middle of the room available for everyone to log on to. In this way, we can create enough space to increase the number of sta in Mumbai by 15 which will almost double the sta numbers in the same space, says Hariharan Krishna, Director of GBS in India. This will lead to a large saving on the rent. Mumbai is one of the growth areas in India, whose economy is growing by around 9 per cent annually. Since 2000, rental costs have increased by 150 per cent in India and they look set to go up even higher. Hariharan Krishna points out that the local culture and sensitivi ties of employees need to be taken into consideration before implementing the concept. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=18http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1818 Notes Getting raw materials to Mexico more cheaply Annual savings of 15 per cent on the transport of raw materials from Europe to Mexico have been made thanks to a recently completed project by Danfoss Mexico and Danfoss Global Logistics Services. While the project was running, a new online tool was launched which enables purchasers in Mexico to arrange for the cheapest possible shipment of raw materials. With the tool, it is easy to shift between ship and airfreight, so that the raw materials can be delivered faster if they are needed urgently. The freight company Mah will be in charge of deliveries. Youngsters come third in robot contest NXT Generation sponsored by Danfoss in Baltimore and the Fabrikant Mads Clausen Foundation took third place in the technology competition First LEGO League, in which about 90, 000 youngsters took part. A total of 95 teams, each with 10 members aged 1016, took part in the nale in Atlanta, USA, in April. The challenge consisted of constructing and programming a robot to perform a number of tasks. The teams were evaluated according to programming, the robots perform ance in the tasks, their own ingenuity and teamwork, among other things. NXT Generation is from Denmark. Picture this values become works of art The Danfoss headquarters in Nordborg is set to be decorated with works of art. This is the idea behind a competition that Danfoss launched in May, open to art students around the world. The students have been encouraged to produce works of art that interpret Danfoss Values and Mission. There are 100, 000 euros at stake in the competition. An international jury will select the best works, which Danfoss will then buy and exhibit on the oors around the staircase in the main building. By Niels Chr. Larsen Shortly before the Ice Hockey World Championships in Moscow, Danfoss entered into a sponsorship contract with the Danish national ice hockey team. The team came tenth overall at the championship, following victories over Ukraine and Italy, although it was beaten by Russia, Finland and Switzerland. The team is now set to participate in the next World Cham pionships. The contract will expire at the end of 2008. Danfoss on ice2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=19http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=1919 Each quarter, the Executive Committee appoints a Danfoss Values Ambassador. This time it was Senior Consultant Rasmus Caspersen. By Niels Chr. Larsen One of the leading pioneers within HR at Danfoss has been appointed a Danfoss Values Ambassador. Rasmus Caspersen has been involved in personnel development for 25 years ever since the then President of Danfoss, Henry Petersen, said to him You should work with people. Back then, he began to introduce employee appraisals in the meantime, he has helped numerous Danfoss employees often voluntarily nd their best place in the organisation. I have often come across colleagues who are not utilising their potential. On the other hand, it is fantastic watching the light in their eyes when they retrieve their sense of com mitment and feel they are capable of more than they ever thought they were, he says. Rasmus Caspersen is 64 years old. He will retire on August 1 and he says he feels delighted and humbled to be selected as a Danfoss Values role model in the autumn of his career. To him, the Values are often expressed in ways that dont need words. One example is the experience of being received in a friendly and professional manner when enter ing a Danfoss oce or factory. This signals that things are in good order in a friendly way. And that we live in an atmosphere of trust, where we can rely on each other and do not have too many hidden agen das, Rasmus Caspersen explains. At the same time, and particularly over the past few years, he has noted that more people live according to the Values, especially when dealing with customers. A few years ago, I coached a Korean employee who said that he had been ready to leave Danfoss, but when he saw the very professional way a customer complaint was dealt with, he said to himself that this was the place he wanted to be. That says everything about the Values being real and part of our daily work, he says. Professional in a friendly way2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=20http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=2020 Working Life 20 Facts When FRCCs production manager in France, Jean Luc Margand, headed his rst DPP project, he made a decision the plant in Anse would be a role model for other production areas at Danfoss. We wanted to be the best at producing and to improve continuously by setting new targets. And now we are reaping the rewards of our eorts, he says. In February, the plant in Anse had some of the best results from all of the DPP projects carried out in the Group. Since March 2005, the machine department has improved by 96 per cent. This means that the employees are producing twice as much as they did before DPP. Each day, the machine area of the factory drills and nishes around 500 scrolls for compressors and, each year, the factory produces 120000 scroll compressors. Jean Luc Margand has extensive experience of subsuppliers delivering to Renault and Toyota, so Lean was not unknown territory when he started out. Danfoss Lean concept DPP is the right approach for creating changes in production. The process is fast, the team is committed and focuses entirely on improving things, and, subse quently, the results of the employees hard work show, he says. So far, six pilots have been carried out in Anse and the neighbouring CC factory in Reyrieux. They all achieved targeted productivity improve ments. One area failed the management were not ready to change their mindset. I expect the leader of an area to change in the same way as the employees do, says Jean Luc Margand. DPP Admiral Leif Lyder Jensen has an overview of how all of the Danfoss factories are coping and he points out that the DPP improvements in Anse are not just reected in productivity increases, but also in the quality of the goods and the working environment, which are both of a high standard. Today, only one area at the two factories has yet to carry out a DPP pilot. Prizes on every shelf e machines are more reliable, the quality has improved and the working environment is much better. Commercial Compressors in France is reaping the rewards of targeted DPP activities. The department has systematically carried on its work with the DPP methods regarding problemsolving and visible management. Information boards which have been set up in all of the areas give precise details about the activities that the employees are involved in. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=21http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=2121 No more awkward positions, heavy lifting from the oor or metal particles in peoples eyes Employees in the machine area at the CC factory in Anse are in control of their working environ ment. The area has managed not only to improve productivity by almost 100 per cent it has also succeeded in making the 40 machine operators daily work at the large drilling machines less strenuous. Mickael Rognard is a team coordinator and operator in the machine area. He has been with CC for six years and has noticed the changes in his daytoday work. The changeover time at the machines has been reduced and the production is better planned. This means that we always know what to do. We do not have to make numerous change overs every day and this reduces the risk of getting injured, he says. Before DPP, typical accidents included cuts to ngers and strained backs because of awkward working positions. However, now several weeks pass between work accidents being regis tered. In March, the record topped 385 working days without an Working environment is under control accident. Unfortunately, it was broken when an employee made a wrong move while working at a machine, straining his back. In order to make sure that all employees make the working envi ronment their top priority, one or two operators are visited by two internal supervisors each week. They monitor the operators work and, subsequently, the operator summarises what was good and what was not so good. Production Manager Laurent Mas Soler explains The working environment is part of our daily working life. If an employee does not wear safety glasses or gloves, others will remind him to do so. This didnt used to happen. Process engineer Mickael Bron, who is responsible for opera tional procedures, is proud of the results. Safety is our number one priority. Now that we have systemised things and new targets have become part of our daily work, we can improve with only slightly more eort. We have already taken the long haul, says Mickael Bron. At the morning meeting the team checks key gures from production and plans the days activities. Text and photo Lene Illsøe Hansen2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=22http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=2222 Facts There are more than 230 million recorded cases of dia betes around the world, and each year there are seven million more cases. Statistics from the International Diabetes Federation IDF show that the condition is beginning to reach the same level as HIVAIDS. At rst sight, there is no link between phosphates and blood sugar. However, Danfoss Bionics has made the connection by exploiting old Danfoss knowhow to develop a new product an insulin pump which can make life easier for people suering from diabetes. The pumps technology has been developed using micro technology expertise, previously formed at Danfoss Analytical which produces equipment for measuring phosphates in water. This knowhow will now be transferred to the new prod uct. The technology enables insulin to be dosed very precisely and ensures the pump performs correctly. There is already a wide range of competitors solutions on the market, but Danfoss Bionics insulin pump still stands out. It only weighs 30 grams and can be glued to the skin. In this way, the insulin can be injected directly into the body with a syringe. Nor mally, diabetics carry an insulin pump on a belt tied to a hose, which doses the insulin. Furthermore, the Bionics pump is easy to use the user doses the insulin by simply clicking on the pump. But, there is a tight time schedule. Danfoss Bionics expects to present the new pump to the public within the next two years. From now until 2008, we are set to further develop and test the product and medical approvals must be obtained. It will be an incredibly exciting process, says Peter Gravesen, head of the Dosing business unit at Danfoss Bionics. Bionics focuses on blood sugar Medical approvals are necessary in order to perform clinical trials and so test the product on people. New product ready soon As the insulin pump is beginning to take shape, another product is nearing completion. This is a monitor that measures the sugar content in a patients blood directly in the bloodstream. The ability to constantly measure the blood sugar of critically ill patients is a vital help in intensive care units. In cases where people have been seriously injured, medical sta normally take blood samples for analysis every hour. Subse quently, doctors regulate the level of insulin. However, with the new blood monitor, the blood sugar level is shown permanently. This means that doctors are able to regulate it more quickly and eciently and thereby save lives. Research has shown that if glucose is kept at a constant, normal level in critically ill patients, the mortality rate can be reduced considerably. Therefore, accurate monitoring is a very important tool in intensive care units, says Holger Dirac, head of the Moni toring business unit at Danfoss Bionics. By Lene Ilsøe Hansen Two new Danfoss products help regulate blood sugar. One an insulin pump helps diabetics ad minister the right amount of insulin. e other can reduce patient mortality in intensive care units. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=23http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=2323 Notes By Niels Chr. Larsen Cutting back on paperwork Sta in India have plenty to thank a new IT tool for it has spared them from tapping in no less than 250, 000 computer entries every year. Until recently, employees spent six hours a day processing information from customs papers about goods which Danfoss companies had sold and dis tributed on the Indian market. Indian law stipulates that endusers must be provided with such information on the invoice. Now, the information is automatically entered into the SAP system. Danfoss in India has won an order for 148 frequency converters which will control the airconditioning system in Hyderabad International Airport. The airport is a joint venture between a privatelyowned airport company, the Indian airport authorities and the constituent state of Andra Pradesh. It is only the second airport in India to be built in this way the rst is in Banga lore. Once construction of the airport building is completed, the oor area will be 900, 000 square metres and will serve 50 million travellers annually. Order for new privatepublic airport in India Fire destroys warehouse Flames 50 metres high from 150, 000 litres of burning oil devastated an outsourced goods warehouse in Melbourne, Australia, in April. The re destroyed Danfoss compressors worth 1. 2 million euros. However, thanks to the rapid reaction of the local sales organisation and the sup port of Regional Global Logistics, the competitors did not hear about the episode and supplies were maintained via air freight, which meant that no customers were lost. Now you can step inside a cloud In May, an exhibition centre designed by the architect Jrgen Mayer H, from Berlin, Germany, was inaugurated at Danfoss Universe, the scientic adventure park in Nordborg. The cloudshaped building, called Cumu lus, is set to house a series of exhibi tions. The rst will show, among other things, how an SMS transfers from one telephone to another and how to make sound using digital technology. At the same time the main building was opened, a smaller version con taining a restaurant was opened too. The buildings were inaugurated on the parks second anniversary. Dur ing this anniversary period, the park was visited by 350, 000 people. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=24http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=2424 Working Life It was a clear message from the management of Danfoss Gearmotors, Esslingen, Germany, to plant manager Franz Schuur and his managerial colleagues they had to organise annual employee development dialogues with each and every employee. Franz Schuur, who managed 56 employees at the time, was not exactly thrilled when he was given the news at a large meeting at the beginning of 2006. I was not sure how I was going to allocate time to the task, he says. Only half the sta have a talk with their boss Since 2006, the Employee Development Dialogue has been compulsory. But last year, only about half the sta had a talk about their future fewer than the year before By Ole Kanstrup However, the local HR organisation was on hand, oering assist ance, information and training, and the leaders were given four months to complete the task. And they managed to carry out all the talks. Talks are compulsory The employee development dialogues EDD ensure that employees have the necessary skills and are content with their jobs in the long run too. And according to a Danfoss standard from 2006, the dialogues are compulsory. However, unlike Dan foss Gearmotors, not all parts of Danfoss manage to carry them out. In 2005, 69 per cent of sta were oered an employee devel opment dialogue last year, it was only 56 per cent. According to the Danfoss Annual Report, company acquisitions were one of the reasons for this low number. Another was the fact that at some locations, the dialogue has been postponed until this year, when a new electronic tool for the purpose will be launched. But for many leaders, another factor plays a part time. Alexander Hanel, HR and plant manager at Danfoss Gearmotors, explains 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=25http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=2525 Only half the sta have a talk with their boss At Danfoss in Mexico, only 19 per cent of employees had their employee development dialogue last year. One reason was that leaders with a high number of blue collar employees had diculties scheduling all the EDDdialogues. Another reason was that the number of new employees was very high in Mexico last year. This had a negative impact on the number of dialogues conducted, because they are not generally oered to newlyappointed employees. There is more to it, however. Also, we have not been good enough at putting pressure on the leaders telling them how important the employee dialogues are, con cludes Olga Nelly Cepeda Garza, HR Manager, Mexico. But changes are already being implemented in order to secure a much higher number of EDDtalks next year. The entire Mexico management team is committed to reaching the ocial 80 per cent goal and the HRdepartment now oers all leaders training in how to conduct employee dialogues, says Olga Garza. Push to increase talks in Mexico Danfoss is aiming for four out of ve sta to be oered an employee development dialogue in 2007. It is not realistic for everyone to have an annual talk one of the reasons is that employees hired at the end of a calendar year usually get their dialogue postponed until the following year. But an 80 per cent goal is realistic, and the global HR department GHR intends to press for this goal to be reached. Several initiatives are under consideration for example, whether leaders can be judged according to their ability to conduct employee dialogues. We need to motivate our leaders so that they make the employee dialogue as high a priority as budget planning, says Palle Kruse, head of Global HR at Danfoss. He adds that the dialogue is vital because it creates a link between the leaders targets and the employees goals, thereby making sure that the parties are heading in the same direction. A target of 80 per cent The dialogues are not a problem for a salaried employee with four sta. But for a plant manager who manages 40 people, it is a huge challenge to nd time on the calendar. But there are numerous ways to deal with the problem. At Danfoss Drives in Gråsten, Denmark, some departments have chosen to conduct group dialogues. The dialogues are simply conducted simultaneously with a team of production employ ees. Afterwards, the manager has a brief, though personal, talk with each of them. This timesaving solution makes it easier to conduct all of the talks. When the dialogues are completed, it is easy to see how worth while they are. At least, that was what Franz Schuur in Germany found out. It was worth it dialogue between a leader and an employee simply increases each persons commitment, he concludes, add ing that activities relating to this years dialogues started a long time ago. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=26http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=2626 Corporate Citizenship Facts By Lene Ilsøe Hansen Street children oered shelter in Kiev If Veronica and her brother, Jan, did not have the opportunity to go to the house in Shevchenko Street in a suburb of Kiev, the capital of Ukraine, they would hang around on the streets. However, after school has nished, she and her brother have lunch there, they can play and get some help with their homework. The house is owned by the organisation Triumph of Heart, which helps street chil dren and children from poor families. In February last year, Triumph of Heart received a donation of 7, 000 euros from the Fabrikant Mads Clausen Founda tion about the same amount that was donated four years ago in connection with Bitten Clausens 90th birthday. At the time, the Foundation awarded funds to social and humanitarian projects in coun tries where Danfoss was represented. Stefan Arpad Madyar, who is in charge of the home, says that the primary task is to teach children the social skills they are not being taught at home. Danfoss donation helps give street children in Ukraine a roof over their heads aer school. There are an estimated 10, 000 street children in Kiev and the number is rising. Ukraine has around 47 million people, with about 2. 6 million living in Kiev. We pass on competencies so that they can survive and we give them lessons so that they can receive training later on, she says. Around 50 children, from the age of seven to 16, turn up each day. Stefan Arpad Madyar, head of the street childrens home, is telling the children about the summer holiday plans. Jan and Veronica live with their mother and ve siblings in a small at. Their father abandoned the family when their mother was pregnant with Jan. Triumph of Heart has activities in all parts of the world and has been represented in the Ukraine since 1995. In 2006, the organisation built a new house which, in addition to providing more space, also houses between ten and 20 street chil dren permanently, or until they can return to their families. We do receive support from private people. The donation from Danfoss was important because it has helped us oer street children who do not go to school the opportunity to learn how to write using a computer, says Stefan Arpad Madyar. In addition to computers, Danfoss two donations have been spent on supplying the new house with washing machines, a dishwasher and equipment for the kitchen. 2007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=27http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=2727 Facts Notes The parts should be cheap, but they should also be of a high quality. Purchasers in China can often obtain savings of 2040 per cent compared to the price of similar sub deliveries in Western Europe. So, in order to ensure the goods are high quality, the Chinese purchasing organisa tion has taken a new step. Since August 2006, Lin Keyi has practically lived with the suppliers of brass parts in Taizhou in the Zheijiang province, south of Shanghai. The company Edison is one such supplier, and it is Lin Keyis job to ensure the quality of the parts that it produces for Danfoss. Lin checks all of the shipments to Danfoss and is directly involved in quality control work with Edisons own quality organisation. Nis Peter Iwersen, head of the Chinese purchasing organi sation IPO, says that this is the second time that a quality engineer has been placed at a supplier. He says We always aim to nd suppliers where it is not necessary to invest in additional quality checks and train ing however, in some cases this is not feasible. Along with the business area, we therefore decided to invest in a qual ity engineer. Nis Peter Iwersen adds that, currently, Edison and Danfoss are running projects worth 14 mil. DKK which will result in savings of 6 mil. DKK. So, it still pays o for Danfoss and the business area, he says. High quality in China In recent years, the purchasing organisation has obtained annual savings of 3 per cent on direct goods, i. e. goods which are included in Danfoss products. The 3 per cent has been adjusted for the price development of raw materials. From 2008, it will need to nd annual savings of 5 per cent, irrespective of any price increases. China will supply an increasing number of direct goods the 2008 target is 15 per cent. A total of 40 per cent of direct goods are set to come from socalled CCC coun tries Cost Competitive Countries countries with low cost levels. Since 1998, Danfoss Drives has pro duced one million VLT 2800 frequency converters the millionth one was sup plied on Thursday, April 26, at 1335 hours CET. It had been ordered by the Chinese company Yuejian Machinery Manufacture Co. Ltd. , which manu factures machines that give texture to textiles. It is the largest company in the Chinese Zhejiang province and exports extensively to Vietnam, Syria, Pakistan, Nigeria and Kenya, for example. Sven Ruder, President of the Motion Controls Division, presented the chairman of the board, Sun Xiaomao, with the millionth VLT 2800 gilded for the occasion. Drive number 1, 000, 001 was silver plated and presented to sales engineer Ding Yi, a representative of Danfoss Drives Chinese sales company, Danfoss Shanghai. The event in Gråsten, Den mark, was celebrated with mini VLT 2800 cakes. Around 5, 000 VLT 2800 drives are produced each week. By Niels Chr. Larsen The millionth VLT 28002007-10-12T11:43:39+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=28http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/GlobalDanfossNo22007/?Page=2828 Danfoss around the world Poland Pressure switch retires Now it is 70 years old, time has run out for the RT switch. Its replacement, which is called BCP, is an entirely new switch to control pressure in large boilers. It has been developed by Danfoss engineers in Poland. The new switch will be used in hospitals, industrial laundries, and anywhere there is a need for hot water or steam. It will be launched on every European market during 2007. Poland Product of the year in Poland Danfoss Drives High Power Drive has been named the electro product of the year for 2006 in the Drives and Controls category by the prestigious Polish magazine Elektrosystemy. In 2005, the VLT Automation Drive FC300 won the prize. China Stateoftheart lab opens in Wuqing In April, Danfoss in China inaugurated a new laboratory at its factory in Wuqing. The laboratory covers 2, 000 square metres and some of its functions are more advanced than the existing laboratories in the USA and Europe. Here, technicians can test new Danfoss products and help customers perform quality checks and test Danfoss solutions on their products. Furthermore, tests can also be per formed on products from the many Danfoss subsuppliers in China. The labora tory represents an investment of almost 2. 8 million euros. Denmark Danfoss a national industrial monument Earlier this year, the Danish Minister for Culture, Brian Mikkelsen, appointed Dan foss as a Danish national industrial monument. The news was revealed when he, along with Bitten Clausen, reopened Mads Clausens rst factory from the beginning of the Alsian industrial story. The factory is now part of the adventure park Danfoss Universe and it forms the basis of an exhibition that covers the rst plant managers oce, the interior of the rst factory and the story of the com panys development, among other things. The company was selected because it represents the development of the iron and metal industry after 1945, with new production processes, including production lines. 2007-10-12T11:43:39+02:00