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 BUSINESS
On 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
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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
