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Will Appliance Manufacturing Lead the Way?

Posted December 01, 2010 9:00 AM by Steve Melito

"With the new center of excellence model, the adoption of Lean manufacturing, and agreements to freeze current wages and adopt competitive wage rates for new employees, these facilities are evidence of a growing American manufacturing renewal," explains James P. Campbell, president and CEO of GE Appliances & Lighting. The facilities Campbell is so excited about are four U.S.-based "centers for excellence" that will design and manufacture refrigeration products in Kentucky, Indiana, Alabama, and Tennessee.

General Electric's plans to invest a billion dollars in U.S. appliance manufacturing will save hundreds of existing American jobs and add 1300 new jobs. In the process, GE also plans to reduce the environmental impact of refrigerator production by using a new foam-insulating process to reduce greenhouse gas emissions. Saving jobs and going green aren't GE's only objectives, however.

By bringing together engineering, purchasing, production, and quality personnel at each center, GE intends to implement a new production model. As Kevin Nolan, vice president of Technology at GE Appliances explains, these centers will "increase collaboration and problem-solving" while reducing "development time" and creating "better products for our customers."

Does GE's model provide a blueprint for a larger renewal of American manufacturing?

Source: Appliance Magazine

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Anonymous Poster
#1

Re: Will Appliance Manufacturing Lead the Way?

12/01/2010 4:22 PM

Not sure if some appliance guy will be the next Henry Ford, but I'd put my money on small business leading the way instead of big companies. GE was able to do what it did here because the job market is so lousy. If things get better, it will be harder for them to make these kinds of moves. Not so with a small business that hasn't got all the legacy stuff.

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#2

Re: Will Appliance Manufacturing Lead the Way?

12/01/2010 9:30 PM

"General Electric's plans to invest a billion dollars in U.S. appliance manufacturing will save hundreds of existing American jobs and add 1300 new jobs."

That's 1/2 million dollars per person (assuming 2,000 jobs created/saved). Great value. I hope this isn't the only blueprint for creating jobs we have in the US. '

GE is doing so badly on the appliance front that all this rhetoric is expected. In this case they can't do anything to improve their product's actual value and performance in the eyes of the customer, so GE is only left to play the "Green" card (at a cost of 1 billion dollars).

The idea of restructuring their design-production process is for their stockholder's consumption. GE did this with their Six-Sigma initiative; that everyone in the engineering departments would be six-sigma trained to impress their stockholders years ago.

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#3

Re: Will Appliance Manufacturing Lead the Way?

12/02/2010 12:35 AM

Considering what kind of crap current GE appliances are, they should look at improving their quality first.

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#4

Re: Will Appliance Manufacturing Lead the Way?

12/02/2010 8:48 AM

GE is to appliances what GM used to be to the auto industry. A schlock product maker that treated their suppliers like crap.

Don't be surprised if they go to the White House for a handout ...and get it.

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