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    Mindanao State University

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    General Electric decided to manufacture rotary compressors in-house rather than outsource them as they had previously. However, the internally produced compressors failed, shutting down GE's factory. To address this, the case analysis recommends that GE (1) outsource compressor production through a joint venture with a Japanese company, allowing GE to adapt their quality practices, (2) implement a process development team to improve in-house manufacturing, or (3) hire consultants to assist. The preferred option is a joint venture to leverage the Japanese company's expertise in quality compressor production. A contingency plan involves design for test marketing and quality control systems.

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    Mindanao State University

    Uploaded by

    Nap Missionnaire
    56 views7 pages
    General Electric decided to manufacture rotary compressors in-house rather than outsource them as they had previously. However, the internally produced compressors failed, shutting down GE's factory. To address this, the case analysis recommends that GE (1) outsource compressor production through a joint venture with a Japanese company, allowing GE to adapt their quality practices, (2) implement a process development team to improve in-house manufacturing, or (3) hire consultants to assist. The preferred option is a joint venture to leverage the Japanese company's expertise in quality compressor production. A contingency plan involves design for test marketing and quality control systems.

    Original Description:

    Case Analysis on Rotary Compressors

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    General Electric decided to manufacture rotary compressors in-house rather than outsource them as they had previously. However, the internally produced compressors failed, shutting down GE's factory. To address this, the case analysis recommends that GE (1) outsource compressor production through a joint venture with a Japanese company, allowing GE to adapt their quality practices, (2) implement a process development team to improve in-house manufacturing, or (3) hire consultants to assist. The preferred option is a joint venture to leverage the Japanese company's expertise in quality compressor production. A contingency plan involves design for test marketing and quality control systems.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    56 views7 pages

    Mindanao State University

    Uploaded by

    Nap Missionnaire
    General Electric decided to manufacture rotary compressors in-house rather than outsource them as they had previously. However, the internally produced compressors failed, shutting down GE's factory. To address this, the case analysis recommends that GE (1) outsource compressor production through a joint venture with a Japanese company, allowing GE to adapt their quality practices, (2) implement a process development team to improve in-house manufacturing, or (3) hire consultants to assist. The preferred option is a joint venture to leverage the Japanese company's expertise in quality compressor production. A contingency plan involves design for test marketing and quality control systems.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    Mindanao State University

    Graduate School

    Masters in Business Management

    BA 224 Total Quality Management

    CASE ANALYSIS:

    CASE OF THE ROTARY COMPRESSOR

    Submitted to:

    Dr. Aurea Pascual

    By:

    Celine Lorin Binas

    Leah Leooldo

    Lowell Valiente

    March 27, 2017

    Table of Contents
    I. Point of View
    II. Brief Summary
    III. Statement of the Problem
    IV. Situational Analysis
    - Cause and Effect/ Opposing Forces/SWOT,etc.
    V. Alternative Courses of Action
    VI. Recommendation
    VII. Action Plan with Time Frame and Responsible Person (matrix
    form)
    VIII. Contingency Plan
    IX. Answer to Discussion Questions

    I. Point of View
    The case will be analyze in the company design and production
    departments.

    II. Brief Summary

    General Electric decided to design and build a better model of rotary


    compressor rather than outsource it from Japan and Italy. This decision
    seems feasible and implementable at first not until the first compressor
    failed, then eventually put GE factory out of operations.

    III. Statement of the Problem

    How will General Electric manufacture quality and durable refrigerators?

    IV. Situational Analysis


    FAVOURABLE UNFAVOURABLE
    STRENGTHS WEAKNESSES
    Invented and build in-house Market share and profits is decreasing
    GEs technology was antiquated compared to
    product (rotary compressor) competitors
    Over confidence High time requirements in amking products
    INTERNAL

    (65mins vs 25mins)
    Original services and product Labor cost is higher
    Ignorance in designing the product pros and
    cons
    No learning from previous mistakes
    Didnt evaluated option for outsoursing (Avoid
    outsoursing)
    Over confidence
    Lack of testing process
    Lack of supervision

    OPPORTUNITIES THREATS
    Purchase compressor from Japan High competitive
    and Italy competitors
    EXTERNAL

    Joint venture with Japanese Competitors produce more


    Changes in technology effecient products

    V. Alternative Courses of Action

    The table shows the alternative courses of action for General


    Electronics with advantage and disadvantages to help the company improve
    their current process by developing and designing quality products that
    would achieve competitive advantage from competitors.

    ACAS ADVANTAGES DISADVANTAGES

    ACAS #1. It will direct Additional cost


    Cost Benefit Analysis Management
    what decision is
    more feasible.
    ACAS #2. Quality Check at Additional Cost
    every phase. Requires constant
    Quality System management
    Security
    ACAS #3. Few products to Timeliness and
    be tested
    Design for test against
    Market (Product customer
    Screening) requirements,
    working and
    reliability.
    ACAS #4.
    Readily available Willingness to buy
    Outsourcing Lower labor Cost Higher Labor Cost

    VI. Recommendation

    Using the identified Alternative Courses of Action are (1) Build a


    process development team department to enhance process modification for
    in-house manufacturing, (2) Outsource the product and joint venture with a
    Japanese Company and (3) Hire specialist/consulting service.

    The group suggest to consider ACAS no. 2, outsource the product and
    joint venture with the Japanese company, with this, GEs can adapt practices
    and culture of Japanese that will help them become flexible in designing their
    products.

    VII. Action Plan with Time Frame and Responsible Person (matrix
    form)

    The proposed alternative takes time to resolve the disasters, but then
    the company can expect a great improvement in their operations, if and only
    if, the said adaptation was done properly.
    Time Frame Responsibility
    Activity Completi
    Start Direct Support
    on

    Top
    Contact the Japanese Operation
    company
    Month 1 Month 1 managem
    s Team
    ent

    Discuss the companies Top


    Operation
    objectives and needs in Month 2 Month 2 managem
    terms of product design s Team
    ent

    Work out the costs for Top Company


    outsourcing and find a Month 3 Month 3 managem Financial
    way to minimize them. ent Team

    Adapt the standards Top


    Operation
    practices of the Month 4 Month 9 managem
    s Team
    Japanese Company ent

    VIII. Contingency Plan

    In the even that ACAS 2 would not worked, it is recommended to

    proceed with ACAS 3. ACAS 1 may be more appropriate in production as in

    manufacturing company. Besides, it requires much time, which may

    aggravate the existing problems. ACAS 3 may help the company addressing

    the disasters in the product development process as well as reducing and


    eliminating defects in the product and processes for an effective Total Quality

    Management.

    For the Management:

    Consider customers participation in designing new products

    Evaluate the possible options in developing products

    Design of quality control systems to eliminate the defects

    For associates:

    Review on job responsibilities.

    Revalidate on skill-based training programs.

    Briefing on Process Development

    These interventions are expected to solve most of the other issues for

    process designing.

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