Porsche 2005 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2005 Porsche annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 166

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166

73
on leasing contracts were no longer used. Since then, the
production line has been cut back and the resources used for
other purposes.
Young employees were specifically prepared for future mana-
gerial responsibilities in a two-year career advancement pro-
gram entitled “MAX s.p.e.e.d.”. In environmental protection,
an audit by TÜV Süddeutschland (the South German technical
inspection authority) in accordance with the DIN EN ISO 90001
and 14001 standards was carried out successfully and certi-
fication validated until 2007. At the break-in and control track,
a new retention pool was constructed for wastewater. In win-
ter, the pool allows rainwater containing anti-freeze to be
disposed of via the wastewater channel, while in summer it
serves for watering landscaped areas. In addition, washing
facilities exclusively for off-road vehicles requiring less fresh
water than in the past were built at the customer center.
Efficiency increased
The new Locations Security Agreement was signed by Por-
sche’s Executive Board and Works Council in July 2005,
and was quickly implemented in the review year. The agree-
ment runs until 2010 and applies to all employees at the
Zuffenhausen, Ludwigsburg and Weissach locations. While
respecting valid collective wage agreements, it creates the
prerequisites for more efficient, and therefore more flexible
and more productive work processes. As a result, the rest
periods for piece workers laid down in the wage agreement
can now be credited directly to interruptions in the production
process. Where necessary, a further twelve special shifts per
year can be worked. As the 2005/06 fiscal year showed,
this and other measures led to significant advances in produc-
tivity, with the result that Porsche was able to build consider-
ably more automobiles in Zuffenhausen with the same staff
numbers.
The “flexi-time model” that had already been applied in Produc-
tion was modified and is now directly tied to demand. A wor-
king-time model, which remunerates working time over a year
or a project for up to three years on a flexible basis and in line
with the defined tariffs, was agreed for salaried employees.
This put an end to the old procedure of filing for overtime and
the associated extra pay. These arrangements also apply for
employees in the Weissach development center where new
processes have been specified leading to a further reduction in
development times and a continued increase in cost efficiency.
Despite the agreed measures on increasing productivity, jobs
are secure until 2010, since Porsche will be investing over
600 million Euro in the three locations over the next five years.
All cars in the 911 model series, including all derivatives, will
continue to be built in Zuffenhausen, as will all engines for cur-
rent and future models. In addition, an investment will be made
in a new paint shop in Zuffenhausen. Over 250 million Euro
will be invested in Weissach by 2010, primarily in buildings,
test rigs and systems.