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Finance

From ‘Honey Hell’ to Honeywell

The fact that the press gives company management far greater importance than it seems to deserve is aptly reflected by Warren Buffett’s quip from 1988: “With few exceptions, when a manager with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact.”

However, David Cote, who took over as chairman and CEO of Honeywell, did deserve the accolades he received for turning around the once-troubled conglomerate. Cote helped shape the Honeywell Operating System (or HOS) for production, which integrated several management theories.

These theories include Six Sigma, which has an intense focus on quality; Lean manufacturing, which minimizes waste; and Just in Time, which keeps inventories low. The result has been a remarkable turnaround in its productivity, as well as a growing cash pile that has enabled Honeywell to look out and integrate some high-quality companies.

View more information: https://marketrealist.com/2016/03/honeywell-operating-system-honey-hell-honeywell/

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