Total Cost Minimization On May 25, 1927, The Ford model T ended production. Its successor the Ford Model A was then conceptualized and brought into production. As soon as it was released into the market a lot of problems arose which led to its failure. From production issues at the assembly plant, to the increase of stronger competition and the start of World War Two, The Model A was doomed from the start and it would not be long until Henry Ford himself would notice it.
When Henry Ford first introduced the assembly line method in 1910 for the Ford Model T; it increased productivity rapidly. All aspects of the car were being constructed using this method. Instead of people constantly moving to add parts to the car, Henry Ford decided it would …show more content…
From the start, a lot of problems arose. Since all the parts were new, employees had issues with assembling the car. Parts such as frame and brakes caused a lot of problems during production and caused the assembly line to slow down. Due to all of this renovation and training, it cost Henry Ford a quarter of a billion dollars which lead to a tremendous loss when the car was first being built. This attempt to minimize cost and increase profit came with a big price to pay. One thing Henry Ford did not consider was the competition he would have to deal with when the first Model A’s were rolling out of the production lines (Modern Marvels). Since the Model T the one company that Ford always had to compete with was General Motors. The main reason why General Motors was able to become more successful then Ford was variety. During the production time of the Ford Model T, the one issue it has was customization. The only color available for the Model T was black and lack of personalization options drove customers away. People wanted to stand out and that’s when General Motor decided to offer more color options and …show more content…
On that day it was officially announced that the Allies were going to fight the Axis and prevent them from spreading their hateful messages across the world (World War II). Car Companies such as Ford realized that in order to stay in business during the war, they have to change their production lines and start producing military equipment rather than the Model A. By 1941 their biggest customer was the US military (Modern Marvels). Ford changed their plants completely to focus on just making on war aid vehicles and many other types of military vehicles. Ford built everything from ambulances, police cars, airplanes, jeeps and many other things. Henry’s Ford decision to start producing military personal vehicles lead to them making much more money than they did making the Model A. They were able to reduce the costs required to produce these military vehicles and make a higher profit. At the end of the war, Ford was the first company to start producing cars again. In 1946 produced the Super DeLuxe Tudor (1941-1948 Ford Super DeLuxe). This post-war model was very successful for Ford. This model allowed them to pass General Motors in market share because while Ford was producing cars the competition was still struggling to start building civilian cars. Ford’s method of cost minimization allowed them to build military vehicles and post-war vehicles at such a fast paced rate, that they became ahead of the
When Henry Ford first introduced the assembly line method in 1910 for the Ford Model T; it increased productivity rapidly. All aspects of the car were being constructed using this method. Instead of people constantly moving to add parts to the car, Henry Ford decided it would …show more content…
From the start, a lot of problems arose. Since all the parts were new, employees had issues with assembling the car. Parts such as frame and brakes caused a lot of problems during production and caused the assembly line to slow down. Due to all of this renovation and training, it cost Henry Ford a quarter of a billion dollars which lead to a tremendous loss when the car was first being built. This attempt to minimize cost and increase profit came with a big price to pay. One thing Henry Ford did not consider was the competition he would have to deal with when the first Model A’s were rolling out of the production lines (Modern Marvels). Since the Model T the one company that Ford always had to compete with was General Motors. The main reason why General Motors was able to become more successful then Ford was variety. During the production time of the Ford Model T, the one issue it has was customization. The only color available for the Model T was black and lack of personalization options drove customers away. People wanted to stand out and that’s when General Motor decided to offer more color options and …show more content…
On that day it was officially announced that the Allies were going to fight the Axis and prevent them from spreading their hateful messages across the world (World War II). Car Companies such as Ford realized that in order to stay in business during the war, they have to change their production lines and start producing military equipment rather than the Model A. By 1941 their biggest customer was the US military (Modern Marvels). Ford changed their plants completely to focus on just making on war aid vehicles and many other types of military vehicles. Ford built everything from ambulances, police cars, airplanes, jeeps and many other things. Henry’s Ford decision to start producing military personal vehicles lead to them making much more money than they did making the Model A. They were able to reduce the costs required to produce these military vehicles and make a higher profit. At the end of the war, Ford was the first company to start producing cars again. In 1946 produced the Super DeLuxe Tudor (1941-1948 Ford Super DeLuxe). This post-war model was very successful for Ford. This model allowed them to pass General Motors in market share because while Ford was producing cars the competition was still struggling to start building civilian cars. Ford’s method of cost minimization allowed them to build military vehicles and post-war vehicles at such a fast paced rate, that they became ahead of the