Relive the "Ford Moment" of American manufacturing
The factory, once regarded as the "furnace of iron and fire," has not only shaped the industrial foundation of human civilization but also nurtured the cornerstone of modern management theory. From the roaring steam in the steel - rolling workshop to the hushed whispers of algorithms in the cleanroom, the factory has always played a pivotal role as the hub connecting technological progress and organizational evolution. It is the origin of management science and the cradle of management ideas.
Before introducing the special topic of the 42nd issue of Management Vision, we will use three articles to review the history of management ideas starting from the factory - Taylor's "scientific management," Ford's "assembly line," and Toyota's "lean production." Returning to the factory again, what we see is not just "how to improve efficiency," but also how people, technology, and institutions in an organization shape each other; what we question is not just "how to formulate rules," but also how to make rules the fertile ground for human nature to thrive.
Ford is transforming its factories.
As the global automotive industry shifts its focus from fuel - powered vehicles to electric vehicles, Ford, a long - established Detroit - based automaker, realizes that this is not just a matter of replacing the engine. Electric vehicles require a whole new set of components, especially batteries, which means a new set of specialized production equipment and new production methods.
Managing two supply chains for fuel - powered and electric vehicles simultaneously is no easy feat. From being one of the "Big Three in Detroit" to implementing an "all - electric strategy," Ford's transformation has been extremely arduous.
In May 2025, Ford's electric vehicle sales in the US market were only 6,723 units, a 25% decline compared to the same period last year. Among them, the sales of the F - 150 Lightning plummeted by 42%, and the sales of the E - Transit were even more dismal. As a result, Ford cancelled an expected $12 billion investment in electric vehicles, cut more than 40% of the production plan for its battery factory in Michigan, postponed the launch of its large electric pickup truck to 2027, and cancelled the launch plan for an SUV. The mastery of battery technology, production processes, and supply chains by competitors such as Tesla has also put tremendous pressure on Ford.
However, this is not the only challenge Ford faces. Since the 1970s, the global manufacturing landscape has been changing. Today's world stage does not shine the spotlight on just a few players. Emerging markets such as India, China, and Southeast Asia have risen rapidly in the past decade and become important drivers of global manufacturing. At the same time, geopolitical factors such as trade frictions, economic decoupling, resource nationalism, technological sovereignty, and regulatory fragmentation are driving the restructuring of the global supply chain. In the vision of Industry 4.0, the way humans and machines collaborate is changing, and the application of AI in manufacturing is changing the roles and skill requirements of workers. Environmental challenges also require enterprises to adopt green technologies, optimize resource use, and improve waste management efficiency.
Ford has no choice but to catch up with the "frontier" and begins to renovate its old factories around the world. For example, the Van Dyke Transmission Plant in Michigan is being renovated to produce electric motors and electric transaxle drive units, paving the way for its electric vehicle strategy. At its famous River Rouge Plant, which was built in the 20th century, Ford has also built a new assembly plant dedicated to producing the all - electric version of the F - 150 pickup truck.
The factory transformation brought about by the electric vehicle business inevitably makes us think of the glorious Ford factories a century ago:
In 1904, the Piquette Avenue Plant was completed in Detroit. This was Ford's first self - built factory. It witnessed the birth of the legendary "Model T" and also the early history of Ford leading the factory in continuous efficiency experiments and process optimizations. In 1909, the Highland Park Plant was completed. Here, Ford made its most famous contribution to industrial production - the Ford System, which gave rise to the world's first application of an automatic assembly line in large - scale industrial production. In 1920, the then - most modern "super factory," the River Rouge Plant, was built. It carried Ford's attempt at vertical integration in the automotive industry and witnessed the crucial moment of the rise and fall of the Ford System and the US manufacturing industry.
These factories were not only the most advanced experimental bases for the 20th - century automotive industry but also gave birth to "mass consumption," the "middle class," and the "Modern Age" that emerged around mass production. They had a profound impact on production methods, corporate management, and social life forms.
Can Industry 4.0 lead the world to a new "Ford moment"? What transformation challenges do advancing factories face? Looking back at the Ford factories a century ago in the context of today's manufacturing industry, revisiting an important slice of 20th - century US manufacturing may provide inspiration for us to understand the evolution of factory management logic and the changes in manufacturing paradigms.
1904: The Piquette Avenue Plant, the Model T, and Edison - style Experiments
Figure 1 The Piquette Avenue Plant of Ford Motor Company, Detroit, Michigan, 1936
In the summer of 1904, when Ford Motor Company was one year old, Henry Ford turned 41. This year, Ford Company got its first real automobile factory.
The Piquette Avenue Plant is located in Detroit, Michigan. It has a brick - built structure in the late Victorian style, modeled after New England textile mills, and is three stories high. Inside the factory, there are three fire - proof doors, and there is a 25,000 - gallon water tank on the roof to supply water for the automatic sprinkler system. It is one of the earliest buildings in the US equipped with a fire - fighting system. Ford spent $76,500 on building this new factory. It turned out that this investment was completely worthwhile. At the Piquette Avenue Plant, Ford assembled seven early models and later contributed to the birth of the most famous "Model T." Now, it is recognized as one of the most important automotive industrial heritages in the world.
The location of the Piquette Avenue Plant was carefully chosen. Two railway lines intersect nearby, and its neighbors include well - known automobile manufacturers such as Anderson Electric, Brush, and Cadillac. These unique and convenient conditions provided a solid foundation for the Detroit automotive industry, and Ford naturally benefited from them. After the factory was completed, Henry Ford, his wife Clara, and his son Edsel rented a duplex apartment a few blocks away from the factory. Ford usually walked or rode a bicycle to the factory, and his office was on the second floor.
However, visitors rarely saw Ford in his office. The Piquette Avenue Plant was producing several models simultaneously - the Model B, Model C, Model F, Model N, Model R, Model S, and Model K. Ford was constantly arguing with the company's directors about one question: which model should Ford focus on producing?
In the early 20th century, cars were still regarded as toys for the rich, and most people wondered what use an ordinary family could have for a car. Therefore, some members of the board of directors preferred to manufacture luxury cars for the rich to achieve higher profit margins. Ford, on the contrary, advocated producing simpler and cheaper cars - not just for the rich, but for everyone. Although the profit per car would be lower, it might effectively expand the market.
In the first few years, the directors who believed that only the rich would buy cars won. In April 1906, Ford Company launched a large and expensive car - the Model K. For some time, Ford had to focus on the design of the Model K, but he did not give up his vision. Soon, Ford bought out the shares of Alexander Malcomson in the "large - car camp" and officially became the president of Ford Motor Company. Later, he designed and launched a new four - cylinder car - the Model N, which was almost exactly what Ford had hoped for.
By the end of 1906, Ford had sold 2,194 Model N cars to dealers across the United States. It undoubtedly became Ford's best - selling "hit" that year. But the experiments continued. There was still a long way to go before Ford's ideas were truly realized.
As different models were launched and production methods were improved, the existing space in the Piquette Avenue Plant was no longer sufficient. Charles Emil Sorensen, the head of the assembly department, oversaw the construction of an annex on the west side of the factory to handle the additional workload.
In January 1907, Ford ordered the establishment of a "secret laboratory" in the back corner of the third floor of the factory. One side of the laboratory was a drawing room, and on the other side, there were several machine tools, a blackboard, and Ford's mother's old rocking chair. Ford carefully assembled a research and development team and focused on developing new ideas in this "secret laboratory." Except for Ford, who was 44 years old in 1907, the key members of the laboratory's R & D team were almost all in their twenties. They conducted the initial tests of the new car prototype on the Model N chassis and redesigned the drawings over and over again.
It wasn't until the spring of 1908 that Ford led the workers to build several complete new cars for testing. They were light, inexpensive, easy to drive and maintain, performed well on rough roads, and could accommodate five people. This was the Model T that fully met Ford's expectations.
Figure 2 A touring version of Ford's "Model T," 1908
Ford personally took the Model T for a test drive. He drove the test car on a trip to northern Wisconsin and Michigan, climbed the stairs of the Tennessee State Capitol, and reached the summit of Pikes Peak. People were amazed by this inexpensive car that could perform all kinds of stunts. After passing the final test, the first Model T was completed on September 27, 1908, and delivered to the first customer on October 1.
At first, the production volume of the Model T was very small - only 11 were produced in October. But by December, the production volume had increased to 200 per month. Soon, every available inch of space in the factory was devoted to the production of this popular product. The engines and axles were assembled on the first floor, and light processing was carried out on the second floor. According to Ford's statistics, the first batch of Model T cars produced at the Piquette Avenue Plant totaled 12,000 units.
The Model T truly brought an innovation of "ease of driving" to drivers. It placed the steering wheel on the left side, making it convenient for passengers to get in and out of the car. Its flexible gearbox allowed drivers to shift gears easily. It was the first model to cast the engine block and crankcase as one piece, the first to use removable cylinder heads for easy maintenance, and the first to widely use the light and strong vanadium - steel alloy. Early Model T cars also came with a tool kit for the driver, and car owners could optionally choose a windshield.
Figure 3 A 1911 Model T driving up the steps of the Young Men's Christian Association
In his memoir My Life and Work, published in 1922, Ford elaborated on his vision for the Model T: "I will build a car for the great multitude. It will be large enough for the family, yet small enough for the individual to run and care for. It will be constructed of the best materials, by the best men to be hired, after the simplest designs that modern engineering can devise. It will be so low in price that no man making a good salary will be unable to own one..." Ford firmly believed in his concept. So, one morning in 1909, Ford announced to the whole factory that from then on, they would only produce one model, which was the Model T.
Regarding the Model T, Ford had a famous saying: "Any customer can have a car painted any color that he wants so long as it is black." This is a direct proof of the innovation of the Model T: cars gradually changed from being specific toys for the rich to standard products with a unified image, performance, and general operation modules. But this design to improve production efficiency did not mean that all Model T cars had to be black. Before 1914 and after 1925, people could buy Model T cars in various colors, such as blue, red, gray, and green. By the early 1920s, more than half of the registered cars in the world were Fords, and the sales volume of the Model T exceeded 15,000,000 units. The success of the Model T truly brought the "Ford concept" into the US automotive industry.
Ford recalled that when the company was first established, the rented factory area was only 0.28 acres, and in the first year, it employed only 311 people and manufactured 1,708 cars. But four years after moving into the Piquette Avenue Plant, in 1908 when the Model T was officially born, the area of the Ford factory had increased to 2.65 acres, the number of employees had reached 1,908, and 6,181 cars were manufactured. The Piquette Avenue Plant became an important base for Ford's early production and innovation. It witnessed the birth of several legendary models and the rise of the company, and at the same time, practiced the initial 'Ford concept.'
The purpose of the "Ford concept" is to reduce prices, increase production volume, and improve product quality. Among them, "reducing prices" is always given top priority. However, it is obvious that price reduction cannot be achieved easily. Ford invested a large number of experiments in every possible production link that could be "better and cheaper."
Actually, when Ford first started trying to build cars, he had been focusing on experiments to reduce the weight of cars. He believed that "excessive weight would damage any self - propelled vehicle." Reducing weight and eliminating unnecessary parts were the consistent logic in Ford's work. In 1905, at a racing event in Palm Beach, Ford accidentally picked up the valve stem of a scrapped French car and found that it was both light and strong. Ford knew that this was the key material he had been looking for to make cars lighter - vanadium steel.
Ford began to find someone to try to produce vanadium steel. The first batch failed, but the second batch was successful. Ford was overjoyed. He immediately disassembled the existing models, inspected the condition of each part, and decided which type of steel was the most suitable. Ford believed that for the first time in the history of machine production, they scientifically determined the exact quality of steel. In this material optimization initiative, the strength and lightness of vanadium steel helped Ford cars shed a lot of weight. This is an example of the numerous experiments Ford conducted on the way to his vision of a general - purpose car.
"There must be a better way." Ford promoted this "foolish - charge" experimental spirit throughout the factory. When someone told them that there was only one way to cast a certain part, Ford decided to try other methods. The first attempt always failed, but Ford and the workers ignored the failures. When the "experts" told them that there was no need to make changes, Ford asked the "experts" to leave the factory and decided to continue the experiments and overcome the failures. To some extent, this factory experimental spirit is an important foundation of the Ford concept and a prerequisite for Ford to gradually reduce production costs and product prices and ultimately lead the transformation of the automotive industry.
In the late 19