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VCP's Integrated Management Policy adopts the criteria of excellence of the National Quality Award (PNQ) and follows the Votorantim Management System (SGV), adopted by all Votorantim Industrial companies. The goal is to transfer best practices and adapt expertise from world class corporations, always respecting the individual traits of each line of business.
Quality Management prepares the Company for the implementation of growth strategies. The "Redesign of the Financial Management System" project was initiated in 2005, based on the Beyond Budgeting model. The objective is to completely eliminate the budget by adopting different tools and procedures such as comparisons with the competition, results from previous years and internal and external benchmarks. This change is being made in stages, beginning with the simplification of the budgeting process in 2005.
The model is also supported by other management tools such as Balanced Scorecard (BSC), which continuously evaluates performance indicators; GVA (Generation of Added Value), which measures the ability of creating shareholder value; Business Intelligence, which provides a complete picture of the business; Six Sigma (statistical models for reaching challenging goals) and Total Preventive Maintenance (TPM), among others.
Risk Management
In 2004 and 2005, VCP implemented a new risk management program, which identifies potential shocks to the chain of production and creates mitigation or contingency plans. The strategic risk mapping project involved 41 persons and more than 200 meetings. The project initially identified 258 risks. From this initial group, 17 were selected as priority risks, due to their impact or frequency. The Risk and Asset Management division was created to coordinate this project.
The strategic risks were grouped under four main categories – operational, business (clients), price/market and events. The Company has adopted plans for the elimination, control, transference or acceptance of these risks. The conclusion of training for the divisions is estimated for the first quarter of 2006, when risk management models will become an integral part of the Company's work routine.
Financial risk management uses financial tools to protect against the effects of foreign exchange devaluations and control systems for foreign exchange operations, which determine limits and exposure, as well as monitor the involved risks. All environmental aspects, including impact from production procedures and facilities are identified, recorded and managed with the assistance of software developed in web language.
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