This paper deals wirh General Electrics' operation strategy, production and operating procedures, technology and automation, and CQM.
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.
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.
Table of Contents
Introduction
Operational Strategy
Production and Operating Procedures
Technology and Automation
Quality- Continues Quality Management (CQM)
Recommended Actions
Objectives and Topics
This paper examines the operational structure and strategic evolution of General Electric (GE), focusing on how the conglomerate has restructured its business portfolio to prioritize core industrial segments such as power, renewable energy, and aviation while leveraging integrated digital technologies for competitive advantage.
- Strategic restructuring and divestment of non-core assets.
- Implementation of the "GE Store" for cross-departmental knowledge sharing.
- Utilization of digital transformation, including IT/OT integration and data-backed decision making.
- Commitment to global quality standards and ISO certification processes.
- Analysis of government contract dependencies and operational efficiency in defense manufacturing.
Excerpt from the Book
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)
Summary of Chapters
Introduction: Provides a historical overview of GE since its founding and outlines the company's massive, diverse portfolio spanning across multiple industrial and consumer sectors.
Operational Strategy: Details the company's shift toward streamlining operations by focusing on core businesses and utilizing the "GE Store" concept for internal collaboration.
Production and Operating Procedures: Discusses GE's significant involvement in government and defense contracting, highlighting their efficiency in manufacturing engines and maintaining high quality standards.
Technology and Automation: Explores how GE uses proprietary digital solutions and information technology to integrate operations, manage product lifecycles, and streamline manufacturing processes.
Quality- Continues Quality Management (CQM): Covers the company's transition from Six Sigma to ISO 9001 certification and the importance of standardized quality management principles.
Recommended Actions: Offers strategic advice for GE regarding its future focus on renewable energy and the necessity of resolving outstanding regulatory and financial reporting issues.
Keywords
General Electric, Operational Strategy, Digital Transformation, Aviation, Renewable Energy, GE Store, IT/OT Integration, Quality Management, ISO 9001, Six Sigma, Industrial Automation, Defense Contracting, Corporate Restructuring, Supply Chain Management, Innovation.
Frequently Asked Questions
What is the primary focus of this paper?
The paper provides an analytical overview of General Electric's current operational state, its strategic move to focus on core industrial markets, and the role of technology and quality management in its business model.
Which business sectors does GE prioritize?
GE has aggressively pivoted its strategy to focus on three primary complementary business ventures: Power, Renewable Energy, and Aviation.
What is the core objective of the company's restructuring?
The goal is to simplify the company, reduce net debt, and increase growth by divesting non-core assets and refocusing on highly profitable, industrial-focused sectors.
What methodology is mentioned for organizational efficiency?
GE utilizes the "GE Store," an internal collaborative model that allows different parts of the company to share intellectual property, markets, and technological knowledge to drive competitive advantage.
How is digital technology utilized within GE?
GE employs sophisticated software solutions and integrated IT/OT systems to enable real-time operational data analysis, which supports informed decision-making and efficient product lifecycle management.
What are the key themes discussed regarding GE's quality standards?
The paper highlights GE's transition toward ISO 9001 certification, the requirement for supplier compliance, and the organizational principles that ensure high-quality standards across their global operations.
What concern is raised regarding GE's environmental impact?
The author argues that for GE to be a true leader in renewable energy, they must prioritize sustainable R&D investments and actively phase out support for coal-fired power plants.
What financial and regulatory challenges does the paper identify?
The paper discusses GE's ongoing issues with the U.S. Securities and Exchange Commission (SEC) concerning financial reporting inaccuracies and the high-risk liabilities associated with their long-term care insurance policies.
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- Jessica Phillips (Autor), 2020, General Electric and their operating procedures. A short portrayal of the current situation, Múnich, GRIN Verlag, https://www.grin.com/document/999698
