Gems Case Study
Group 8: Sven Hampus Björkman (T01701122) Agathe Giner (A01627201) Henrik Sanden (T01701220)
Daniel Campo (A01724102) Jonghyup Lee (T01701104) Carlo Schmitz (A01741103)
Assignment 3 General Electrics Medical Systems - Case
Q1. What is the underlying logic behind the Global Product Company (GPC) idea? Generally GPC’s Philosophy was defined “to concentrate manufacturing -‐ and ultimately other activities – wherever in the world it could be carried out to GE’s exacting standards most cost effectively”. This was specifically done by the use of centres of excellence (COE). Each product of the General Electric Medical Systems (GEMS) portfolio was manufactured in one to two centres of excellence. From there the products were shipped all over the world. The case states that 60% to 96% of products made in a centre of excellence were eventually sold in a different part of the world. At this point, with regard to the manufacturing strategy we think it is important to mention that GEMS only manufactured the most decisive parts of their products themselves, the so-‐called “crown jewels”. This took place in the
Daniel Campo (A01724102) Jonghyup Lee (T01701104) Carlo Schmitz (A01741103)
Assignment 3 General Electrics Medical Systems - Case
Q1. What is the underlying logic behind the Global Product Company (GPC) idea? Generally GPC’s Philosophy was defined “to concentrate manufacturing -‐ and ultimately other activities – wherever in the world it could be carried out to GE’s exacting standards most cost effectively”. This was specifically done by the use of centres of excellence (COE). Each product of the General Electric Medical Systems (GEMS) portfolio was manufactured in one to two centres of excellence. From there the products were shipped all over the world. The case states that 60% to 96% of products made in a centre of excellence were eventually sold in a different part of the world. At this point, with regard to the manufacturing strategy we think it is important to mention that GEMS only manufactured the most decisive parts of their products themselves, the so-‐called “crown jewels”. This took place in the