GE Appliances_French Door Refrigerator_Product Release
PRESS RELEASE GE’s New Line of French Door Refrigerators Offers Most Sophisticated Ice and Water Technology Available Today • • •
From dispensing hot water to Hands-free Autofill, GE refrigerators make life more convenient at home Advanced technology keeps foods and beverages fresher longer The refrigerators will roll off the line in Louisville, Kentucky, creating hundreds of new jobs
LOUISVILLE, Ky. – March 20, 2012 – (NYSE:GE) – As technological competition in refrigeration heats up, GE has risen above the rest. Featuring the most advanced ice and water technology on the market today, the new GE French door refrigerators offer intelligent home technology that makes your world work better. Breaking new ground, the GE Profile™ model’s Hands-free Autofill system eliminates the need to stand and wait, automatically filling any container with filtered water. In addition, the GE Café™ model is the first refrigerator to feature a hot water dispenser, capable of serving up tea and oatmeal in minutes. And in yet another industry breakthrough, the model’s easy-to-access advanced filtration system is the first to remove harmful pharmaceuticals from water and ice. “Our commitment first and foremost is to simplify and streamline the consumer’s world, applying innovations in a way that makes home life easier,” said John Boyd, refrigeration marketing manager for GE Appliances. “There’s more to a refrigerator than just storing food and beverages and keeping them cold. The industry-first features in our new French door models provide convenience, efficiency and bring ease to the hectic lives of busy consumers.” Industry’s most advanced ice and water system • In an industry-first, the 29 cubic foot GE Profile model features a Hands-free Autofill system that fully fills a glass, water bottle, coffee pot or pitcher. The dispenser’s pull-out tray holds a container so you can press the button and walk away while it fills up automatically. The technology behind the feature uses sound waves from ultrasonic sensors and proximity detectors similar to those used to fill up fuel tanks in locomotives. The model also includes a PreciseFill™ feature that dispenses filtered water in accurate measurements for easy food and drink preparation. •
The 29 cubic foot GE Café model is the first refrigerator in the industry to feature a hot water dispenser, which can heat up to 12 ounces of water in two minutes – ideal for oatmeal, a cup of tea, or a bottle of baby formula. The hot water dispenser lets you accurately choose the perfect temperature or select one of the four pre-programmed settings to simplify hot food and drink preparation.
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As concern for water quality grows, all of the new GE French door refrigerators feature the most advanced water filtration system in the industry. The system has been tested and verified by an independent third party to remove 98 percent of five trace pharmaceuticals from drinking water and ice.1 The GE Profile model filter is conveniently and newly located on the inside of the refrigerator door, allowing for quick and easy filter replacement.
Foods and beverages stay fresher, longer The 29-cubic-foot Profile and Café models include a full-width, adjustable temperature-controlled drawer with five settings for meat, beverage, produce, cheese and citrus and temperatures ranging from 32 to 40 degrees, The drawer is designed to keep specific foods and drinks at the proper storage temperature, but can also be set as the same temperature as the overall refrigerator. Colored LED lights in the drawer – red, green, blue, aqua and purple – can be set to remind you of the temperature setting you have chosen. The French door refrigerators also feature TwinChill™ evaporators, which separate airflow and climates in the fresh food and freezer sections to help maintain temperature and humidity levels to keep foods fresh. The separation of the air limits the amount of humidity in the freezer, reducing freezer burn while keeping freezer odors from mixing with refrigerator odors. Designed to make our world work better Consistent with GE’s fundamental focus of making the consumer’s world work better, the new GE French door refrigerator models exceed ENERGY STAR ® standards. These new models are the first bottomfreezers in the U.S. to use cyclopentane foam, which reduces the greenhouse gas emissions during manufacturing and at the end of the product’s life cycle, ultimately making this line better for the environment. Some GE French door refrigerator models will also feature GE’s Brillion™ connected home technology. On this product, Brillion technology, when coupled with a GE Nucleus, enables a consumer to receive maintenance and service alerts, monitor energy consumption, and adjust some appliance settings remotely. Additionally, showcase LED lighting produces lighter, crisper illumination throughout the refrigerator’s interior. And the line includes many extra storage features, such as a drop-down tray, three freezer baskets, a second icemaker in the freezer and a space-saving icemaker in the door. GE’s new French door refrigerators will be available in 27 and 29 cubic feet models in GE and GE Profile brands, and a 29 cubic foot model will be available in the GE Café brand. The GE Profile refrigerators will be available in June, and the GE Café models will be available in the fourth quarter of this year. The range of estimated retail prices is from $1,699 to $2,999.2 About GE Appliances GE Appliances is at the forefront of building innovative, energy-efficient appliances that improve people’s lives. GE Appliances’ products include refrigerators, freezers, cooking products, dishwashers, washers, dryers, air conditioners, water filtration systems and water heaters. General Electric (NYSE: GE) works on things that matter to build a world that works better. For more information on GE Appliances, visit www.ge.com/appliances. 1Removes 2Retailers
ibuprofen, atenolol, fluoxetine, progesterone, and trimethoprim. Not all pharmaceuticals may be present in your water set their own prices.
### For more information, contact: Julie Wood Manager, Appliances PR 502-452-5914 [email protected]
PRESS RELEASE GE Unveils French Door Refrigerator Factory in Louisville’s Appliance Park Factory Will Support 600 New Local Jobs • • • • •
GE CEO Jeff Immelt and Kentucky Gov. Steve Beshear join business leaders and employees to celebrate grand opening Market-leading refrigeration technology a result of GE’s $800 million investment to upgrade Appliance Park, $250 million investment in bottom freezer technology alone Since 2009, GE Appliances & Lighting has committed to investing a total of $1 billion in U.S. appliance manufacturing Study shows GE presence in Ky. puts $1.6B into the state’s economy; directly and indirectly supports 12,000 Ky. jobs GE and GOOD/Corps select Kentuckiana Works as What Works Project Non-Profit of the Week, eligible for up to a $10,000 donation
Louisville, KY. — March 20, 2012 — (NYSE: GE) — GE previewed today its new refrigerator product line, the soon-to-be-launched French door bottom freezer refrigerator series, at the grand opening of a new factory at GE’s Appliance Park, the second manufacturing facility to open within six weeks here. The new refrigeration line which features the most advanced ice and water technology on the market today - will support 600 new local jobs and improve the competitive position of the 130-year old brand. GE Chairman and CEO Jeff Immelt will be joined by Kentucky Gov. Steve Beshear and more than 1,000 GE employees to celebrate the facility opening as another milestone in the revitalization of GE’s Appliances business. Efforts to revitalize the business began in 2009 when GE committed to invest a total of $1 billion ($800 million in Louisville) and create more than 1,300 new jobs in the U.S. by 2014. Today’s announcement comes on the heels of the February opening of the GeoSpring™ Hybrid Water Heater manufacturing facility, the first new factory to open at Appliance Park since 1957. “Today’s Appliance Park milestone is proof that when businesses, unions and employees work together, we can deliver innovative solutions to the marketplace and demonstrate that U.S.-based manufacturing can be competitive,” said GE Appliances President and CEO Charles “Chip” Blankenship. “GE Appliances is a shining example of what is working in U.S. manufacturing, and we’re excited about what this new production line means for the future of our business. We know we could not have reached this milestone without our partners, such as the local union, government leaders at all levels and our 4,000 incredibly hard working Louisville employees.”
“GE’s continued investment in the Louisville manufacturing facility will help create jobs and drive economic growth for the surrounding community,” said Kentucky Governor Steve Beshear. “They have been a great partner in helping to showcase to the rest of the world that Kentucky is a great place to do business.” The new refrigeration line is one of 11 new products that will be launched by GE Appliances by 2014. The renewal of manufacturing in Louisville is a result of several factors, including the adoption of Lean manufacturing techniques and a more competitive wage structure for new employees, all intended to help GE better compete in a global marketplace. The Lean process, which uses a cross-functional team of employees – including hourly manufacturing workers – helps increase the competitiveness of the operation by identifying and removing waste in materials and work effort often found in traditional manufacturing. GE French Door Bottom Freezer Refrigerators The new GE French door refrigerator line has been designed with intelligent home technology and is built to make the consumer’s world work better. •
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The products offer the most advanced ice and water technology on the market today. GE Profile™ models will feature a Hands-free Autofill system that uses sound waves from ultrasonic sensors and proximity detectors to fill a glass, water bottle, coffee pot or pitcher – an industry first. The GE Café™ model is also the first refrigerator in the industry to feature a hot water dispenser, which can heat up to 12 ounces of water in two minutes. In keeping with GE’s ecomaginationSM vision of the world, the new refrigerator models boast the first bottom-freezer manufactured in the U.S. to use cyclopentane foam, which reduces the greenhouse gas emissions during manufacturing and at the end of the product’s life cycle, ultimately making this line better for the environment. More information on the new products’ technology and features can be found at www.ge.com/appliances.
GE Economic Impact in Kentucky A new study, commissioned by GE and conducted by independent consulting firm Tripp Umbach using 2010 data, quantifies GE’s presence in Kentucky, showing that the company directly and indirectly contributes $1.6 billion to the state. This means $1 out of every $103 in the Kentucky economy is supported, in part, by GE’s presence. In addition, the study found that GE helps support over 12,000 jobs in Kentucky, with nearly 5,000 direct employees, and for every GE job an additional 1.5 jobs are supported through a combination of employee spending and the company’s vendor purchases. GE has several Kentucky facilities in addition to Appliance Park, including GE Aviation engine manufacturing, testing and distribution centers, a GE Energy repair services center and a medical equipment manufacturing facility under GE Healthcare.
GE Highlights What Works in America GE, in partnership with GOOD/Corps, has launched the What Works Project, a digital social innovation campaign that gives the public a simple, yet meaningful way to celebrate the innovations that work to advance our nation. Together they have selected, Kentuckiana Works, to be featured as Non-Profit of the Week. The organization is eligible for a donation of up to $10,000 starting March 19 through March 26 for its support of job creation and training in the community. Each week, the public is invited to visit www.celebratewhatworks.com and submit their ideas and images for the inventions and technologies that drive human progress. Each submission or “heart” for submissions will generate $1 for Kentuckiana Works. In addition, the Project will reward public participation with a $2,500 cash prize to be divided equally among five winners each week ($500/winner). About GE GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com. About GE Appliances GE Appliances is at the forefront of building innovative, energy-efficient appliances that improve people’s lives. GE Appliances’ products include refrigerators, freezers, cooking products, dishwashers, washers, dryers, air conditioners, water filtration systems and water heaters. General Electric (NYSE: GE) works on things that matter to build a world that works better. For more information on GE Appliances, visit www.ge.com/appliances. ###
For more information, contact: Kim Freeman Global PR Manager, GE Appliances 502-452-5914, [email protected]
FACT SHEET GE French Door Refrigerator Product Overview: Featuring the most advanced ice and water technology on the market today, the new GE French door refrigerators offer intelligent home technology that makes your world work better. Key Features: •
Hands-free Autofill: Featured on counter-depth and 29 cubic foot GE Profile model, the dispenser with its pull-out tray is large enough to place a container, press the button and walk away while it fills up automatically. The technology uses sound waves from ultrasonic sensors and proximity detectors similar to those used to fill up fuel tanks in locomotives. The model also includes a PreciseFill™ feature that dispenses filtered water in accurate measurements for easy food and drink preparation.
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Hot Water Dispenser: The 29 cubic foot GE Café model is the first refrigerator in the industry to feature a hot water dispenser, which can heat up to 12 ounces of water in two minutes – ideal for oatmeal, a cup of tea, or a bottle of baby formula. Four pre-programmed settings and a customizable setting simplify hot food and drink preparation.
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Advanced Filtration System: All of the new GE French door refrigerators feature the most advanced water filtration system in the industry, which has been tested and verified by an independent third party to remove 98 percent of five trace pharmaceuticals from drinking water and ice.*
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Adjustable Temperature-Controlled Drawer: With five settings and temperatures ranging from 32 to 40 degrees, the drawer is designed to keep specific foods and drinks at the proper storage temperature. Colored LED lights in the drawer can be set to remind you of the temperature setting you have chosen.
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TwinChill™: The refrigerators feature TwinChill™ evaporators, which separate airflow and climates in the fresh food and freezer sections to help maintain temperature and humidity levels to keep foods fresh.
Size: GE’s new French door refrigerators will be available in counter-depth, 27- and 29-cubic foot models in GE and GE Profile brands, and a 29 cubic foot model will be available in the GE Café brand. Where to Buy: The GE Profile French door refrigerator will be available this summer, and the GE Café French door refrigerator will be available this fall at retailers nationwide. Price: MSRP $1,699 to $2,999.**
Production location: The French door refrigerator is proudly assembled at GE Appliances’ headquarters in Louisville, Ky. For additional information on the French Door Refrigerator, visit www.geappliances.com. *Removes ibuprofen, atenolol, fluoxetine, progesterone, and trimethoprim. Not all pharmaceuticals may be present in your water. **Retailers set their own prices ###
A Fresh Perspective: What’s in Your Fridge? Today, most U.S. refrigerator manufacturers insulate the doors and side panels of their refrigerators with a hydro-fluorocarbon (HFC)-based foamblowing agent, known as HFC-134a or HFC-245fa, which happens to be powerful greenhouse gases (GHG) that partially escapes during the manufacturing process. While this is how it’s “always been done,” GE led the way in April 2011 as the first full-line appliance manufacturer in the United States1 to adopt a foam-blowing agent, called cyclopentane, which significantly reduces GHG emissions during the foaming process.
GE replaces foamblowing agent in topand bottom-freezer refrigerators to reduce greenhouse gas emissions during the foamblowing process.
GE is now transitioning to cyclopentane at its Appliance Park manufacturing facility in Louisville, Ky., where new GE bottom-freezer refrigerators will be manufactured using the cyclopentane foam-blowing agent.
This process reduces greenhouse gas emissions by 99 percent.
WHAT IS CYCLOPENTANE?
A Lower Global Warming Potential
Cyclopentane is a “blowing agent” used to propel polyurethane foam insulation into the doors and cases of refrigerators and freezers.
Industry-standard insulations can have a global warming potential (GWP) as high as 1,430 (HFC-134a) and 1,030 (HFC245fa). Cyclopentane has a GWP of less than 25.2 When it comes to GWPs, the lower the number, the lower the quantity of GHGs emitted when converted to CO2 equivalents (CO2e).
Cyclopentane Makes Positive Impact in Decatur, Ala., and Louisville, Ky. Louisville, Ky.
The use of cyclopentane as a foam-blowing agent in the manufacturing of new bottomfreezer refrigerators will reduce average annual CO2e emissions from the foam-insulating process by more than 99 percent, or 117,781 metric tons of CO2e annually, compared to the foam-blowing agent used previously at Appliance Park in the assembly of topfreezer refrigerators.
Decatur, Ala.
Using cyclopentane is reducing the GHG emissions from the foam-blowing process by 400,000 metric tons of CO2 e in Decatur. This represents a 99-percent reduction in GHG emissions compared to the foam-blowing agent that cyclopentane replaced. By using cyclopentane, GE has reduced the GHG emissions of the entire Decatur manufacturing facility by more than 80 percent.
In Louisville and Decatur combined, the reduction is equal to: • The annual emissions of 101,185 cars on U.S. roads • The annual CO2 absorbed by 132,093 acres of Southeastern U.S. forest3
GE Maintains Leadership Role in the U.S. GE became the first full-line appliance manufacturer in April 2011 to insulate refrigerators with a foamblowing agent known as cyclopentane, which has been used in Europe since the early 1990s. The cost of retrofitting existing facilities has delayed implementation of cyclopentane during the manufacturing process in the United States. GE has opted to take this step as a proactive measure for reducing GHG emissions. In the spirit of GE’s ecomaginationSM initiative, GE Appliances also plans to use the lower-emitting foamblowing agent at its side-by-side refrigerator Center of Excellence in Bloomington, Ind., by 2014.
1 Based on GE’s competitive product analysis. 2 Environmental Protection Agency. “Transitioning to Low GWP Alternatives in Domestic Refrigeration.” www.epa.gov/ozone/downloads/EPA_HFC_DomRef.pdf October 2010. 3 Sums of Louisville and Decatur emissions reductions. Conversions are from EPA estimates.
A Cradle-to-Cradle Approach to Appliance Lifecycle Management Environmental responsibility runs deep in GE’s DNA, and when it comes to the lifespan of an appliance, the sustainability trait dominates – from “birth” to end of life – and is consistent with the company’s ecomaginationSM initiative to deploy solutions for today’s energy and environmental challenges. From lower-emission manufacturing to responsible disposal and recycling, GE is leading the pack.
BIRTH
Cleaner Manufacturing GE is bringing more appliances to market via more sustainable processes. As an example, in April 2011, GE became the first full-line appliance manufacturer in the U.S. to adopt a foam-blowing agent, known as cyclopentane, which reduces greenhouse gas (GHG) emissions of the foam-blowing process in its Decatur, Ala., plant by 400,000 metric tons of CO2-equivalent (CO2e) annually. In March 2012, GE began using cyclopentane for bottom-freezer refrigerators assembled at Appliance Park in Louisville, Ky. This transition will reduce average annual CO2e emissions of the foam-insulating process by more than 99 percent, or 117,781 metric tons of CO2e annually, compared to the foam-blowing agent used previously in top-freezer refrigerator manufacturing at Appliance Park. In Louisville, alone, this equals:
• The annual emissions of 23,185 cars on U.S. roads.1 • The annual CO2 absorbed by 32,093 acres of Southeastern U.S. forest.2
LIFECYCLE
Sustaining Excellence GE was recently awarded the ENERGY STAR® “Sustained Excellence” Award for the seventh straight year, recognizing GE’s commitment to delivering appliances that provide high levels of efficiency throughout their useful life. In fact:
• GE offers nearly 500 ENERGY STAR®-qualified appliances.3 • Close to 70 percent of GE Appliances’ dollar sales in 2011 were from ENERGY STAR® models. • GE invested $50 million in ENERGY STAR®-qualified products in 2011.
Beyond just being efficient, GE is also kicking up the intelligence factor – with smarter appliances and home energy management (HEM) technologies that are part of GE’s Brillion™ suite of home energy solutions. Brillion-enabled appliances, smart thermostats, home energy managers, and other intelligent devices provide consumers with more information and control to help them make smarter energy choices.
Did you know …
GE is the first appliance manufacturer to partner with four voluntary EPA programs collectively? These include:
CLEANER Manufacturing
PrOTECTING the environment
Better BETTER LIVING
TRANSFORMING
PROVIDING CONSUMERS ENERGY SAVINGS
Making old refrigerators into new products
• ENERGY STAR® • Responsible Appliance Disposal (RAD) • WasteWise • SmartWay
REFRIGERATOR RECYCLING
reducing emissions and LANDFILL waste
END OF LIFE
Responsible Disposal and Recycling As the first appliance manufacturer to partner with the U.S. Environmental Protection Agency (EPA) on its Responsible Appliance Disposal (RAD) Program, GE is working with Appliance Recycling Centers of America (ARCA) to drastically reduce landfill waste and greenhouse gas (GHG) and ozone-depleting substance (ODS) emissions of appliance recycling.
• The innovative UNTHA Recycling Technology (URT) system in ARCA Advanced Processing’s (AAP) regional recycling center in Pennsylvania will reduce the typical landfill waste of a refrigerator by approximately 85 percent by weight.4 • If the foam from the 9 million refrigerators disposed of annually in the U.S. was processed through this recycling technology, the GHG emissions avoided would be equivalent to the annual CO2e emissions of more than 2.4 million cars on U.S. roads.5 GE is also the first and only appliance manufacturer to partner with the EPA’s WasteWise Program – a voluntary initiative focused on waste reduction and saving environmental resources while reducing emissions.
NEW LIFE
Completing the Lifecycle Loop
In a true cradle-to-cradle approach, ARCA and GE transform materials – including high-quality steel, plastics, copper and even foam – that were once destined for landfill, into materials for use as fuel and other products. In fact, steel recovered from appliances at AAP’s regional recycling facility in Philadelphia is sold to a supplier that provides steel deck plate to GE Transportation’s Locomotive division for the manufacturing of new locomotives.
1 Assuming the average rate of CO2 emissions per U.S. passenger vehicle is 5.08 MT of CO2 per year. Source: US Environmental Protection Agency: www.epa.gov/otaq/climate/documents/420f11041.pdf. 2 Average rate of CO2 sequestration by U.S. forest equals 3.67 MT of CO2 per acre per year. Source: U.S. EPA: www.epa.gov/appdstar/pdf/brochure.pdf. 3 Base models 4 ARCA Advanced Processing 2010 Landfill Data, based on the component listing found in the American Plastics Council 1994 Composition, Properties and Economic Study of Recycled Refrigerators Report. 5 Based on the Stevenson Company data and calculations using U.S. Environmental Protection Agency global warming potential (GWP) equivalents: www.epa.gov/cleanenergy/energy-resources/calculator.html.
The Skinny on Lean
Use It or Lose It – GE Appliances and the Lean Process What does it take to make a 100-year-old manufacturer globally competitive? That’s the question GE Appliances’ leaders asked themselves in 2005 when they began applying Lean to eliminate waste during manufacturing. The vision of what Lean means to the transformation of GE Appliances has grown. GE is launching seven completely revitalized product lines using the Lean process over the next two years – a process that will cut cost and improve GE’s competitiveness. That competitiveness means more Americans at work with the creation of more than 1,000 new U.S. jobs.
Crunching numbers using Lean GE Bottom-Freezer Refrigerators and Lean
Using Lean, the Bottom-freezer team found ways to save material and labor costs at the same time they improved quality. From operators eliminating screws with snap-together parts to using a cross-functional team to brainstorm ways to simplify assembly, GE has saved millions of dollars.
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20:
The length of the assembly line has been reduced by 50 percent. Lean eliminated 20 parts from just one assembly area, the vegetable pan. GE estimates they’ve eliminated more than 100 parts in the average refrigerator compared to previous models.
20%: The new bottom-freezer refrigerator line achieved
the ENERGY STAR® rating that is 20 percent better than current guidelines for refrigerators, meeting 2014 requirements.
25%: Using Lean’s cross-functional team approach, the
team brought the product to the shelf in 25 percent less time since steps could be done concurrently rather than consecutively. This bottom-freezer launch will be the fastest and biggest refrigeration program of this magnitude in GE’s history.
1 out of 2:
Even though the new refrigerators will have more features than the previous model, the Lean team removed 50 percent of the wiring.
Freeze Frame
Hourly workers make big impact on Lean Savings Kenny Farnsley, an hourly Kaizen Promotion Officer (KPO) or Lean leader, found a way to improve the evaporator assembly process that saved GE $1 million in investment cost. He started with crude models and developed them into simple, reliable machines that produce a good quality part. This is a 70 percent reduction versus the cost of traditional automated equipment. Geoffrey Henderson, a team leader, found a way to reduce shoulder injuries while boxing up the refrigerators for shipping. Instead of throwing the box over top the refrigerator, the operator stands on a 6-ft. platform to place the box over the refrigerator – virtually eliminating any lifting.
GE GeoSpring Hybrid Water Heater & Lean 2.35 Ef While the team used the $325 Using the Lean process, the GE Lean process to reduce product cost by $200, they were able to retain the original 2.35 energy factor rating determined by the U.S. Department of Energy.
team maintained the original $325 annual consumer savings on utility bills while lowering product cost by $200.*
$8M
GE has saved more than $8 million during GeoSpring development and production.
GE Dishwashers and Lean
In 2009, GE experimented with Lean on a dishwasher assembly line – resulting in great savings:
30%
Labor efficiency improved by 30 percent after employing Lean principles.
60%
GE reduced dishwasher inventory by 60 percent.
68%
The Dishwasher team reduced production time by 68 percent.
Facility Facelift: GE Appliance Park’s Transformation with Lean As Appliance Park transforms itself to a Lean and modern manufacturing facility, the large production buildings are getting a facelift. So far, the amount of steel recycled as a result of the demolition is equal to roughly the amount of structural steel needed to build or equal: • 4 KFC Yum! Centers • 24 Fully Loaded Boeing 747s • 2,600 Asian Elephants
BARE BONES: LEAN BACKGROUND Lean determines what customers want and are willing to pay for – then uses the least amount of resources to create that product. Various industries have adopted the Lean philosophy, including healthcare, retail and manufacturing. In a manufacturing environment, Lean:
• Creates efficiencies during the initial design and manufacturing processes • Reduces ergonomic issues • Simplifies the entire production process • Continually refines product and manufacturing processes to add value for the customer • Eliminates waste, whether it’s time, resources or parts, during production • Produces better quality products
Lean was adopted from processes developed by Henry Ford as well as Kiichiro Toyoda, Taiichi Ohno, and others at Toyota. Visit www.lean.org/WhatsLean for a full history.
THE LEAN TEAM PACKS A 1-2-3 PUNCH Every skill needed to build a new product is in the same room from the first day through product launch.
1. Co-location of the core team is key. For each product line launch, a space is dedicated to each new product to include engineers, quality employees, hourly and salaried production workers and sourcing teams.
2. The cross-functional approach cuts product development time and involves all team members in the entire process – from design through production. 3. Lean promotes a “One-Team” approach to problem solving.
THE BASIC STEPS OF LEAN
1. Specify the value from the customers’ perspective. 2. Identify all steps required to deliver the product or service to the customer. 3. Eliminate steps that don’t create value. 4. Create a process that flows smoothly. 5. When it isn’t possible to flow, create a system that pulls from the upstream process. 6. Repeat until no waste exists.
“A large amount of the work in designing, manufacturing, delivering and selling a product is non-value-added work, or the customer does not want to pay for it. The trick is using Lean to find and eliminate the non-value-added work.”
– Richard Calvaruso, Lean leader for GE Appliances in Louisville, Ky. * Based on DOE test procedure and comparison of a 50-gallon standard electric tank water heater using 4879 kWh every year vs. the GeoSpringTM hybrid water heater using 1830 kWh every year.
GE Appliances in Louisville GE Appliances, led by President and CEO Chip Blankenship, is a $5 billion business headquartered in Louisville, Kentucky. GE Appliances is at the forefront of building innovative, energy-efficient appliances that improve people’s lives. GE Appliances employs more than 10,000 people.
Appliance Park Employees • Employs 4,100 people; 2,100 are hourly manufacturing employees • Payroll is $268 million, annually
“Greening” the campus • Clean heat: Appliance Park uses a combination of natural gas and methane gas harvested from local landfills to generate power and heat. • Point-of-use boilers: The point-of-use steam heating project saves 493,920 kWh per year and avoids 2,108,774 lbs per year of carbon dioxide, which is the equivalent of planting 95,686 trees. • Relamping: Replacing bulbs with energy-efficient alternatives saves 5,524,302 kWh per year and avoids 8,507,425 lbs per year of carbon dioxide, which is the equivalent of planting 386,030 trees. • Facility recycling: 200 tons of steel have been removed from one building alone since Appliance Park began rebuilding its facilities in 2010. The renovation program will ultimately remove and recycle 2,000 tons – or 4 million pounds – of steel by year’s-end; the equivalent of over 2,200 cars or over thirty 747 jumbo jets. • Reducing emissions: Appliance Park uses cyclopentane for bottom-freezer refrigerator manufacturing, which reduces average annual CO2e emissions of the foam-insulating process by more than 99 percent, compared to the foam-blowing agent used previously in top-freezer refrigerator manufacturing at Appliance Park.
Timeline AND Milestones 1957 Two-millionth laundry appliance was produced at Appliance Park 1971 GE completed the Applied Research and Design Center at Appliance Park 1974 The twenty-millionth refrigerator leaves Appliance Park 1993 GE launches the “Save the Park” initiative 1951 Groundbreaking and construction starts 1953 The first appliances – automatic dryers – are shipped from Appliance Park 1954 The first refrigerators completed at the Park rolled off the line
2009 Company announces hybrid water heaters, front load washers and dryers to be built at the Park, the first in what would become $800 million invested from 2010 to 2014
2010 Company announces an investment to establish a Center of Excellence for bottom-freezer refrigerators, a new product platform for Appliance Park 2011 GE unveils Platinum LEED®certified data center, a sustainable investment supporting global business growth 2012 GE opens a new $38 million manufacturing plant in Louisville, the first in the Park since 1957. Workers at the factory will make highly energyefficient GeoSpring hybrid water heaters 2012 Grand opening of a $250 million bottom freezer refrigeration factory
Throughout Kentucky •
Total number of GE employees in Kentucky: 5,399
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Annual payroll and benefits: $521 million
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Kentucky Glass Plant and Lamp Plant in Lexington, Glass Plant in Somerset, aircraft engine manufacturing in Madisonville, GE Healthcare Technologies in Louisville, GE Aviation Distribution Center in Erlanger and a site located in Hebron
Facts about Appliance Park Headquarters • 900 acres • Each of Appliance Park’s six manufacturing buildings is large enough to enclose 15 football fields • Has its own zip code: 40225
Product inventions from Appliance Park (and many more!) • Self-cleaning oven • Portable dishwasher • Refrigerator ice and water dispenser • Portable air conditioner (Carry Cool) • “Spacemaker” microwave oven • Advantium™ speedcook oven
2011 COMMUNITY INVOLVEMENT • The GE family contributed at least $5 million to the Louisville community • 2011 volunteer activities: - More than 2,600 volunteers - More than 50 projects - 17,607 volunteer hours Since 2004, the GE Foundation has awarded $35 million to Jefferson County Public Schools for systemic school-wide reform focusing on math and science. In conjunction with the grants, GE employees have completed more than 5,000 volunteer hours to support both faculty and students in the classroom.
From dispensing hot water to Hands-free Autofill, GE refrigerators make life more convenient at home Advanced technology keeps foods and beverages fresher longer The refrigerators will roll off the line in Louisville, Kentucky, creating hundreds of new jobs
LOUISVILLE, Ky. – March 20, 2012 – (NYSE:GE) – As technological competition in refrigeration heats up, GE has risen above the rest. Featuring the most advanced ice and water technology on the market today, the new GE French door refrigerators offer intelligent home technology that makes your world work better. Breaking new ground, the GE Profile™ model’s Hands-free Autofill system eliminates the need to stand and wait, automatically filling any container with filtered water. In addition, the GE Café™ model is the first refrigerator to feature a hot water dispenser, capable of serving up tea and oatmeal in minutes. And in yet another industry breakthrough, the model’s easy-to-access advanced filtration system is the first to remove harmful pharmaceuticals from water and ice. “Our commitment first and foremost is to simplify and streamline the consumer’s world, applying innovations in a way that makes home life easier,” said John Boyd, refrigeration marketing manager for GE Appliances. “There’s more to a refrigerator than just storing food and beverages and keeping them cold. The industry-first features in our new French door models provide convenience, efficiency and bring ease to the hectic lives of busy consumers.” Industry’s most advanced ice and water system • In an industry-first, the 29 cubic foot GE Profile model features a Hands-free Autofill system that fully fills a glass, water bottle, coffee pot or pitcher. The dispenser’s pull-out tray holds a container so you can press the button and walk away while it fills up automatically. The technology behind the feature uses sound waves from ultrasonic sensors and proximity detectors similar to those used to fill up fuel tanks in locomotives. The model also includes a PreciseFill™ feature that dispenses filtered water in accurate measurements for easy food and drink preparation. •
The 29 cubic foot GE Café model is the first refrigerator in the industry to feature a hot water dispenser, which can heat up to 12 ounces of water in two minutes – ideal for oatmeal, a cup of tea, or a bottle of baby formula. The hot water dispenser lets you accurately choose the perfect temperature or select one of the four pre-programmed settings to simplify hot food and drink preparation.
•
As concern for water quality grows, all of the new GE French door refrigerators feature the most advanced water filtration system in the industry. The system has been tested and verified by an independent third party to remove 98 percent of five trace pharmaceuticals from drinking water and ice.1 The GE Profile model filter is conveniently and newly located on the inside of the refrigerator door, allowing for quick and easy filter replacement.
Foods and beverages stay fresher, longer The 29-cubic-foot Profile and Café models include a full-width, adjustable temperature-controlled drawer with five settings for meat, beverage, produce, cheese and citrus and temperatures ranging from 32 to 40 degrees, The drawer is designed to keep specific foods and drinks at the proper storage temperature, but can also be set as the same temperature as the overall refrigerator. Colored LED lights in the drawer – red, green, blue, aqua and purple – can be set to remind you of the temperature setting you have chosen. The French door refrigerators also feature TwinChill™ evaporators, which separate airflow and climates in the fresh food and freezer sections to help maintain temperature and humidity levels to keep foods fresh. The separation of the air limits the amount of humidity in the freezer, reducing freezer burn while keeping freezer odors from mixing with refrigerator odors. Designed to make our world work better Consistent with GE’s fundamental focus of making the consumer’s world work better, the new GE French door refrigerator models exceed ENERGY STAR ® standards. These new models are the first bottomfreezers in the U.S. to use cyclopentane foam, which reduces the greenhouse gas emissions during manufacturing and at the end of the product’s life cycle, ultimately making this line better for the environment. Some GE French door refrigerator models will also feature GE’s Brillion™ connected home technology. On this product, Brillion technology, when coupled with a GE Nucleus, enables a consumer to receive maintenance and service alerts, monitor energy consumption, and adjust some appliance settings remotely. Additionally, showcase LED lighting produces lighter, crisper illumination throughout the refrigerator’s interior. And the line includes many extra storage features, such as a drop-down tray, three freezer baskets, a second icemaker in the freezer and a space-saving icemaker in the door. GE’s new French door refrigerators will be available in 27 and 29 cubic feet models in GE and GE Profile brands, and a 29 cubic foot model will be available in the GE Café brand. The GE Profile refrigerators will be available in June, and the GE Café models will be available in the fourth quarter of this year. The range of estimated retail prices is from $1,699 to $2,999.2 About GE Appliances GE Appliances is at the forefront of building innovative, energy-efficient appliances that improve people’s lives. GE Appliances’ products include refrigerators, freezers, cooking products, dishwashers, washers, dryers, air conditioners, water filtration systems and water heaters. General Electric (NYSE: GE) works on things that matter to build a world that works better. For more information on GE Appliances, visit www.ge.com/appliances. 1Removes 2Retailers
ibuprofen, atenolol, fluoxetine, progesterone, and trimethoprim. Not all pharmaceuticals may be present in your water set their own prices.
### For more information, contact: Julie Wood Manager, Appliances PR 502-452-5914 [email protected]
PRESS RELEASE GE Unveils French Door Refrigerator Factory in Louisville’s Appliance Park Factory Will Support 600 New Local Jobs • • • • •
GE CEO Jeff Immelt and Kentucky Gov. Steve Beshear join business leaders and employees to celebrate grand opening Market-leading refrigeration technology a result of GE’s $800 million investment to upgrade Appliance Park, $250 million investment in bottom freezer technology alone Since 2009, GE Appliances & Lighting has committed to investing a total of $1 billion in U.S. appliance manufacturing Study shows GE presence in Ky. puts $1.6B into the state’s economy; directly and indirectly supports 12,000 Ky. jobs GE and GOOD/Corps select Kentuckiana Works as What Works Project Non-Profit of the Week, eligible for up to a $10,000 donation
Louisville, KY. — March 20, 2012 — (NYSE: GE) — GE previewed today its new refrigerator product line, the soon-to-be-launched French door bottom freezer refrigerator series, at the grand opening of a new factory at GE’s Appliance Park, the second manufacturing facility to open within six weeks here. The new refrigeration line which features the most advanced ice and water technology on the market today - will support 600 new local jobs and improve the competitive position of the 130-year old brand. GE Chairman and CEO Jeff Immelt will be joined by Kentucky Gov. Steve Beshear and more than 1,000 GE employees to celebrate the facility opening as another milestone in the revitalization of GE’s Appliances business. Efforts to revitalize the business began in 2009 when GE committed to invest a total of $1 billion ($800 million in Louisville) and create more than 1,300 new jobs in the U.S. by 2014. Today’s announcement comes on the heels of the February opening of the GeoSpring™ Hybrid Water Heater manufacturing facility, the first new factory to open at Appliance Park since 1957. “Today’s Appliance Park milestone is proof that when businesses, unions and employees work together, we can deliver innovative solutions to the marketplace and demonstrate that U.S.-based manufacturing can be competitive,” said GE Appliances President and CEO Charles “Chip” Blankenship. “GE Appliances is a shining example of what is working in U.S. manufacturing, and we’re excited about what this new production line means for the future of our business. We know we could not have reached this milestone without our partners, such as the local union, government leaders at all levels and our 4,000 incredibly hard working Louisville employees.”
“GE’s continued investment in the Louisville manufacturing facility will help create jobs and drive economic growth for the surrounding community,” said Kentucky Governor Steve Beshear. “They have been a great partner in helping to showcase to the rest of the world that Kentucky is a great place to do business.” The new refrigeration line is one of 11 new products that will be launched by GE Appliances by 2014. The renewal of manufacturing in Louisville is a result of several factors, including the adoption of Lean manufacturing techniques and a more competitive wage structure for new employees, all intended to help GE better compete in a global marketplace. The Lean process, which uses a cross-functional team of employees – including hourly manufacturing workers – helps increase the competitiveness of the operation by identifying and removing waste in materials and work effort often found in traditional manufacturing. GE French Door Bottom Freezer Refrigerators The new GE French door refrigerator line has been designed with intelligent home technology and is built to make the consumer’s world work better. •
• •
•
The products offer the most advanced ice and water technology on the market today. GE Profile™ models will feature a Hands-free Autofill system that uses sound waves from ultrasonic sensors and proximity detectors to fill a glass, water bottle, coffee pot or pitcher – an industry first. The GE Café™ model is also the first refrigerator in the industry to feature a hot water dispenser, which can heat up to 12 ounces of water in two minutes. In keeping with GE’s ecomaginationSM vision of the world, the new refrigerator models boast the first bottom-freezer manufactured in the U.S. to use cyclopentane foam, which reduces the greenhouse gas emissions during manufacturing and at the end of the product’s life cycle, ultimately making this line better for the environment. More information on the new products’ technology and features can be found at www.ge.com/appliances.
GE Economic Impact in Kentucky A new study, commissioned by GE and conducted by independent consulting firm Tripp Umbach using 2010 data, quantifies GE’s presence in Kentucky, showing that the company directly and indirectly contributes $1.6 billion to the state. This means $1 out of every $103 in the Kentucky economy is supported, in part, by GE’s presence. In addition, the study found that GE helps support over 12,000 jobs in Kentucky, with nearly 5,000 direct employees, and for every GE job an additional 1.5 jobs are supported through a combination of employee spending and the company’s vendor purchases. GE has several Kentucky facilities in addition to Appliance Park, including GE Aviation engine manufacturing, testing and distribution centers, a GE Energy repair services center and a medical equipment manufacturing facility under GE Healthcare.
GE Highlights What Works in America GE, in partnership with GOOD/Corps, has launched the What Works Project, a digital social innovation campaign that gives the public a simple, yet meaningful way to celebrate the innovations that work to advance our nation. Together they have selected, Kentuckiana Works, to be featured as Non-Profit of the Week. The organization is eligible for a donation of up to $10,000 starting March 19 through March 26 for its support of job creation and training in the community. Each week, the public is invited to visit www.celebratewhatworks.com and submit their ideas and images for the inventions and technologies that drive human progress. Each submission or “heart” for submissions will generate $1 for Kentuckiana Works. In addition, the Project will reward public participation with a $2,500 cash prize to be divided equally among five winners each week ($500/winner). About GE GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com. About GE Appliances GE Appliances is at the forefront of building innovative, energy-efficient appliances that improve people’s lives. GE Appliances’ products include refrigerators, freezers, cooking products, dishwashers, washers, dryers, air conditioners, water filtration systems and water heaters. General Electric (NYSE: GE) works on things that matter to build a world that works better. For more information on GE Appliances, visit www.ge.com/appliances. ###
For more information, contact: Kim Freeman Global PR Manager, GE Appliances 502-452-5914, [email protected]
FACT SHEET GE French Door Refrigerator Product Overview: Featuring the most advanced ice and water technology on the market today, the new GE French door refrigerators offer intelligent home technology that makes your world work better. Key Features: •
Hands-free Autofill: Featured on counter-depth and 29 cubic foot GE Profile model, the dispenser with its pull-out tray is large enough to place a container, press the button and walk away while it fills up automatically. The technology uses sound waves from ultrasonic sensors and proximity detectors similar to those used to fill up fuel tanks in locomotives. The model also includes a PreciseFill™ feature that dispenses filtered water in accurate measurements for easy food and drink preparation.
•
Hot Water Dispenser: The 29 cubic foot GE Café model is the first refrigerator in the industry to feature a hot water dispenser, which can heat up to 12 ounces of water in two minutes – ideal for oatmeal, a cup of tea, or a bottle of baby formula. Four pre-programmed settings and a customizable setting simplify hot food and drink preparation.
•
Advanced Filtration System: All of the new GE French door refrigerators feature the most advanced water filtration system in the industry, which has been tested and verified by an independent third party to remove 98 percent of five trace pharmaceuticals from drinking water and ice.*
•
Adjustable Temperature-Controlled Drawer: With five settings and temperatures ranging from 32 to 40 degrees, the drawer is designed to keep specific foods and drinks at the proper storage temperature. Colored LED lights in the drawer can be set to remind you of the temperature setting you have chosen.
•
TwinChill™: The refrigerators feature TwinChill™ evaporators, which separate airflow and climates in the fresh food and freezer sections to help maintain temperature and humidity levels to keep foods fresh.
Size: GE’s new French door refrigerators will be available in counter-depth, 27- and 29-cubic foot models in GE and GE Profile brands, and a 29 cubic foot model will be available in the GE Café brand. Where to Buy: The GE Profile French door refrigerator will be available this summer, and the GE Café French door refrigerator will be available this fall at retailers nationwide. Price: MSRP $1,699 to $2,999.**
Production location: The French door refrigerator is proudly assembled at GE Appliances’ headquarters in Louisville, Ky. For additional information on the French Door Refrigerator, visit www.geappliances.com. *Removes ibuprofen, atenolol, fluoxetine, progesterone, and trimethoprim. Not all pharmaceuticals may be present in your water. **Retailers set their own prices ###
A Fresh Perspective: What’s in Your Fridge? Today, most U.S. refrigerator manufacturers insulate the doors and side panels of their refrigerators with a hydro-fluorocarbon (HFC)-based foamblowing agent, known as HFC-134a or HFC-245fa, which happens to be powerful greenhouse gases (GHG) that partially escapes during the manufacturing process. While this is how it’s “always been done,” GE led the way in April 2011 as the first full-line appliance manufacturer in the United States1 to adopt a foam-blowing agent, called cyclopentane, which significantly reduces GHG emissions during the foaming process.
GE replaces foamblowing agent in topand bottom-freezer refrigerators to reduce greenhouse gas emissions during the foamblowing process.
GE is now transitioning to cyclopentane at its Appliance Park manufacturing facility in Louisville, Ky., where new GE bottom-freezer refrigerators will be manufactured using the cyclopentane foam-blowing agent.
This process reduces greenhouse gas emissions by 99 percent.
WHAT IS CYCLOPENTANE?
A Lower Global Warming Potential
Cyclopentane is a “blowing agent” used to propel polyurethane foam insulation into the doors and cases of refrigerators and freezers.
Industry-standard insulations can have a global warming potential (GWP) as high as 1,430 (HFC-134a) and 1,030 (HFC245fa). Cyclopentane has a GWP of less than 25.2 When it comes to GWPs, the lower the number, the lower the quantity of GHGs emitted when converted to CO2 equivalents (CO2e).
Cyclopentane Makes Positive Impact in Decatur, Ala., and Louisville, Ky. Louisville, Ky.
The use of cyclopentane as a foam-blowing agent in the manufacturing of new bottomfreezer refrigerators will reduce average annual CO2e emissions from the foam-insulating process by more than 99 percent, or 117,781 metric tons of CO2e annually, compared to the foam-blowing agent used previously at Appliance Park in the assembly of topfreezer refrigerators.
Decatur, Ala.
Using cyclopentane is reducing the GHG emissions from the foam-blowing process by 400,000 metric tons of CO2 e in Decatur. This represents a 99-percent reduction in GHG emissions compared to the foam-blowing agent that cyclopentane replaced. By using cyclopentane, GE has reduced the GHG emissions of the entire Decatur manufacturing facility by more than 80 percent.
In Louisville and Decatur combined, the reduction is equal to: • The annual emissions of 101,185 cars on U.S. roads • The annual CO2 absorbed by 132,093 acres of Southeastern U.S. forest3
GE Maintains Leadership Role in the U.S. GE became the first full-line appliance manufacturer in April 2011 to insulate refrigerators with a foamblowing agent known as cyclopentane, which has been used in Europe since the early 1990s. The cost of retrofitting existing facilities has delayed implementation of cyclopentane during the manufacturing process in the United States. GE has opted to take this step as a proactive measure for reducing GHG emissions. In the spirit of GE’s ecomaginationSM initiative, GE Appliances also plans to use the lower-emitting foamblowing agent at its side-by-side refrigerator Center of Excellence in Bloomington, Ind., by 2014.
1 Based on GE’s competitive product analysis. 2 Environmental Protection Agency. “Transitioning to Low GWP Alternatives in Domestic Refrigeration.” www.epa.gov/ozone/downloads/EPA_HFC_DomRef.pdf October 2010. 3 Sums of Louisville and Decatur emissions reductions. Conversions are from EPA estimates.
A Cradle-to-Cradle Approach to Appliance Lifecycle Management Environmental responsibility runs deep in GE’s DNA, and when it comes to the lifespan of an appliance, the sustainability trait dominates – from “birth” to end of life – and is consistent with the company’s ecomaginationSM initiative to deploy solutions for today’s energy and environmental challenges. From lower-emission manufacturing to responsible disposal and recycling, GE is leading the pack.
BIRTH
Cleaner Manufacturing GE is bringing more appliances to market via more sustainable processes. As an example, in April 2011, GE became the first full-line appliance manufacturer in the U.S. to adopt a foam-blowing agent, known as cyclopentane, which reduces greenhouse gas (GHG) emissions of the foam-blowing process in its Decatur, Ala., plant by 400,000 metric tons of CO2-equivalent (CO2e) annually. In March 2012, GE began using cyclopentane for bottom-freezer refrigerators assembled at Appliance Park in Louisville, Ky. This transition will reduce average annual CO2e emissions of the foam-insulating process by more than 99 percent, or 117,781 metric tons of CO2e annually, compared to the foam-blowing agent used previously in top-freezer refrigerator manufacturing at Appliance Park. In Louisville, alone, this equals:
• The annual emissions of 23,185 cars on U.S. roads.1 • The annual CO2 absorbed by 32,093 acres of Southeastern U.S. forest.2
LIFECYCLE
Sustaining Excellence GE was recently awarded the ENERGY STAR® “Sustained Excellence” Award for the seventh straight year, recognizing GE’s commitment to delivering appliances that provide high levels of efficiency throughout their useful life. In fact:
• GE offers nearly 500 ENERGY STAR®-qualified appliances.3 • Close to 70 percent of GE Appliances’ dollar sales in 2011 were from ENERGY STAR® models. • GE invested $50 million in ENERGY STAR®-qualified products in 2011.
Beyond just being efficient, GE is also kicking up the intelligence factor – with smarter appliances and home energy management (HEM) technologies that are part of GE’s Brillion™ suite of home energy solutions. Brillion-enabled appliances, smart thermostats, home energy managers, and other intelligent devices provide consumers with more information and control to help them make smarter energy choices.
Did you know …
GE is the first appliance manufacturer to partner with four voluntary EPA programs collectively? These include:
CLEANER Manufacturing
PrOTECTING the environment
Better BETTER LIVING
TRANSFORMING
PROVIDING CONSUMERS ENERGY SAVINGS
Making old refrigerators into new products
• ENERGY STAR® • Responsible Appliance Disposal (RAD) • WasteWise • SmartWay
REFRIGERATOR RECYCLING
reducing emissions and LANDFILL waste
END OF LIFE
Responsible Disposal and Recycling As the first appliance manufacturer to partner with the U.S. Environmental Protection Agency (EPA) on its Responsible Appliance Disposal (RAD) Program, GE is working with Appliance Recycling Centers of America (ARCA) to drastically reduce landfill waste and greenhouse gas (GHG) and ozone-depleting substance (ODS) emissions of appliance recycling.
• The innovative UNTHA Recycling Technology (URT) system in ARCA Advanced Processing’s (AAP) regional recycling center in Pennsylvania will reduce the typical landfill waste of a refrigerator by approximately 85 percent by weight.4 • If the foam from the 9 million refrigerators disposed of annually in the U.S. was processed through this recycling technology, the GHG emissions avoided would be equivalent to the annual CO2e emissions of more than 2.4 million cars on U.S. roads.5 GE is also the first and only appliance manufacturer to partner with the EPA’s WasteWise Program – a voluntary initiative focused on waste reduction and saving environmental resources while reducing emissions.
NEW LIFE
Completing the Lifecycle Loop
In a true cradle-to-cradle approach, ARCA and GE transform materials – including high-quality steel, plastics, copper and even foam – that were once destined for landfill, into materials for use as fuel and other products. In fact, steel recovered from appliances at AAP’s regional recycling facility in Philadelphia is sold to a supplier that provides steel deck plate to GE Transportation’s Locomotive division for the manufacturing of new locomotives.
1 Assuming the average rate of CO2 emissions per U.S. passenger vehicle is 5.08 MT of CO2 per year. Source: US Environmental Protection Agency: www.epa.gov/otaq/climate/documents/420f11041.pdf. 2 Average rate of CO2 sequestration by U.S. forest equals 3.67 MT of CO2 per acre per year. Source: U.S. EPA: www.epa.gov/appdstar/pdf/brochure.pdf. 3 Base models 4 ARCA Advanced Processing 2010 Landfill Data, based on the component listing found in the American Plastics Council 1994 Composition, Properties and Economic Study of Recycled Refrigerators Report. 5 Based on the Stevenson Company data and calculations using U.S. Environmental Protection Agency global warming potential (GWP) equivalents: www.epa.gov/cleanenergy/energy-resources/calculator.html.
The Skinny on Lean
Use It or Lose It – GE Appliances and the Lean Process What does it take to make a 100-year-old manufacturer globally competitive? That’s the question GE Appliances’ leaders asked themselves in 2005 when they began applying Lean to eliminate waste during manufacturing. The vision of what Lean means to the transformation of GE Appliances has grown. GE is launching seven completely revitalized product lines using the Lean process over the next two years – a process that will cut cost and improve GE’s competitiveness. That competitiveness means more Americans at work with the creation of more than 1,000 new U.S. jobs.
Crunching numbers using Lean GE Bottom-Freezer Refrigerators and Lean
Using Lean, the Bottom-freezer team found ways to save material and labor costs at the same time they improved quality. From operators eliminating screws with snap-together parts to using a cross-functional team to brainstorm ways to simplify assembly, GE has saved millions of dollars.
½:
20:
The length of the assembly line has been reduced by 50 percent. Lean eliminated 20 parts from just one assembly area, the vegetable pan. GE estimates they’ve eliminated more than 100 parts in the average refrigerator compared to previous models.
20%: The new bottom-freezer refrigerator line achieved
the ENERGY STAR® rating that is 20 percent better than current guidelines for refrigerators, meeting 2014 requirements.
25%: Using Lean’s cross-functional team approach, the
team brought the product to the shelf in 25 percent less time since steps could be done concurrently rather than consecutively. This bottom-freezer launch will be the fastest and biggest refrigeration program of this magnitude in GE’s history.
1 out of 2:
Even though the new refrigerators will have more features than the previous model, the Lean team removed 50 percent of the wiring.
Freeze Frame
Hourly workers make big impact on Lean Savings Kenny Farnsley, an hourly Kaizen Promotion Officer (KPO) or Lean leader, found a way to improve the evaporator assembly process that saved GE $1 million in investment cost. He started with crude models and developed them into simple, reliable machines that produce a good quality part. This is a 70 percent reduction versus the cost of traditional automated equipment. Geoffrey Henderson, a team leader, found a way to reduce shoulder injuries while boxing up the refrigerators for shipping. Instead of throwing the box over top the refrigerator, the operator stands on a 6-ft. platform to place the box over the refrigerator – virtually eliminating any lifting.
GE GeoSpring Hybrid Water Heater & Lean 2.35 Ef While the team used the $325 Using the Lean process, the GE Lean process to reduce product cost by $200, they were able to retain the original 2.35 energy factor rating determined by the U.S. Department of Energy.
team maintained the original $325 annual consumer savings on utility bills while lowering product cost by $200.*
$8M
GE has saved more than $8 million during GeoSpring development and production.
GE Dishwashers and Lean
In 2009, GE experimented with Lean on a dishwasher assembly line – resulting in great savings:
30%
Labor efficiency improved by 30 percent after employing Lean principles.
60%
GE reduced dishwasher inventory by 60 percent.
68%
The Dishwasher team reduced production time by 68 percent.
Facility Facelift: GE Appliance Park’s Transformation with Lean As Appliance Park transforms itself to a Lean and modern manufacturing facility, the large production buildings are getting a facelift. So far, the amount of steel recycled as a result of the demolition is equal to roughly the amount of structural steel needed to build or equal: • 4 KFC Yum! Centers • 24 Fully Loaded Boeing 747s • 2,600 Asian Elephants
BARE BONES: LEAN BACKGROUND Lean determines what customers want and are willing to pay for – then uses the least amount of resources to create that product. Various industries have adopted the Lean philosophy, including healthcare, retail and manufacturing. In a manufacturing environment, Lean:
• Creates efficiencies during the initial design and manufacturing processes • Reduces ergonomic issues • Simplifies the entire production process • Continually refines product and manufacturing processes to add value for the customer • Eliminates waste, whether it’s time, resources or parts, during production • Produces better quality products
Lean was adopted from processes developed by Henry Ford as well as Kiichiro Toyoda, Taiichi Ohno, and others at Toyota. Visit www.lean.org/WhatsLean for a full history.
THE LEAN TEAM PACKS A 1-2-3 PUNCH Every skill needed to build a new product is in the same room from the first day through product launch.
1. Co-location of the core team is key. For each product line launch, a space is dedicated to each new product to include engineers, quality employees, hourly and salaried production workers and sourcing teams.
2. The cross-functional approach cuts product development time and involves all team members in the entire process – from design through production. 3. Lean promotes a “One-Team” approach to problem solving.
THE BASIC STEPS OF LEAN
1. Specify the value from the customers’ perspective. 2. Identify all steps required to deliver the product or service to the customer. 3. Eliminate steps that don’t create value. 4. Create a process that flows smoothly. 5. When it isn’t possible to flow, create a system that pulls from the upstream process. 6. Repeat until no waste exists.
“A large amount of the work in designing, manufacturing, delivering and selling a product is non-value-added work, or the customer does not want to pay for it. The trick is using Lean to find and eliminate the non-value-added work.”
– Richard Calvaruso, Lean leader for GE Appliances in Louisville, Ky. * Based on DOE test procedure and comparison of a 50-gallon standard electric tank water heater using 4879 kWh every year vs. the GeoSpringTM hybrid water heater using 1830 kWh every year.
GE Appliances in Louisville GE Appliances, led by President and CEO Chip Blankenship, is a $5 billion business headquartered in Louisville, Kentucky. GE Appliances is at the forefront of building innovative, energy-efficient appliances that improve people’s lives. GE Appliances employs more than 10,000 people.
Appliance Park Employees • Employs 4,100 people; 2,100 are hourly manufacturing employees • Payroll is $268 million, annually
“Greening” the campus • Clean heat: Appliance Park uses a combination of natural gas and methane gas harvested from local landfills to generate power and heat. • Point-of-use boilers: The point-of-use steam heating project saves 493,920 kWh per year and avoids 2,108,774 lbs per year of carbon dioxide, which is the equivalent of planting 95,686 trees. • Relamping: Replacing bulbs with energy-efficient alternatives saves 5,524,302 kWh per year and avoids 8,507,425 lbs per year of carbon dioxide, which is the equivalent of planting 386,030 trees. • Facility recycling: 200 tons of steel have been removed from one building alone since Appliance Park began rebuilding its facilities in 2010. The renovation program will ultimately remove and recycle 2,000 tons – or 4 million pounds – of steel by year’s-end; the equivalent of over 2,200 cars or over thirty 747 jumbo jets. • Reducing emissions: Appliance Park uses cyclopentane for bottom-freezer refrigerator manufacturing, which reduces average annual CO2e emissions of the foam-insulating process by more than 99 percent, compared to the foam-blowing agent used previously in top-freezer refrigerator manufacturing at Appliance Park.
Timeline AND Milestones 1957 Two-millionth laundry appliance was produced at Appliance Park 1971 GE completed the Applied Research and Design Center at Appliance Park 1974 The twenty-millionth refrigerator leaves Appliance Park 1993 GE launches the “Save the Park” initiative 1951 Groundbreaking and construction starts 1953 The first appliances – automatic dryers – are shipped from Appliance Park 1954 The first refrigerators completed at the Park rolled off the line
2009 Company announces hybrid water heaters, front load washers and dryers to be built at the Park, the first in what would become $800 million invested from 2010 to 2014
2010 Company announces an investment to establish a Center of Excellence for bottom-freezer refrigerators, a new product platform for Appliance Park 2011 GE unveils Platinum LEED®certified data center, a sustainable investment supporting global business growth 2012 GE opens a new $38 million manufacturing plant in Louisville, the first in the Park since 1957. Workers at the factory will make highly energyefficient GeoSpring hybrid water heaters 2012 Grand opening of a $250 million bottom freezer refrigeration factory
Throughout Kentucky •
Total number of GE employees in Kentucky: 5,399
•
Annual payroll and benefits: $521 million
•
Kentucky Glass Plant and Lamp Plant in Lexington, Glass Plant in Somerset, aircraft engine manufacturing in Madisonville, GE Healthcare Technologies in Louisville, GE Aviation Distribution Center in Erlanger and a site located in Hebron
Facts about Appliance Park Headquarters • 900 acres • Each of Appliance Park’s six manufacturing buildings is large enough to enclose 15 football fields • Has its own zip code: 40225
Product inventions from Appliance Park (and many more!) • Self-cleaning oven • Portable dishwasher • Refrigerator ice and water dispenser • Portable air conditioner (Carry Cool) • “Spacemaker” microwave oven • Advantium™ speedcook oven
2011 COMMUNITY INVOLVEMENT • The GE family contributed at least $5 million to the Louisville community • 2011 volunteer activities: - More than 2,600 volunteers - More than 50 projects - 17,607 volunteer hours Since 2004, the GE Foundation has awarded $35 million to Jefferson County Public Schools for systemic school-wide reform focusing on math and science. In conjunction with the grants, GE employees have completed more than 5,000 volunteer hours to support both faculty and students in the classroom.
