Henry Ford & Ford Motor Co.


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Henry Ford & Ford Motor Co.

  1. 1. Henry Ford’s Life• Henry Ford was the American founder of the Ford Motor Company and father of modern assembly lines used in mass production. As owner of the Company he became one of the richest and best-known people in the world.• Born on July 28, 1863.Green field Township, Dearborn, Michigan, U.S.• At fifteen, Ford dismantled and reassembled the timepieces of friends and neighbours dozens of times, gaining the reputation of a watch repairman.• Ford married Clara Ala Bryant in 1888 and had one son Edsel Bryant.• He had developed 26-HP automobile and Detroit automobile company became Henry Ford Company• Ford developed 80+HP racer called as “999” and form partnership Ford and Malconson.ltd• Awarded 161 U.S. Patents• He worked as an apprentice mechanic• Idol was Thomas Edison
  2. 2. Quadricycle (1896) In 1891, Ford became an engineer with the Edison Illuminating Company, and after his promotion to Chief Engineer in 1893, he had enough time and money to devote attention to his personal experiments on gasoline engines. These experiments culminated in 1896 with the completion of his own self-propelled vehicle named the Ford Quadricycle, which he test-drove on June 4. He named it as “Ford Quadricycle” as it ran on four cycle wheels . It was also called as Horseless carriage Quadricycle runs at a maximum speed of 20 miles per hour. It was a very crude and simple machine that only had a two person seating capacity.
  3. 3. Model- T• Henry Ford set out to build a car which everyone could afford to buy.• It was slow, ugly and difficult to drive, and was nick named the ‘Tin Lizzie’ by the American people.• The attraction of the Model T Ford was that its price never increased.• Costing $1200 in 1909, the price in 1928 was only $295.• By 1929 Ford was producing more than one car per minute.• Ford had a good network of dealers all over as a result sale of the cars sky rocketed.
  4. 4. Model- A After the decline of model A due to rising competition. Henry ford was convinced to make a new model. He involved great technical expertise. Body design was left to his son , Edsel. The result was the successful Ford Model A. Total output of model-A was more than 4 million. Henry Ford Company adopted an annual model change system, similar to competitor (General Motors).
  5. 5. • Minimum salary of 5$ per workday• Reduced workday from 9 to 8 hours• Workers could work in 3 shifts, which increased production• Workers became customers due to increased wages• Influenced behavior as 5$ would be paid only to those who behaved well
  6. 6. Labour UnionsHenry Ford Vehemently opposed labour unions.Hired former Navy Boxer to intimidate workersGave into the demand in 1941 and thus,The United Auto Workers Union was created
  7. 7. International businessBelieved in economic independence for the united statesWanted to go global with the companyBelieved that international trade would promote global peace.Inference: Because of his economic and conceptual independence, he aroused fear and infatuation among the Europeans, specially the GermansAppealed to the Americans because he potrayed the essence of AmericanismCould have created an idol image for his workers.
  8. 8. Ford Motor Company• Founded June 17, 1903• Founded in Dearborn, Michigan• Was Henry Ford’s third company• Current President/CEO is Alan Mulally• Current Chairman is William Clay Ford, Jr.,Henry Ford’s great-grandson• In 2007, sold 2.4 million cars• Started making the Model T in 1908• First moving assembly line was at HighlandPark Assembly Plant (1913)
  9. 9. ASSEMBLY LINEBasic principle: the work moves and the workers stay putIt is based on division of labor and specialization: many people work on a product and each person does a small task at a stationFirst moving assembly line at Ford Motor Co. produced magneto coils. Later, entire vehicles were assembled at Highland Park plant, beginning in 1910
  10. 10. ASSEMBLY LINEMoving assembly line was so efficient that Ford could only use one type of paint (one that would dry fast enough), which was in blackThough it had 1,500 parts, one Model T could be assembled every three minutesMade it possible for Ford to make lots of cars much more cheaply
  11. 11. Great Depression• During the great depression, Ford responded to the collapse in motor sales by reducing the scale of their operations and laying off workers.• Ford Hunger March: On March 7, 1932 some 3,000 - 5,000 unemployed workers assembled in West Detroit to march on Fords River Rouge plant to deliver a petition demanding more support
  12. 12. Mass ProductionFord was able to sell cars cheaply because they were mass produced and every part was standardized (only one color and one engine size were available).By producing large number of cars on an Assembly Line, Ford needed fewer skilled people and that cut the cost of paying wages. Assembly Lines :Each man and each machine do only one thing... the thing is to keep everything in motion and take the work to the man not the man to the work’
  13. 13. Highland Park Ford PlantLocation – Highland Park, MichiganThe Moving Assembly line – Debuted hereBecame a National Historic Landmark in 1978Produced 1000 model T’s a day
  14. 14. FordismModern economic & social system based on industrial mass production.Was first introduced by Antonio Gramsci in his essay "Americanism and Fordism“Product is standardizedDivision of laborMass production, cheaper cost, higher wages
  15. 15. Founded in – 1915Henry Ford had a vision to provide patients the quality care and comfort we expect for our families and ourselves.Vast chain of hospitals & medical centers.Known for clinical excellence in cardiovascular surgery, neurosurgery, multi-organ transplants and cancer treatment
  16. 16. LeadershipHenry ford was a charismatic leader shown by his popularity by his workers and the public for producing a car affordable to all.He was a transformational leader. The four important components that are needed for a transformational leader to move there followers in a transformational style are :Idealized influence or CredibilityInspired motivationIntellectual stimulationIndividualized consideration
  17. 17. Idealized Influence or Credibility He had the credibility in knowing his stuffabout the automobile and that his lifelongdream or vision had been to not only inventsuch a machine but to invent it in suchnumbers that it would be readily available andaffordable to the public. He was quoted saying“for every dollar I reduce the price I sell a 1,000more”. Ford had the perception of being greatand thus others wanted to join him, be theyworkers, investors or even famous people likemovie stars and royalty.
  18. 18. Inspired motivationFord was very motivating towards his workers, suchmotivation could be in the way of reward, orconditions. Henry Ford introduced minimum wage atthe factory of $5 per day when the actual average forthe industry was $2.34, he also introduced an eighthour day instead of nine. Such actions weremotivating factors in progressing towards Ford’sdream.
  19. 19. Intellectual stimulation Fords Intellectual stimulation again was thedream, his way of thinking however was purelytransformational, by introducing the movingassembly line, and thinking of minimum stocklevels and minimizing wastage. One particularaction was to get his steering wheelstransported to him in wooden freight boxes,because he claimed they were arrivingdamaged, the real reason was he then used thepackaging for the wooden floors of hiscarriage.
  20. 20. Individualized consideration Henry Fords consideration of individuals Isuppose was there in the reasons stated before inthat he looked after his staff as a whole, howeverFord did have a dark side to him when it came tohis own self opinions.
  21. 21. Honours• In 1928, Ford was awarded the Franklin Institutes Elliott Cresson Medal.• In 1938, Ford was awarded Nazi Germanys Grand Cross of the German Eagle, a medal given to foreigners sympathetic to Nazism.• The United States Postal Service honored Ford with a Prominent American Series (1965–1978) 12¢ postage stamp.• In December 1999, Ford was among 18 included in Gallup’s List of Widely Admired People of the 20th Century, from a poll conducted of the American people.
  22. 22. Some of Henry Ford quotes• “When everything seems to be going against you, remember that the airplane takes off against the wind, not with it,”• “Quality means doing it right when no one is looking.”• “Obstacles are those frightful things you see when you take your eyes off your goal.”• “Failure is simply the opportunity to begin again, this time more intelligently.”• “A business that makes nothing but money is a poor business.”• “Chop your own wood, and it will warm you twice.”• “Nothing is particularly hard if you divide it into small jobs.”• “There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.”• “Dont find fault, find a remedy.”
  23. 23. Some Amazing QuotesObstacles are those frightful things you see when you take your eyes off your goals.Dont find fault, find a remedy; anybody can complainWhen everything seem to be going against you, remember that the airplane takes off against the wind, not with it ....Even a mistake may turn out to be the one thing necessary to a worthwhile achievementIt has been my observation that most people get ahead during the time that others waste.
  24. 24. Achievements