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German Industrial Model - 6/13/2011 9:05:54 AM   
SilverMark


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In almost every article I read, the comparison to the success of the German Industrial model as a way of getting past the malaise of our economic downturn. I keep looking at the different descriptions of it, how it works, where it falls short and all. I have not formed an opinion as of yet, those who are more familiar with it, share your opinions.

http://www.time.com/time/nation/article/0,8599,2072381-2,00.html

One of many articles referencing the German methods.

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RE: German Industrial Model - 6/13/2011 9:10:26 AM   
willbeurdaddy


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Interesting comment for a Time article:


"Our contentious health care debate aside, the U.S. is a destination for people around the world who seek top-quality medical care."

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RE: German Industrial Model - 6/13/2011 9:10:58 AM   
Moonhead


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One of the biggest differences is that German engineering companies tend to be run by engineers, rather than business or law graduates. That doesn't seem to have done their automobile or electronics industries any harm.
(Hell, even Pelikan and Lamy are in better shape than Parker or Cross, though it's a pity about Rotring...)

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RE: German Industrial Model - 6/13/2011 6:25:53 PM   
Edwynn


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Aside from the inherent advantage in the German education system, I'm seeing a lot of buzz lately about the small and medium sized enterprises (SME).

The best article I've found on it is stuck in my other broken computer and I can't find it again with a search, but here are a couple of good ones:

http://www.dw-world.de/dw/article/0,,3151618,00.html
            -------------------------------------------------------------------------------------------------------------------
It may not be a household name, but LLA Instruments is a world leader in its field. This relatively young Berlin-based company with its 25-strong staff produces sensors for the recycling industry.   Within milliseconds, its infrared sensors can identify different types of plastics, enabling these valuable materials to be separated from trash and reused.   The overwhelming majority of firms in Germany are small to medium-sized businesses, and they account for over 40 percent of turnover. LLA, whose products are used in recycling centers across the world, is just one of the sector's quiet successes.  
"Our success rests in having the right know-how and being able to apply it explicitly to a particular area," said Olaf Krenz, the firm's marketing director.  "And in a world facing a shortage of raw materials, the area that we have chosen has growth potential -- recycling."

                                                         -----------------------------------------------------

Global players, as Venohr's research reveals, don't have to be big firms that have been floated on the stock market. These mid-sized players are profiting enormously from the boom in China and India. Innovation is the driving force behind these high-performing SMEs, which Venohr defines as having an annual turnover between 50 million euros ($74.1 million) and one billion euros.

Aggressive experts in their field

"Typical for these firms are 'classic' products that are continually being refined," Venohr said. "I estimate that they invest between two to three times as much in research and development as comparable firms in the same sector abroad," he added.   Good sales and marketing networks help spur on innovation.   "The good German firms are 'aggressive,'" he said. "By that I mean they make suggestions to their customers because they know their processes a lot better. They are the worldwide experts and they can guide their customers in optimizing their products."

       -------------------------------------------------------------------------------------------------------------------

In the other article I mentioned above, someone in one of these companies said something to the effect of: "Once we've had an ongoing relationship, we don't ask the customers what they need, we tell them what they need. We are well-attuned to their process and their concerns and our job is to refine our products to fit that."

Another one:
http://www.guardian.co.uk/world/2011/mar/15/new-europe-germany-manufacturing

"Another family business, Würth sells more than 100,000 industrial and construction products, ranging from tiny screws to power tools and chemicals.
Robert Friedmann, chairman of the central management board, said the firm was known for the "perfection of banality". To illustrate the point, he holds a screwdriver with removable heads colour-coded to save time. The tool also comes with an LED light for jobs in dark places – an innovation Würth says it pioneered."



Many of these companies specialize or find some particular niche or small area where they think they can excell, then invest alot in both research and marketing in the effort to either obtain highest market share or find a number of customers who prefer or require longterm relationships with suppliers.







< Message edited by Edwynn -- 6/13/2011 6:28:16 PM >

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RE: German Industrial Model - 6/13/2011 6:46:09 PM   
SilverMark


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Great research Edwynn!....

They mention in most articles the system of apprenticeships they use to teach as well as well funded technical schools.

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RE: German Industrial Model - 6/13/2011 6:52:17 PM   
tj444


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quote:

ORIGINAL: willbeurdaddy

Interesting comment for a Time article:


"Our contentious health care debate aside, the U.S. is a destination for people around the world who seek top-quality medical care."

Yes, people that are rich can afford top quality medical care but what kind of medical care do the non-rich in the US get?

There is a certain medical procedure I have looked at that one doctor in the US (LA I think) is doing but he cant do it here cuz the FDA hasnt approved it yet. Anyone that wants that done has to go to his medical center in Italy... I am not sure why he is able to do it in Italy but not here, maybe the FDA drags its butt for too long?

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RE: German Industrial Model - 6/13/2011 7:23:20 PM   
Edwynn


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quote:

ORIGINAL: SilverMark

Great research Edwynn!....

They mention in most articles the system of apprenticeships they use to teach as well as well funded technical schools.



Thanks. I enjoyed that "the perfection of banality" quote from the industrial supplier in the second article.

But the education system does a great job in preparing workers at all levels. One German teacher said to me: "in Germany, they teach a bunny how to hop" as an intentional exaggeration, the point being that even jobs that elsewhere might be considered not worth giving too much educational attention to are still given full treatment.

It makes sense that those who are already not so enamored of the classroom experience start into apprenticeships early. In Germany they can start in the 10'th grade, roughly half classroom and half at a workplace. In the US, even in community colleges there are few occassions of that. Do ALL the couse work, put in all the class time, then go look for a job at what will be a new experience called a workplace. And of course every employer wants someone with experience.

In a fully developed apprenticeship educational program, the training and experience are already there.





< Message edited by Edwynn -- 6/13/2011 7:34:28 PM >

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RE: German Industrial Model - 6/13/2011 8:03:13 PM   
tj444


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quote:

ORIGINAL: SilverMark

In almost every article I read, the comparison to the success of the German Industrial model as a way of getting past the malaise of our economic downturn. I keep looking at the different descriptions of it, how it works, where it falls short and all. I have not formed an opinion as of yet, those who are more familiar with it, share your opinions.

http://www.time.com/time/nation/article/0,8599,2072381-2,00.html

One of many articles referencing the German methods.

Yeah, what the US is doing isnt working very well.
I dont know much about the German model, I know they are very into solar power but I have not researched the topic yet to find out what they have done to encourage that.

They seem to value a workers state of mind and seem to know that they need a way to beat the stress. So a worker can go to the spa, a couple of times a year and its part of the medical system so no cost to the worker. (gasp!) I wonder tho, about unions in Germany, how they are viewed there, how they function, etc and the differences between there and the US. Imo, unions can do too much damage to businesses and the public sector when they have too much power.

I remember when people were looking at how the Japanese did business, a bunch of books came out, some companies tried a few things, I dont know how successful that was but you dont hear much about that anymore. I think each country has a different state of mind which permeates society and the work ethic, and that cant be imported easily or at all. Jmo. I remember going on a trip to Germany and watching tv, and they had long commercials at the end of the shows. I asked why they watched the commercials and was told (basically) from what i recall, that the ads paid for the shows so it was their duty to watch the ads. Very odd, huh?

I like Zakaria, I used to watch him when I had a tv (I moved here to Socal and never got around to buying another tv yet). Did you catch his program on CNN a few weeks ago?- Restoring the American Dream: How to Innovate- I did catch a blurb on Google when i was at the gym one day, this is what struck me (20% time)-
"SCHMIDT: The people who are very, very creative are not going to show up at 9:00, leave at 5:00 and punch a card. They're going to be interesting. They're going to be fun. They're going to be fun- loving, want to have free food, all the benefits of Google were fundamentally decided very early on so that people were working with each other and were creative.

And people were encouraged to make the most outlandish ideas. Could we try this? Could we try that? And so forth. And those people are now running the company.

(END OF VIDEO CLIP)

ZAKARIA: Google's top brass came up with a set of innovation principles, one of which says employees have a license to pursue their dreams. As company policy, every Google engineer spends 20 percent of his time working on any project he or she wants. A concept they call 20 percent time.

(BEGIN VIDEO CLIP)

SCHMIDT: If you look back, most of the really interesting products that have come out of Google have come out of the 20 percent time where somebody starts something, he gets excited about it.

(END OF VIDEO CLIP)

ZAKARIA: One example. After September 11th, 2001 one Googler was visiting a bunch of different news sites every day to read about the attacks. He thought to himself, why don't I write a computer program that will search all of these sites for me? He used his 20 percent time to write the program.

And soon Google News was born. A Web tool that searches the site for particular news stories. Google News now accounts for 30 percent of all traffic to new sites on the Web."

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