Why ford is succeeding

His solution? The moving assembly line. Ford reasoned that if each worker remained in one assigned place and performed one specific task, they could build automobiles more quickly and efficiently. To test his theory, in August , he dragged a chassis by rope and windlass across the floor of his Highland Park plant-and modern mass production was born.

At peak efficiency, the old system had spit out a finished Model T in 12 and a half working hours. The new system cut that time by more than half. Ford refined and perfected the system, and within a year it took just 93 minutes to make a car. Because of the more efficient production, Ford was able to cut hundreds of dollars off the price of his car. Cutting the price enabled Ford to achieve his two aims in life-to bring the pleasures of the automobile to as many people as possible, and to provide a large number of high-paying jobs.

But there was one problem Ford hadn't foreseen. Doing the same task hour after hour, day after day quickly burned out his work force. The turnover rate became such a problem that the company had to hire close to 1, workers for every jobs it hoped to fill.

Workers flocked to Ford's gates. His labor problems solved, Ford turned his attention to another matter-the issue of who really controlled Ford Motor Co. Believing they were parasites who continually interfered with his plans, Ford bought out all his stockholders in Free to lead the company as he chose, Ford explored a number of different ventures. In addition to building tractors and single-passenger planes, Ford also operated an early mail route and the first regularly scheduled passenger flights.

Undoubtedly the grandest of Ford's ventures was The Rouge-a factory that was in itself one giant machine. Built on the Rouge River, the 1,acre plant was the largest industry complex of its time. Throughout the s, workers at The Rouge pumped out hundreds of thousands of Model T's, but the marketplace was changing and Ford began to fall behind the times. Ford had met its first serious competitor-Chevrolet. While Ford had dedicated the past 20 years to producing only one model, Chevrolet had developed a counterstrategy of releasing a new, improved model every year.

The counterstrategy worked, and Chevrolet soon surpassed Ford in sales. Chevrolet's success proved that people wanted style, not just utility. In this new era, Ford's "Tin Lizzie" was hopelessly outdated. A change was needed, but it wouldn't come without cost. In May , Ford laid off thousands of workers while he figured out a way to get back into the marketplace. At the age of 64 he was starting over.

With the release of a brand new Model A, Ford came roaring back to life. When the stock market crashed in October , Ford Motor Co. Thanks to the success of the new Model A, the company rode out the first two years of the Depression relatively untouched. Henry Ford even raised his workers' wages while dropping the price of his automobile.

But he could only hold out for so long. In , the Depression caught up with Ford. After three years on the market, Model A sales fell dramatically. Chevrolet, with its new six-cylinder engine, and a new model from Plymouth cut into Ford's market share.

Once again Ford was forced to shut down production and send workers home. What brought the workers back was yet another of Henry Ford's inspirations-the Ford V This innovative eight-cylinder engine put Ford back on top. But those who went back to work for Ford found that working conditions had changed. The young, humanistic idealist had become a hardened industrialist who believed the average worker wouldn't do a day's work unless he or she was trapped and couldn't get out of it.

Its overall market share was 4. Read More Ford retains world's top selling car with Focus. As China's auto market matures, mainland buyers have become increasingly discerning, says Mulally. Mulally says Ford is aiming to bring "affordably luxury" to mainland buyers with the introduction of its premium Lincoln brand. The automaker plans to open eight Lincoln retail outlets in seven Chinese cities including Beijing and Shanghai starting in October. Through interchangeable parts, standard manufacturing, and a division labor, the demand greatly increased for the Model T.

It was at this time in that Ford introduced the assembly line and forever changed our economy, our industry, and our culture. He applied this in his Highland Park plant, and cut down production time of one Model T to a fraction on the time. The carefully timed pace of a conveyer belt moving the parts along further speeded the process.

Who created and refined the mass production assembly line? He has created the first affordable vehicle and his company is still in business today.

He established the first of the production plants in Detroit, Michigan. The Ford Motor Company is the fifth largest auto maker. Ford wanted to produce cars for the masses making it so that everyone could afford a Ford car.

By this time Ford had greatly improved the morale of his workers and his customer base had also grown. The production of his assembly line was producing a high amount of vehicles at reasonable prices.

It soon spread to other manufacturing companies all over the country changing how things were produced from then on. Open Document. Essay Sample Check Writing Quality. DAC was much more. Henry Ford did not let any of the cars to go into production unless he was sure that the process was perfect. Investors lost confidence him and competition took over. Henry Ford recalled this period as one driven by profit rather than innovation.

This moulded his mind to strive for innovative production processes, rather than just seeing from a financial perspective DAC folded in It also expanded in a huge scale and became one of the most profitable companies of the world. The key to success was a strategy known as Vertical Integration. Ford eliminated the bottlenecks created by the inconsistency of the suppliers by introducing in-house production. Though Ford has grown by leaps and bounds, it primarily still remains a family owned company with 40 percent of the voting rights still resting with the Ford family.

Ford revolutionized the industry by making the gasoline powered automobile affordable for the middle class in