Ford 's Organizational Changes Of The Automobile Industry

Ford hired Fredrick Taylor, a motion study expert, to evaluate and refine the efficiency of his factories after years of trying to find ways himself (History.com, 2009). Taylor took what he saw in the factories to make a more efficient workforce while Henry Ford developed tools and equipment to help with a better flow of the workforce. Together, they realized four distinct things from other smaller businesses that they wanted to immolate and bring to the big stage. These four principles were the use of interchangeable parts, division of labor, continuous flow, and reduced wasted effort (Science Odyssey, 1998). With these four principles in mind and the dream to produce a more cost efficient vehicle, Henry Ford and Fredrick Taylor created the first large scale assembly line in 1913 (Goss, 2014). This assembly line was able to transfer the time it took to build a single Model T from twelve hours to a mere two hours and thirty minutes (History.com, 2009). With its eighty-four distinct steps in the flow of the assembly line, a division of labor was created where a worker could be trained to do one specific task making him more efficient at that task and able to do a much better job (History.com, 2009). Secondly, having interchangeable parts that would could be used between any model of Ford allowed Henry to focus on machinery that would produce these

Other manufacturers were content to target the wealthy American could buy, not even considering the middle or lower class. Ford developed a design and a method of making the cars that steadily and continuously reduced the cost of the car, the car being the Model T. Instead of pocketing the money from the cars Ford used it to make better and more efficient ways to build a car. As a result, Ford Motor Company sold more cars and steadily increased its earnings. Henry Ford somehow managed to change people from the looking at an automobile as a luxury, and more like a convenience

The automobile industry put American citizens into action. Mass production was a big component in the success of automobiles. Although successful, it became very repetitive. Skilled workers who were once worshipped, were no longer needed. Henry Ford was described as racist, bitter, but he brought success to citizens in the 1920s. Ford started the Ford Motor Company in 1903 with the help of a limited amount of workers in a shed. It was not until 1914 where custom-made cars turned into many cars, such as the Model T, moving down an assembly line. The Model T was a very popular car that benefitted cheap labor and easy mobility for its owners. Ford became a billionaire from the help of the federal government’s actions. At this point, the government decided that funds should be spent more on roads. Automobiles introduced

The automobile industry made owning an automobile more available to the public. Factories began producing cars in higher numbers than one craftsman would ever be able to. “The first automotive production on a commercial scale began in France in 1980, but the United States in the 1900’s became equal to the European automobile factories. The Europeans used engineering and handcraft methods, while the U.S. had plants that used the assembly line” (The History). Frank Duryea of Springfield, Massachusetts developed the first gasoline powered automobile in the United States, and over the next twenty years 8 million cars were manufactured and sold (Clayton 501). On the other hand, Henry Ford’s first working gasoline engine was completed at the end of 1843, and “by 1896, he had completed his first horseless carriage, the Quadricycle, so called because the chassis of the four- horsepower vehicle was a buggy frame mounted on four bicycle wheels” (Curley 165). Ford revolutionized factory production with his assembly line methods (Curly 163). The assembly line remained hard on laborers, required them to perform routinely repetitive tasks for hours on end. To retain workers, Henry Ford paid workers five dollars a day, and employees only work eight hour days. Mass production techniques rapidly increased worker productivity and output, allowing more cars to be made and to sell for less money. By the 1920’s, the number of registered vehicles rose over fifteen million, because of Henry Ford’s assembly line, which made manufacturing automobiles more time efficient and less costly, making automobiles less expensive. In 1929, Ford, who was one of Thomas Edison’s greatest admirers, asked him to design a battery for a self-starter, to be introduced on the Model T, which was Ford’s car for the common man (Curley 139). At the time of his death in 1947, Henry Ford’s

As the demand for the Model T kept growing it rapidly became a dominant instrument in the swift changes occurring in the lives of the citizens of America. After added experimentation by Ford and his aids he moved the business to Highland Park, Michigan. As the manufacturing system evolved by 1913, a new and modified plant was built which was able to deliver parts, subassemblies and assemblies, both with precise timing to a constantly moving main assembly line. Although this new design of the assembly line saved time and money, and increased production, the one flaw was the work of the employees was still tedious and tiresome. The workers were involved, but also executed the same task again and again, psychologically wearing them down as the days pasted. Pushing his employees with strict offenses, Ford accomplished what the others in the industry could not, finding a way to build a reliable automobile quickly and inexpensively. However, he theoretically turned people into machine parts to complete the task.

In 1896, Ford constructed his first model for a horseless carriage, the Ford Quadricycle. After attending a meeting with executives and proposing automobile ideas, Thomas Edison encouraged to build another model. Seven years later, after continuing to strive for improvement, Ford established the Ford Motor Company and his first car was assembled. Back then, only two or three cars were produced in one day, and it took the effort of groups of men. Ford wanted a more efficient production assembly, and that was when the Model T was born. Ford created the system of paying workers a steady wage to guarantee their loyalty, and moving assembly lines for mass production, which included interchangeable parts. This idea of efficiency revolutionized the American

Ford impacted todays life from what he did back in his prime by, his technological development and U.S. infrastructure. Ford became renowned for his revolutionary vision: the manufacture of an inexpensive automobile made by skilled workers who earn steady wages. In 1914, he sponsored the development of the moving assembly line technique of mass production. Simultaneously, he introduced the $5-per-day wage as a method of keeping the best workers loyal to his company. Simple to drive and cheap to repair, half of all cars in America in 1918 were Model T's.

Out of all the new industries, the automobile was an essential one. It was the development that changed American lives in the 20th century the most. Henry Ford was the person who revolutionised the large-scale manufacturing of vehicles. He utilised the assembly line idea for automobile production. The critically acclaimed assembly line allowed for manufacturing companies to create the extra product to sell, one of these products was your everyday automobiles. The model T Ford was the most well-known car at the time with more than fifteen million being sold across the country by 1927. It was the first car to be

Because of the high rate at which an assembly line can produce goods, it helps the companies with them gain more control over the economy over the nation and drive out businesses that cannot afford an assembly line. Before the assembly line was introduced, each Model T cost about $850, but after the assembly line, it cost less than $300 (6 - 9). Henry Ford had always envisioned a car that could be bought by the average family (9 - 12). He wanted to become rich and knew that aiming to have every American as a potential consumer was the best way to do so (11). When his prices fell by that much, it opened the market to many more people, so the demand for a lower price car went up, and Ford was able to sell over 850,000 Model T cars in under

From a young age, Henry Ford had profound interest in mechanics and was fascinated by the way devices were made and how they function. Through Ford’s innovative intellect, he was able to develop a revolutionary mass production system that created the American consumer principle and the middle class. Additionally, through his advancement of the Model T, he supplied the nation with a newer, more efficient way of transportation that created mass mobility and transformed large-scale manufacturing. Ford, an American innovator, was responsible for the development of the automobile as well as the assembly line. Prior to the Model T, the nation was confined by the restraints of not being able to easily travel long distances because their only option was by foot or horse.

In 1913, Henry Ford launched the first moving assembly for the mass of a production of the automobile. This new technique decreased the amount of time it took to build a car from 12 hours to two and a half, which in turn lowered the cost of the Model T from $850 in 1908 to $310 by 1926 for a much-improved model. In 1914, Ford introduced the $5 wages for an eight-hour workday $110 in 2011, more than double what workers were previously making on average, as a conclusion of keeping the good workers loyal to his company. More than for his profits, Ford became renowned for his best vision the manufacture of a poor automobile made by skilled workers who earn steady wages.

Another important factor that contributed to the labor surplus in Ford, as in the US auto industry, is the fact that before, the unions kept a lot of auto workers happy and contented in their work environment for decades. Some Ford analysts blame those "legacy costs" (e.g. retiree health care and pensions) for adding to Ford’s troubles. When the economy was booming, the unions coddled the workers, while the Big Three reveled in their seemingly immovable positions.

Ford was created in 1903 by Henry Ford in Detroit, MI. He quickly revolutionize the development of the automobile as a product and he also was the visionary behind the assembly line for mass production, and in turn made it possible for automobiles to become more affordable for the average household. Ford had a strong belief in his mission statement, which defines the kind of actions that are needed to fulfill organizational goal. However, Ford also had a vision statement that helped drive its global organization to reach its higher performance levels. Both areas assist in the overall foundation that Ford’s strong beliefs stand on. Both mission and vision statement are factors that solidify the success and strategic direction in the automotive industry.

Ford Motor Company is an American automobile manufacturer founded and headquartered in Dearborn, Michigan but incorporated in the state of Delaware. The company was started by Henry Ford in 1903 and is historically famous for the creation and implementation of the assembly line in manufacturing processes. Ford’s mission is to produce and sell automobiles – cars, trucks, SUVs, etc – from the ones initially designed and engineered by Henry Ford all the way through the newer versions created in the last few years. (Profitable Growth for All, 2012)

During the 2007-2008 economic recession, one of the most impacted industries was the automobile industry. The Big Three – General Motors, Ford, and Chrysler were financially struggling to survive in the market. At this time, the Federal government worked closely with the Big Three in providing $17.4 billion worth of loans to cover operational costs for the companies. One major rival from the pack that withdrew the loan from the government was Ford Motor Company. Although Ford sales had been decreasing 20% from 2007-2008, Ford had prepared themselves in advance in 2006 by accepting an agreement with the United Automobile Workers. This agreement was incorporated to use company stock in order to finance half of its new retiree health care trust. During this time, Ford was led by President and Chief Executive Officer, Alan Mulally. Mulally was hired by the Executive Chairman of the company’s Board of Directors, William Clay Ford Jr., on September 5, 2006. Immediately after being hired, Mulally began business changes internally and externally by making tough decisions that strengthened the company. Changes such as remaking the product lines, accumulating a sufficient amount of capital from U.S. banks, and recreating a brand image as a result of producing the Drive One campaign. All these changes impacted the company from top to bottom by increasing profitability and increasing employee morale making Ford Motor Company the victor of the Big Three.