Ge established a team of engineers and production

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of its first attempts at this. GE established a team of engineers and production workers at its appliance plant in Louisville, Kentucky, to see what they could do with the GeoSpring. The team quickly concluded that the GeoSpring was not easy to manufacture due to poor design. They redesigned the product for ease of assembly, eliminating one out of every five parts and cutting material costs by 25 percent. As a result, GE cut the time required to assemble the product from 10 hours in China to 2 hours in Louisville. The end result: Material costs went down, labor requirement went down, and product quality went up. Indeed, the cost savings were so big that GE was able to reduce the price of the GeoSpring 20 percent below that of the Chinese- manufactured product and still maintain a decent profit margin. Time to market also improved greatly. It used to take five weeks to get a GeoSpring from China into a U.S. retail store—now GE can do that in a matter of days, which improves inventory management. Having learned from experiences like this, GE is now planning to ramp up production of other appliance products at Louisville. It has recently doubled the workforce there to 3,700, and has also hired 500 new designers and engineers to redesign many of its products for ease of manufacture. A few years ago, less than half of the revenues of the appliance
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business came from products made in the United States. By mid-decade, GE plans to have 75 percent of the revenue of the appliance business to come from American-made products. Expectations: Synthesize material from all the chapters and your personal research to analyze the organization above. The assignment must be 7 to 9 pages in length. Use a minimum of 4 references (there should be at least four in text citations to correspond to the references) to defend your position. Be imaginative and creative in your submission. Sources: Charles Fishman, “The Insourcing Boom,” The Atlantic, December 2012; and J. R. Immelt, “Sparking an American Manufacturing Renewal,” Harvard Business Review, March 2012.
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