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How change happens and who is leading it.  For the BEST of the BEST curated news SUBSCRIBE to our monthly newsletter via  Reveln.com/Tools/ (We never SPAM!)
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Scooped by Deb Nystrom, REVELN
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Insourcing at GE: The Real Story of Process, Change, Culture and Profit

Insourcing at GE: The Real Story of Process, Change, Culture and Profit | Change Leadership Watch | Scoop.it

"The focus has been on jobs coming back. It's really a process and a culture story."

GE Appliances is proving once again that the balance of process and people, aligned with a clearly articulated and understood purpose and vision, is the source of improved performance and capability development. With leadership engagement and support, this system will thrive


Excerpted:


  • There was a fishbone diagram of the production flow
  • A cardboard mockup of the factory layout which also showed how the equipment would look.
  • At 7:45 a.m. each day leaders met, then at 8:00 a.m. everyone met to review the prior day, and what they would do that day.
  • Then at 4:15 p.m. everyone met again to review what they'd done.


The water heater that resulted was a new design, with better performance: 20% fewer parts and 50% less labor.


Inventory was reduced 60%, labor efficiency improved 30%, time-to-produce was reduced 68%, and space required for the line came down by 80%.


The development team was extremely cohesive. But the problem was, the culture needed to change outside the "Big Room" and very few cultural change efforts had been made since 1994.

As the leadership began to introduce a new way of working together it had to solidify trust in the workforce and instill a level of confidence that continuous improvement was not just another initiative that would pass. This would be a journey.


Deb Nystrom, REVELN's insight:

The insourcing story of GE is actually a process & culture change story, which is how it comes to be shared here on Change Leadership Watch.  ~  D

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Shih's POV: American Competitiveness & Innovation is rooted in US-Based Manufacturing

Shih's POV: American Competitiveness & Innovation is rooted in US-Based Manufacturing | Change Leadership Watch | Scoop.it
Having a strong domestic manufacturing base is vital to the United States maintaining its world leadership in innovation.


I've heard people in Michigan and Ohio talk about the need to reclaim US based manufacturing.  Seeing and experiencing the impact of GM, Ford and Chrysler on the systemic health of the US economy, and the moderation of hubris in these organization, is convincing, as is Willy Shih's essay.  Manufacturing is also quite different than it was in the 50s.


GM's Akerson also has a bit to say about the politized nature of the car industry's recovery.  It's helpful to review his perspective.   


Excerpted from Willy Shih's blog:


Manufacturing provides the foundation for many kinds of innovations. If manufacturing processes are immature or the know-how needed to develop the product or process to produce the product is tacit and not well codified, you cannot innovate in a country if the factories are on the other side of the world.


R&D and manufacturing must be located close to each other so their people can together figure out how to develop a product that can be manufactured at a cost and level of quality that will make it a commercial success.


Source:  Willy C. Shih is a professor of management practice at Harvard Business School. Prior to joining HBS, he spent 28 years in the IT and consumer electronics industry, where he worked as an executive at Thomson, Kodak, IBM, Digital Equipment, and Silicon Graphics.

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Detroit on the List: 10 US Cities with the Best Job Growth Right Now

Detroit on the List: 10 US Cities with the Best Job Growth Right Now | Change Leadership Watch | Scoop.it

"The Career Builder study looked at jobs created in the most most populous metros from 2010 to 2012.  Detroit is number 4 on the list, jobs up 5%."


Great news to see Detroit listed in the #4 spot!  ~  Deb


Excerpts:


________________________


...The rebound in manufacturing helped to land Detroit in the top ten.

________________________


“There is a close correlation between the top locations for job growth and the concentration of fast-growing industries in those markets,” said Matt Ferguson, CEO of CareerBuilder, in the study released Wednesday.
 

“Technology hiring is a big contributor for growth in the Bay Area and Raleigh and while Texas cities, Oklahoma and Salt Lake are benefiting from strong oil and gas activity.


________________________


Detroit tops the nation ...as the area that's added the most manufacturing jobs in the country from January 2010 through 2011.

________________________


...The rebound in manufacturing helped to land Detroit in the top ten while healthcare continues to thrive in Phoenix.”


The study looked at jobs created in the most most populous metros from 2010 to 2012.


4. Detroit, Mich.


Jobs added from 2010 through 2012: 92,407 (up 5 percent)


According to a report published by think tank Brookings Institution, Detroit tops the nation — coming second only to Charleston, SC — as the area that's added the most manufacturing jobs in the country from January 2010 through 2011.


Read the full article here.


Deb's comparison of Detroit and Las Vegas is also here:


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