To all
intents and purposes, strategic analysis for the means to a goal often takes a
system back to the point of introspection and finding the means right within
it.
This story dates back to 1863. He was a
perfectly ordinary young boy, born to a farmer in rural Michigan. An apt pupil
at school, fascinated by machines, he started tinkering on his own. Unwilling
to settle as a farmer, he spent more than ten years of his youth job-hopping.
Finally, he joined Edison Illuminating Company in Detroit as a night engineer
to learn more about electricity. Thanks to his dedication and perseverance, he
was promoted to the position of Chief Engineer in just two years. Knowing each
of his employees personally, it didn’t take much time for Thomas Edison himself
to befriend him and encourage his tinkering and innovative potential. He
started experimenting on self-propelling gasoline engines envisioning an era of
horseless carriages. After many attempts he finally perfected his automobile
engine and started a motor company with one of his good friends. In 1908, the
first commercial vehicle for common man started rolling out of his company at a
price of just $825 (~ $21,600 2015 USD). A group of workers drudged on one car at
a time, assembling the parts by hand. And it took nearly two days for each
group to assemble a car. In the first month of production, only eleven cars
rolled out. The workers had to literally drag the parts from one place to
another in the factory to get different parts assembled. As his company moved
forward in this way for four years, he came up with a master plan to improve
efficiency and productivity. He deconstructed the whole assembly into 84 core
areas, trained a group of workers dedicatedly in one area each. He adapted the
idea of steamrollers and leather conveyor belt from the meat packing industry
and recreated an automated assembly line. Each worker sat in his position with
his part of the whole automobile. The assembly line brought the core assembly
towards them at fixed time intervals and all that they had to do was fix their
particular part on to the assembly within the stipulated time and let it move
to the next worker. In the following year, 9000 cars per day rolled out of his
company with an average of merely 93 minutes for assembling one car. The cost
of production became so manageable that he could sell his cars for $260 (~ $3,200
2015 USD) less than a third of the initial cost. This
brought cars up from the luxury of affluent society down to a necessity of
common man’s day-to-day lives. In the coming years, his company produced not
less than 2 million cars annually and owned more than 50% of the global
automobile market. Any guesses on whose story this is? It was none other than
the master team player Henry Ford with his first car Ford Model T that ruled
the automobile market for 64 years without even a single advertisement of
promotion. And his good friend/ business partner was none other than William
Murphy, the founder of Cadillac, the luxury motorcar division of General
Motors.
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