Everything about Alfred Sloan totally explained
Alfred Pritchard Sloan, Jr. (
May 23,
1875 –
February 17,
1966) was a long-time
president and
chairman of
General Motors.
Criticism
In 2005, Sloan's work at GM has come under criticism for creating a complicated accounting system that has been placed upon American manufacturers that prevents the implementation of
lean manufacturing methods thus leading to companies which can't compete effectively with non-Sloan companies such as
Toyota. In a nutshell, the criticism is that by using Sloan's methods a company will value inventory just the same as cash and thus there's no penalty for building up inventory. However, carrying excessive inventory is detrimental to a company's operation and induces significant hidden costs. (Waddell & Bodek 2005)
Another factor is that Sloan considered people on the shop floor to be expendable as a variable cost item to manufacturing. This view is the opposite of how
Toyota views employees. Toyota looks to shop floor employees as their main source of cost savings and productivity improvements. (Waddell & Bodek 2005)
Some critics claim that Sloan was also instrumental in the demise of public city transport throughout the United States; see
General Motors streetcar conspiracy for details.
GM was found guilty of violating anti-trust laws and fined $5,000 and each executive was ordered to pay a fine of $1
Philanthropy
The Alfred P. Sloan Foundation is a
philanthropic non-profit organization in the
United States. It was established in 1934 by
Alfred P. Sloan, Jr., then-
President and
Chief Executive Officer of
General Motors. The Foundation's programs and interests fall into the areas of
science and
technology,
standard of living,
economic performance, and education and careers in science and technology. The total assets of the Sloan Foundation have a market value of about $1.8 billion.
The Sloan Foundation bankrolled the
1956 Warner Bros. cartoon
Yankee Dood It, which promotes mass production.
Quotes
- "The business of business is business."
- "A car for every purse and purpose." (Sloan 1963, p. 438)
- "I am sure we all realize that this struggle that's going on though the World is really nothing more or less than a conflict between two opposing technocracies manifesting itself to the capitalization of economic resources and products and all that sort of thing." - May 1941
- "It seems clear that the Allies are outclassed on mechanical equipment, and it's foolish to talk about modernizing their Armies in times like these, they ought to have thought of that five years ago. There is no excuse for them not thinking of that except for the unintelligent, in fact, stupid, narrow-minded and selfish leadership which the democracies of the world are cursed with… But when some other system develops stronger leadership, works hard and long, and intelligently and aggressively - which are good traits - and, superimposed upon that, develops the instinct of a racketeer, there's nothing for the democracies to do but fold up. And that's about what it looks as if they're going to do." - June 1940
Further Information
Get more info on 'Alfred Sloan'.
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