The importance of Henry Ford in the evolution of modern business practice

Seminararbeit , 2006 , 6 Seiten , Note: 1,3

BWL - Industriebetriebslehre

Henry Ford is routinely lauded as “the creator of mass production and (…) the production line”, being responsible for the “wonders of the industrial world and the first great management wonder of the twentieth century” (Crainer 2000, p.21).
Fordism, deriving from the concept of Scientific Management by Frederick Winslow Taylor describes a form of economic process based on the idea of a production line with a complex division of labour (Crainer 2000, p.24; Taylor, 1911).
However, Henry Ford was not the first person to produce with an assembly line. Already half a century before him, the assembly line method was introduced in a slaughterhouse in Cincinnati. Likewise, Henry Ford was not the first person to consider the creation and service of a mass market by using market-driven standardized products, special purpose equipment and a sophisticated wage system (Crainer 2000, pp.21-26).
Henry Ford was, however, the first to synchronize these concepts and utilize them to introduce innovations in product, process and organization, making Fordism a revolutionary concept for the twentieth century (Shimokawa et al. 1997, p.20; Bankston 2004, p.9). Now as we begin the twenty-first century, it becomes clear that business practice has been significantly changed, putting great emphasis on concepts such as supply chain management and the automation of production processes through computer aided concepts such as computer aided design (CAD) and manufacturing (CAM). This essay, by focusing on major concepts of present business practice, will critically analyse the importance of Henry Ford for this evolution. In order to establish an all-inclusive evaluation, it is necessary to analyse the main principles and innovations of Fordism separately and determine the implications each has for modern business practice.

Table of Contents

• Henry Ford as an important figure of the twentieth century
• The factors of Henry Ford's Mass Production Process
  • The standardization of the product
  • The use of special-purpose equipment
  • The elimination of skilled labour in direct production
• Henry Ford's management practice
• The enduring importance of Fordism

Objectives and Key Themes

This essay critically analyzes the importance of Henry Ford for the evolution of modern business practice. It examines the main principles and innovations of Fordism and their implications for contemporary business practices, including supply chain management and automation.

• The impact of Fordism on modern business practices
• The evolution of mass production and its key principles
• The role of technology and automation in modern production
• The influence of Ford's management practices on contemporary organizations
• The enduring legacy of Fordism in the 21st century

Chapter Summaries

• This chapter introduces Henry Ford as a significant figure in the 20th century, attributing his innovations to the development of mass production and the assembly line. It establishes the context for the essay by highlighting the evolution of business practices from Fordism to contemporary approaches.
• This chapter focuses on the core principles of Henry Ford's mass production process, examining the standardization of the product, the use of special-purpose equipment, and the elimination of skilled labor in direct production. The chapter explores the implications of these principles for modern business practices, including the evolution of vertical integration and the impact of assembly lines on contemporary manufacturing.
• This chapter delves into Henry Ford's management practices, particularly his introduction of the five-dollar daily wage. It contrasts Ford's hierarchical management style with contemporary approaches that emphasize flexible work systems and employee empowerment.

Keywords

The essay explores key concepts related to Fordism, mass production, assembly lines, vertical integration, management practices, and the evolution of modern business practices. The discussion focuses on the impact of Fordism on contemporary industries, including the use of supply chain management, automation, and flexible work systems.

• Hochschule: University of Limerick
• Veranstaltung: Business and Society
• Note: 1,3
• Autor: Sebastian Mueller (Autor:in)
• Erscheinungsjahr: 2006
• Seiten: 6
• Katalognummer: V87093
• ISBN (eBook): 9783638069373
• Sprache: Englisch
• Schlagworte: Henry, Ford, Business, Society