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Friday, October 13, 2017 10:46:34 AM
GE says internal ideas will produce $5bn in savings
"GE says its efforts "to disrupt itself" have generated a backlog of valuable innovations that will produce billions of dollars in value"
At zdnet.com - General Electric says internal ideas will produce $5bn in savings - October 12, 2017
Two sections from the article:
"If I have 300 fewer parts that means I don't need to spend months signing 300 contracts with suppliers. I can print the parts that I need. And my inventory costs have almost gone away - all that cash siting in warehouses is now free to be invested," said Mook.
______________________________________________________________________
Because of its earlier success, Mook's team was given the task of finding $5 billion in productivity cost savings over a ten year period across the company. By engaging GE staff in generating ideas and also offering them a percentage of the savings the idea generates - it took just 9 months to identify and start implementing billions of dollars in cost savings.
"We have a backlog of more than 1000 great ideas that have already been approved by our committees that are waiting for resources."
Mook said that GE realized several years ago that its global manufacturing groups could be disrupted by advances in 3D printing and so it formed the GE Additive business group "to disrupt GE before anyone else did."
GE engineers have the freedom to come up with ideas and get the funding and resources internally. But it requires people that are comfortable with that type of workplace culture.
"GE says its efforts "to disrupt itself" have generated a backlog of valuable innovations that will produce billions of dollars in value"
At zdnet.com - General Electric says internal ideas will produce $5bn in savings - October 12, 2017
Two sections from the article:
"If I have 300 fewer parts that means I don't need to spend months signing 300 contracts with suppliers. I can print the parts that I need. And my inventory costs have almost gone away - all that cash siting in warehouses is now free to be invested," said Mook.
______________________________________________________________________
Because of its earlier success, Mook's team was given the task of finding $5 billion in productivity cost savings over a ten year period across the company. By engaging GE staff in generating ideas and also offering them a percentage of the savings the idea generates - it took just 9 months to identify and start implementing billions of dollars in cost savings.
"We have a backlog of more than 1000 great ideas that have already been approved by our committees that are waiting for resources."
Mook said that GE realized several years ago that its global manufacturing groups could be disrupted by advances in 3D printing and so it formed the GE Additive business group "to disrupt GE before anyone else did."
GE engineers have the freedom to come up with ideas and get the funding and resources internally. But it requires people that are comfortable with that type of workplace culture.
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