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Danish Crown on a Stable Course

8 October 2012, at 8:00am

DENMARK - The course has been set and it is the one which Danish Crown will continue to follow. Improving efficiency is, and will, remain key to the company's efforts which are always aimed at strengthening the company's competitive edge.

Almost one year on from the launch of DC Compass, the message from the helm is that the company's efforts are producing results. The plan has led to improvements in efficiency which have translated into savings of just over DKK 66 million.

At the helm stands COO Søren F. Eriksen, who is pleased with the progress.

"We have realised many of the targets defined in DC Compass. First and foremost, we have created a better system for improving piecework rates, and, secondly, we are successfully disseminating best practice to all factories in the Pork Division to ensure that the best method is always used for a given task, for example to produce a particular cut. Finally, our time studies department, which is central to identifying possible improvements and realising them, is working really well," said Mr Eriksen.

Mr Eriksen stressed that DC Compass is a continuous process. Danish Crown will always be having to find new ways of increasing efficiency in order to maintain its competitive edge as an international company in a global market place where competition is fierce.

"We must be absolutely on the ball – and better tomorrow than we were today," said Mr Eriksen.

Streamlining production processes at widely different factories all over Denmark is not easy, but a dynamic company such as Danish Crown must always be able to handle changes and new requirements from, for example, customers, which all have a bearing on operations. Since the launch of DC Compass, new cuts for the Japanese market have, for example, been introduced, which initially affects the piecework rates.

The reduction in pay costs per kg of butchered meat which DC Compass was supposed to bring about has therefore not quite been realised. But Mr Eriksen is very optimistic.

"There is a good sense of momentum, and we must hold on to that. The factories have embraced DC Compass and are working hard to implement the improvements, so we will get there in the end. I am well aware that many employees may feel that they are having to accommodate a lot of changes and adjustments, but we can see that it is working and that it is all well worth it," he said.

He says that Danish Crown is determined to stay the course for year two of DC Compass. The company will continue to introduce best practice in many more areas than just time studies, while also strengthening its knowledge-sharing efforts. Finally, there will be follow-ups to ensure that efficiency increases are achieved everywhere.