GE and FedEx
GE and FedEx
We learnt and noticed that in chapter one, Foster went into some detail speaking about the management programs and the quality systems of GE and FedEx. Both GE and are huge fruitful companies and there is a lot that can be learned from each of them and their methods of doing things.
General Electric is a renowned successful company. Any company at this level would be worried at maintaining the level they are at. The investor’s Jack Welsh’s earnings have decelerated and it is beginning to concern people (Foster, 2013). It was then no surprise as the company GE has reacted to this stoppage by concentrating more on facility and service based things rather than products. By doing this also we realize that they are putting a lot of thought and money into the quality control program, and expanding overseas.
GE failed a test on one of their jet engines for a Boeing plane and they ended up being seven weeks late on their delivery time. Then a report was made about the plane and it said that they had to delay because of “sloppy GE manufacturing”, and because of that report, permission to fly that plane over water was given a year late (Foster, 2013). Also their electrical motors shorted out due to bad insulation in the cold weather and put out a transit line for nineteen days, and stranded eight thousand commuters. GE also took a two hundred million dollars deficit when they had to replace the power plant gas turbines that cracked (Foster, 2013).
GE’s response to its disappointments was to implement a new quality program. In this new program top management was pretty much assured to be involved in the quality program because 40% of the pluses and bonuses of top executives were based on the success of the new program. The new program includes training Six Sigma Black Belts and having them set up quality improvement projects. (Foster, 2013). After implementing all these schemes and strategies, General electric got it...