The DNA of the Success of German Manufacturing

The DNA of the Success of German Manufacturing

      2012-05-28 02:20:39|   Frank-Writings

      139 years Rationalization Proposals in Germany

       Frank Li  May 28, 2012  in Waterloo, On. Ca

   http://frank-waterloo.blog.163.com/blog/static/205239029201242821948153/

Note: this was the story in 13 years ago, not today. That time was the Germany under Merkel’s leadership, not the Germany today under red and green lights fading shining. Only the street boys and street girls govern own country by red and green lights of creating an unhinged political compass creates chaos and disasters to ruin own home yard.

Recently, in pursuit of environmental protection, two successive governments destroyed coal-fired and nuclear power plants and provided massive financial support to the war in Ukraine. As a result, Ukraine destroyed Russia's cheap natural gas pipelines, to have crippled Germany's energy supply, and have completely ruined its manufacturing sector.    

Germany is the engine of European manufacturing, but it plays democracy to allow pigs to come to power, and destroyed this engine of European manufacturing.

Thanks for democracy granting power to social garbage to kill democracies. 

Since 1400s, European missionaries entering China to make cultural invasion by their God brainwash people. However, instead themselves were brainwashed by the civilization of China and respected that by Imperial Examination chooses learned people as officials as the Elite Constitution by values merit over birth to grant power to scholars.

Missionaries wrote back to Europe about Chinese civilization, causing a stir. Europeans asked themselves, why do the Chinese enjoy peace and prosperity while we kill each other? Human civilization is in China.

In Europe by the efforts of Enlightenment leaders, Voltaire in France and Leibniz in Germany, etc., Europe almost adopted the practice of selecting officials by examinations. If it had been successful, and politics had been run by carefully selected rational social elites, humans would have avoided the two world wars in bloodbathed Europe.

But the good life was pushed into the sewer by Montesquieu of French enlightenment thinker who conducted extensive social research in Europe and wrote The Spirit of Law to have defiled the Imperial Examination of China as autocracy, which misled the West into the childish democracy of seperated power. 

It was just separated power democracy made Hitler a dictator and blood bathed Europe; also the most manmade disasters are derived from over humanized democracy.    

Now, human beings are faced with the historical juncture that is deciding the choice for the life-style: which is that what direction and the way of the governance of human society should be developing.

Nowadays, social governance has evolved as that legislature makes policies as orbit; and then society runs on, which is that lawmakers make law to make the power of State Apparatus as executable true in actual control power.

The practice of China is the only choice; which is by outstanding entrepreneurs, scientists, etc., in part time self reliant as lawmakers by 7 members politburo as top leadership, no meeting consensus, no one talks at will; by which ensured collective wisdoms and avoided personal dictatorship in Gov-led state owned economy. 

The politicians who are destroying Germany are still criticizing China as autocracy; they have no huamn brain and don't know what they're doing.                                                                        <<<<<<<><><><>>>>>>>

Germany may be one of the few rich countries relying on the hard working rather than that of natural resources, which has attracted many international dignitaries to explore the secrets of its success. Such as months ago, Steven Rattner, the lead auto advisor (Car czar) in the United States Treasury Department under President Barack Obama, who published the article on

As the same as the writers of many other articles of viewing Germany, Mr. Steven Rattner seems to have focused on the macro policy while ignoring the micro details. The significant one of being ignored is the legislated management on rationalization proposals (RP) in German Companies. Their RP is not only pointing out the existing problems, but also proposing appropriate solutions and the company extracts bonuses to proposal providers according to the net cost savings after implementation of RP in the first year.

Since Mr. Friedrich Alfred Krupp of German ThyssenKrupp AG firstly coined the management concept of RP in 1872, German companies have begun the practices of management on RP. Currently, it not only is an important component of human resource management but also is one of the main features of the corporate culture of German Enterprises.

As is human nature, as common sense, no matter which race and which nationality, including myself, when we hear advice from others, the first feeling is to be despised; the uncomfortable reaction may show on the face, or even be verbally unfriendly. Maybe, it was the reason that the German government enforces the management of rationalization proposals by legislation.

In such a corporate atmosphere, German business leaders have been emphasizing people-oriented, and taking the staff as working-capital. They encourage more employees to be involved in optimizing the corporate management by exploring and exerting every potential to promote the development of enterprises. The Chinese saying goes, three ordinary brains are better than one unordinary one. I think that, the more eyes observed, the more problems would be found, and the more brains devoted, the more wisdom would be produced.

In such a corporate atmosphere, the sense of responsibility of employees is largely increased. The enthusiasm of employees for the work is large. The spirit of tacit cooperation is cultivated. Every employee could work positively, initiatively, creatively and actively. The product quality is largely improved, the production efficiency is greatly increased, and the upgrade of the products is speeded up. Thereby, the enterprises are always full of vitality with high competitive ability in hot competing markets.

They have established a sound management system of RP with corresponding incentive policies and accumulated a lot of valuable experiences. Such as, setting up specialized departments and specialized personnel to manage RP, the employees can easily input and query the contents and the implemented results of RP through the corporate network system.

As the saying goes, if we hope a horse runs faster, we must feed it with grass. If we hope to lay more eggs, we must feed hen with grains. In the same way, the activity of RP can continue to develop in German enterprises; the reward in bonuses or materials plays a key role.

The award criteria for RP are basically the same in different German companies. It is according to the net cost savings after implementation of RP in the first year. It is divided into several grades, specifically, the annual net cost savings within the ? 2,500, according to the following standard bonuses: 

Annual cost savings are more than 2500 euros, then, the bonus is 25% of the actual amount of net cost savings. For example, net cost savings is 5000 EUR, and then the prize money amounted to ? 1,250.

Some RP can not estimate the direct economic benefits, but can play an important role in improving safety, preventing accidents, protecting environment, improving product quality and enhancing corporate-image, and thus can make indirect economic benefits, then, according to the grade of lowest, low, medium and high respectively give 20, 75, 150 and 250 Euros or material reward. In accordance with "Personal Income Tax Law" of Germany, material reward is tax-free. The taxes of bonuses are paid by enterprises.

German companies pay great attention to the training of management personnel on RP. In 1943, Frankfurt Chamber of Commerce, University of Frankfurt and eight companies jointly set up an authority of researching RP - German Institute of Business Administration, and designed to promote cooperation closely between research institutions and enterprises.

In 1954, the Institute established a Working Group to research the management mechanism of the RP. Currently, each year, the Institute holds courses of "idea manager" to train management personnel of RP for corporate, and provides a platform for the exchange of the experience in the RP management.

The Institute also publishes the annual reports that comprehensively introduce the current state of RP management in German companies. And select the top ten best companies in RP management, and select advanced enterprises in RP management from various industries.

Table 1. The annual statistics by the Institute on the economic benefits gained from the implementation of the RP in German Companies.

Now, we may understand why Germany became a big manufacturing country. Their experiences are valuable for the Corporations of Canada.

3 years ago, I once met a circus animal trainer, who once traveled many countries. He was very talkative. We talked a lot. Most of the conversations have faded from my memory. But, there is one thing that I still remember as new. That is, I once requested him to compare the differences between the countries. He said that, “Italians are good at enjoying life, listening to music, dancing, playing and so on. Germans are working! Working! Only life is working. They are simply crazy.”

December 19, 2011, 9:47:20 AM, I searched on the Internet with the key words of the Italian debt crisis, amazingly, in only 0.25 seconds, I got 126,000,000 results. It demonstrated the severity of the debt crisis in Italy. It is terrible. Too much enjoyment has harmed the life of Italians, and may trigger big trouble for other countries. Now, people’s eyes are greedily watching the hard-earned money of Germans and China-people, desire them to make donations to save those trouble makers of the European debt crisis.

Days ago, I read an article that

Frugal living and hard working is the essential that humans can survive to today. We must re-pick up this spirit to learn from Great Germans and China-people.

Note: The information was excerpted translated from the articles on the Internet.

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