* Assembly Line: Instead of having each worker build a complete car, Ford's assembly line broke down the manufacturing process into a series of smaller, repetitive tasks. Each worker performed a single, specialized step, significantly increasing efficiency and speed. This drastically reduced the time and labor cost of producing a vehicle.
* Standardization of Parts: Ford standardized parts, meaning components were interchangeable between cars. This simplified manufacturing, reduced waste from faulty parts, and allowed for easier repair and replacement. It also made it cheaper to source and produce components.
* Vertical Integration: Ford controlled much of his supply chain, from mining the raw materials to manufacturing the finished product. This allowed him to manage costs more effectively and reduce dependence on outside suppliers who might charge higher prices.
* High Volume Production: The assembly line and standardized parts enabled Ford to produce cars at a much higher volume than ever before. The increased production volume led to economies of scale, driving down the cost per unit.
* Higher Wages (initially): Although later criticized, Ford's initially high wages (a $5 workday) were strategic. It attracted better skilled workers, reduced turnover, and increased worker productivity, contributing to a more efficient and cost-effective production process.
These factors combined to dramatically lower the cost of producing a Ford car, making it accessible to a much wider segment of the population than ever before. The Model T, famously, became the first affordable car for the masses.
