INTRODUCTION
WHAT
IS THE IDEA?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 ahead. And now, with so many countries of
the world in ferment and with so much unrest every where, is an
excellent time to suggest something of the things that may be done
in
the light of what has been done.When
one speaks of increasing power, machinery, and industry there comes
up a picture of a cold, metallic sort of world in which great
factories will drive away the trees, the flowers, the birds, and
the
green fields. And that then we shall have a world composed of metal
machines and human machines. With all of that I do not agree. I
think
that unless we know more about machines and their use, unless we
better understand the mechanical portion of life, we cannot have
the
time to enjoy the trees, and the birds, and the flowers, and the
green fields.I
think that we have already done too much toward banishing the
pleasant things from life by thinking that there is some opposition
between living and providing the means of living. We waste so much
time and energy that we have little left over in which to enjoy
ourselves.Power
and machinery, money and goods, are useful only as they set us free
to live. They are but means to an end. For instance, I do not
consider the machines which bear my name simply as machines. If
that
was all there was to it I would do something else. I take them as
concrete evidence of the working out of a theory of business, which
I
hope is something more than a theory of business—a theory that
looks toward making this world a better place in which to live. The
fact that the commercial success of the Ford Motor Company has been
most unusual is important only because it serves to demonstrate, in
a
way which no one can fail to understand, that the theory to date is
right. Considered solely in this light I can criticize the
prevailing
system of industry and the organization of money and society from
the
standpoint of one who has not been beaten by them. As things are
now
organized, I could, were I thinking only selfishly, ask for no
change. If I merely want money the present system is all right; it
gives money in plenty to me. But I am thinking of service. The
present system does not permit of the best service because it
encourages every kind of waste—it keeps many men from getting the
full return from service. And it is going nowhere. It is all a
matter
of better planning and adjustment.I
have no quarrel with the general attitude of scoffing at new ideas.
It is better to be skeptical of all new ideas and to insist upon
being shown rather than to rush around in a continuous brainstorm
after every new idea. Skepticism, if by that we mean cautiousness,
is
the balance wheel of civilization. Most of the present acute
troubles
of the world arise out of taking on new ideas without first
carefully
investigating to discover if they are good ideas. An idea is not
necessarily good because it is old, or necessarily bad because it
is
new, but if an old idea works, then the weight of the evidence is
all
in its favor. Ideas are of themselves extraordinarily valuable, but
an idea is just an idea. Almost any one can think up an idea. The
thing that counts is developing it into a practical product.I
am now most interested in fully demonstrating that the ideas we
have
put into practice are capable of the largest application—that they
have nothing peculiarly to do with motor cars or tractors but form
something in the nature of a universal code. I am quite certain
that
it is the natural code and I want to demonstrate it so thoroughly
that it will be accepted, not as a new idea, but as a natural
code.The
natural thing to do is to work—to recognize that prosperity and
happiness can be obtained only through honest effort. Human ills
flow
largely from attempting to escape from this natural course. I have
no
suggestion which goes beyond accepting in its fullest this
principle
of nature. I take it for granted that we must work. All that we
have
done comes as the result of a certain insistence that since we must
work it is better to work intelligently and forehandedly; that the
better we do our work the better off we shall be. All of which I
conceive to be merely elemental common sense.I
am not a reformer. I think there is entirely too much attempt at
reforming in the world and that we pay too much attention to
reformers. We have two kinds of reformers. Both are nuisances. The
man who calls himself a reformer wants to smash things. He is the
sort of man who would tear up a whole shirt because the collar
button
did not fit the buttonhole. It would never occur to him to enlarge
the buttonhole. This sort of reformer never under any circumstances
knows what he is doing. Experience and reform do not go together. A
reformer cannot keep his zeal at white heat in the presence of a
fact. He must discard all facts.Since
1914 a great many persons have received brand-new intellectual
outfits. Many are beginning to think for the first time. They
opened
their eyes and realized that they were in the world. Then, with a
thrill of independence, they realized that they could look at the
world critically. They did so and found it faulty. The intoxication
of assuming the masterful position of a critic of the social
system—which it is every man's right to assume—is unbalancing at
first. The very young critic is very much unbalanced. He is
strongly
in favor of wiping out the old order and starting a new one. They
actually managed to start a new world in Russia. It is there that
the
work of the world makers can best be studied. We learn from Russia
that it is the minority and not the majority who determine
destructive action. We learn also that while men may decree social
laws in conflict with natural laws, Nature vetoes those laws more
ruthlessly than did the Czars. Nature has vetoed the whole Soviet
Republic. For it sought to deny nature. It denied above all else
the
right to the fruits of labour. Some people say, "Russia will
have to go to work," but that does not describe the case. The
fact is that poor Russia is at work, but her work counts for
nothing.
It is not free work. In the United States a workman works eight
hours
a day; in Russia, he works twelve to fourteen. In the United
States,
if a workman wishes to lay off a day or a week, and is able to
afford
it, there is nothing to prevent him. In Russia, under Sovietism,
the
workman goes to work whether he wants to or not. The freedom of the
citizen has disappeared in the discipline of a prison-like monotony
in which all are treated alike. That is slavery. Freedom is the
right
to work a decent length of time and to get a decent living for
doing
so; to be able to arrange the little personal details of one's own
life. It is the aggregate of these and many other items of freedom
which makes up the great idealistic Freedom. The minor forms of
Freedom lubricate the everyday life of all of us.Russia
could not get along without intelligence and experience. As soon as
she began to run her factories by committees, they went to rack and
ruin; there was more debate than production. As soon as they threw
out the skilled man, thousands of tons of precious materials were
spoiled. The fanatics talked the people into starvation. The
Soviets
are now offering the engineers, the administrators, the foremen and
superintendents, whom at first they drove out, large sums of money
if
only they will come back. Bolshevism is now crying for the brains
and
experience which it yesterday treated so ruthlessly. All that
"reform" did to Russia was to block production.There
is in this country a sinister element that desires to creep in
between the men who work with their hands and the men who think and
plan for the men who work with their hands. The same influence that
drove the brains, experience, and ability out of Russia is busily
engaged in raising prejudice here. We must not suffer the stranger,
the destroyer, the hater of happy humanity, to divide our people.
In
unity is American strength—and freedom. On the other hand, we have
a different kind of reformer who never calls himself one. He is
singularly like the radical reformer. The radical has had no
experience and does not want it. The other class of reformer has
had
plenty of experience but it does him no good. I refer to the
reactionary—who will be surprised to find himself put in exactly
the same class as the Bolshevist. He wants to go back to some
previous condition, not because it was the best condition, but
because he thinks he knows about that condition.The
one crowd wants to smash up the whole world in order to make a
better
one. The other holds the world as so good that it might well be let
stand as it is—and decay. The second notion arises as does the
first—out of not using the eyes to see with. It is perfectly
possible to smash this world, but it is not possible to build a new
one. It is possible to prevent the world from going forward, but it
is not possible then to prevent it from going back—from decaying.
It is foolish to expect that, if everything be overturned, everyone
will thereby get three meals a day. Or, should everything be
petrified, that thereby six per cent, interest may be paid. The
trouble is that reformers and reactionaries alike get away from the
realities—from the primary functions.One
of the counsels of caution is to be very certain that we do not
mistake a reactionary turn for a return of common sense. We have
passed through a period of fireworks of every description, and the
making of a great many idealistic maps of progress. We did not get
anywhere. It was a convention, not a march. Lovely things were
said,
but when we got home we found the furnace out. Reactionaries have
frequently taken advantage of the recoil from such a period, and
they
have promised "the good old times"—which usually means
the bad old abuses—and because they are perfectly void of vision
they are sometimes regarded as "practical men." Their
return to power is often hailed as the return of common
sense.The
primary functions are agriculture, manufacture, and transportation.
Community life is impossible without them. They hold the world
together. Raising things, making things, and earning things are as
primitive as human need and yet as modern as anything can be. They
are of the essence of physical life. When they cease, community
life
ceases. Things do get out of shape in this present world under the
present system, but we may hope for a betterment if the foundations
stand sure. The great delusion is that one may change the
foundation—usurp the part of destiny in the social process. The
foundations of society are the men and means to
grow things, to
make things, and to
carry things. As
long as agriculture, manufacture, and transportation survive, the
world can survive any economic or social change. As we serve our
jobs
we serve the world.There
is plenty of work to do. Business is merely work. Speculation in
things already produced—that is not business. It is just more or
less respectable graft. But it cannot be legislated out of
existence.
Laws can do very little. Law never does anything constructive. It
can
never be more than a policeman, and so it is a waste of time to
look
to our state capitals or to Washington to do that which law was not
designed to do. As long as we look to legislation to cure poverty
or
to abolish special privilege we are going to see poverty spread and
special privilege grow. We have had enough of looking to Washington
and we have had enough of legislators—not so much, however, in this
as in other countries—promising laws to do that which laws cannot
do.When
you get a whole country—as did ours—thinking that Washington is a
sort of heaven and behind its clouds dwell omniscience and
omnipotence, you are educating that country into a dependent state
of
mind which augurs ill for the future. Our help does not come from
Washington, but from ourselves; our help may, however, go to
Washington as a sort of central distribution point where all our
efforts are coordinated for the general good. We may help the
Government; the Government cannot help us. The slogan of "less
government in business and more business in government" is a
very good one, not mainly on account of business or government, but
on account of the people. Business is not the reason why the United
States was founded. The Declaration of Independence is not a
business
charter, nor is the Constitution of the United States a commercial
schedule. The United States—its land, people, government, and
business—are but methods by which the life of the people is made
worth while. The Government is a servant and never should be
anything
but a servant. The moment the people become adjuncts to government,
then the law of retribution begins to work, for such a relation is
unnatural, immoral, and inhuman. We cannot live without business
and
we cannot live without government. Business and government are
necessary as servants, like water and grain; as masters they
overturn
the natural order.The
welfare of the country is squarely up to us as individuals. That is
where it should be and that is where it is safest. Governments can
promise something for nothing but they cannot deliver. They can
juggle the currencies as they did in Europe (and as bankers the
world
over do, as long as they can get the benefit of the juggling) with
a
patter of solemn nonsense. But it is work and work alone that can
continue to deliver the goods—and that, down in his heart, is what
every man knows.There
is little chance of an intelligent people, such as ours, ruining
the
fundamental processes of economic life. Most men know they cannot
get
something for nothing. Most men feel—even if they do not know—that
money is not wealth. The ordinary theories which promise everything
to everybody, and demand nothing from anybody, are promptly denied
by
the instincts of the ordinary man, even when he does not find
reasons
against them. He
knows they are
wrong. That is enough. The present order, always clumsy, often
stupid, and in many ways imperfect, has this advantage over any
other—it works.Doubtless
our order will merge by degrees into another, and the new one will
also work—but not so much by reason of what it is as by reason of
what men will bring into it. The reason why Bolshevism did not
work,
and cannot work, is not economic. It does not matter whether
industry
is privately managed or socially controlled; it does not matter
whether you call the workers' share "wages" or "dividends";
it does not matter whether you regimentalize the people as to food,
clothing, and shelter, or whether you allow them to eat, dress, and
live as they like. Those are mere matters of detail. The incapacity
of the Bolshevist leaders is indicated by the fuss they made over
such details. Bolshevism failed because it was both unnatural and
immoral. Our system stands. Is it wrong? Of course it is wrong, at
a
thousand points! Is it clumsy? Of course it is clumsy. By all right
and reason it ought to break down. But it does not—because it is
instinct with certain economic and moral fundamentals.The
economic fundamental is labour. Labour is the human element which
makes the fruitful seasons of the earth useful to men. It is men's
labour that makes the harvest what it is. That is the economic
fundamental: every one of us is working with material which we did
not and could not create, but which was presented to us by
Nature.The
moral fundamental is man's right in his labour. This is variously
stated. It is sometimes called "the right of property." It
is sometimes masked in the command, "Thou shalt not steal."
It is the other man's right in his property that makes stealing a
crime. When a man has earned his bread, he has a right to that
bread.
If another steals it, he does more than steal bread; he invades a
sacred human right. If we cannot produce we cannot have—but some
say if we produce it is only for the capitalists. Capitalists who
become such because they provide better means of production are of
the foundation of society. They have really nothing of their own.
They merely manage property for the benefit of others. Capitalists
who become such through trading in money are a temporarily
necessary
evil. They may not be evil at all if their money goes to
production.
If their money goes to complicating distribution—to raising
barriers between the producer and the consumer—then they are evil
capitalists and they will pass away when money is better adjusted
to
work; and money will become better adjusted to work when it is
fully
realized that through work and work alone may health, wealth, and
happiness inevitably be secured.There
is no reason why a man who is willing to work should not be able to
work and to receive the full value of his work. There is equally no
reason why a man who can but will not work should not receive the
full value of his services to the community. He should most
certainly
be permitted to take away from the community an equivalent of what
he
contributes to it. If he contributes nothing he should take away
nothing. He should have the freedom of starvation. We are not
getting
anywhere when we insist that every man ought to have more than he
deserves to have—just because some do get more than they deserve to
have.There
can be no greater absurdity and no greater disservice to humanity
in
general than to insist that all men are equal. Most certainly all
men
are not equal, and any democratic conception which strives to make
men equal is only an effort to block progress. Men cannot be of
equal
service. The men of larger ability are less numerous than the men
of
smaller ability; it is possible for a mass of the smaller men to
pull
the larger ones down—but in so doing they pull themselves down. It
is the larger men who give the leadership to the community and
enable
the smaller men to live with less effort.The
conception of democracy which names a leveling-down of ability
makes
for waste. No two things in nature are alike. We build our cars
absolutely interchangeable. All parts are as nearly alike as
chemical
analysis, the finest machinery, and the finest workmanship can make
them. No fitting of any kind is required, and it would certainly
seem
that two Fords standing side by side, looking exactly alike and
made
so exactly alike that any part could be taken out of one and put
into
the other, would be alike. But they are not. They will have
different
road habits. We have men who have driven hundreds, and in some
cases
thousands of Fords and they say that no two ever act precisely the
same—that, if they should drive a new car for an hour or even less
and then the car were mixed with a bunch of other new ones, also
each
driven for a single hour and under the same conditions, that
although
they could not recognize the car they had been driving merely by
looking at it, they could do so by driving it.I
have been speaking in general terms. Let us be more concrete. A man
ought to be able to live on a scale commensurate with the service
that he renders. This is rather a good time to talk about this
point,
for we have recently been through a period when the rendering of
service was the last thing that most people thought of. We were
getting to a place where no one cared about costs or service.
Orders
came without effort. Whereas once it was the customer who favored
the
merchant by dealing with him, conditions changed until it was the
merchant who favored the customer by selling to him. That is bad
for
business. Monopoly is bad for business. Profiteering is bad for
business. The lack of necessity to hustle is bad for business.
Business is never as healthy as when, like a chicken, it must do a
certain amount of scratching for what it gets. Things were coming
too
easily. There was a let-down of the principle that an honest
relation
ought to obtain between values and prices. The public no longer had
to be "catered to." There was even a "public be
damned" attitude in many places. It was intensely bad for
business. Some men called that abnormal condition "prosperity."
It was not prosperity— it was just a needless money chase. Money
chasing is not business.It
is very easy, unless one keeps a plan thoroughly in mind, to get
burdened with money and then, in an effort to make more money, to
forget all about selling to the people what they want. Business on
a
money-making basis is most insecure. It is a touch-and-go affair,
moving irregularly and rarely over a term of years amounting to
much.
It is the function of business to produce for consumption and not
for
money or speculation. Producing for consumption implies that the
quality of the article produced will be high and that the price
will
be low—that the article be one which serves the people and not
merely the producer. If the money feature is twisted out of its
proper perspective, then the production will be twisted to serve
the
producer.The
producer depends for his prosperity upon serving the people. He may
get by for a while serving himself, but if he does, it will be
purely
accidental, and when the people wake up to the fact that they are
not
being served, the end of that producer is in sight. During the boom
period the larger effort of production was to serve itself and
hence,
the moment the people woke up, many producers went to smash. They
said that they had entered into a "period of depression."
Really they had not. They were simply trying to pit nonsense
against
sense which is something that cannot successfully be done. Being
greedy for money is the surest way not to get it, but when one
serves
for the sake of service—for the satisfaction of doing that which
one believes to be right—then money abundantly takes care of
itself.Money
comes naturally as the result of service. And it is absolutely
necessary to have money. But we do not want to forget that the end
of
money is not ease but the opportunity to perform more service. In
my
mind nothing is more abhorrent than a life of ease. None of us has
any right to ease. There is no place in civilization for the idler.
Any scheme looking to abolishing money is only making affairs more
complex, for we must have a measure. That our present system of
money
is a satisfactory basis for exchange is a matter of grave doubt.
That
is a question which I shall talk of in a subsequent chapter. The
gist
of my objection to the present monetary system is that it tends to
become a thing of itself and to block instead of facilitate
production.My
effort is in the direction of simplicity. People in general have so
little and it costs so much to buy even the barest necessities (let
alone that share of the luxuries to which I think everyone is
entitled) because nearly everything that we make is much more
complex
than it needs to be. Our clothing, our food, our household
furnishings—all could be much simpler than they now are and at the
same time be better looking. Things in past ages were made in
certain
ways and makers since then have just followed.I
do not mean that we should adopt freak styles. There is no
necessity
for that Clothing need not be a bag with a hole cut in it. That
might
be easy to make but it would be inconvenient to wear. A blanket
does
not require much tailoring, but none of us could get much work done
if we went around Indian-fashion in blankets. Real simplicity means
that which gives the very best service and is the most convenient
in
use. The trouble with drastic reforms is they always insist that a
man be made over in order to use certain designed articles. I think
that dress reform for women—which seems to mean ugly clothes—must
always originate with plain women who want to make everyone else
look
plain. That is not the right process. Start with an article that
suits and then study to find some way of eliminating the entirely
useless parts. This applies to everything—a shoe, a dress, a house,
a piece of machinery, a railroad, a steamship, an airplane. As we
cut
out useless parts and simplify necessary ones we also cut down the
cost of making. This is simple logic, but oddly enough the ordinary
process starts with a cheapening of the manufacturing instead of
with
a simplifying of the article. The start ought to be with the
article.
First we ought to find whether it is as well made as it should
be—does it give the best possible service? Then—are the materials
the best or merely the most expensive? Then—can its complexity and
weight be cut down? And so on.There
is no more sense in having extra weight in an article than there is
in the cockade on a coachman's hat. In fact, there is not as much.
For the cockade may help the coachman to identify his hat while the
extra weight means only a waste of strength. I cannot imagine where
the delusion that weight means strength came from. It is all well
enough in a pile-driver, but why move a heavy weight if we are not
going to hit anything with it? In transportation why put extra
weight
in a machine? Why not add it to the load that the machine is
designed
to carry? Fat men cannot run as fast as thin men but we build most
of
our vehicles as though dead-weight fat increased speed! A deal of
poverty grows out of the carriage of excess weight. Some day we
shall
discover how further to eliminate weight. Take wood, for example.
For
certain purposes wood is now the best substance we know, but wood
is
extremely wasteful. The wood in a Ford car contains thirty pounds
of
water. There must be some way of doing better than that. There must
be some method by which we can gain the same strength and
elasticity
without having to lug useless weight. And so through a thousand
processes.The
farmer makes too complex an affair out of his daily work. I believe
that the average farmer puts to a really useful purpose only about
5
per cent of the energy that he spends. If any one ever equipped a
factory in the style, say, the average farm is fitted out, the
place
would be cluttered with men. The worst factory in Europe is hardly
as
bad as the average farm barn. Power is utilized to the least
possible
degree. Not only is everything done by hand, but seldom is a
thought
given to logical arrangement. A farmer doing his chores will walk
up
and down a rickety ladder a dozen times. He will carry water for
years instead of putting in a few lengths of pipe. His whole idea,
when there is extra work to do, is to hire extra men. He thinks of
putting money into improvements as an expense. Farm products at
their
lowest prices are dearer than they ought to be. Farm profits at
their
highest are lower than they ought to be. It is waste motion—waste
effort—that makes farm prices high and profits low.On
my own farm at Dearborn we do everything by machinery. We have
eliminated a great number of wastes, but we have not as yet touched
on real economy. We have not yet been able to put in five or ten
years of intense night-and-day study to discover what really ought
to
be done. We have left more undone than we have done. Yet at no
time—no matter what the value of crops—have we failed to turn a
first-class profit. We are not farmers—we are industrialists on the
farm. The moment the farmer considers himself as an industrialist,
with a horror of waste either in material or in men, then we are
going to have farm products so low-priced that all will have enough
to eat, and the profits will be so satisfactory that farming will
be
considered as among the least hazardous and most profitable of
occupations.Lack
of knowledge of what is going on and lack of knowledge of what the
job really is and the best way of doing it are the reasons why
farming is thought not to pay. Nothing could pay the way farming is
conducted. The farmer follows luck and his forefathers. He does not
know how economically to produce, and he does not know how to
market.
A manufacturer who knew how neither to produce nor to market would
not long stay in business. That the farmer can stay on shows how
wonderfully profitable farming can be.The
way to attain low-priced, high-volume production in the factory or
on
the farm—and low-priced, high-volume production means plenty for
everyone—is quite simple. The trouble is that the general tendency
is to complicate very simple affairs. Take, for an instance, an
"improvement."When
we talk about improvements usually we have in mind some change in a
product. An "improved" product is one that has been
changed. That is not my idea. I do not believe in starting to make
until I have discovered the best possible thing. This, of course,
does not mean that a product should never be changed, but I think
that it will be found more economical in the end not even to try to
produce an article until you have fully satisfied yourself that
utility, design, and material are the best. If your researches do
not
give you that confidence, then keep right on searching until you
find
confidence. The place to start manufacturing is with the article.
The
factory, the organization, the selling, and the financial plans
will
shape themselves to the article. You will have a cutting, edge on
your business chisel and in the end you will save time. Rushing
into
manufacturing without being certain of the product is the
unrecognized cause of many business failures. People seem to think
that the big thing is the factory or the store or the financial
backing or the management. The big thing is the product, and any
hurry in getting into fabrication before designs are completed is
just so much waste time. I spent twelve years before I had a Model
T—which is what is known to-day as the Ford car—that suited me.
We did not attempt to go into real production until we had a real
product. That product has not been essentially changed.We
are constantly experimenting with new ideas. If you travel the
roads
in the neighbourhood of Dearborn you can find all sorts of models
of
Ford cars. They are experimental cars—they are not new models. I do
not believe in letting any good idea get by me, but I will not
quickly decide whether an idea is good or bad. If an idea seems
good
or seems even to have possibilities, I believe in doing whatever is
necessary to test out the idea from every angle. But testing out
the
idea is something very different from making a change in the car.
Where most manufacturers find themselves quicker to make a change
in
the product than in the method of manufacturing—we follow exactly
the opposite course.Our
big changes have been in methods of manufacturing. They never stand
still. I believe that there is hardly a single operation in the
making of our car that is the same as when we made our first car of
the present model. That is why we make them so cheaply. The few
changes that have been made in the car have been in the direction
of
convenience in use or where we found that a change in design might
give added strength. The materials in the car change as we learn
more
and more about materials. Also we do not want to be held up in
production or have the expense of production increased by any
possible shortage in a particular material, so we have for most
parts
worked out substitute materials. Vanadium steel, for instance, is
our
principal steel. With it we can get the greatest strength with the
least weight, but it would not be good business to let our whole
future depend upon being able to get vanadium steel. We have worked
out a substitute. All our steels are special, but for every one of
them we have at least one, and sometimes several, fully proved and
tested substitutes. And so on through all of our materials and
likewise with our parts. In the beginning we made very few of our
parts and none of our motors. Now we make all our motors and most
of
our parts because we find it cheaper to do so. But also we aim to
make some of every part so that we cannot be caught in any market
emergency or be crippled by some outside manufacturer being unable
to
fill his orders. The prices on glass were run up outrageously high
during the war; we are among the largest users of glass in the
country. Now we are putting up our own glass factory. If we had
devoted all of this energy to making changes in the product we
should
be nowhere; but by not changing the product we are able to give our
energy to the improvement of the making.The
principal part of a chisel is the cutting edge. If there is a
single
principle on which our business rests it is that. It makes no
difference how finely made a chisel is or what splendid steel it
has
in it or how well it is forged—if it has no cutting edge it is not
a chisel. It is just a piece of metal. All of which being
translated
means that it is what a thing does—not what it is supposed to
do—that matters. What is the use of putting a tremendous force
behind a blunt chisel if a light blow on a sharp chisel will do the
work? The chisel is there to cut, not to be hammered. The hammering
is only incidental to the job. So if we want to work why not
concentrate on the work and do it in the quickest possible fashion?
The cutting edge of merchandising is the point where the product
touches the consumer. An unsatisfactory product is one that has a
dull cutting edge. A lot of waste effort is needed to put it
through.
The cutting edge of a factory is the man and the machine on the
job.
If the man is not right the machine cannot be; if the machine is
not
right the man cannot be. For any one to be required to use more
force
than is absolutely necessary for the job in hand is waste.The
essence of my idea then is that waste and greed block the delivery
of
true service. Both waste and greed are unnecessary. Waste is due
largely to not understanding what one does, or being careless in
doing of it. Greed is merely a species of nearsightedness. I have
striven toward manufacturing with a minimum of waste, both of
materials and of human effort, and then toward distribution at a
minimum of profit, depending for the total profit upon the volume
of
distribution. In the process of manufacturing I want to distribute
the maximum of wage—that is, the maximum of buying power. Since
also this makes for a minimum cost and we sell at a minimum profit,
we can distribute a product in consonance with buying power. Thus
everyone who is connected with us—either as a manager, worker, or
purchaser—is the better for our existence. The institution that we
have erected is performing a service. That is the only reason I
have
for talking about it. The principles of that service are
these:1.
An absence of fear of the future and of veneration for the past.
One
who fears the future, who fears failure, limits his activities.
Failure is only the opportunity more intelligently to begin again.
There is no disgrace in honest failure; there is disgrace in
fearing
to fail. What is past is useful only as it suggests ways and means
for progress.2.
A disregard of competition. Whoever does a thing best ought to be
the
one to do it. It is criminal to try to get business away from
another
man—criminal because one is then trying to lower for personal gain
the condition of one's fellow man—to rule by force instead of by
intelligence.3.
The putting of service before profit. Without a profit, business
cannot extend. There is nothing inherently wrong about making a
profit. Well-conducted business enterprise cannot fail to return a
profit, but profit must and inevitably will come as a reward for
good
service. It cannot be the basis—it must be the result of
service.4.
Manufacturing is not buying low and selling high. It is the process
of buying materials fairly and, with the smallest possible addition
of cost, transforming those materials into a consumable product and
giving it to the consumer. Gambling, speculating, and sharp
dealing,
tend only to clog this progression.How
all of this arose, how it has worked out, and how it applies
generally are the subjects of these chapters.
CHAPTER I
THE
BEGINNING OF BUSINESSOn
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 alike—except that the old buggy
has on it a few wrinkles that we have not yet quite adopted in our
modern car. For that first car or buggy, even though it had but two
cylinders, would make twenty miles an hour and run sixty miles on
the
three gallons of gas the little tank held and is as good to-day as
the day it was built. The development in methods of manufacture and
in materials has been greater than the development in basic design.
The whole design has been refined; the present Ford car, which is
the
"Model T," has four cylinders and a self starter—it is in
every way a more convenient and an easier riding car. It is simpler
than the first car. But almost every point in it may be found also
in
the first car. The changes have been brought about through
experience
in the making and not through any change in the basic
principle—which
I take to be an important fact demonstrating that, given a good
idea
to start with, it is better to concentrate on perfecting it than to
hunt around for a new idea. One idea at a time is about as much as
any one can handle.It
was life on the farm that drove me into devising ways and means to
better transportation. I was born on July 30, 1863, on a farm at
Dearborn, Michigan, and my earliest recollection is that,
considering
the results, there was too much work on the place. That is the way
I
still feel about farming. There is a legend that my parents were
very
poor and that the early days were hard ones. Certainly they were
not
rich, but neither were they poor. As Michigan farmers went, we were
prosperous. The house in which I was born is still standing, and it
and the farm are part of my present holding.There
was too much hard hand labour on our own and all other farms of the
time. Even when very young I suspected that much might somehow be
done in a better way. That is what took me into mechanics—although
my mother always said that I was born a mechanic. I had a kind of
workshop with odds and ends of metal for tools before I had
anything
else. In those days we did not have the toys of to-day; what we had
were home made. My toys were all tools—they still are! And every
fragment of machinery was a treasure.The
biggest event of those early years was meeting with a road engine
about eight miles out of Detroit one day when we were driving to
town. I was then twelve years old. The second biggest event was
getting a watch—which happened in the same year. I remember that
engine as though I had seen it only yesterday, for it was the first
vehicle other than horse-drawn that I had ever seen. It was
intended
primarily for driving threshing machines and sawmills and was
simply
a portable engine and boiler mounted on wheels with a water tank
and
coal cart trailing behind. I had seen plenty of these engines
hauled
around by horses, but this one had a chain that made a connection
between the engine and the rear wheels of the wagon-like frame on
which the boiler was mounted. The engine was placed over the boiler
and one man standing on the platform behind the boiler shoveled
coal,
managed the throttle, and did the steering. It had been made by
Nichols, Shepard & Company of Battle Creek. I found that out at
once. The engine had stopped to let us pass with our horses and I
was
off the wagon and talking to the engineer before my father, who was
driving, knew what I was up to. The engineer was very glad to
explain
the whole affair. He was proud of it. He showed me how the chain
was
disconnected from the propelling wheel and a belt put on to drive
other machinery. He told me that the engine made two hundred
revolutions a minute and that the chain pinion could be shifted to
let the wagon stop while the engine was still running. This last is
a
feature which, although in different fashion, is incorporated into
modern automobiles. It was not important with steam engines, which
are easily stopped and started, but it became very important with
the
gasoline engine. It was that engine which took me into automotive
transportation. I tried to make models of it, and some years later
I
did make one that ran very well, but from the time I saw that road
engine as a boy of twelve right forward to to-day, my great
interest
has been in making a machine that would travel the roads. Driving
to
town I always had a pocket full of trinkets—nuts, washers, and odds
and ends of machinery. Often I took a broken watch and tried to put
it together. When I was thirteen I managed for the first time to
put
a watch together so that it would keep time. By the time I was
fifteen I could do almost anything in watch repairing—although my
tools were of the crudest. There is an immense amount to be learned
simply by tinkering with things. It is not possible to learn from
books how everything is made—and a real mechanic ought to know how
nearly everything is made. Machines are to a mechanic what books
are
to a writer. He gets ideas from them, and if he has any brains he
will apply those ideas.From
the beginning I never could work up much interest in the labour of
farming. I wanted to have something to do with machinery. My father
was not entirely in sympathy with my bent toward mechanics. He
thought that I ought to be a farmer. When I left school at
seventeen
and became an apprentice in the machine shop of the Drydock Engine
Works I was all but given up for lost. I passed my apprenticeship
without trouble—that is, I was qualified to be a machinist long
before my three-year term had expired—and having a liking for fine
work and a leaning toward watches I worked nights at repairing in a
jewelry shop. At one period of those early days I think that I must
have had fully three hundred watches. I thought that I could build
a
serviceable watch for around thirty cents and nearly started in the
business. But I did not because I figured out that watches were not
universal necessities, and therefore people generally would not buy
them. Just how I reached that surprising conclusion I am unable to
state. I did not like the ordinary jewelry and watch making work
excepting where the job was hard to do. Even then I wanted to make
something in quantity. It was just about the time when the standard
railroad time was being arranged. We had formerly been on sun time
and for quite a while, just as in our present daylight-saving days,
the railroad time differed from the local time. That bothered me a
good deal and so I succeeded in making a watch that kept both
times.
It had two dials and it was quite a curiosity in the
neighbourhood.In
1879—that is, about four years after I first saw that
Nichols-Shepard machine—I managed to get a chance to run one and
when my apprenticeship was over I worked with a local
representative
of the Westinghouse Company of Schenectady as an expert in the
setting up and repair of their road engines. The engine they put
out
was much the same as the Nichols-Shepard engine excepting that the
engine was up in front, the boiler in the rear, and the power was
applied to the back wheels by a belt. They could make twelve miles
an
hour on the road even though the self-propelling feature was only
an
incident of the construction. They were sometimes used as tractors
to
pull heavy loads and, if the owner also happened to be in the
threshing-machine business, he hitched his threshing machine and
other paraphernalia to the engine in moving from farm to farm. What
bothered me was the weight and the cost. They weighed a couple of
tons and were far too expensive to be owned by other than a farmer
with a great deal of land. They were mostly employed by people who
went into threshing as a business or who had sawmills or some other
line that required portable power.Even
before that time I had the idea of making some kind of a light
steam
car that would take the place of horses—more especially, however,
as a tractor to attend to the excessively hard labour of ploughing.
It occurred to me, as I remember somewhat vaguely, that precisely
the
same idea might be applied to a carriage or a wagon on the road. A
horseless carriage was a common idea. People had been talking about
carriages without horses for many years back—in fact, ever since
the steam engine was invented—but the idea of the carriage at first
did not seem so practical to me as the idea of an engine to do the
harder farm work, and of all the work on the farm ploughing was the
hardest. Our roads were poor and we had not the habit of getting
around. One of the most remarkable features of the automobile on
the
farm is the way that it has broadened the farmer's life. We simply
took for granted that unless the errand were urgent we would not go
to town, and I think we rarely made more than a trip a week. In bad
weather we did not go even that often.Being
a full-fledged machinist and with a very fair workshop on the farm
it
was not difficult for me to build a steam wagon or tractor. In the
building of it came the idea that perhaps it might be made for road
use. I felt perfectly certain that horses, considering all the
bother
of attending them and the expense of feeding, did not earn their
keep. The obvious thing to do was to design and build a steam
engine
that would be light enough to run an ordinary wagon or to pull a
plough. I thought it more important first to develop the tractor.
To
lift farm drudgery off flesh and blood and lay it on steel and
motors
has been my most constant ambition. It was circumstances that took
me
first into the actual manufacture of road cars. I found eventually
that people were more interested in something that would travel on
the road than in something that would do the work on the farms. In
fact, I doubt that the light farm tractor could have been
introduced
on the farm had not the farmer had his eyes opened slowly but
surely
by the automobile. But that is getting ahead of the story. I
thought
the farmer would be more interested in the tractor.I
built a steam car that ran. It had a kerosene-heated boiler and it
developed plenty of power and a neat control—which is so easy with
a steam throttle. But the boiler was dangerous. To get the
requisite
power without too big and heavy a power plant required that the
engine work under high pressure; sitting on a high-pressure steam
boiler is not altogether pleasant. To make it even reasonably safe
required an excess of weight that nullified the economy of the high
pressure. For two years I kept experimenting with various sorts of
boilers—the engine and control problems were simple enough—and
then I definitely abandoned the whole idea of running a road
vehicle
by steam. I knew that in England they had what amounted to
locomotives running on the roads hauling lines of trailers and also
there was no difficulty in designing a big steam tractor for use on
a
large farm. But ours were not then English roads; they would have
stalled or racked to pieces the strongest and heaviest road
tractor.
And anyway the manufacturing of a big tractor which only a few
wealthy farmers could buy did not seem to me worth while.But
I did not give up the idea of a horseless carriage. The work with
the
Westinghouse representative only served to confirm the opinion I
had
formed that steam was not suitable for light vehicles. That is why
I
stayed only a year with that company. There was nothing more that
the
big steam tractors and engines could teach me and I did not want to
waste time on something that would lead nowhere. A few years
before—it was while I was an apprentice—I read in the
World of Science,
an English publication, of the "silent gas engine" which
was then coming out in England. I think it was the Otto engine. It
ran with illuminating gas, had a single large cylinder, and the
power
impulses being thus intermittent required an extremely heavy
fly-wheel. As far as weight was concerned it gave nothing like the
power per pound of metal that a steam engine gave, and the use of
illuminating gas seemed to dismiss it as even a possibility for
road
use. It was interesting to me only as all machinery was
interesting.
I followed in the English and American magazines which we got in
the
shop the development of the engine and most particularly the hints
of
the possible replacement of the illuminating gas fuel by a gas
formed
by the vaporization of gasoline. The idea of gas engines was by no
means new, but this was the first time that a really serious effort
had been made to put them on the market. They were received with
interest rather than enthusiasm and I do not recall any one who
thought that the internal combustion engine could ever have more
than
a limited use. All the wise people demonstrated conclusively that
the
engine could not compete with steam. They never thought that it
might
carve out a career for itself. That is the way with wise
people—they
are so wise and practical that they always know to a dot just why
something cannot be done; they always know the limitations. That is
why I never employ an expert in full bloom. If ever I wanted to
kill
opposition by unfair means I would endow the opposition with
experts.
They would have so much good advice that I could be sure they would
do little work.