Adapting a manufacturing company to dramatic changes ‐ experiences from the former East Germany

K. Mertins (Fraunhofer Institute for Production Systems and Design Technology (IPK) Berlin, Germany)
G. Neubauer (Fraunhofer Institute for Production Systems and Design Technology (IPK) Berlin, Germany)

Integrated Manufacturing Systems

ISSN: 0957-6061

Publication date: 1 April 1996

Abstract

German unification led to a total change in the environment of East German factories. Describes a manufacturing company where these changes led to a massive, multi‐step reduction in size and a change from mass production to one‐off production. Traditional analysis methods did not give results adequate to inform strategy making. Size reduction without appropriate strategic orientation led not only to heavy financial loss, but also caused a “brain drain” effect, and initiated a vicious spiral of downsizing. The identification of employees’ skills and experience provided information about what the company was actually good at doing. Direct costs and sales were then analysed to determine how best the factory might be structured in order to support the core process. A cost accounting system was established and a system for controlling the engineering process was implemented. Order processing was simplified and supported by the tailoring of the production planning and control computer system.

Keywords

Citation

Mertins, K. and Neubauer, G. (1996), "Adapting a manufacturing company to dramatic changes ‐ experiences from the former East Germany", Integrated Manufacturing Systems, Vol. 7 No. 2, pp. 37-43. https://doi.org/10.1108/09576069610111882

Download as .RIS

Publisher

:

MCB UP Ltd

Copyright © 1996, MCB UP Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.