Question

Consider GE's tollgate process for project selection and screening. How might a tollgate process for a different type of company vary from the original process? In what ways might it be the same? Are there any industries for which this type of process would not be effective?

Answer 1

                        GE has implemented a project screening and selection method which is based on the tollgate process. This process generally would refer to such a process wherein there is a central control point where all the activities and processes related to the screening and selection are being evaluated. It contains several checkpoints and involves controlling the selection and development as it moves through a life cycle. The mechanism of tollgate management is as follows

· Each of the tollgate management mechanism may be divided in to process map which could guide the managers and the team in addressing specific elements in the completion of a stage.

· These are sub-steps which are done to ensure that each element in the firm follows the general standard which is set by the GE. Here, each team must complete all the sub-step plans of action and after the completion of each stage, the cross-functional management team would review and the proceeds to the next stage depends on the approval at each stage after the review conference.

· The rejection at any stage would require the team to go back to the step and correct them until an approval is rendered.

· After the approval of the cross-sectional management team, the same has to be re-approved by the senior management team and any rejection at this stage would result in killing of the project.

Considering the steps in the above process, it may be analysed that such a process would be viable only for firms like the GE where the staff strength is higher and the turnover is huge since it would involve much cost in the implementation of the project. Also for the firms that would establish a mechanism of tollgate management, the process may also differ and the steps followed may differ in accordance with the availability of the staff and the budget allocation of the management for the process. It would not be viable for the small scale manufacturers and also micro enterprises to undertake the same plan of action as it would result in negative effects rather than bringing benefits to the firm.