INSOURCING AT GE: THE REAL STORY

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

case study.
Individuals and parties who are a part of the organization are referred to as GE
internal and eternal customers. The GE organization, for example, established the GE
appliance park in Louisville, Kentucky, which grew to a peak of 23,000 employees,
and Mr.Dirk Brownman, a former GE appliance General Manager of Manufacturing,
and GE Chairman Jeff Immelt, and in GE, the external customer refers to those who
represent outside parties, such as GE suppliers like Samsung and LG. These suppliers,
however, became competitors, and Brownman sought to expand production
capabilities and bring manufacturing jobs back to the United States from Korea,
China, and Mexico. Immelt questioned why manufacturing should be outsourced to
aging plants in a unionized environment.

2. Identify the advantage and disadvantages of in-sourcing decision of GE

relevant its company operations.
The pros and cons of GE's business, specifically the competitive advantage of
manufacturing home appliances in the United States, were hailed as a major shift in
the trend of sending overseas jobs cheaper, and the press has seen the press as a form
of on shoring, and trade secrets allow the company to develop new multi
functionalities for improvement. The Big Room, a team structure, was introduced. GE
management collaborated with the organizational structure and made a proposal to
GE Chairman Jeff Immelt.

3. Explain how GE managed to implement its in-sourcing decision successfully.

General Electric (GE) consumer electronics in-sourcing is seen as a significant shift in
the trend of offshoring work to low-cost locations and is referred to as a form of on
shoring by the media. By selecting the best solution for the business, GE was able to
successfully implement the in-sourcing solution. Management has decided to return
water heater production from an Asian contractor to the United States. In this regard,
the company has established the "Big Room," a multi-functional expansion group.
Leaders join forces to achieve a common goal of experiencing customer value streams.
They post schedules on the wall so that everyone is aware of what is going on.