Efficient and inefficient

Many of the most popular brands of children’s toys in the U.S. are wooden toys manufactured by fairly small companies. Compared to mass-produced plastic toys from China, they are inefficient to produce and more expensive to ship. Quality and design is the focus, not speed or quantity.

American-made tools: The websites of popular American toolmakers such as Snap On and Craftsman include many statements about non-negotiable product quality and safety but make no mention of efficiency. Production of American products often maximizes quality and safety while giving much less attention to efficiency of production.

U.S. health care: The delivery of health care in the United States is perhaps the best example of disregard for efficiency in exchange for safe, high-quality output. According to a report from the Institute of Medicine, „about 30 percent of health spending in 2009 – roughly $750 billion – was wasted on unnecessary services, excessive administrative costs, fraud, and other problems.“

The reasons for this waste are complex, but the underlying logic is that in the health care sector (and in most other industries), Americans view a safe, comfortable, and positive output as the primary goal of their activities; therefore, efficiency is often ignored.

U.S. military: The U.S. military spends vast sums of money to achieve the strategic goals of the nation. For example, it costs the U.S. an estimated $1 million dollars to outfit a single soldier in Afghanistan for a year. The U.S. has spent more than $1 trillion dollars fighting wars in Iraq and Afghanistan since 2001. The key focus of military operation is achieving the strategic objective (or output); efficiency and costs are rarely discussed. If they are discussed, they are always secondary to achieving the mission.

Federal hiring process: President Obama signed a memorandum in February 2010 ordering the Office of Personnel Management to streamline the federal hiring process. Although implementing this order will vary across different agencies, the act symbolizes a concerted effort to add efficiency to what was previously an incredibly slow and ineffective process.

Hotel chains: Many companies cannot focus exclusively on output while neglecting efficiency. Hotel chains have started to encourage customers to conserve water (thereby increasing efficiency) by re-using towels and not changing linens every day. These campaigns are often marketed as „eco-friendly.“  They are aimed at lowering costs and increasing the company’s efficiency. The output must be of good and uniform quality, but if the company does not operate efficiently, then it will not be profitable.

Assembly line: With the assembly line Henry Ford revolutioned the automotive industry and the way products are produced in almost every industry. This new manufacturing process made building cars more efficient. Because of the increase in efficiency, the cost to produce a car went down and when production costs were lowered, so was the retail price of the cars. Today, almost all products – from faucets to airplanes – are produced in some form of assembly line.

Made in Germany

England in 1887 required all products imported from Germany to be labeled „Made in Germany.“ At the time German products were considered to be of substandard quality. Germany was a late-comer to the industrial revolution, much later than England. A famous German engineer admitted that German products were “cheap and nasty.”

Many were enraged, but it led to a national discussion and a quality offensive. At the beginning of the 20th Century, and especially in the post-World War II era, „Made in Germany“ took on a new meaning: high quality, newest technology. It became synonymous with West Germany‘s economic miracle of the 1950s.


The Germans recognized the importance of such a label, of the reputation of their products. They became particularly proud of their technical and economic achievements. Germans continue to view their products as having high quality, often as being the best in the world. From the early 1980s until recently Germany was the world‘s leading exporter.

The label “Made in Germany” is used less today than in the past, however. A minimum amount of a product’s parts must be produced in Germany before it can boast “Made in Germany.”

Modern German industrial and technology companies, however, have segmented their supply chains to include manufacturing sites and suppliers in many parts of the world. Nonetheless, the label “Made in Germany” remains a key, positive element in the self-understanding of every German.

Knowledge Society

Because Germany has few natural resources, its economy has had to produce high quality, high technology products and services.

In politics, economics and the media the Germans stress time and again the importance of maintaining a knowledge society, of education as its key resource. Germany‘s high standard of living, its high level of social welfare services, can only be financed if it can continue to develop and market high margin goods and services. The Germans stress, therefore, the need to produce generations of scientists and engineers.

There is consensus across the country on this point. Every chancellor, state governor, head of a major German company stresses time and again how critical it is to stay on the cutting edge of science, engineering, technology. Germany sees itself as the land of ideas, recognizes that its future depends on it producing breakthrough ideas.

Good old watering can

Gardena is located in Ulm, Germany. With approximately 420 million Euros in yearly revenues it is Europe’s leading maker of gardening tools. Owned by the Swedish Husqvarna-Group, Gardena was founded in 1961 by Eberhard Kastner und Werner Kress.

One of Gardena’s products is the Micro-Drip-System. The Gardena website says: “Water your yard the intelligent way!” Watering manually is hard work and it leads to “uneven results.”

The Micro-Drip-System is a great relief, “because you only need to turn on the water (faucet, spigot) or to give the command into the system’s on-board computer.”

“The system does the rest of the work itself.” Instead of watering too much or too little, the grass and plants get just the amount they need as determined by sensors which measure humidity and rainfall.

Gardena tools are so intelligent that they can decide themselves how much water is necessary for even and uniform growth. This also saves water. 

Of course, the question remains if the proud homeowner would not prefer to demonstrate his or her gardening expertise by using the good old watering can.

Mechanicians. Musicians. Metaphysicians.

“The Yankees, the first mechanicians in the world, are engineers – just as the Italians are musicians and the Germans metaphysicians – by right of birth. Nothing is more natural, therefore, than to perceive them applying their audacious ingenuity to the science of gunnery.” Jules Verne

Does Verne mean with gunnery the making of weapons? And does he mean with them the Yankees (Americans) or the Germans?

Verne (1828–1905) was a French novelist, poet, and playwrite best known for is adventure novels and his great influence on the literary genre of science fiction.

Warranty, guaranty not the same

Two-year warranty: Set by law in Germany allowing customers to return a defective product. The seller is obligated to either repair or replace the product.

Garantie. Guaranty. The promise, security that something is correct, right, works; a promise by the maker of a product that it functions as advertized; a contractual promise.

Worst Case Scenario. An English phrase used in Germany. The German consumer expects a product to always work as advertised, last long, meet fully their expectations.

German consumers often confuse warranty and guaranty, believing that they can return the product for repair or replacement during the two-year period regardless of the cause of the defect. The law, however, requires the maker/seller of the product to repair or replace a product based only on defects at the time of purchase. Misuse of the product or normal wear and tear are not covered.

If for example a television does not work perfectly after a year, the German consumer typically will return it to the store and demand repair, replacement or their money back. The retailer, however, is permitted to repair the product as often as he chooses without obligation to return the purchase price. Nor is the retailer obligated to supply a replacement product during the time of repair.

The mere returning of a product angers the German consumer. They expect near 100% reliability. Good customer service – friendly, fast, uncomplicated – can help things, but is seldom seen by the German consumer as an excuse for a technical defect. If the problems reoccur, the German consumer will quickly switch to a competitive product. Good technical service is best when it‘s not needed.

Markenprodukte

Markenprodukte. Brand name products: Products which are immediately recognized as excellent based on the name of its producer; often products which are of average quality but remain in the minds of consumers due to constant advertising.

German companies have been exporting high quality products consistently since the end of the Second World War. Their products have gained an international reputation for being very good, often better than their competitors. The Germans view reliability as one of the key characteristics of a well-known brand.

Qualität ist, wenn der Kunde wiederkommt, nicht das Produkt. Quality is when the customer returns, not the product. This well-known saying indicates the importance quality plays in the German product philosophy. A product which does not function perfectly and therefore needs to be returned is an embarrassment to the producer.

Prussian Reforms

Much of what is Germany has its roots in the Prussian reforms of the early 19th Century. Napoleon‘s rapid defeat of Prussia in 1806/07 led to a deep-dive analysis of what went wrong, of what required reform. The Germans radically changed their agricultural system, their business laws, their military training, and most importantly their system of education.

Public eduction for all was introduced. The universities adopted the Humboldt education philosophy, which stressed free and independent inquiry and teaching. Knowledge quickly became the foundation of a modern Prussian economy and state, in many ways for contemporary Germany.

The Prussian Reforms also addressed state institutions. A system of professional civil servants and a bureaucracy was instituted. Bureaucracy then stood for efficiency and professionalism. The tax laws were simplified and made transparent. The state should function more efficiently and become a motor for positive change.

Germany today remains a rather bureaucratic country, with its scores of civil servants, rules and laws. It is a country where one simply cannot do as one pleases. From the perspective of other societies this is a limitation on freedom. Germans, though, view it as a sign of security and stability. Doing things the right way, punctuality, reliability, predictability, following the rules, bureaucracy. Germany has a 200 year history of these. They are who the Germans are as a people.

Very proud of their automobiles

German cars vs. American cars. Germans are very proud of their automobiles.

Comments in YouTube: “Telling Germans how to make cars is like telling Italians how to make pizza.” … “To anyone saying that we Germans don‘t have any humour: We do actually! We laugh at French and American cars!”

“German: Uses the most advanced tech known to mankind to build the fastest, safest and over all best cars ever. American: slaps wheels and v8 on coffin.” … “Built in USA: Can do cool stunts in Hollywood movies. Built in Germany: Can do the same but on a real autobahn.”

Wunderwerk

“Buy yourself a flatscreen tv!” was the advice given by one German graduate student to the other, after the latter struggled to carry his old television – Röhrenfernseher or cathode ray tube television – up several flights of stairs to his new, smallish, apartment. The old tv is, indeed, just that. Twenty years. It belonged to his grandmother, then to his parents.

This Wunderwerk deutscher Ingenieurskunst – wonder work of German engineering – a term once used ironically by a tv repairman – was built by a renowned German electronics company. Siemens. It continues to work flawlessly.

When the Röhrenfernseher – literally tube far see-er – some day gives up the ghost, it will be replaced by a flatscreen tv. But because the age-old German belief in not throwing anything out which still works applies to this truly durable German household appliance, it could see a few more schweißtreibende Umzüge – sweat-inducing apartment moves.

Crazy Germans!

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