ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -At first it was pulled by a rope, and later it became a simple moving chain mechanism. The new process made it so that the Model T was now built in only ninety minutes. Yet while the work of assembling an automobile was now simplified, workers began to leave Ford Motor Company to work for their competitors.

Detailed explanation-2: -Ford’s new Highland Park assembly plant began producing cars with an efficiency that was unheard of at that time. Initially the chassis was assembled in 12 hours 8 minutes, but by 1914 it only took 93 minutes to assemble a new Model T.

Detailed explanation-3: -On December 1, 1913, Henry Ford installs the first moving assembly line for the mass production of an entire automobile. His innovation reduced the time it took to build a car from more than 12 hours to one hour and 33 minutes.

Detailed explanation-4: -More than 15 million Model Ts were manufactured in all, reaching a rate of 9, 000 to 10, 000 cars a day in 1925, or 2 million annually, more than any other model of its day, at a price of just $260 ($4, 017 today).

Detailed explanation-5: -With these new production line methods the build time for a Model T was reduced from 12.5 hours to 93 minutes by 1914. The price of the Model T was also rapidly coming down from its original hand built cost of $825 in 1908 down to a mass produced cost of $360 by 1916.