* The Moving Assembly Line: This is arguably his most famous contribution. Instead of workers moving around a stationary car, the car moved along a conveyor belt, and workers performed specialized tasks at fixed stations. This dramatically increased efficiency and reduced production time, thus lowering the cost per vehicle.
* Standardization and Interchangeable Parts: Ford used standardized parts, meaning that components were identical and interchangeable. This simplified manufacturing, reduced waste from faulty parts, and made repairs easier and cheaper.
* Vertical Integration: Ford controlled much of his supply chain, from mining the raw materials (like iron ore) to manufacturing the finished product. This minimized reliance on external suppliers and their markups, leading to lower costs.
* High-Volume Production: By focusing on mass production of a single, relatively simple model (the Model T), Ford achieved economies of scale. The higher the volume, the lower the cost per unit.
* Efficient Management and Labor Practices: While controversial due to his treatment of workers initially, Ford's management techniques, including some aspects of scientific management, aimed to maximize efficiency and minimize wasted time and resources. Later, he implemented the $5 workday to improve worker morale and reduce turnover, indirectly contributing to greater efficiency.
* Sophisticated Cost Accounting: Ford implemented advanced accounting systems to track every step of the production process, identifying areas for cost reduction and improvement.
These methods, combined, allowed Ford to dramatically lower the price of his cars, making car ownership a reality for a much larger segment of the population than ever before.
