By Alwyn Scott
NEW YORK (Reuters) – General Electric's chief executive said on Thursday he was "really stunned" to learn that a major factory had just started using lean manufacturing techniques.
" go back to our Greenville, South Carolina, plant last summer and to have the team regale with a really good lean production (project) that had just been implemented, "Larry Culp said at an investor conference in New York .
"They did a very nice job. But just – it really stunned me to be in the summer of 2018 and have such an important plant at GE beginning its lean journey or beginning its lean journey. "
Lean techniques are widely used to reduce manufacturing costs while increasing efficiency and quality. GE's Greenville factory makes large, gas-fired turbines that generate electricity in power plants around the world. GE's power business has been releasing money and is the top priority in Culp's efforts to turn around the company.
"Culp also affirmed on Thursday that GE expects. negative free cash flow in the second quarter, and said GE's power division plans to cut costs by about 20% over the next two years as it tries to become leaner.
Culp said GE cut $ 800 million in costs at the power unit load year, and has plans to cut another $ 1.6 billion.
(Reporting by Alwyn Scott; Editing by Leslie Adler and Phil Berlowitz)