The General Motor 's President

799 WordsNov 12, 20154 Pages
The General Motor’s president, Alfred Sloan found out two critical issues that impeded his company to be succeeded in mass production and completed the mass production system based on Ford’s deficiency. Subsequently, Sloan resolved his firm’s problems step by step. Firstly, he established the decentralized divisions operated by some senior managers, who would share the profits with Sloan. Later, he created a product range from cheap to expensive that could satisfy most of buyers. From Sloan’s case, seniority seemed like a key to determine the workers, and it was also a basis for job assignments. Mass production became very popular in 1955 because many U.S. companies used Ford’s plant practices and Sloan’s management means to improve their productivity. At that time, the U.S. automobile industry led the world’s car manufacture with more than seven billion car were sold. The spread of mass production was not only in the United States, but also in Europe because many craft-production companies applied mass production for their products. However, the problems occurred, particularly, in the workforce. Workers figured out that the mass production work was unprofitable, and this caused the stagnant of mass products in the United States as well as Europe. This was the time for a new kind of production: “lean production”. The Rise of Lean Production. In 1950, Eiji Toyoda, a Japanese engineer from Toyota Motor Company, had a trip to one of the Ford’s plant in Detroit because he
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