Porsche 2011 Annual Report Download - page 113

Personnel risk
A factor underpinning Porsche's success is
the knowledge, the individual competencies and the
high qualifications of its workforce. Porsche's posi-
tive image as an employer, as revealed by surveys,
enables the company to find and keep qualified per-
sonnel. The group combats the risk of qualified spe-
cialists and management leaving the company taking
their experience and knowledge with them by offering
attractive employment conditions and training pro-
grams. The five-year agreement to safeguard com-
pany locations concluded at Porsche AG in July 2010
precludes dismissals for operational reasons.
Litigation risk
Like any other company, group entities may
become involved in court or arbitration proceedings.
At present there are no proceedings which could have
a material impact on the economic position of the
Porsche Zwischenholding GmbH group.
Quality risk
High-quality products are crucial to the com-
pany's image. The development department works
closely with suppliers in order to achieve this. In
addition to economic benefits, this collaboration also
creates dependencies. Delayed deliveries or even
failure to deliver can quickly lead to a standstill in
production due to the “just-in-time” nature of parts
deliveries. The group’s risk management system
therefore prescribes the careful selection and moni-
toring of suppliers. A technical and business profile is
created, and the supplier’s financial stability is con-
tinuously monitored. The aim of monitoring the finan-
cial position of suppliers is to identify financially
unstable suppliers at an early stage and take appro-
priate steps for managing risks. Short development
times and pressure on costs place high demands on
suppliers. Parts deliveries are regularly subjected to
quality and punctuality checks.
The group sets itself high quality goals in
both the production and the development of new
vehicles, taking care to ensure that all technical and
qualitative requirements are taken into account and
achieved. Warranty claims, product liability claims
and recalls can give rise to considerable costs. The
quality gate systems used by the group ensure the
requisite quality. This cross-functional project man-
agement instrument is used to make sure that the
level of target achievement can be measured follow-
ing pre-defined development phases, in order to
monitor project progress. If development goals have
not been met, the departments responsible must
propose solutions for meeting them without signifi-
cantly delaying the development project. Develop-
ment gates for the most important milestones have
been positioned below the quality gates in the devel-
opment chain to help manage development proc-
esses. The goal is to recognize any critical issues in
development at an early stage (between the quality
gates) and limit their impact.
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