New Inexperienced Six Sigma Type GE management Really Screwed Up
GE brought in all sorts of Six Sigma political hacks, with little or no turbine engineering, manufacturing, or service experience to change things and farm everything out where they thought costs would be cheaper but never really panned out. They spent a fortune setting up operations and by the time all that equipment, and shipping costs all across the ocean was factored in, GE cost structure was much higher than just leaving it where it was in one place with engineering, manufacturing, and service together in one place. Now they have bloated beauracracy spread out all over where GE Power cant make money because their over all costs are too high.
Phony Six Sigma cost savings to get bonuses has destroyed GE cost structure from when they operated out of just a few places vs Atlanta, Schenectady, Greenville, Chine, India, and all the Alstom facilities in UK, Germany, Switzerland, Poland, Rumania, Hungary and a few other places.
GE Power has gone from 32,000 employees to 65,000 employees where they are making less than 1/3 of then turbines they used to make from just Schenectady and Greenville. GE Power is a bloated mess that can't make money or cash flow due to a bloated cost structure of non vertically integrated operations spread all over, with little synergy or cohesiveness.
GE Power is a real mess now because of bad management that did this and ruined the business and may take down the whole company. GE Power cannot make money or cash flow with this bloated structure where earnings is crashing by billions at a time.
They will have to fire huge amounts of employees and close many duplicate facilities and move back to just Greenville and Schenectady i9f they are go8ing to survive. Otherwise, it will be death by a thousand cuts and they will ultimately fail anyway.