Henry Ford

Ximena Alonso, Regina Amigo, Diego Santiago, Maria Jose Velazquez

 Introduction to
Fordism
(Henry Ford Theory)

Fordism, based on the principles of

Henry Ford, revolutionized modern
industry. It encompasses mass
production, a standardized approach,
and economies of scale to increase
efficiency and affordability.
Mass Production and
Assembly Line
Efficient Production
Briefly elaborate on what you
want to discuss.
Streamlined Processes
The assembly line method facilitated a
precisely timed flow of parts, enabling
faster production and reduced
overhead costs.
impact on labor
This approach significantly
transformed the nature of
work, creating specialized
tasks and increasing
overall productivity.
Standardization

1. Quality Assurance 2. Efficiency Improvement

Standardization ensured consistent Standardized processes reduced errors,
product quality, meeting consumer waste, and variability, leading to more
demands for reliability and uniformity. predictable outcomes and higher efficiency.
 Economies of Scale

Cost Reduction Market Influence

Large-scale production led to substantial cost Increased production volume allowed
advantages, benefiting both manufacturers companies to dominate markets, influencing
and consumers. competition and consumer choices.
 Vertical
integration
Henry Ford's success in revolutionizing the automobile
industry can be attributed to his strategy of vertical
integration, which involved owning and controlling every
step of the production process. This approach allowed him
to minimize disruptions, ensure quality materials, reduce
costs, streamline production, and experiment with
innovation. The River Rouge complex was the ultimate
symbol of Ford's vertical integration, but managing such a
complex network of operations had its challenges and
limited flexibility. Nonetheless, Ford's vision of controlling
the supply chain and optimizing production for maximum
efficiency and profit continues to inspire businesses across
various industries today.
 High Wages for
Workers
In 1914, Ford doubled the daily wage of its assembly line workers
from $2.34 to $5. He also reduced the work day from 9 to 8 hours.
This was a radical move at the time, as the average wage for
manufacturing workers was much lower.
Why he did it:
There are several theories as to why Ford implemented these
changes:
Reduce turnover and absenteeism: High turnover meant constant
training and loss of productivity. Higher wages incentivized workers
to stay and be more reliable.
Increase productivity: Happy, stable workers can be more efficient
and productive.
Create a market for its cars: By paying higher wages, Ford hoped its
workers could afford to buy the cars they produced, boosting sales.
Fordist Production System
Ford's genius lay not just in high wages, but in revolutionizing car production. He
famously said, "If I had asked people what they wanted, they would have said faster
horses." Instead, he gave them what they didn't know they needed: affordable cars.

Mass production through standardization of interchangeable parts, assembly lines,

and automation dramatically reduced costs and production time. The Model T, a
sturdy, reliable car, became a symbol of this newfound affordability.

Fordism implications has transformed manufacturing, boosting efficiency and output

across various industries. Yet, it also raised concerns about repetitive work, worker
alienation, and environmental impact.
 Ford's inventions democratized automobile ownership,
resulting in a massive new consumer base.

Material things have become increasingly important in

determining social status and pleasure. Consumerism

Consumerism
became profoundly embedded in American society, with
long-term consequences for economic growth, resource
consumption, and personal identity.

Debates and criticisms has some applaud Ford's

contribution to prosperity, others point out the
environmental and social implications of unrestrained
consumption and the privatization of life.
References:

Principles of fords’ theory - 2599 words: Essay example. IvyPanda. (n.d.-b).

https://ivypanda.com/essays/fords-theory/
Admin. (2019, June 10). Henry Ford and the roots of Lean Manufacturing. Six Sigma Daily.
https://www.sixsigmadaily.com/henry-ford-lean-manufacturing/
Henry Ford. (n.d.). Principles. Retrieved from https://www.henry-ford.net/english/principles.html

Henry Ford - Visionaries on innovation. The Henry Ford. (n.d.).

https://www.thehenryford.org/explore/stories-of-innovation/visionaries/henry-ford/