Steel

S
  teel
E  xcellence
Management Manual
3

C
  ontents
006 Excellence at thyssenkrupp Steel Europe AG
008 Company
010 Organization
012 Process landscape
014 Management system
016 Communications
018 Further information
thyssenkrupp Steel Europe, a technology group within
thyssenkrupp AG, a company possessing high competencies
in materials.
Competence and diversity, global reach, and tradition form the
basis of our worldwide market leadership. We create value for
customers, employees and shareholders.
We hold ourselves to the highest standards.
We engage as entrepreneurs, with confidence, a passion to per-
form, and courage, aiming to be best in class. This is based on
the dedication and performance of every team member. Emplo-
yee development is especially important. Employee health and
workplace safety have top priority.

We meet the challenges of tomorrow with our customers. We share common values.

We are customer-focused. We develop innovative products and We serve the interests of the Group. Our interactions are based
services that create sustainable infrastructures and promote on transparency and mutual respect. Integrity, credibility, reliabi-
efficient use of resources. lity and consistency define everything we do. Compliance is a
must. We are a responsible corporate citizen.

Executive Board, November 2017

Andreas J. Goss Premal A. Desai

CEO   CFO

Dr. Heribert R. Fischer Dr. Arndt Köfler Thomas Schlenz

CTO    CTO   CHRO
6
Excellence at thyssenkrupp
Steel Europe AG
thyssenkrupp Steel
Europe AG is a modern,
future-oriented company.
We seek to drive our organizational devel-
opment towards business excellence and
at the same time to certify our management
system to the international standards DIN
EN ISO 9001, ISO TS 16949, DIN EN ISO
14001, DIN EN ISO 50001, BS OSHAS 18001
while naturally fulfilling the requirements of
our customers.
This manual describes how the instruments
and methods of thyssenkrupp Steel Europe
excellence systems work together syste-
matically. It is valid for the entire company
at our sites in Duisburg, Bochum, Dortmund,
Kreuztal, Finnentrop and Puerto Sagunto
(Valencia) as well as for all documented
processes at the company.
Our targets and principles are clearly defined
in our Mission Statement and together with
quality, environmental, energy, information
security, and health and safety policies chart
the path to our future.
Furthermore, certifications and accredita-
tions exist for special areas (e.g. for labo-
ratories to DIN EN ISO IEC 17025, power
supply networks to ISO/IEC 27001, fire
protection to DIN 14675, and waste dispo-
sal to EfbV).
Steel Excellence, Management Manual  7

mation security at our company. We see this

as our contribution to reducing harmful
emissions, conserving resources, and pro-
tecting nature. Occupational health and
safety, security, and emergency procedu-
res are all firmly entrenched in our daily
routine, taking technical, economic, and
social factors into account. Prevention, e.g.
measures to maintain safety and health,
is a key priority.

thyssenkrupp business area Steel is conti-

nuously evolving to optimize its efficiency.
This comprises all technical and human
resources as well as our organizational
structure. Specific milestones are defined
for our company based on the documented
targets.

The focus here lies on market segments

with above-average growth potential as
well as on steel applications where our pro-
ducts enjoy a quality lead.

Our customer centric mindset is reflected

in the punctual delivery of high quality pro-
ducts. Innovation and close cooperation
with our customers and other stakeholders
are decisive elements of our future stra-
tegy. New steel grades open up unforeseen
opportunities.

Successful engagement as a company in

the interests of value oriented sustainable
management means creating value, not
consuming it.

tkVA (thyssenkrupp Value Added) and BCF

(Business Cash Flow) are central control
parameters for entrepreneurial assess-
Our actions are based on clearly defined ments and decisions.
economic parameters, our customer and
service orientation as well as the individual
efforts of our employees and the develop-
ment of their potential.

The responsible use of material resources

and intangible corporate assets is an inte-
gral part of our corporate culture. Our employ-
ees take a responsible approach to the infor-
mation and supporting resources such as
IT systems which are employed in their
working environment.

We are committed to continuously improving

the quality of our processes and products
as well as to achieving optimal energy effi-
ciency, environmental protection, and infor-
8

Company

thyssenkrupp’s Steel
division manufactures
flat products in quality
steel and is a part of the
worldwide tk group.

The properties and specifications of all our
products are tailored to each customer’s
requirements. In addition to basic materi-
als such as sheets and coils, we manufac-
ture a variety of products all along the value
chain which exactly the intended application.
Our product range includes:
• Heavy plate
• Hot-rolled strip
• Uncoated cold-rolled strip
• Electrolytically coated cold-rolled strip
• Hot-dip cold-rolled strip
• Organic-coated cold-rolled strip
• Electrical steel strip
Steel Excellence, Management Manual 9

One important market is the automotive Numerous applications for steel in the rene-
industry, which utilizes our quality steels wable energy sector such as wind, hydro-
in the production of passenger cars and electric, or photovoltaic power underline
commercial vehicles. Hot-rolled strip is the crucial role played by steel solutions in
processed into GV frameworks or wheels, the fight against global warming.
for instance, and cold-rolled strip into car
bodies. Our high-strength steels and the
InCar plus project are just two examples of
innovative developments to promote weight
saving in automobiles. Our coated steels
are used, among other things, in house-
hold appliances and in the construction
industry as well as in food and beverage
packaging or in products for the chemical
industry such as aerosol or paint cans.

Highly resistant and wear-resistant steels

round off our product range. They are often
found in the construction industry or in the
manufacture of construction vehicles.

The quality and efficient use of resources

is ensured by controlled processes, modern
computer technologies and not least the
continuous qualification of our staff. Com-
prehensive tests are carried out during the
production processes as part of our qua-
lity assurance policy, and the results can
be made available to our customers on
request. We attach great importance to
environmental and climate protection.
Environmental compatibility is a top priority
in steel development today.

Main production site

Additional production site

Production sites of thyssenkrupp Steel Europe

Additional site at Puerto de Sagunto in Valencia, Spain (thyssenkrupp Galmed)
10

Organization

Our company Motivated and highly

qualified employees are
structure is con- the key to our success.
sistently aligned The customer and team organization form The relevant functions for the entire com-
to the require- the framework within which our staff can
apply their efforts effectively to the benefit
pany are allocated to 19 Functional Areas
and 13 Business Units (BU). The BUs are

ments of our of both the company and our customers.

They profit from on-the-job training as well
divided into seven Market BUs, five Pro-
duction BUs, and one Logistics BU, each

stakeholders. as internal and external development

measures.
of which is led by its own management
team. Thanks to this lean organization, all
processes interact directly in the value
chain to improve our responsiveness and
our flexibility.
Steel Excellence, Management Manual 11

Our sales and production staff are familiar
with the requirements of our stakeholders
and communicate them to the members of
their teams. Together with Quality Manage-
ment, they validate customer-specific requi-
rements and integrate the output into our
corporate processes. BA functions are res-
ponsible for overall optimization and cont-
rol. This includes quality management, infor-
mation technology, environmental and
climate protection, sustainability, health
and safety as well as technical services a project oriented manner supported by the
and energy. Our research and develop- latest pilot and testing facilities.
ment activities are focused on products
and production methods for today and
tomorrow.
We endeavor to optimize existing products
and processes while designing new, environ-
mentally friendly, energy efficient and safe
alternatives. To this end, highly qualified
engineers and scientists work together in

BA Steel Europe
As of Oct 1st, 2016
CEO CFO CHRO CTO CEO
Function SE/COM SE/BEX SE/OSH SE/QUM SE/TSE

SE/COP SE/CAR SE/HRD SE/TIS SE/tkPS

SE/ECS CO/CPL-SE SE/PLS

CO/LEX-SE SE/ITM

SE/SAS SE/PSM

SE/SMD SE/SPI

Strategic holdings HKM (50% consolidated) Tagal (50%)

Business Units CEO CFO CHRO CTO CEO
Market BUs SE-AM

SE-ES
SE-HP
Profit
Centers
SE-ID
SE-PR
SE-PS
SE-SP
CEO CEO
Logistics BU SE-LG
Production BUs CG
SE-CC
CR
Cost
Centers SE-HR
ST
SE-SL
HM

Business allocation plan for Business Area Steel Europe

12
Process landscape
A complex company can
best be described through
its processes.
The presentation of the company in a pro-
cess model enables the interaction of its
functions to be depicted with a high level
of transparency.
The core processes of thyssenkrupp Steel
Europe are strengthened by supporting
processes. Control and development are
achieved by management processes. The
original purpose of company development,
production, and delivery are mapped at
customer level. This is where Steel’s core
competencies lie. The quality of these pro-
cesses directly determine customer satis-
faction. In the center is production with a
defined sequence of production processes
including planning and control.
The support level comprises all activities
which are essential to ensure that custo-
mer processes fulfill their functions and
create the necessary framework for sus-
tainable business. They include processes
linked to raw material purchasing, energy
and materials management, logistics, tech-
nical services, environmental and climate
protection, sustainability, health, safety and
IT. Plant maintenance and continuing pro-
fesssional development are also positioned
on this level.
Steel Excellence, Management Manual 13

Management processes are characterized
by the tasks they represent, thus securing
the long term success of the Business Area
Steel. Trend-setting policy decisions are
made here, for example management pro-
cesses relating to corporate strategy, finance
and human resources.
Management initiatives are drivers of con-
tinuous improvement processes within
the scope of Steel Excellence. These key
processes are shown together with their
sequences, interfaces and interdepen-
dencies and marked with their respective
KPIs and targets.
We make use of important, certified mana-
gement systems in quality assurance,
environmental protection, energy perfor-
mance, occupational safety, information
security, data protection, and health to
secure the interactions between processes.

Management Processes

1 2 3 4 5
Control Control Control Control Control
corporate stakeholders finance human continuous
strategy resources improvement
processes

Core Processes

6 7 8 9 10
Develop Sell Plan Manufacture Supply
products products products products products

Support Processes
11 12 13 14 15
Procure Ensure Plan and Realize Ensure safety,
materials and production operate IT internal health, and
services capability logistics environmental
protection

Process model of thyssenkrupp Steel Europe

The processes are controlled by means of key

performance indicators, such as:

• First pass yield • Utilization rate

• Reworking • Accident rate
• Delivery reliability • Overtime
• Customer complaints • Absenteeism
• Lead times • Suggestions for improvements
• Inventory • Energy performance
• Overall equipment • Fresh water consumption
effectiveness • Waste disposal
14
Management system
The self-image of
thyssenkrupp Steel Europe
is described in the company’s
mission statement.
This image forms the basis of our sustain-
Mission Statement
able management policy. The structure of
our certified system to international stan-
Management Policy dards is documented in this manual and
described in more detail in Regulation Estab-
Excellence
lishment and Function of the Steel Excel-
Level of detail
Management Manual
lence Management System.
Regulations,
Operating Instructions
Guidelines and instructions can be found
Supporting
Documents
in the thyssenkrupp Document Desk. Spe-
cial manuals also exist for accredited labora-
tories and for the certified information secu-
rity management system within the scope
of the electricity networks. The processes
and system requirements are controlled and
monitored by a team led by the management
system officer together with the manage-
ment partners in the functional areas and
the business units as well as the officers for
the individual management systems (qua-
lity, environment, information security,
energy, occupational health and safety,
plant safety, and emergency services).
Detailed work instructions are the tools for
each member of staff to carry out their
respective tasks. Our employees are qua-
lified, motivated, and provided with appro-
priate awareness through training programs
as well as team and shift meetings, at which
training requirements are regularly deter-
mined.
Essential know-how as a resource for ach-
ieving company targets is organized by
Steel Excellence, Management Manual
Human Resources and by the management
in all functional areas and business units.
Both electronic and printed documentation
exists. Legal requirements are continuously
determined and provided to employees in
a legal register covering environmental and
energy aspects. The environmental, safety,
energy, and information security aspects as
well as their determination, assessment,
and monitoring are described in a separate,
special document for environmentally and/or
energy relevant plants. These aspects are
not communicated externally.
Regular internal audits are carried out in
order to improve the management systems
and their processes. Process and system
audits are generally combined for this pur-
pose covering quality, environmental, energy
and occupational safety aspects. Internal
15
audits are conducted separately within the
framework of information security manage-
ment. These serve to identify risks and faults
and thus introduce improvements at an early
stage. The company’s management sys-
tems are evaluated by the Executive Board
on the basis of an annual report drawn up
by the respective officers. This is prepared
using reports and data analyses drawn up
by the respective business area.
Optimization as a continuous process
Against the background of ever higher sta-
keholder requirements as well as keen com-
petition and stricter legal regulations, the
success of our company can only be secu-
red in the long term if our products and
processes are continuously developed and
improved with respect to quality, environ-
mental protection, energy efficiency, infor- An innovative
mation security, occupational safety, health,
and employee motivation. The introduc- and global
company needs
tion of a customer and process-oriented
team organization reflects the path which
thyssenkrupp Steel Europe will be taking
in the future. a modern
Leading a team with defined objectives in
line with those of the company facilitates
structure in
a permanent self-motivation process of
improvement, thereby leaving room for order to work
innovation and ideas. The constant moni-
toring of achievements is supported by effectively.
efficient information systems which pre-
pare and provide both internal and custo-
mer related data. Steel uses a number of
instruments to leverage and develop the
potential of the various processes at all
levels of the company.
The improvement of our processes and
products requires the involvement of our
suppliers and service contractors. These
are selected and monitored according to
fixed criteria and, where possible, integra-
ted in product, process, and resource
improvements.
Organizational areas for knowledge management.
• Knowledge management and learning organization.
• Knowledge management and technical information center.
16
Communications
Our Communications
department controls and
organizes the communication
activities of Business Area
Steel.
Five different functions - External Commu-
nications, Internal Communications, Brand &
Marketing Communications, Change Mana-
gement, and Governmental & Corporate
Affairs together with Board & Back Office
ensure efficient and consistent communi-
cation throughout the Steel Business Area
in close cooperation with one another.
External public relations involves answering
questions from the press, researching and
preparing topics for various communication
channels, writing texts and speeches, and
holding press conferences.
A further task is the dialog with the general
public, particularly in our own neighbor-
hood. This includes organizing plant tours
(Visitor Center), supporting local political
activities, initiatives and charitable organi-
zations, as well as carrying out PR measu-
res. Internal Communications is responsible
for all communications with employees
within the Business Area. Printed media,
our in-house magazine “We”, posters, bill-
boards, flyers, and digital products are all
dialog oriented. Various dialog events are
provided for management and staff. An
annual employee event, which could aptly
be described as ‘infotainment’ is among
the highlights. Some formats are regular
while other events are ad hoc.
Steel Excellence, Management Manual 17

mentation of the brand’s intrinsic promise

and our corporate design throughout the
Business Area. The coordination of mar-
keting communications with the sales de-
partments is another focal issue. This inclu-
des the development of targeted campa-
igns linked to active marketing, customer
communications, and image enhancement.

The development of technical and content

improvements to the website, online adverti-
sing, social media, printed publications, exhi-
bitions, customer events, customer mailings
etc. are other activities. The corporate and
marketing strategy of the Steel Business
Area and thyssenkrupp AG remains the
basis for all customer communications.

The Governmental Affairs department coor-

dinates monitoring and processing of poli-

Information for
tical issues related to steel as well as public
relations for political stakeholders on a
European, national, and local level. It also
supports Executive Board appointments
within the framework of organizational
the press and the
activities, e.g. trade association ‘Stahl’,
EUROFER and worldsteel.
general public as
The Executive Board & Back Office Steel, well as the dialog
with an interface to COM-GC, control and
coordinate Supervisory and Executive Board with employees,
customers, and
processes of the Steel Business Area and
assume support functions associated with
the Executive Board.

These include developing and control-

stakeholders
ling a CSR strategy in coordination with
thyssenkrupp AG (with social, environ- is also an
Change processes at the company are coor-
dinated and monitored by the change mana-
mental, and economic aspects within the
framework of social responsibility) and integral part of
gement team. Change requirements are
discussed and agreed within the frame-
work of One Steel. The change team works
controlling internal governance (domestic
law) in relation to binding documents (poli-
cies, regulations, operating instructions).
communications.
closely with the Strategy, Markets & Devel-
opment and Human Resources Function
Areas for this purpose. A network of change
managers in the Business Units and Func-
tional Areas represents the first point of
contact regarding change processes.

Brand and Marketing Communications

ensure a uniform brand and market com-
munication strategy for the Steel Business
Area and its Business Units and Functio-
nal Areas.

One essential element here is our strate-

gic brand leadership as well as the imple-
18

F  urther information

Management system in general Occupational and health safety

Mission Statement Safety at work
Company organization Plant safety (failure management)
Company structure Health
Professional organization
Policies, regulations, operating instructions Information security
Production plants IT security portal
Certificates Plant security

Environment and energy ecurity Portal

Environment and climate protection Plant security
Technical services and energy
Documents, special plant-specific environmental and energy aspects
Environment and energy targets
Plant safety
Safety management according to the German Hazardous Incident Ordinance

Quality
Electronic information systems
thyssenkrupp Steel Order and Materials Information System
Steel Excellence, Management Manual 19

Contact

Management System Officer

hans-joachim.krautwald@thyssenkrupp.com

Quality Management
melanie.kemmerling@thyssenkrupp.com

Environmental Management
ingo.kerck@thyssenkrupp.com

Energy Management
peter.petri@thyssenkrupp.com

Occupational Health & Safety Management

christine.durek@thyssenkrupp.com

Safety Management (German Hazardous Incidents Ordinance)

joerg.freise@thyssenkrupp.com

Information Security Management Author: Dr. Hans-Joachim Krautwald

dirk.sabellek@thyssenkrupp.com (Management System Officer)
Steel

thyssenkrupp Steel Europe AG

Kaiser-Wilhelm-Straße 100
47166 Duisburg
Germany
T: +49 203 52 - 0
F: +49 203 52 - 25102
www.thyssenkrupp-steel.com
info.steel@thyssenkrupp.com

Issue November 2017