4.
03 Henry Ford and the Model T Activity-
A Case Study in Production
This lesson adopted from the National Council on Economic Education:
http://www.econedlink.org/lessons/index.php?lid=865&type=student
INTRODUCTION
People often credit Henry Ford with inventing the automobile and the
assembly line. In fact, he did neither! What Mr. Ford actually did was change the way
manufacturers operate. Henry Ford brought together many innovative ideas that helped
revolutionize mass production. For an introduction to this man and the car that made
him famous, read the following:
Henry Ford: The Innovator
(https://www.thehenryford.org/exhibits/hf/The_Innovator_and_Ford_Motor_
Company.asp)
Ford Model T ( http://www.modelt.ca/background.html)
TASK
In the activities that follow, you will learn more about how Henry Ford ' s production of
the Model T helped to revolutionize the manufacture of automobiles and life as we know
it today. You will be asked to adapt one of his strategies—the moving assembly line—for
the production of bookmarks.
PROCESS
The Early Days of Ford Motor Company and the Model T
When Henry Ford incorporated the Ford Motor Company in 1903, automobiles were
expensive, custom-made machines purchased as a luxury item by the wealthy. Workers
at the Ford factory in Detroit produced just a few cars a day.
Henry Ford's ambition was to make “a motor car for the
great multitude.” He wanted to build a high-quality
automobile that would be affordable to everyday people. He
believed the way to do this was to manufacture one model in
huge quantities.
Ford and his company's engineers designed a car named the
Model T. First offered for sale in 1908, the Model T was
produced like other cars—one vehicle at a time. But the Model T was more sturdy and
powerful than other cars. Considered relatively simple to operate and maintain, the auto
offered no factory options, not even a choice of color. The Model T was also less
expensive than most other cars. At an initial price of $950, 10,000 autos were sold the
first year—more than any other model.
Vanadium Steel. Henry Ford searched the world for the best materials
he could find at the cheapest cost. During a car race in Florida, he
examined the wreckage of a French car and noticed that many of its
parts were made of a metal that was lighter but stronger than what was
being used in American cars. No one in the U.S. knew how to make
this French steel—a vanadium alloy. As part of the preproduction
process for the Model T, Ford imported an expert who helped him
build a steel mill. As a result, the only cars in the world to utilize
vanadium steel in the next five years would be French luxury cars and
the Model T.
The Moving Assembly Line
Like parts for other cars of the time, parts for the Model T
were initially purchased made-to-order from other
businesses. Teams of two or three skilled mechanics in the
factory would gather these parts and put them together at
a workstation, using everyday tools. When parts did not fit
together as needed, workers used files and hammers to
make them fit.
Take a peek at this process on the following video clip
http://amhistory.si.edu/onthemove/exhibition/exhibition_8_6.html.
Henry Ford realized that a more efficient production process was needed to lower the
price and meet increasing consumer demand for his popular new car. He needed to
improve productivity—the amount of goods and services produced from a given amount
of productive resources. Economists refer to goods and services as output. Henry Ford's
output was the Model T. The productive resources used in production—natural
resources, capital resources and human capital—are inputs. Ford's inputs were the steel,
workers, and other resources required to manufacture the car.
Ford looked at other industries and found strategies that he could apply to making the
Model T. Take a look at Interchangeable Parts and the Assembly Line to learn more
about two of the first strategies he adapted.
Using interchangeable parts required making the individual pieces of the car the same
every time. All pieces would fit with all others. Any valve would fit any engine and any
engine would fit any frame. The standardization of parts made it possible to break down
assembly of the Model T into distinct steps. Each worker was trained to do just one step
or a very few steps. Economists refer to this practice as specialization or the division of
labor.
Ransom Olds is the first manufacturer to have used interchangeable
parts and the assembly line in the U.S. auto industry. He used these
ideas in the production of the 1901 Curved Dash Oldsmobile also
referred to as “the runabout”.
In 1913, the Ford Motor Company established the first moving assembly line ever used
for large-scale manufacturing. On a trip to Chicago, Henry Ford observed meat packers
removing cuts of beef from a carcass, as it was passed along by a trolley, until nothing
was left. He was inspired to reverse the process for the production of his automobile.
Parts were attached to a moving Model T chassis in order,
from axles at the beginning to bodies at the end of the
line. As vehicles moved past the workers on the line, each
worker would do one task. Some components took longer
to put together and attach than others. Subassemblies
were established for these. For example, each radiator
with all its hose fittings was put together on a separate
line feeding into the main assembly line. The interval
between delivery of the car and its components was
carefully timed to maintain a continuous flow.
The home for this new production system was the Highland Park Plant near Detroit,
Michigan, which Ford opened in 1910. Assembly wound downward in the factory
starting on the fourth floor where body panels were hammered out. On the third floor
workers placed tires on wheels and painted auto bodies. After the assembly was
completed on the second floor, the autos moved down a ramp past the first-floor offices.
Test your comprehension of this lesson in the following activity.
CONCLUSION
Critical to the success of the Model T was Henry Ford’s ability to increase productivity—
output per unit of input. Specialization and division of labor helped Henry Ford and his
company increase Model T productivity. Assembly line production was more efficient
than having individual workers making complete products. Interchangeable parts made
this new way to organize production feasible.
ASSESSMENT ACTIVITY
In the groups assigned by your teacher, you are going to employ an assembly line to
mass produce bookmarks. For instructions, see Productivity Instruction Sheet
provided.
EXTENSION ACTIVITY
1. Draw the steps in the process for manufacturing a product you use. Label the various
stages in the production process.
2. Volunteer to collate materials or stuff envelopes for a community organization.
Develop a plan to improve task productivity.
