Operation Management of General Electrics

This report discusses the effective operation management of General Electrics, including the implementation of business practices, manufacturing of goods and services, monitoring of manufactured goods, and identification of further risks and ethical concerns. The report also highlights the role of suppliers, the supply chain activity, and international operations.

OPERATION MANAGEMENT
OF GENERAL ELECTRICS
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 The American multinational conglomerate
General Electric Company operates in a
wide segment including healthcare,
aviation, manufacturing, transportation and
oil and gas.
 This report focuses on the management of
the operation in an effective manner.
 In addition to this, further risks and the
ethical concerns related to the
management will also be discussed.
Introduction

 Companies remain pressurised in the
competitive market to improve the delivery
of the products and to achieve the
enhanced productivity.
 The aim of the companies is to reduce the
overall operational cost.
Implementation of business practices at
the highest level of efficiency

 GE gives top priority to set the high
standard of the products and consider the
cost consideration to be the second option
of the business operation (GE.com, 2018).
 These operational activities are facilitated
by the digital technologies used to increase
the productivity of the organisation.
Operation at GE

 GE is involved in various sectors and
manufactures commercial products like
turbines, pumps, filters in the power and
water sector;
 The company builds parts of the aircrafts,
military jets and other surveillance aircraft,
Products manufactured at
GE

 Manufacturing of goods involves
assembling the raw materials and sub parts
to form a final product
 Measuring the uniformity of the input that
involves the manufacturing process by the
means of controlling the variability of the
inputs.
Conversion of inputs into goods
and services

 The productivity of the labours is measured
to make sure that the cost incurred while
paying the labourers is overcome by the
work that they do.
 Following this, the goods are manufactured
by using a wide range of manufacturing
technique (Pfaff & Sartorius, 2015).
Inputs of labour

 The company involves both in the
manufacturing of goods as well as in
providing services (Kneese, Ayres & d'Arge,
2015).
 The manufacturing process is wide and
involves numerous stages in different
sectors.
Conversion of input at GE

 In order to make sure that the products are
of best quality, a quality assurance team
work on it
 It is expected that the quality of the
products is checked properly before the
products are made available for the people
in the market
Monitoring the manufactured
goods

 One the finish goods are produced, the
ownership of the product needs to be
changed from the manufacturer to the
buyer.
 This involves the selling of the goods.
 Online selling of goods is also involved.
The transformation
process

 The manufacturing of its products is not
completed in a single manufacturing unit
and is then transferred to the other for
generating the final product.
 Adapting the suitable human resource for
the manufacturing of the products is
important in order to make sure that the
correct supply chain process is followed.
The process of supply
chain

 A manufacturing company like GE is largely
depended on its suppliers for the supply of
the raw materials
 For example, in its electricity supply in
Iraq, GE maintained its sustainable
practice to reach out maximum coverage
with the least possible environmental
degradation (Pomerantz, 2018).
Role of the suppliers

 Providing faulty or low quality products in
order to increase the profit margin or
unsafe working environment for the
workers are the examples of risk and
ethical issues in the operation management
(Weiss, 2014).
 GE has its own inventory where the quality
of the products is checked before passing
to the customers and thus there is no
ethical or risk issues (Kolk, 2016).
Identification of further
risks and ethical concerns

 Involving child labour, violating any human
rights or creating adverse impact on the
health of the people or on the environment
as a part of the supply chain activity are
the few unethical practices
The supply chain activity

 The primary risk for a multinational
company involved in international
operation is the loss of its reputation as the
company
 It can be suggested to appoint a corporate
social responsibility manager for the
international activities.
International operations

 It can be said that GE needs to maintain a
healthy relationship with its suppliers as
well as customers and the necessary steps
should be taken to ensure that the company
reaches the profit margin.
 Also, the company needs to maintain the
ethical practices in its operational
activities.
Conclusion

 GE.com (2018) GEReports Retrieved from:
https://www.ge.com/reports [Accessed on: 23-10-2018]
 Kneese, A. V., Ayres, R. U., & d'Arge, R. C. (2015). Economics and
the environment: a materials balance approach. United
Kingdom:Routledge.
 Kolk, A. (2016). The social responsibility of international business:
From ethics and the environment to CSR and sustainable
development. Journal of World Business, 51(1), 23-34.
 Pfaff, M., & Sartorius, C. (2015). Economy-wide rebound effects
for non-energetic raw materials. Ecological Economics, 118, 132-
139.
 Weiss, J. W. (2014). Business ethics: A stakeholder and issues
management approach. Berrett-Koehler Publishers.
 Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of
supply chain management: A balanced approach. Boston,
Massachusetts, United States: Cengage Learning.
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