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Question: if you are talking about the henry ford’s assembly line innovation, you are talking about what?

is it engineering, business, technology, what is it?? plz hurry up….

Answer: We are talking engineering + mechanization + technology = MASS PRODUCTION.

Henry Ford’s Model T was the very first mass produced product in the world on any great scale. Ford sold over 15 million Model Ts from 1908 to 1927. There would have been no way for Ford to produce this great number of Ts without mass production.

For a little more info, read on……

MASS PRODUCTION and VOLUME SALES

Ford ‘put America on on wheels’ by making a car, the Model T (from 1908-1927) that was ‘affordable to the masses.’

MASS PRODUCTION –

While many people believe Henry Ford invented the assembly line, that honor goes to Ransom Olds who produced the Oldsmobile. Olds’ assembly line was quite primitive though and very much a manual operation.. What Henry Ford did was take Ransom’s idea and so greatly improved it by mechanizing it and subsequently optimizing it, a Model T when first introduced in 1908 cost $950 but ended up costing less than $300 in the 1920s due to vast improvements in the assembly line, i.e., mass production. In 1927, the last model year of the Model T, the cars came off the assembly line at a rate of one car every 24 seconds.

VOLUME SALES = HANDSOME PROFITS:

“In October 1908, the first Model T Fords were sold for $950. As Henry Ford found new ways to reduce production costs, he passed the savings on to consumers as lower prices. By 1912, the car was selling for $575. It was the first time that a new car had sold for less than the average wage of U.S. workers. The price of the Model T would continue to drop during its 19 years in production, at one point dipping as low as $280. With each price cut, more and more consumers could afford to buy the cars.

This reduction in price meant that Ford’s profit margins (on each Model T) decreased but its revenues increased. How was that possible? In 1909 the profit on a car was $220. By 1914, the margin had dropped to $99. But sales were exploding. While profit margins on individual cars were smaller, the added sales volume increased total profits. During this period, the company’s net income rose from $3 million to $25 million. Its U.S. market share rose from 9.4 percent in 1908 to a remarkable 48 percent in 1914.”

http://www.econedlink.org/lessons/index.php?lesson=692&page=teacher

Today, the average price of a new car is $23,543. Prior to the introduction of the Model T Ford, the average price for a new car in 1908, adjusted for inflation was $43,950. The Model T, however, cost $950 new in 1908, which is almost $20,000 in today’s dollars. However, due to constant improvements in and optimization of Ford’s assembly line, the Model T’s cost declined through the years until it cost less than $300 in the 1920s. $300 in 1927, adjusted for inflation, would be approximately $3,800 in today’s dollars.

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Henry Ford, Model T, and the Assembly Line