21 chapters
8 hour read
Selected Chapters
21 chapters
INTRODUCTION
INTRODUCTION
We have only started on our development of our country—we have not as yet, with all our talk of wonderful progress, done more than scratch the surface. The progress has been wonderful enough—but when we compare what we have done with what there is to do, then our past accomplishments are as nothing. When we consider that more power is used merely in ploughing the soil than is used in all the industrial establishments of the country put together, an inkling comes of how much opportunity there is
30 minute read
CHAPTER I
CHAPTER I
On May 31, 1921, the Ford Motor Company turned out Car No. 5,000,000. It is out in my museum along with the gasoline buggy that I began work on thirty years before and which first ran satisfactorily along in the spring of 1893. I was running it when the bobolinks came to Dearborn and they always come on April 2nd. There is all the difference in the world in the appearance of the two vehicles and almost as much difference in construction and materials, but in fundamentals the two are curiously al
18 minute read
CHAPTER II
CHAPTER II
My "gasoline buggy" was the first and for a long time the only automobile in Detroit. It was considered to be something of a nuisance, for it made a racket and it scared horses. Also it blocked traffic. For if I stopped my machine anywhere in town a crowd was around it before I could start up again. If I left it alone even for a minute some inquisitive person always tried to run it. Finally, I had to carry a chain and chain it to a lamp post whenever I left it anywhere. And then there was troubl
22 minute read
CHAPTER III
CHAPTER III
In the little brick shop at 81 Park Place I had ample opportunity to work out the design and some of the methods of manufacture of a new car. Even if it were possible to organize the exact kind of corporation that I wanted—one in which doing the work well and suiting the public would be controlling factors—it became apparent that I never could produce a thoroughly good motor car that might be sold at a low price under the existing cut-and-try manufacturing methods. Everybody knows that it is alw
26 minute read
CHAPTER IV
CHAPTER IV
Now I am not outlining the career of the Ford Motor Company for any personal reason. I am not saying: "Go thou and do likewise." What I am trying to emphasize is that the ordinary way of doing business is not the best way. I am coming to the point of my entire departure from the ordinary methods. From this point dates the extraordinary success of the company. We had been fairly following the custom of the trade. Our automobile was less complex than any other. We had no outside money in the conce
19 minute read
CHAPTER V
CHAPTER V
If a device would save in time just 10 per cent. or increase results 10 per cent., then its absence is always a 10 per cent. tax. If the time of a person is worth fifty cents an hour, a 10 per cent. saving is worth five cents an hour. If the owner of a skyscraper could increase his income 10 per cent., he would willingly pay half the increase just to know how. The reason why he owns a skyscraper is that science has proved that certain materials, used in a given way, can save space and increase r
20 minute read
CHAPTER VI
CHAPTER VI
That which one has to fight hardest against in bringing together a large number of people to do work is excess organization and consequent red tape. To my mind there is no bent of mind more dangerous than that which is sometimes described as the "genius for organization." This usually results in the birth of a great big chart showing, after the fashion of a family tree, how authority ramifies. The tree is heavy with nice round berries, each of which bears the name of a man or of an office. Every
18 minute read
CHAPTER VII
CHAPTER VII
Repetitive labour—the doing of one thing over and over again and always in the same way—is a terrifying prospect to a certain kind of mind. It is terrifying to me. I could not possibly do the same thing day in and day out, but to other minds, perhaps I might say to the majority of minds, repetitive operations hold no terrors. In fact, to some types of mind thought is absolutely appalling. To them the ideal job is one where the creative instinct need not be expressed. The jobs where it is necessa
19 minute read
CHAPTER VIII
CHAPTER VIII
There is nothing to running a business by custom—to saying: "I pay the going rate of wages." The same man would not so easily say: "I have nothing better or cheaper to sell than any one has." No manufacturer in his right mind would contend that buying only the cheapest materials is the way to make certain of manufacturing the best article. Then why do we hear so much talk about the "liquidation of labour" and the benefits that will flow to the country from cutting wages—which means only the cutt
23 minute read
CHAPTER IX
CHAPTER IX
The employer has to live by the year. The workman has to live by the year. But both of them, as a rule, work by the week. They get an order or a job when they can and at the price they can. During what is called a prosperous time, orders and jobs are plentiful. During a "dull" season they are scarce. Business is always either feasting or fasting and is always either "good" or "bad." Although there is never a time when everyone has too much of this world's goods—when everyone is too comfortable o
15 minute read
CHAPTER X
CHAPTER X
No one will deny that if prices are sufficiently low, buyers will always be found, no matter what are supposed to be the business conditions. That is one of the elemental facts of business. Sometimes raw materials will not move, no matter how low the price. We have seen something of that during the last year, but that is because the manufacturers and the distributors were trying to dispose of high-cost stocks before making new engagements. The markets were stagnant, but not "saturated" with good
25 minute read
CHAPTER XI
CHAPTER XI
The primary object of a manufacturing business is to produce, and if that objective is always kept, finance becomes a wholly secondary matter that has largely to do with bookkeeping. My own financial operations have been very simple. I started with the policy of buying and selling for cash, keeping a large fund of cash always on hand, taking full advantage of all discounts, and collecting interest on bank balances. I regard a bank principally as a place in which it is safe and convenient to keep
19 minute read
CHAPTER XII
CHAPTER XII
In December, 1920, business the country over was marking time. More automobile plants were closed than were open and quite a number of those which were closed were completely in the charge of bankers. Rumours of bad financial condition were afloat concerning nearly every industrial company, and I became interested when the reports persisted that the Ford Motor Company not only needed money but could not get it. I have become accustomed to all kinds of rumours about our company—so much so, that n
22 minute read
CHAPTER XIII
CHAPTER XIII
Poverty springs from a number of sources, the more important of which are controllable. So does special privilege. I think it is entirely feasible to abolish both poverty and special privilege—and there can be no question but that their abolition is desirable. Both are unnatural, but it is work, not law, to which we must look for results. By poverty I mean the lack of reasonably sufficient food, housing, and clothing for an individual or a family. There will have to be differences in the grades
16 minute read
CHAPTER XIV
CHAPTER XIV
It is not generally known that our tractor, which we call the "Fordson," was put into production about a year before we had intended, because of the Allies' war-time food emergency, and that all of our early production (aside, of course, from the trial and experimental machines) went directly to England. We sent in all five thousand tractors across the sea in the critical 1917-18 period when the submarines were busiest. Every one of them arrived safely, and officers of the British Government hav
17 minute read
CHAPTER XV
CHAPTER XV
Why should there by any necessity for almsgiving in a civilized community? It is not the charitable mind to which I object. Heaven forbid that we should ever grow cold toward a fellow creature in need. Human sympathy is too fine for the cool, calculating attitude to take its place. One can name very few great advances that did not have human sympathy behind them. It is in order to help people that every notable service is undertaken. The trouble is that we have been using this great, fine motive
23 minute read
CHAPTER XVI
CHAPTER XVI
Nothing in this country furnishes a better example of how a business may be turned from its function of service than do the railroads. We have a railroad problem, and much learned thought and discussion have been devoted to the solution of that problem. Everyone is dissatisfied with the railways. The public is dissatisfied because both the passenger and freight rates are too high. The railroad employees are dissatisfied because they say their wages are too low and their hours too long. The owner
17 minute read
CHAPTER XVII
CHAPTER XVII
No man exceeds Thomas A. Edison in broad vision and understanding. I met him first many years ago when I was with the Detroit Edison Company—probably about 1887 or thereabouts. The electrical men held a convention at Atlantic City, and Edison, as the leader in electrical science, made an address. I was then working on my gasoline engine, and most people, including all of my associates in the electrical company, had taken pains to tell me that time spent on a gasoline engine was time wasted—that
28 minute read
CHAPTER XVIII
CHAPTER XVIII
Perhaps no word is more overworked nowadays than the word "democracy," and those who shout loudest about it, I think, as a rule, want it least. I am always suspicious of men who speak glibly of democracy. I wonder if they want to set up some kind of a despotism or if they want to have somebody do for them what they ought to do for themselves. I am for the kind of democracy that gives to each an equal chance according to his ability. I think if we give more attention to serving our fellows we sha
20 minute read
CHAPTER XIX
CHAPTER XIX
We are—unless I do not read the signs aright—in the midst of a change. It is going on all about us, slowly and scarcely observed, but with a firm surety. We are gradually learning to relate cause and effect. A great deal of that which we call disturbance—a great deal of the upset in what have seemed to be established institutions—is really but the surface indication of something approaching a regeneration. The public point of view is changing, and we really need only a somewhat different point o
14 minute read