PDF, 3.2 MB - Pfleiderer AG

PDF, 3.2 MB - Pfleiderer AG PDF, 3.2 MB - Pfleiderer AG

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Production Reduced capital expenditure by Deutsche Bahn AG has affected Pfleiderer track systems’ domestic business. However, production in the German plants during fiscal 2004 was also used in international projects in Taiwan and the Netherlands, as well as for ongoing domestic business. Production capacity in the plants in Romania and Hungary is fully booked up for around 15 months following an order taken to modernize rail links in Turkey. A plant has been set up with a local partner in Taiwan to produce around 125,000 rail sleepers as part of the Taiwanese high-speed project. As this project has since been completed. The plant involved has been dismantled and will be used elsewhere in the region for other projects. The Business Center track systems produced around 1.2 million track sleepers and around 300,000 meters of rail turnout sleepers at its German production plants in Coswig, Langen, Neumarkt, Gernsbach and Kirchmöser. As of December 31, 2004, order books for Germany and abroad were full for the next 6 months. Quality Management Maintaining constant high standards of quality for all our products is of fundamental importance, especially for the rail traffic segment. For many years now, Pfleiderer track systems has been applying a quality management system to ensure uniform high quality standards for all its products. The quality management system itself is also subject to continual monitoring and improvement. Productivity and the quality of work processes are constantly enhanced as a result of continual improvement monitoring. The quality management system for central units and production plants in operation for Pfleiderer Infrastructure Technology is certified according to DIN EN ISO 9001, documenting the high quality standards of our products. Products from Pfleiderer track systems have an excellent reputation internationally. Deutsche Bahn AG regularly subjects its goods in to product qualification. Our new plant in Kirchmöser, Brandenburg, which started production in 2003, has now also received Q1 supplier status. This matches all Pfleiderer track systems’ other German plants. Only proven and extensively tested materials subjected to pre-testing from certified suppliers are used in production by Pfleiderer Infrastructure Technology. Independent accredited organizations also test our products, in addition own product monitoring performed at various stages of production. 38

Procurement In order to take advantage of economics of scale, Pfleiderer Infrastructure Technology has bundled demand for raw materials, supplies and services used in production. The objective of its procurement strategy is to tie up as little capital as possible, avoiding high inventory levels, yet at the same time guaranteeing supply certainty for essential materials used in production. Where possible, medium to long-term contracts are signed to cover the supply of standard materials. Its multi-supplier strategy for the main materials and pre-products as well as other items ensures that Infrastructure Technology is not dependent on individual suppliers. Shifting the call-off of raw materials for cement production back to the suppliers has effectively reduced inventory storage time to less than one working day. Higher prices for steel felt during the reporting period were largely alleviated through existing long-term contracts, resulting in only moderate rises in total material costs. 39 MANAGEMENT REPORT BUSINESS SEGMENTS

Production<br />

Reduced capital expenditure by Deutsche Bahn <strong>AG</strong> has affected <strong>Pfleiderer</strong> track systems’ domestic<br />

business. However, production in the German plants during fiscal 2004 was also used in<br />

international projects in Taiwan and the Netherlands, as well as for ongoing domestic business.<br />

Production capacity in the plants in Romania and Hungary is fully booked up for around 15 months<br />

following an order taken to modernize rail links in Turkey.<br />

A plant has been set up with a local partner in Taiwan to produce around 125,000 rail sleepers<br />

as part of the Taiwanese high-speed project. As this project has since been completed. The<br />

plant involved has been dismantled and will be used elsewhere in the region for other projects.<br />

The Business Center track systems produced around 1.2 million track sleepers and around<br />

300,000 meters of rail turnout sleepers at its German production plants in Coswig, Langen,<br />

Neumarkt, Gernsbach and Kirchmöser.<br />

As of December 31, 2004, order books for Germany and abroad were full for the next 6 months.<br />

Quality Management<br />

Maintaining constant high standards of quality for all our products is of fundamental importance,<br />

especially for the rail traffic segment. For many years now, <strong>Pfleiderer</strong> track systems has been<br />

applying a quality management system to ensure uniform high quality standards for all its products.<br />

The quality management system itself is also subject to continual monitoring and improvement.<br />

Productivity and the quality of work processes are constantly enhanced as a result of<br />

continual improvement monitoring. The quality management system for central units and production<br />

plants in operation for <strong>Pfleiderer</strong> Infrastructure Technology is certified according to DIN EN<br />

ISO 9001, documenting the high quality standards of our products. Products from <strong>Pfleiderer</strong> track<br />

systems have an excellent reputation internationally.<br />

Deutsche Bahn <strong>AG</strong> regularly subjects its goods in to product qualification. Our new plant in<br />

Kirchmöser, Brandenburg, which started production in 2003, has now also received Q1 supplier<br />

status. This matches all <strong>Pfleiderer</strong> track systems’ other German plants.<br />

Only proven and extensively tested materials subjected to pre-testing from certified suppliers<br />

are used in production by <strong>Pfleiderer</strong> Infrastructure Technology. Independent accredited organizations<br />

also test our products, in addition own product monitoring performed at various stages<br />

of production.<br />

38

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