Process – Page 5 – understand-culture

German artisans

Germans believe that processes — how the work is done — are the key to success. Americans, however, favor relationships, or how to gain and retain customers.

By tradition, Germany is more a culture of artisans (Handwerkerkultur) than of traders (Händlerkultur). The Germans have always made things. And they believe that process — how the work is done — is the key to success. Good processes lead to good products, bad processes to bad ones.

One well-known German manager, Klaus-Hardy Mühdeck, the CIO of ThyssenKrupp, is even nicknamed the Prozesspapst, the Process Pope, and has changed his title to Chief Process Officer. Because processes govern the internal workings of a company, whoever has the say over process has the say over how the work is done, and thus over the company. As the Germans see it process is power. And Germans want the power. Who doesn’t?

Tesla Giga Factory Berlin

Elon Musk wanted the factory in Germany. Why? Great automobile culture. Largest economy in Europe. Central geographic location. And, perhaps most importantly, great engineers. It makes you wonder what Henry Ford would have thought of this.

YouTube comments:

“This might just be the coolest car related video ever made. I can just imagine the person in the production meeting that suggested this and you just know when Elon heard about it he was like ‘Yep that’s sick’.”

“Tesla makes the best car commercials without making car commercials.”

“One of the best process walkthroughs I have ever seen. Amazing footage. Amazing piloting. Amazing process. Well done!”

“I’m a Tesla employee in Berlin and I was there on our ceremonial day. I can say that I saw with my bare eyes the guy who is controlling the drone. He has some amazing skills, so this video is made by him and its not fake. Cheers!”

New media – New political parties

Before the Internet offered new ways to communicate, small political parties in Germany had barely a chance to make it into the Bundestag, or parliament. By law they have to receive at least 5% of the vote.

Each and every political party receives government subsidies to finance their election campaigns, but based on how many votes they get. The more votes received, the more money to run campaigns. The problem for new parties is that they have to first finance their campaigns out of their own pocket in order to gain any degree of name recognition.

Traditional modes of political advertising are simply too expensive for start-up parties. They can never get enough voter momentum to receive significant amounts of money from the government. A catch-22 situation, or chicken and egg situation.

The rules of the game have changed, however, with the Internet: Facebook, Twitter, and other kinds of social media. Now small, unknown parties like the Piratenpartei, literally Pirate Party, are able to compete with the major, long-established political parties: Christian Democrats, Social Democrats, Free Democrats, Green Party.

Herrenknecht. Trumpf.

2012. USA. The PBS Newshour. During the European debt crisis. About two great German Mittelstand companies, small- to medium-sized companies.

https://youtu.be/Uad1Ma5DSMA

Rules of the Game

Those who write the rules of the game, have the best chance of winning the game. Processes – how the work is done – make up the rules of the game. Within companies. Where the product is critical to success. Where “a better mousetrap” really can, for the most part, sell itself.

Let’s march it backwards. Customer. Product. Manufacturing. Product development. Science and engineering. German. The core is science and engineering. In Germany scientists and engineers are king. They enjoy the prestige. Herr Dr. Soandso. Even better, Herr Professor Dr. Soandso.

Let’s march it backwards. Customer. Solution and profitability. Problem and pain. Relationship management. Sales. Marketing. American. The core is understanding the market, maintaining a constant close relationship with the customer, understanding and meeting needs. The customer is king. Those close to the royal court are king-too. They enjoy the prestige. The insider. The trusted.

Germans want to have the say about process, about how the work is done. For them it is make or break, success or failure. It’s the name of the game. Americans are happy to concede it, as long as the Germans concede to them the customer.

Mistaken thinking, or at most half-thinking. On both sides.

VW advanced manufacturing

Richard Hammond visits the Wolfsburg Volkswagen Factory in Wolfsburg, Germany, and gets an exclusive inside look on their new robotic arm tech, and their unique chairs built to quickly get human workers in and out of a car.

Volkswagen is known for its emphasis on quality and precision in its production processes, which is a key factor in the company’s success as a leading global automotive manufacturer.

German manufacturing

YouTube comments:

“Title: This is the reason, but we do not know the reason for the video — I think the title should be the greatness of German craftsmanship.”

“The highest metal process and materials are still kept in Anglo nations of US and UK.”

https://youtu.be/hJaXSyAV3YE

Process-Pope

Klaus-Hardy Mühdeck, current CIO of ThyssenKrupp and former CIO of Volkswagen, is considered Germany’s Prozesspapst – literally process-pope. He is the first CIO to change his title to Chief Process Officer.

In an interview with Computerwoche – Computer Week – in 2006 Mühdeck described his fascination with process management:

“Processes network functions, no more and no less. Throughout my entire career I have been involved in processes. In most companies it is under the board member responsible for strategy. But the trend is clear. CIO’s are defining processes and systems.”

It is the CIO, says Mühdeck, who is the bridge between the demands of the company and the systems platforms and company-internal processes. CIOs need to be able to communicate with and understand the areas of development and manufacturing.

You can only truly understand a company’s processes if you understand how the various functions and departments actually work.

BMW robotics

BMW Car Factory Robots- Fast Extreme Automatic Production Manufacturing: BMW X2, i8, new BMW X7 and 5- Series Production Assembly Line.

YouTube comments:

“I am an industrial engineer and there us much more behind this than just the robots. The system had to be designed perfectly to prevent bottleneck. Imagine step 1 took 2 hours, step 2 4 hours, and step 3 30 minutes. In you only had 8 hours a day the maximum amount of cars you could output would be 2. They had to time every one of those stations perfectly to prevent production build ups and so cars can flow from station to station preventing waiting and excess motion. Very well done with much less variability than human systems.”

“I have noticed from several videos that German manufactures use more robots in car making compared to Japan where there seems to be a fine balance btwn human craftsmanship and robotics….could that explain the difference in reliability btwn Japanese and German cars?”

“I can’t wait till they’re poppin out terminators with that kind of speed and efficiency. All joking aside, there is something slightly unsettling about these machines. Hopefully when AI becomes self aware they don’t resent us for making robots our slaves.”

Processes and Communication

In the American business context the communication within and during a process is very important. In fact, the forward movement of a process is dependent on communication. Parties involved in the process must remove roadblocks, anticipate slow-downs. The process may not come to a halt.

Constant communication is the prerequisite for quick response time. Constant communication also secures a common understanding of the process’ goals. It motivates. Feedback within the process is given on a regular basis.

Not to be underestimated is also the value of communicating interim results upwards, to those on the next level of management who exert influence on the process in general, and who might also be the recipient of its ultimate results.