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Case Study Ford

Case study on Ford for management principles and applications

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Mohd Kaif
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51 views1 page

Case Study Ford

Case study on Ford for management principles and applications

Uploaded by

Mohd Kaif
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Founded by Henry Ford in 1903, the Ford Motor Company revolutionized the automobile industry by introducing mass production

technique
which standardized the manufacturing process. Each worker performed a specific task, increasing efficiency and reducing production time.
Ford and his engineers analyzed each step of the manufacturing process to eliminate waste. For example, they studied the movement of
workers and tools, leading to a streamlined workflow that drastically reduced assembly time for the Model T. Ford established a clear
organizational hierarchy. Responsibilities were clearly defined, with distinct roles for management and workers, promoting efficiency and
accountability.Ford scheduled production runs and manage inventory meticulously, he ensured that resources were used efficiently and output
met demand. This approach facilitated the scalability of operations, allowing Ford to grow rapidly.

As a result Ford was able to increase there production of one Model T to 93 minutes, compared to the previous 12 hours, drastically increasing
output. Also by standardizing processes and reducing production time, Ford was able to lower the price of the Model T, making it accessibleto a
broader market.

While the assembly line improved efficiency, it also led to significant worker dissatisfaction. Unlike traditional manufacturing, where workers
crafted parts or assembled cars with some variation, the assembly line required workers to perform the same task repeatedly with little to no
autonomy or creativity. For example, a worker might be assigned solely to tighten bolts or install a specific part, often with a strict time
constraint.The repetitive nature of the assembly line resulted in high turnover rates at Ford's factories. In 1913, the turnover rate was estimated
to be around 370%, as workers left or were unable to endure the constant pressure and physical demands. This high turnover disrupted
production, increased hiring and training costs, and created an unstable workforce.

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