GE Operations Management Techniques - Essay Example

17 April GE Operations Management Techniques Executive Summary General Electric is a well known inthe industry of technical and specialized products. Its name is attributed to quality and quality does not reflect only in the features of product, the corporate culture of GE is also a live picture of quality focused approach. All the employees, from top management to the functional line men are committed to quality and efficiency. It is extremely difficult to earn reputation in the field which is highly technical and requires lot of research. Research is a time consuming and costly activity. Many organizations tend to find shortcuts and compromise on long term benefits. GE discourages this approach by developing research based culture which promotes the employees to provide their input in the programs of continuous improvement. This paper is about Operations Management of General Electric Company. The paper explains how GE has implemented various operation management techniques in its business to grow and lead the market. Introduction to the Company General Electric, commonly known as GE, is a US based company. It is well known for its wide range of specialized products and services. These products include aircraft engines, home appliance like dyers, washers, cook-tops, and many other devices that are used in healthcare facilities (GE.com). All these products and services are based on top notch technologies. The business of GE is spread in more than 160 countries of the world. China, India, Japan, Taiwan, Pakistan, South Korea, Indonesia, Malaysia, Cambodia, Singapore, Vietnam, Singapore, Thailand, Philippines, New Zealand and Australia are only a few names. GE is present in many European, African and American countries as well (GE.com). The total task force of GE consists of 36,000 employees. GE calls them technologists instead of employees. This term does not only reflect technology orientation of GE but also gives employees a commitment with technology. It recruits people from all over the world ensuring the best return of their talent. The strategy of valuing its employees pays GE fairly well both in short and long term. Definition of Operations Management Operations management is generally defined as the management of processes converting input into output. This basic definition contains vast meaning and many organizational functions are covered in this domain. The classical Economics theories identified land, labor and capital as inputs or factors of production and the output was the core product. The contemporary management literature considers man, money, media and material as inputs to the organizational processes while outputs are categorized as quality and quantity of the product. Operations management is an inevitable function in any organization (Greasley, 3) and it is the core factor determining success or failure of the organization. Any organization managing its operations properly and taking right decisions at the right time lead the market. It is quite possible that the organizations processes are not aligned with its objectives; hence the operations are not successful. Operations Management Techniques in GE As GE is a manufacturing organization, its operation include need identification of the product, target market analysis, product design research, design development, production, product promotion, sales and finally the customer support. These are the core functions related to production and promotion. Being an international organization, GE is involved in many other functions which are administrative in nature, hence are not included in this paper. There are many operations management techniques used in the corporate sector. Corporate identity, corporate motto, innovation, process design, method study, work measurement, capacity management, inventory management, material requirement, cost reduction, rationalization, office automation, factory automation, Just In Time system, Tomere, Sugu & Shouti, Poka-Yoke, Visual Management and Value Added Networks are the major techniques (Ho, 3). Below is the brief description of operations management techniques which are commonly used in various business units of GE. Corporate Identity GE manages its various products under specific names appended with GE brand. For instance, aviation products are managed under the corporate name of GE Aviation and GE Healthcare is all about Healthcare products and services. All these entities have designated CEO and Chairman, while there is a post of CEO who is the administrator of entire GE business. A global research department is also established which supports all the divisions of GE. Experts from various countries of the world participate in the research activities to design state of the art products. The organizational chart of GE is attached in the appendix. The organizational chart of GE reflects the corporate identity of its various business units. Corporate identity is the top most operations management technique which conveys the corporate culture of the organizations to its target market. At GE, the management is focused on research activities. Corporate Motto & Innovation As evident from the product line of GE, these are specialized products with the element of durability and high cost. With many of GE products, life safety risks are also attached. An example is of an aircraft engine. Any small issue can lead to aircraft crash causing serious threat to the passengers’ lives. In order to ensure manufacturing of quality products, it is extremely crucial that these products are based on sound research. This objective is aligned with corporate motto of GE i.e. not just imagining, rather doing. GE works. The Global Research Center is situated in New York for more than a century and serving the industry requirements. Both new product development and product improvement processes are based on research analysis. GE spends much time and resources to produce a fool proof product which is not only reliable but also unique and brings a strong competitive advantage to GE. Automation As the 21st century is characterized with globalization and digital communication, automation is the key technique, GE uses in its operations. Uncountable operations are automated and controllable by software solutions. GE is actively involved in designing such solutions. It uses the same approach in its research oriented activities which are particularly based on customers’ feedback. Through automation, GE ensures instant feedback from its customers. For corporate customers, GE installs its own feedback system to get ready access to the required data for quick decision making. An example in this regard is of aircraft engines, which communicate with GE engine shop through satellite on real time basis. GE is well aware of the engine condition at each moment of flight. GE system is so strong that its representative present at corporate customers’ location stay updated about every routine event. Process Design Another operations management technique adopted by GE for product improvement is process design and improvement. GE uses six sigma tools to achieve this objective. All its employees are bound to do one six sigma project on annual basis. It is a mandatory requirement for their performance appraisal. Based on the principle of continuous improvement, GE is more successful in the market as compared to its competitors. The employees keep an active eye on the process of their functions for the sake of improvement. The consolidated feedback from employees and customers serve as an input to product development and improvement. It also contributes in designing strategies related to supply chain management. Every improvement and innovation in GE is backed by extensive research. Method Study As mentioned earlier, GE has automated systems to collect performance of its equipments installed at customer’s facilities, and it collects real time data to monitor performance of its product. GE ensures the customers about its commitment to quality and fool proof products. In case of any issue arising in the end product or any aspect leading to compromised quality during manufacturing process, GE systems readily record, process and analyze the data for instant corrective actions. It is because of these measures, GE aircraft engines rarely experience any in flight shut down or unscheduled removal from the aircraft wing. It is a big achievement in aviation industry. Conclusion GE is a high tech organization clearly familiar with the market requirements and the future needs of its customers. It is a proactive organization that makes the customer realize the need to improve their productivity and performance. It has given the industry players a smart idea of extensive research which can lead their products to achieve a successful status. There are many competitors of GE in its various product lines and GE is enjoying portion of eminence among all of them. It is because of effective operations management and excellent corporate strategy. Works Cited GE| Technology | Services | Finance | Innovation | General Electric. General Electric, 2012. Web. 17 April 2012. Greasley. Andrew. Operations Management. London: Sage Publications Ltd. 2008. Print. Ho, Samuel. Operations and Quality Management. London: International Thomson Business Press.1999. Print. Appendix Read More