General Electric and their operating procedures. A short portrayal of the current situation

Academic Paper, 2020

15 Pages, Grade: 97




Operational Strategy

Production and Operating Procedures

Technology and Automation

Quality- Continues Quality Management (CQM)

Recommended Actions



General Electric has been a household name since 1892 when they bought Thompson Electric, Houston Electric, and Edison General Electric Company. Thomas Edison founded his company in 1878 to sell his incandescent light bulb. When GE acquired all the assets from Edison General Electric Company they also enlisted its founder who contributed to GE by allowing them to use his patents and he remained a consultant to the company for many years. (The Editors of Encyclopedia Britannica, 2020)

GE makes a very wide range of products and services. Their consumer products are where a wide range of their products and services occur; however, GE makes most of its sales to the U.S. Department of Defense. (The Editors of Encyclopedia Britannica, 2020) GE has a remarkably diverse product line the market segments they work in are Power, Aviation, Capital, Healthcare, and Renewable Energy. Some of those product categories they make products or services for are: sensor-based measurement and asset condition monitoring, power generation products, renewable energy, and energy services, water & process technologies (Equipment, Chemicals and Services), healthcare technologies and services, mining solutions and services, life science research, pharma manufacturing, and diagnostic imaging, Transportation technology, supplies, and services, lighting solutions and services, aviation engines, components, systems, and services, electricity transmission, distribution, conversion, and consulting, software connected machines and devices, life science research, home appliances, pharma manufacturing, and diagnostic imaging, and transportation technology, supplies, and services. (General Electric, 2020)

GE currently has 205,000 employees and the Chief Executive Officer is H. Lawrence Culp, Jr. Their headquarters is in Boston, MA. (Forbes, 2020) There are 194 office locations across 63 countries. Their revenue for 2019 was $95.2 Billion, which was a decrease from their 2018 revenue of $121.6 Billion. GE’s main competitors are Bentley Systems, Honeywell, 3M, Mitsubishi Electric, Schneider Electric, and Philips.(Craft, n.d.)

Operational Strategy

In 2018 GE began to restructure their company. Though they have many different diverse products and services they offer, GE has chosen to aggressively focus on three of their business ventures that they feel have the best chance at large future growth period these complementary businesses are there power, renewable energy, and aviation. (Kellner, 2018)

“We will continue to improve our operations and balance sheet as we make GE simpler and stronger” stated GE Chairman and CEO John Flannery.(Kellner, 2018)

In 2015 GE set in motion a plan to sell 90% of its assets to focus on the money makers instead. That includes its financial services and home appliances. GE is choosing to go back to its roots in the power market. They plan to use the future profits to reduce their net debt by approximately $25 billion and return $90 billion to investors. (GE, 2015)

GE uses what they call the GE Store to drive competitive advantage across their entire business. With the GE Store the company can immediately communicate, access, and share each other's structure, markets, technology and intellect. This allows for greater margins and faster growth. Being able to communicate and use all their combined knowledge is a strong competitive advantage for them. This also complements their shift to focus on aviation, power, and renewable energy. Because new intellectual knowledge gained in one part of the company can be used at once by another part. (GE, 2015)

GE also uses their Research and Development departments to create and provide unique attention-grabbing products and services. This adds to their competitive edge because they constantly develop new products, they are not only one of the most diversified companies in the world but they hold the highest number of company owned patents. GE is using a generic differentiation strategy by using their Research and Development departments to continually expand and update their product lines which may target newer market segments that they may not have reached before. The more items you create that are unique and or grab a customer’s attention the more likely you are to get them to buy your products and once they buy it you must us quality verse cost to build their loyalty. As long as they customer feels it was worth the value then you may have a customer for life. Because GE is such a large and diverse company that offers so many products or services, one customer may make dozens of purchases from them throughout their lifetime just because of brand loyalty. (Thompson, 2017)

GEs core competencies are their innovations and technologies. Some areas in advanced technology programs that GE is working are sustainable energy, energy conversion, nanotechnology, and advanced propulsion. Their competitors are unable to keep up with them simply because GE is such a diverse company that none of its competitors are working on as many products as GE. GE invests 9% of their yearly profits into R&D which allows for them to stay on top. They do so by being able to innovate and develop products at breakneck speeds that suit the market needs. They are hard to compete with because GE’s products are a fair value for their quality and cost. They actively try to solve issues you did not know you had on a daily basis to create unique products you did not even know you needed yet. (Kellner, 2018)

Production and Operating Procedures

“A substantial portion of the company’s sales are to the U.S. Department of Defense.” (The Editors of Encyclopedia Britannica, 2020)

April 28th, 2020 GE signed a new contract with the U.S. Department of Defense for the Air Force. This contract entails that GE is to produce their F110-GE-129 engine, handle all installs, spares, and modernized engine management systems computers. They are to produce these for indefinite-deliveries/ indefinite-quantity and was awarded $707,274,997. They are to produce these engines in Cincinnati, Ohio and work should be completed by December 31st, 2026. (The U.S. Department of Defense, 2020) GE Aviation can handle this capacity and more. They also supply Lockheed Martin with several products and services; Lockheed Martin uses those in their contracts through the U.S. Department of Defense with the Navy for three contracts signed and awarded totaling $33,992,240. (The U.S. Department of Defense, 2020)

October 29th, 2020 GE Aviation for the third year in a row was awarded the Lockheed Martin Rotary and Mission System (RMS) Outstanding Supplier. This award was given because in 2019 there was “99% on time deliveries and zero quality defects.” (GE Aviation, 2020)

GE Aviation provides a global service network which supports their many products and services. They are “a world-leading provider of jet and turboprop engines, components, electrical power, avionics systems and digital solutions for commercial, military, business and general aviation aircraft.” (GE Aviation, 2020)

They create a competitive advantage in the aviation field by creating a technologically advanced, cost effective, high-quality, reliable product that can in some cases survive the life of the plane and longer. The two engines that GE produces for the Air Force are the CF34-10 and the Passport for a B-52 Jet. The CF34-10 is a commercial engine, while the Passport is military grade. The CF34-10 is proven to last “Averaging 16,000 cycles to its first overhaul, CF34-10 is projected to stay on wing for the life of the B-52 and beyond – reducing maintenance, man power, and operating costs.”(GE Aviation, n.d.)

GE uses their own software products that are created by GE digital. “A software solution purpose-built industry to drive smarter decision-making and higher efficiency.” (GE Digital, n.d.) Their Predix Operation Management software (Predix OPM) paired with their Predix Asset Performance Management software (Predix APM) allows operational and informational technology to work together. They can view and analyze the operational data in real time while tracking an individual piece of equipment's productivity and health. This brings GE the data to run their business by making the smartest data backed decisions that will supply the highest efficiency. The Predix OPM can run what-if analysis which can predict the optimal opportunities for improvements. The software does all the work for you. (GE Digital, n.d.)

Technology and Automation

GE uses their own information technology as a great competitive tool. Their system uses both soft and hard technologies to share information and make better decisions for the value chain. Their computer-integrated manufacturing systems allows them to maintain efficiency and productivity.(David A. Collier, 2015) These digital technologies allow for unmatched information sharing across the entire organization. The business values added because the critical business and operations data is connected and easily accessible for users for company decisions is tremendous. Having integrated all “These systems enable the Digital Thread: Commercial (CRM), Engineering (PLM/MBE), Manufacturing & Supply Chain Ops (ERP, MES, MRP, QLM),and Services(SLM, MRO) Working together they create the source of truth for managing the Life Cycle of the Product from R&D and NPIto Servicesand MRO.”(GE, 2020)


Excerpt out of 15 pages


General Electric and their operating procedures. A short portrayal of the current situation
MAN 4504
Catalog Number
ISBN (eBook)
operational strategy, production strategy, CQM
Quote paper
Jessica Phillips (Author), 2020, General Electric and their operating procedures. A short portrayal of the current situation, Munich, GRIN Verlag,


  • No comments yet.
Read the ebook
Title: General Electric and their operating procedures. A short portrayal of the current situation

Upload papers

Your term paper / thesis:

- Publication as eBook and book
- High royalties for the sales
- Completely free - with ISBN
- It only takes five minutes
- Every paper finds readers

Publish now - it's free