Henry Ford at Highland Park and Toyota during the 1980s and 1990s - Essay Example

Henry Ford at Highland Park and Toyota during the 1980s and 1990s Introduction Ford and Toyota Companies are some of the leading automakers in the world today. Their success stories date back to 1980. Today the two brands can be seen in almost every city in the world. The success of these companies is attributed to the fact that they have been credited for manufacturing quality and affordable cars. However, the production methods used by Henry Ford, the founder of the Ford at Highland Park and Toyota during the 1980s and 1990s is said to have created superior productivity never witnessed before. This paper will describe the methods used by Ford at Highland Park and Toyota during 1980s and 1990s to improve productivity. Methods used by Henry Ford at Highland Park to improve productivity The Ford plant at Highland Park is thought to have been the main automaker that transformed the lives of a majority of American people in the 20th century. It is at the Highland Park that Henry Ford with the assistance of his engineers formulated the modern principle of mass production. An example being the endlessly moving assembly line, introduced in 1913 thereby reducing the assembling time of the Model T to 93 minutes down from 728 minutes. It is noted that the companies continued to grow very fast to the extent that the plant was able to produce a vehicle every minute. The high production led to a scenario in which one in every two cars in the streets all over the world was a Model T (Batchelor 1994, P.22-24). The increase in the production of the Model T by Henry Ford was attributed to two main principles, namely division of labor and specialization on the assembly line, and the company’s investment in capital. Therefore, in order to improve productivity of Model T, Ford felt that it was necessary to divide his workers and team of engineers in accordance with their areas of specialization in the assembly line. This meant that every employee was to be assigned a duty that he or she can do best. The strategy was well received by the employees creating high motivation and working spirit. The diffusion of labor and specialization increased efficiency thereby increasing the production level, which led to the production of several cars on a daily basis (OHearn 2006, P.16-19). With regard to investment in capital as a way of improving productivity, Ford Motor Company built one of Michigan’s largest buildings under one roof known as the Highland Park Plant in 1903. The building was spacious and large thereby allowing for effective arrangement of machineries. The building also had massive windows to enhance natural lights and ventilation. It is also reported that the walls of the building were 75% made of glass with skylights also made available. The nature of the building allows for efficiency in the operation of machines and other tasks thereby leading to improved productivity (Batchelor 1994, P.22-24). Ford Motors also used vertical integration strategy as a way of improving the production of the Model T. To ensure that this became a reality, Ford acquired a Brazilian rubber plantation, large chunks of timberland and iron-ores in Minnesota and Michigan, coalmines, ships, and railroads. The acquisitions ensured that Ford do not fall short of materials and parts during the manufacturing and assembling thereby guaranteeing the continuity of the operation. Since materials and parts were readily available at any time they were needed, this improved the production of cars manufactured by the company (Brooke 2008, p.68-70). To improve productivity, Henry Ford also created a single-purpose tools and machines at different steps in the manufacturing processes. This was done by using electricity to run the machines used for manufacturing his Model T. The use of electricity did improve the efficiency compared to other methods such as the human operations, which had proved less efficient. In addition, Ford Motors ensured that the building was well-illuminated using electric lights thereby making operation possible both night and day in shifts. The fact that work could be done for period of 24 hours on with workers shifting three times both day and night ensured that as many cars as possible were produced in a day (OHearn 2006, P.19-23). The productivity of Model T was also improved by building a conveyor belt to transport chassis from one point to another. This ensured that workers do not move their feet from their working stations thereby reducing time wastage. For instance, Ford introduced rollways, work slides, elevators, and trolleys that made this possible (Brooke 2008, p.70-71). The company also invested heavily on human capital as a way of improving productivity. Henry Ford noticed that in order for its employees to work effectively, they must be of good head, have enough education and training. For instance, it is reported that, at the time, there were some immigrants that worked at the Highland Park many of whom were illiterate and could not write, read and speak English. However, from the safety point of view and the requirement of the work, employees needed to have good knowledge of English. Therefore, Ford Motors built a school where its employees could be taught English and safety issues and how they can improve their productivity on the job. In addition, Ford also established a hospital, which provided quality and affordable health care to employees and management. These changes are said to have seen production double within the first three years of existence of Highland Park Plant. For instance, the production increased to 34,500 cars in 1911 up from 19,000 in 1910. The number of cars also increased significantly in 1912 seeing more than 78,440 cars manufactured (OHearn 2006, P.23-26). Moreover, Ford also improved its production by enhancing the productivity of its workforce. To do this, it introduced an incentive scheme, by raising the worker’s pay by $5 per day, which motivated workers to work harder thereby improving the company’s productivity. For instance, in about 13,000 Ford workers now managed to manufacture 260,720 cars in 1914, which was higher compared to rest of the automaker industry at the time where only 286,770 cars took 66,350 employees to make. The high rate of production of cars by the motivated workers also saw the company’s profits improve by double digit to $60 million up from $30 million. It is reported that in 1914 after the introduction of the incentive, vehicle at Highland Park were rolled at the rate one car in every 93 minutes, while in 1920, the rate improved to one car in per minute (Brooke 2008, p.71-76). Strategies used by Toyota Motor Company 1980s and 1990s to improve productivity Toyota is a Japanese company and is one of the leading automakers in the world. The company has witnessed tremendous growth since its formation in 20th century. However, like Ford Motors, Toyota’s car production rate in the 1980s and 1990s took many people by surprise and still acts as a benchmark for other automakers that emerged afterwards. The company reportedly used a lean production system, which ensured that there is efficiency and speed in the production processes. The company also ensured that all operations are based on latest technologies such as the use of conveyor belts to move materials and parts from one section to the next in the assembling line. This reduced time wastage by employees since they were able to get all they needed at their designated places of work thereby improving productivity (Murray 2012). Like Ford Motors, Toyota also invested heavily on its employees by ensuring that its workers are well trained on tasks. This saw the company construct a training ground for engineers and other workers on various tasks so as to improve their efficiency. In addition, the company used division of labor and specialization in assigning tasks thereby ensuring efficiency and productivity (Womack, Jones and Roos 2007, P.86-87). Conclusion Henry Ford strongly believed that everything could be done in a better way that it is being done, which did form the basic principle he applied in making the Model T. However, to improve productivity, he employed the principle of division of labor and specialization, as well as investment in capital. Toyota also used the lean production principle that helped it improve its production of cars. References Batchelor, R. (1994), Henry Ford: Mass production, modernism, and design. Manchester: Manchester University Press. Brooke, L. (2008), Ford Model T: the car that put the world on wheels. Minneapolis, MN: MBI Publishing Company. Murray, M. (2012), Origins and Principles of Lean Manufacturing. http://logistics.about.com/od/tacticalsupplychain/a/lean_manufacturing.htm (Accessed 9 Jan. 2013). OHearn, M. (2006), Henry Ford and the Model T. London: Capstone. Womack, J.P., Jones, D.T., & Roos, R. (2007), The machine that changed the world: the story of lean production-- Toyotas secret weapon in the global car wars that is now revolutionizing world industry. Oxford: Simon and Schuster. Read More