Ford and the Birth of the Model T

Summary

This is an excerpt from my forthcoming book, The Origins of Efficiency, out September 23rd.Ford’s status as a large-volume car producer began with the predecessor to the Model T: the Model N, a four-cylinder, two-seater car initially priced at $500. At the time, the average car in the US cost more than $2,000, and it seemed nearly unimaginable that a car with the capabilities of the Model N could cost so little. In 1906, the year the Model N was introduced, Ford sold 8,500 of them, making the automaker bigger than the next two biggest car producers, Cadillac and Rambler, combined.To produce such a huge volume of cars, Ford began to use many of the production methods it would develop more fully with the Model T. Many of the Model N’s parts were made of vanadium steel, a strong, lightweight, durable steel alloy. Vanadium steel allowed for a lighter car (the Model N weighed only 1,050 pounds), and was “machined readily.” This was important because Ford also made increasing use of advanced machine tools that allowed it to produce highly accurate interchangeable parts. In 1906, Ford advertised that it was “making 40,000 cylinders, 10,000 engines, 40,000 wheels, 20,000 axles, 10,000 bodies, 10,000 of every part that goes into the car…all exactly alike.” Only by producing interchangeable parts, Ford determined, could the company achieve high production volumes and low prices. Furthermore, Ford’s machine tools were arranged in order of assembly operations rather than by type, allowing parts to move from machine to machine with minimal handling and travel distance. It also made extensive use of production aids such as jigs, fixtures, and templates. These “farmer tools”—so called because they supposedly made it possible for unskilled farmers to do machining work—greatly simplified Ford’s machining operations.The Model N was so popular that demand exceeded capacity, which allowed Ford to plan production far in advance. This meant Ford could purchase parts and materials in larg...