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GM WEEKLY - Case Study Example

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GE’s MABG was the leading United States major manufacturer of home laundry appliances, kitchen appliances as well as dish disposal and washers units. Headquartered in Louisville, Kentucky, MABG had its primary manufacturing plants for every appliance located on one site. The…
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GM CASE WEEKLY
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General Electric: Major Appliance Business Group (MABG) Affiliation Introduction GE’s MABG was the leading United s major manufacturer of home laundry appliances, kitchen appliances as well as dish disposal and washers units. Headquartered in Louisville, Kentucky, MABG had its primary manufacturing plants for every appliance located on one site. The organization comprised three major line functions: manufacturing, marketing operations and applied research and engineering. The fourth division comprises the product management that includes a general manager in every MABG’s key product lines- home laundry, refrigerators, dishwashers, and ranges. The main company’s value brand is the Hotpoint and general electric served as the quality line brand.
In early 1970’s, MABG management viewed the dishwasher business as an issue despite its market share being over 20+% and its strong financial performance. Most of the GE’s washers manufactured are different from other competitive models, and the dishwashers got criticized as they are heavy water users that translated into excess energy use. Following the quality issues, Jack Welch challenged MABG by proposing a simple fix on the dishwasher business in to make it efficient in operational standards.
As a result, thirteen members were put together to architect and implement a key step change (Project C) in the process, product and the workforce factors of the GE’s dishwasher business. The changes included manufacturing changes and workforce changes as Nag Hambrick and Chen (2007) proposed.
In the case of manufacturing changes, Moeller, and his team proposed to totally redo the key Louisville dishwasher sections to fully complement and adopt a cellular approach on major production stages. The changes were to get integrated along with PermaTuf and door redesign. Additionally, the team proposed to pursue automation aggressively to reduce cost and improve quality along with product design modification according to constraints and capabilities of the new process. There was also the integration of product testing within manufacturing to an entirely separate quality control organization. The proposed principle to focus on Louisville dishwasher plant on the General Electric-Perma Tuf C product line is an appropriate way to achieve world-class leadership. It is because the concentration on the process productivity, quality and work life quality will enhance production quality. The principle also aims at reducing the number of product parts in the plant from 4,000 to 800.
Workforce changes were also significant to part of the Project C. The project’s team proposed to focus on the employee’s environment to improve their attitude towards their contribution to GE’s success in the dishwasher business. The process requires research on the employees’ attitudes towards the company’s environment and to measure the progress (Walter, 2010). Improving the employees’ environment will increase their production abilities on the new product (Rumelt, 2011); hence, an increased market acceptance will add revenue to the MAGB.
Therefore, following the Project C, it will be easy to achieve the aims of being the worldwide dishwasher industry, leadership in product profitability and quality. It is due to the objective of improving the product quality and working environment for the employees in the company. Manufacturing unit and the workforce are the key point of improving the Hotpoint unit. In this case, the Project C team will have positive implications and will help the company in becoming the best worldwide in the dishwasher industry.
References
Walter K., (2010). The Lords of Strategy. Harvard Business Press.
Nag, R., Hambrick, D. & Chen, M. (2007). "What is strategic management, really? Inductive
derivation of a consensus definition of the field". Strategic Management Journal 28 (9): 935–955.
Rumelt, P. (2011). Good Strategy/Bad Strategy. Crown Business. Read More
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