Process Improvement is critical in the many stages of the manufacturing industry. For this discussion and breakdown we will utilize the General Electric Corporation in describing retain processes it uses on a daily, quarterly and yearly basis which help it remain one of the top manufacturing and business entities of today’s world. This business analysis focuses on the General Electric Corporation and how it has achieved success, becoming a world leading industrial conglomerate.
GE is one of the 12 original DOD Jones industrial entities circa 1891; and since that time the firm has grown exponentially by way of acquisitions and mergers including the manufacture and sale of its own trademark technology such as the electric light bulb and the phonograph. Along with common household appliances and electronics, some of the finest industrial innovations by GE include avionics and jet engine manufacturing, financing and energy supply. GE is also responsible for diversified medical technologies, advanced transportation, modern media and satellite communications to name some of the company’s varied interest.
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As of December 2012, GE maintains 305,000 skillfully trained, dedicated professional employees globally. This diversified workforce is a contributing factor as to why the company maintains its position atop Forbes Magazine’s, short list (Waters, 2009). Gee’s mission has always been to be an innovative deader in manufacturing and making products better for the world. Through its finance segment GE looks to provide billions in financing to help businesses grow while helping our economy.
It looks to continue its dominance in the appliance lighting industry by remaining innovative and providing solutions for energy conservation. Q#2 From your research of the organization, identify a single Business Process Change that the organization will need to contemplate and undertake in the coming year. These changes can result from new technologies, economic issues, or changes in the marketplace. GE has always been the leader in the lighting industry by introducing to the world the lighting solutions for businesses and homes around the globe.
Whether the domestically or abroad, GE lighting and its appliances have been a staple in every home since the late sass’s. Although GE has remained the leader in the lighting industry, there comes a time to evolve and provide new solutions for energy conservation. In keeping in compliance with the ENERGY INDEPENDENCE AND SECURITY ACT OF 2007, incandescent light bulbs can no longer be manufactured in the United States. Because these light bulbs fall short of meeting federal energy standards, GE must now come up with ewe products and solutions to be compliant.
Over the years GE has introduced some new choices which include compact fluorescent lamps (CFML), light-emitting diode (LED) bulbs, and updated higher-efficiency versions of the incandescent bulb that use halogen gas to slow down deterioration of the tungsten filament. (Krieger, 2013) Q#3 Utilizing the Capability Maturity Model (CAM) outline briefly what changes need to be undertaken at each of the 5-stages (pages xiii-xvii). Level Focus Process Area Results 5 – Optimizing New lighting product that complies with Federal Energy Requirements and standards. Analysis of Processes and new product.
Quality and High Efficiency Product. 4 – Quantitative Management Distribution to meet consumer needs. Reaching the Consumer 3 – Defined Communication of the new standards and consumer need. Overview of Requirements; Product Detail and Past-present Comparison Quality and High Efficiency Product. 2 – Repeatable Research and Cost to construct Planning, Project management 1 – Initial Focus group Focus Group Q#4 Evaluate Porter’s three-phase process (page 32, figure 2. 1 ) for defining a company strategy and create a simple chart of the recommended change addressing issues in each phase. What is the company doing now? 1) Identify current strategy – Create innovative replacements for the incandescent light bulb. Continue marketing to consumers globally. (2) Identify assumptions – The assumption is that everyone wants GE products; or has GE products. The processes are similar in manufacturing LED bulbs as they were with incandescent. 2. What is happening in the environment? (1) Identify key factors for success and failure in the industry – Lower energy costs to consumers and higher energy conservation for society. Failures may include – around or about the same In energy costs and low energy conservation.
Poor product quality. (2) Identify capabilities and limitations of competitors – Marketing to consumers; limitations may include lack of consumer knowledge of competitors. Low consumer loyalty. (3) Identify likely government and societal changes – New Federal Energy Conservation Laws. (4) Identify company’s strengths and weaknesses relative to competitors – Consumer loyalty- strength; Competitive pricing – weakness. 3. What should the company do next? (1) Compare present strategy to environmental situation – Development of various compliant products such as LED bulbs and Cuff’s. 2) Identify alternative rouses of action – Focus on one product which produces the best results for society and consumers globally; or cease development of the lighting and focus resources on other segments. (3) Choose best alternative – Focus on one lighting product which produces the best results for society and consumers globally. UNIT 2 ASSIGNMENT (With Diagrams Responses Should Run 3-4 Pages) Q#5 Prepare two general process diagrams (see figure 9. 2) for the Business Process Change you identified in question #2 in Unit 1. AAA.
Diagram the current process steps taken by the organization for the process. B. Diagram any adaptations to the process steps after the change process is approved. Evaluate and address the importance of the existing and future diagrams and how they assist the organization in determining the validity of the suggested change (your response to this question should be 3-5 paragraphs in length). When we talk about energy efficiency, one of the biggest concerns to monitor throughout the process is whether GE is being compliant with government requirements and standards.
We can also reflect on how consumers are taking to these new standards and what this means to homeowners businesses and nonusers around the globe. Having a new product that is much more efficient than the incandescent technology of before is a major topic for congressional officials to discuss. Although this is a hot topic for discussion with external government organizations, GE must still be able to piece together a process that is perhaps critical in the development stages. In the before process consists of a process of its own, incorporating the design and implementation of the new product.
With a new product its process may be unchanged in certain areas. The way the 2 diagrams complement one another is through its perceived mutinous loop. In examination of the processes, it is possible to conclude that portions of these processes are unchanged. The diagrams assist in aligning the new business objective – which is, becoming compliant in the manufacturing of new technology; while in this case, the creation of LED bulbs to output more energy efficiency. The process becomes valid because they illustrate how GE will devise its strategy in accordance with the new product outlook.
Through the initial and continued research and development stage, GE will use this section to generate the strategies needed to become successful with the new LED initiative. Ultimately, analyzing the results in the end process allows GE to revamp the old strategy to improve its results through the previous process phase. UNIT 3 ASSIGNMENT (Responses Should Run 3-5 Pages in Length) Q#7 Assess one specific activity to be performed within the process change. From the assessment, identify the task being evaluated. Where would that activity be performed within the organization?
Who would perform the task and who would manage, measure, and evaluate task completion? Make sure you separate out the information requested (don’t place the information in a large block paragraph). In the initial phase of manufacturing the new LED Light bulb, there will first be an inspection of the LED chips. The LED chips will then be enclosed in a polycarbonate housing which will contain a reflective aluminum coating. This coating will allow the LED to emit Xix as much brightness as it predecessor, the incandescent light bulb. In further exploration of the LED light bulbs we need to consider the heat dispersion of the LED bulb.
As with most light bulbs, heat is also a part of lighting as well. With the LED light bulb there will be an element call a heat-sink which will help keep the LED cool will emitting more light without ailing after long hours. Approximately 75% of the energy being release from the LED bulb is heat; that energy will then be shifted onto the heat sink to allow the LED bulb to remain cool. This is about a 15% drop from the incandescent light bulb. (Slighting. Com, 2014) The task to be evaluated during the construct process will initially be of the assembly of the LED chip to the polycarbonate chassis or housing.
All assembly of LED chips to the chassis will take place in a Clean Room, where each individual monitoring or conducting the process will wear full body lint protective material. Trained personnel will be the only individuals allowed to conduct the assembly. The assemblywoman will need to have successfully completed a 40-hour training course on the assembly of this new technology. Individuals managing the assembly will be trained personnel as well and will also have already completed the 40-hour training; and perhaps have a working knowledge and experience of the organization’s current assembly processes.
These individuals or staff will oversee the operations to ensure the processes are being followed with efficiency. After management has had an overview of the final assembly, the knishes assembly will then have to pass inspection by another team that with a different set of quality protocols that align with the standards of assembly. Q#8 Delineate and describe the differences between measuring human performance and task completion. When we describe human performance we can think of the duties performed by employees such as salespeople, production line-workers or management and how effectively they perform certain tasks.
A worker can perform a task and perform it very well and efficiently and on the other end perform a task to its completion but conclude ineffectively. Task completion is the very essence of finishing a job; but how well that person finished that job is the remaining factor to be measured. Perhaps the measurement could be an evaluation of the completed task or inadvertently turn into a defect such as a consumer return a product to a store because it was defective, such a mechanical issue with a car. Q#9 Explore Six Sigma as a method used to evaluate, measure, and encourage continuous improvement.
From this exploration create a fishbone diagram that addresses one risk, a potential defect, or a problem that may result from the change, which may impact goal attainment. Q#II Address the value of your fishbone diagram as a visual representation. The fishbone presentation is of great use to the organization because it gives the management team and upper-level executives the opportunity to see what are potential problems that could cause or are causing defects within the segment. It becomes a valuable tool from not only a corrections process but prevention as well.
UNIT 4 ASSIGNMENT (Responses Should Run 3-5 Page in Length) Q#al Discover and describe at least 3 key performance indicators (KIP) for the suggested process change that must be continuously measured to ensure success. As energy conservation becomes a priority topic in the country, GE pushes to find ways to help in the effort of energy conservation as well as customer satisfaction. As GE looks to release its new LED bulb into the market there are certain Kepi’s that are held valuable to the organization’s strategic outlook. KIP#I – Compliance Rates (for government regulations, etc. According to the Manufacturing Institute, (2014), manufacturers spend an estimated $192 billion annually to comply with economic, environmental, and workplace safety regulations and ensure tax compliance?equivalent to an 11 percent “regulatory implicate tax. These regulatory costs can impact the competitiveness of the industry, cause constraint for employees and entice organizations to locate production abroad. (Manufacturing Institute, (2014). Where GE can utilize the KIP is by controlling its production to a point where compliance is a non-factor; keeping unnecessary costs and rates to a minimum.
KIP#2 – Customer Satisfaction Customers are a key factor in how the organization strategies its initiatives. Customers are the voice and the moving dollar behind the SUccess of millions of business around the globe. GE customers range from big corporations to small call home owners. GE customers also consist of government entities as well, ranging from military segments to perhaps congressional ports. As GE products are released to the market it is highly critical that its customers are satisfied. The more satisfied customers the more product it has the potential of moving.
The satisfaction may come from the availability of a new technology that a customer had been awaiting to the value and quality of the product being marketed and purchased. GE will analyze this KIP carefully during its process to determine the ongoing scale of production and continued research. KIP#3 – Quality Improvement (first-pass yield) Eliminating defects are also critical in the manufacturing stage of high quality materials and products. GE will certainly hold this KIP as non-negotiable. As its name has often been associated quality, GE will evaluate it manufacture of the LED bulb in high regard when it comes to quality.
The structure and make up of this new technology is important in the movement towards success. The quality of Gee’s processes are an important factor with regard to its bottom-line which is to assure the world that its products are quality products, manufacturing within its highest quality standards. As we understand first-pass yield, this manufacturing metric for measuring quality and production performance provide many benefits to include first pass yield in the manufacturing executive’s dashboard. “First pass yield is a good measure of the effectiveness of a process and the elimination of waste from that process.
Many other measures of productivity and efficiency fail to account for the cost of rework and in many facilities rework can be a significant portion of the time and value added to final production. ” (Littered, 2013). Q#12 Conduct research (using the Kaplan Library or the Internet) to compare ND contrast Six Sigma, the Balanced Scorecard, and SISSIES/9001 as different methods of preparing performance and completion metrics. Metrics are performance markers, utilized at different intervals during the process timeline, to measure adherence to schedule and attainment of goals.
Six Sigma – This is a methodology organizations use in order to eliminate defects and implement to strive for near-perfection. “Six Sigma is a disciplined, data- driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) n any process – from manufacturing to transactional and from product to service. ” (six Sigma. Com, 2013). For instance where we find contrast between Six Sigma initiatives and let’s say SISSIES is that they are both quality driven methodologies.
For example, although Lean Six Sigma is a process improvement methodology that focuses on eliminating defects and wastes, it also has the same quality elements of SISSIES that geared towards quality from a customer perspective. Balanced Scorecard – A business tool used for strategic and management planning to align business activities to an organizations bottom line. A BBS helps improve internal and external communications while monitoring organizational performance against strategic goals. (Balanced Score Institute, 2014).
SISSIES/9001 – Similar to that of Six Sigma methodology, SISSIES focuses on quality initiatives and guidance for organizations who look to ensure their products and services consistently meet customer’s requirements, and that quality is consistently improved. (ISO. Org, 2014). SISSIES is based on 8 Quality Management Principles: Customer Focus, Leadership, Involvement of People, Process Approach, System Approach to Management, Continual Improvement, Factual Approach to Decision Making and Mutually Beneficial Supplier Relationships.
Q#13 Recommend one of the three methods evaluated in question #12 as the best one for your change process. Be sure to thoroughly support and defend your recommendation. For GE, Six Sigma has proven to be the methodology of choice in its manufacturing core. Although SISSIES has similar efforts in improved sustainable processes, the drawback might be that it doesn’t speak to the immediate improvement process but rather a continuous improvement; while with Six Sigma we could perhaps see results immediately during the implementation.
General Electric is one of the most successful companies implementing Six Sigma and has estimated benefits on the order of $10 billion during the first five years of implementation. GE first began Six Sigma in 1995 after Motorola and Allied Signal blazed the Six Sigma trail. Since then, thousands of companies around the world have discovered the far-reaching benefits of Six Sigma. (six Sigma. Com, 2013). UNIT 5 ASSIGNMENT (With Diagram Responses Should Run 2-3 Pages) Q#14- Produce an outline or a flowchart describing the entire change management plan.
As GE begins its recreation of the incandescent light bulb it reaches to produce n innovative product that is compliant with government regulations as well as consumer expectations. It is more than just a creation of innovative products for GE, it is a method of process and how the organization will produce LED bulbs to reach every consumer and market segment both domestic an abroad. As part of our change plan we started off with an outline of the change strategy. Focus Group – The focus group will allow management to come up with ideas for new products as well as new processes.
These focus group sessions will focus on quality and high efficiency. There will be talks of strategy as well as processes hat allow efficiency, which will affect quality. Planning – Implementing the appropriate strategy internally and externally is important during the change process. Understanding which personnel will be a part of the change process and which duties will be delegated to. Strategies of timing are critical in structuring of management’s direction of the change process.
Distribution – Adequate distribution and customer reach parallels with all previous outlines, as it becomes a critical part of the structuring of a new product. GE must develop a value in which the consumer must find the value as well. Once the consumer has accepted value, now the organization must determine how it will distribute the product into the market. Optimization – As the new product is released it now can be optimized by additional feedback from focus groups. Adjusting the product and the process by which changes have been implemented becomes a stage that’s critical in determining future progression.
Continuous Improvement – As GE moves toward compliance and innovation, it remains vigilant on quality from all areas of the change process. Producing LED bulbs that are compliant and are of sufficient quality distributed o the markets are a part of Gee’s movement into the future. It will continue to research and keep within compliance of government regulations. Part of Gee’s efforts to continue producing quality products is a process aimed at driving operational excellence throughout the organization called the GE Advantage. (General Electric, 2014).
The GE Advantage influences a number of process improvement tools such as Six Sigma, Lean Six Sigma, Design for Six Sigma (DOFFS), Work-out (WOO), Change Acceleration Process and Quality Management System (SMS). Through DOFFS GE works within a six-step methodology: define, measure, analyze, design, optimize ND verify. (General Electric, 2014). GE refers to these methods and process strategies as the GE Tool Kit. Q#15- Provide a complete summary of the entire plan (units 1, 2, 3, 4 & 5). Response to this question should run between 3/4 and 1 1/2 pages in length.
Summary The task to produce environmentally compliant bulbs is Gee’s challenge to again show it’s innovative way in lighting products. By producing the LED bulb it allows for increased revenue and improved sustainability. Customers from all segments will benefit from not only the product but from the sustained process improvement techniques discussed. Internally through management and appropriate staffing, GE can ensure that the process being implemented all have followed the necessary techniques and strategies to produce improved performance.
By initially starting out in Focus Groups to generate new ideas for improved innovative products, GE can generate the proper feedback for successful strategic implementation. By following certain compliance requirements GE puts itself in a good position to remain current with government standards. The use of Six Sigma, SISSIES and even a Balanced Score Card, GE can assure its stakeholders that its new LED products will not only be that of value but one of laity as well. By using certain tools for charting like that of a fishbone diagram, the organization can see things as they occur or prevent them from happening.