Contract Manufacturing Vs Industrial Manufacturing


Running Head: General Electric Company

Operation Management






My discussion will revolve around my company of interest the General Electric Company, which is a digital industrial company that produces the aircraft engines, generation of power, production of gas and oil, medical appliances among others.

Contract Manufacturing Vs Industrial Manufacturing

General Electric Company is an example of the company that is using the industrial manufacturing that produces plants and also transport products by use of data which act as and the advanced analytics are used as the growth engine. As a Contract manufacturer, the General Electric Company uses life science, research, pharmaceutical and diagnostic organization to enhance their product development. The General Electric healthcare also uses knowledge which is contained in the certified manufacturing centers to be able to produce contract reagent manufacturing. The General Electric Company operating system in the industrial manufacturing uses the Predix which turns intelligence and information into insights and employ the use of the innovation. The General Electric Company practice the contract manufacturing where it outsources some of the healthcare detergents to other firms that operate within the same line of products and they provide them with all the necessary materials for the production process.

The General Electric Company usually use the brilliant manufacturing which is the software’s and services that aid the manufacturers in optimizing the company operations as well as meeting the demand expectations and the market production. The company has become prominent since it has diversified in manufacturing and is merging the hardware and the software and has also changes the designs of many products and this has led to the growth and the development of the industrial and contract manufacturing. In addition, it is constantly combing the lean, advanced and additive manufacturing in its production process to enhance productivity (Johanson, J., & Mattsson, L. G. , 2015).

Importance of Customers Service

This where the Company helps the customers efficiently by handling them in a friendly manner. This would be of great importance to the General Electric Company as it would help handle issues that may rose from the customers as well as ensure that they are fully satisfied.

The aspect of being patient with the customers would be of great importance as it would allow interaction and would also help the company understand the needs of the customer and the problems of the company. Also, the employees should be attentive as this would be important in listening to customers feedback which would aid the company in being innovative. In addition, the employees should have all the relevant knowledge about the company products so that he can he or she can help the customers in understanding how they work. Use of the positive language by the company employees would be very crucial as it would make customers happy, persuade them and also make them have a good perception about the company and this would attract customers as well as the total sales. More importantly, the employees should be able to read the customers in terms of understanding his or her psychology, personalization and current emotional state and this would help in ensuring that the customer interacts positively.

Above all the employee should have the persuasion skills which would convince the willing buyer and this would increase the total sales of the company (van Scheers, L, 2015).

Product Warranties and Liabilities

Product warranties are the cost or an expense that the General Electric can incur when replacing a damages product that have been returned by the buyer.

Product liability is a law that gives customers the mandate to sue or recover the damages products from the company or manufacturer and the damage may have occurred as a result of the product injury. In another word it enables the customers to hold the company liable for the unsafe or defective products. It’s worth noting that all products are subject to liability. According to research by the Consumer Product Safety Commission of U.S defective or unsafe products causes a lot of millions of injuries and thousands of deaths in a year. The Company, therefore, should always try to ensure that production is effective and efficient to ensure there are no defective products that decrease the net profit of the company. Also, the sensitive products such as electrical appliance should be tested before being sold to the seller to reduce the damage it can cause to the customer’s premises (Rahman, A., & Chattopadhyay, G, 2015).

Operation and Inspection in Manufacturing

This is crucial process in the General Electric Company this is because they help in the management, providing consequences as well as improving the effectiveness of the production process. For example, the operation is used to ensure that there is the utilization of the company resources, ensuring that there are satisfactory customer service skills as well as identify the General Electric Company SWOT analysis which will help the employees work on the threats and weakness and improve on the strengths and opportunities.

The inspection, on the other hand, is crucial in the manufacturing process because it helps in controlling quality, reducing manufacturing costs, doing away with the scrap losses and identify the probable cause of the defective work. The inspection usually measures the degree to which the process is conforming with the production process. Inspection also help in securing the product design and information (Lavrentyev, A. I., Staroselsky, A., & Mironets, S. , 2016).

Importance of Cost Efficiency in Designing

Cost effective is an important aspect of the manufacturing process and is usually in functional and manufacturing efficiency aspects. The functional aspect usually involves the decrease in the numbers and the use of the knowledgeable product design. On the other hand, the manufacturing design aims at saving the production time and well as reducing the cost of the material. The designing in cost effective manner aid in looking for all the technical problem and try to reduce it in all ways possible. General Electric Company should ensure that the product design should lead to the product development in an efficient manner and lead to good and a cost-effective product development. The General Electrical Company should ensure that its products are designed in a neat, attractive manner to attract more customers and hence increase the revenues (Leimona, B., van Noordwijk, M., de Groot, R., & Leemans, R, 2015).


Johanson, J., & Mattsson, L. G. (2015). Internationalisation in industrial systems—a network approach. In Knowledge, Networks and Power (pp. 111-132). Palgrave Macmillan UK.

Lavrentyev, A. I., Staroselsky, A., & Mironets, S. (2016). U.S. Patent Application No. 15/108,977.

Leimona, B., van Noordwijk, M., de Groot, R., & Leemans, R. (2015). Fairly efficient, efficiently fair: Lessons from designing and testing payment schemes for ecosystem services in Asia. Ecosystem Services, 12, 16-28.

van Scheers, L. (2015). The Importance That Customers Place On Service Attributes Of Sale Personnel In The Retail Sector. Foundations of Management, 7(1), 191-198.

Rahman, A., & Chattopadhyay, G. (2015). Long Term Warranty and After Sales Service. In Long Term Warranty and After Sales Service (pp. 1-15). Springer International Publishing.

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