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Germany as an Industrial and
    Commercial Location








There was a time, when it appeared as if the inland production was dissapearing from Germany. The business people, also in the production operations, seemed to be the center of the world. Each production-step was exactly calculated, if it could be done cheaper somewhere else, the work was farmed out. Jobs, know-how, infra-structure - were of no importance. The main issue was, that the price was right, after all, we have a very short-sighted stock-market.

The result is uneployment in Germany and, as far as the automobile industry is concerned, the seventh year in which a sales decline was registered. Simply because, when less cars are produced in a country, the population has less money to buy them. One cannot reduce the production costs as quickly as the unattainable prices are being forced downwards. Then there are the problems of maintaining the same high production standards in factories operating in foreign countries.

Outsourcing, is the method of transfering as much work as possible to the suppliers, who are then encouraged to build their factories in the near vicinity. Although one can rid oneself of the production responsibility, unfortunately alterations also take longer, and they certainly will be necessary if one looks at the demands being placed on future vehicles. Also the consumer is aware of the fact that, possibly only 25% of his chosen brand-name has been manufactured in that company. Why then, shouldn't he/she buy the cheapest product right away? The turning-point seems to have arrived.

Fortunately, the above statements are no longer valid as a situation despription. It all started by negotiating with the shop-stewards/unions in the preliminary phase of the planned relocation of production. If a certain wage agreement could be reached, the production remained where it was. However, the one-sided wage-waiver is, by no means, the solution to the problem, particularly, as in certain branches, the fully employed workers can no longer live from their incomes.

There has now been a thorough change of thinking. The apprentice education in Germany has once more, become attractive. The industry is again, also falling back on the older, more experienced artisans. Those responsible, are now doing their homework, which could have spared us the whole commotion. The role-model is once again the Japanese industry, who apparently are able to simplify repetitive processes, which, not are only are they executed more quickly, but also bring better production results.

Although modern computers have often stored the complete factory activity and can carry out the most amazing simulations, the engineers are partly leaving their computers and going out to face the real world. Production processes are being reproduced and discussed in teams. The production sites are being spruced-up and thoroughly organised. First of all, with provisional means, the work place of the employees is changed, then the new operation is played through. Should the change meet with general approval, the re-fitting is rapidly carried out.

One could imagine, that the work, thereby becomes more boring and tedious. One tends to forget, that each individual worker must also keep to a sort of emergency plan. It is not simply a case of sticking exactly to the running-process, it also means being flexible and taking remedial action should slight disturbances occur. Unfortunately however, the times where groups could discuss their working place at length, are a thing of the past. One can only hope that the experience of the production-line workers is nevertheless, sufficiently valued.

The VW-chief has indicated a production increase of 10% per year, which is, in some cases, even being exceeded. It's incredible what a clean-up can produce. One could have thought about this earlier, It's probably the same as it is at home, where one gets by permanently, with a favourite temporary solution. Perhaps one should make the decision to to the job properly and then see if one feels better afterwards. By the way, when changes occur, there are always winners and losers. My thoughts, in this case, are with the Karmann Ghia company in Osnabrück. 12/07








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