Henry Ford's Model T Case Solution

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Due to the high demand of the Model T, multiple more manufacturing plants had to be opened across the country to accommodate all of their potential customers. Ford’s plants was churning out cars faster than ever. He replaced a large portion of workers with machines. However, the need for minimizing costs became extremely important to manufacturing cars in the automation process. So Ford decided to increase the salary wage from $2.83 per day to $5 per day. He doubled the minimum wage in the hope that his own employees would also become customers of the companies once they were wealthy enough to be able to afford it. In fact, Ford was right in thinking that his employees will buy the Model T as his workers were loyal to his company. He was aware …show more content…
As engineering and business quite often go hand in hand, the tactics Henry Ford has implemented in the development of many different aspects of his company demonstrate how he achieved total cost minimization while maintaining high productivity and high quality of his products. The invention of the assembly line, a milestone in the automotive industry, the invention of Henry ford’s simple and sturdy car- Model T, and increases in the salary wages of workers in the increasing number of manufacturing plants helped Henry Ford garner the ability to minimize all the total costs while still being a very successful and popular businessman/engineer. He laid the foundation for the future generation to continue along this path and discover even better methods to revolutionize automation. There has been such a significant improvement in technology until now and all the credit should be given to Ford’s total minimization of cost theory. Automation has led to a large reduction in the price of the automobiles to the point a person nowadays is completely immobile without it. Although, the minimization of costs caused layoffs of the workers, the minimization of total costs in production still had a huge positive impact in the practice of

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