Alcoa 1999 Annual Report Download - page 7

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5
what is needed, when it’s needed, at the lowest cost – a key
to making Alcoa the supplier of choice in almost any market.
In 1999, we compiled our first full year of applying ABS
consistently across our global network and extending it
into the operations of recently acquired companies.
The results speak for themselves, including annualized
cost reductions of $728 million – part of a $1.1 billion
initiative that we will complete this year. This is a good
beginning, but we can see a great deal of additional potential
as the system continues to roll out.
Related to these efficiencies, we have been working
to align Alcoa’s technology development with our product
and market priorities, allocating research resources to
the most significant short-term and long-term opportunities.
These research and development efforts support ABS
both today and tomorrow – eventually playing a role in
reinventing the aluminum industry by improving many of its
basic processes. The bottom line objective is new and
expanded applications for aluminum.
Roy Powell of the APS
Team at Alcoa’s Hernando,
Miss. extrusion plant
explains the value stream
established for Press #74.
With Roy is David Patrick,
APS manager for the
business unit.
Hernando’s Turnaround
Alcoa board members,
visiting plants in Spain and
Italy, review Alcoa’s role in
making body structures for
the Ferrari 360 Modena.
Core Values
Hand in hand with these developments, Alcoa continues
a vigorous program of support for its core values – which we
believe are inseparable from the financial, commercial,
manufacturing, and technology components of long-term
success. In considering and implementing the acquisitions
discussed earlier, we have made health, safety, and
environmental issues an essential part of our due diligence
process. Our confidence in our managers and management
systems stems partly from the fact that they have been
thoroughly tested in reaching progressively higher standards
of protecting the health and safety of our people and the well-
being of the environments within which we live and work.
1997 1998 1999
Delivery performance 76.7% 84.0% 93.0%
Recovery on shipments 70.2% 72.9% 75.3%
Lost workday injuries 6 0 0