A decisive step in his development was his job as a master machinist with the Northeast Railway (Nordostbahn) in Zurich, where he built his first four locomotives.
A locomotive built by Krauss, the "Degen und Wiegand KARL" (serial number 2062), was constructed in 1888.
In 1876, he was one of the founders of the VDI, an association for German engineers, and in 1903, he donated 100,000 marks and the repurchase of his first locomotive, 'Landwührden,' to help create the Deutsches Museum.
As early as 1880, he was awarded the Knight's Cross 1st Class of the Grand Duchy of Saxony-Weimar, as well as the title of Royal Bavarian Industrialist (Königlich bayerischer Kommerzienrat) from King Ludwig II of Bavaria for his services.
In 1905, Krauß decided to move the location of the factory from the crowded town centre out to Allach, from where its successor organisation still operates today.