ANNUAL REPORT 2008 - Gorenje Group

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3.7 PRODUCTION
The majority of production activities of the household appliances division were carried out in scope
of the parent company. In Velenje 77 % of all appliances were produced and the rest in the cooking
appliance factory in Mora in the Czech Republic and in the factory refrigeration and freezing appliances
in Valjevo, Serbia.
The production was focused on constant quality improvement of products and cost optimisation.
The key challenges in the last months of the year 2008 included maximal adjustment of the scope
of production to the orders. In spite of the exceptional fluctuations in orders and difficult planning
the efficient organisation of production followed the demand in the market.
Pieces 2008 2007 2006 2005 2004
Slovenia 2,699,647 3,016,916 3,167,252 2,998,196 3,007,484
Czech Rep. 419,894 413,875 434,766 388,090 /
Serbia 385,499 445,626 52,972 / /
TOTAL 3,505,040 3,876,417 3,654,990 3,386,286 3,007,484
Average annual growth 2004-2008 Slovenia: - 2.5 % annually
Average annual growth 2004-2008 - total: + 4.3 % annually
NEW TECHNOLOGIES
• The majority of novelties in production technology were introduced in the cooking
appliance factory in Velenje.
• The modernisation included 70 % of the production programme of cooking
appliances that completely modernised the factory in terms of technology.
• The productivity and flexibility of production increased significantly, the work
method has been improved and is now friendlier to the employees and thus
the possibilities of failures substantially decreased and the workmanship quality
increased.
• The technology park of the cooking appliance plant was up-graded by the best
equipment available.
• It is important that the costs of the cooking appliances production were maintained
at the same level as in the previous generation.
INCREASE IN PRODUCTIVITY AND COST OPTIMISATION
• The cost control was directed to the introduction of components from China
and Turkey and in the programme of refrigeration and freezing appliances.
• The activities of productivity improvement continued as well as the optimisation
of overheads.
• Rejects were reduced in the factory of mechanical components and progress
was made in material consumption and machine utilisation.
• In Gorenje, I.P.C., the information support increased level of traceability of
installation of individual components. Jobs were adjusted to the disability levels
of disabled persons employed, which resulted in an increase in work productivity,
quality of products and services.
• The company Tiki, d.o.o. continued to increase the scope of production and to
restructure the production programme, mainly by improvements and organisational
measures.