John Carl V.

Mostajo I301 Facilities Management

Answer the following: (3 items x 10 points)

1. Describe the internal and external customers of GE involved in the given
case study.

Internal clients of GE include people as well as parties of companies. The GE

business developed GE appliance park in Louisville, Kentucky, which attracted a
high of 23,000 workers. These individuals and organizations make up GE's internal
customers. Jeff Immelt, who is the Chairman of the Board of Directors at GE, was
the one who questioned why production should be located in ancient factories that
had a union atmosphere. He was also the one who was responsible for assisting a
firm in establishing board objectives. In the internal it also includes the Managers
who have a shared aim to work on the value stream from the consumer research to
testing the new cross-functional structure which they name the "Big Room." In other
words, they are all working toward the same goal.

While the external customers of GE are the group of certain people and
parties that are not part of the organizations, as I read the case study there are two
external customers which are the suppliers and the competitors, when the GE
experienced a huge offshoring trend in the business economy they shifted from
manufacturing into suppliers such as Samsung and LG, but as the days goes by the
Samsung and LG suppliers became their competitors that were harder to work with,
and causes GE to have a difficult time competing with them.

2. Identify the advantages and disadvantages of the insourcing decision of GE

relevant its company operations.

Because this is the product that the majority of GE's customers are familiar to
and customarily use, the company made the choice to bring the water heater back to
the United States from an Asian contractor as part of their insourcing decision. This
advantage falls under the category of organizational culture as a direct result of the
actions that the company took. Next is under the advantage of Trade secrets, which
is when the increased demand for appliances in the 1950s was fueled by the rise of
the economy. To accommodate this need, GE established GE Appliance Park in
Louisville, Kentucky, in 1973, and 23,000 workers had access to critical information
such as concealed procedures. GE Appliance Park was able to accommodate the
growing demand for appliances during this time period.

GE's decision to move production in-house resulted in a new design with

improved functionality performance, increased labor efficiency, fewer workers were
required, decreased inventory, and production that was completed on schedule. On
the other hand, the amount of space required for the line was cut in half, and the
amount of space required for the line was reduced by 80 percent. These are the
disadvantages of GE's decision to insource production. And moreover the
Capabilities in which GE wanted to rebuild its expertise by acquiring extra skills,
talents, and information. talents in managing company activities to assist in
determining whether or not the perceived service is satisfactory the levels that are
the ones that are the ones that are the most appropriate are the ones that are the
ones that are the most appropriate are the ones that are the ones that are the most
appropriate are the ones that are the They also needed to recruit a big number of
employees in a very short length of time, invest in new development laboratories,
and co-locate within a relatively short period of time.

3. Explain how GE managed to implement its insourcing decision successfully.

The company's upper management came to the conclusion that it would be

more profitable to produce water heaters in the United States rather than at a place
that was located outside of the country. Asia-based independent contractor. Since
that time, the company has adopted a new organizational structure for its cross-
functional teams. The "Big Room" refers to the need for the company to have clear
definitions or responsibilities in order to effectively manage the product. Because of
this, the executives of the GE Company sat down together and projected the
schedule onto the wall. This ensured that everyone in the room was aware of what
was going on. Additionally, a schematic of the system was included in this
presentation, a cardboard replica of the factory's floor plan, which also included an
illustration of how the production line's machinery would look .