Acknowledge support from NSF Grant Nos. IIS-0325321, and IIS-0325402.

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Henry Ford and the Model T Lessons for Product
Platforming and Mass Customization
Fabrice Alizon Steven B. Shooter Timothy W.
Simpson
DETC2008/DFMLC-49420
Acknowledge support from NSF Grant Nos.
IIS-0325321, and IIS-0325402.
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Outline

• Motivation
• Model T
• Diversity
• Overall
• Overtime
• Platform
• Mass customization
• Discussion Conclusion

You can have any color car you want so long as
its black Henry Ford
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Motivation

• Rick Benjamin and his Touring 1923 Model T in
  Lewisburg
• Few realize that Fords Model T could be viewed
  as one of the greatest platforms ever created,
  enabling his workers to customize this model for
  a variety of different markets.
• Offering valuable lessons for product platforming
  and mass customization

None of the first Model T models were proposed in
black
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Model T Scoop?

• First Model T
• Touring, offered in red, followed by the Roadster
  in pearl grey
• Black why? Dry faster No diversity
• Changes were due to four main reasons (1)
  improve speed of the production, (2) cut costs,
  (3) increase customer appeal, and (4) order
  through different suppliers with different
  manufacturing processes.
• There were so many modifications during the Model
  T lifecycle that it is impossible to generalize
  and specify a features/year rule.
• End of life Model T
• Mass production limits
• Late to renew products?

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Overall Diversity
1908 to 1927 15 M cars Highly competitive
market Hundreds of carmarkers - Emerging
market - Not expensive - Performance - Easy to
drive/repair/modify - Network effect (pieces) -
Mass effect
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Diversity Overtime
Touring 1926
Touring 1908
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Model T Platform

• Model T - Improved overtime

Skateboard
Model TT
Danas Rolling Chassis
stretching (scaled-based) the Model T chassis to
obtain a 1-ton light truck
Tractor/Truck
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Flexible Configurations New solutions?
Mercedes Vario Research Car (2003) wagon to
sedan to convertible
Fords Touring model (1914) four-seat car to
truck
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Mass Customization
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Mass Customization 2

• 5 of the demand was satisfied through
  customization
• 5000 Gadgets
• Product platform sold as a product
• Outsourcing Mass customization
• The customization was realized by Ford but mainly
  by specialized companies tailoring it to exact
  customers needs.

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Discussion

• Henry Ford successfully designed and sold a
  product line
• Integrating significant variety with eleven basic
  models
• Offering customization with a line of 5000
  gadgets, and customized models offered through
  specialized manufacturers
• Modern vehicles are designed and launched (Phase
  1) and then improved during a second phase (2-3
  years after the introduction) to better fit
  customers needs, costs, etc.
• It is interesting to compare Fords approach and
  modern strategies while hundreds of carmakers
  were offering cars at that time in the United
  States. In fact, Ford continuously improved his
  models, and each year a complete new line was
  launched, while most of todays new models just
  offer small modifications, mostly a repackage of
  the previous year.
• This can be one of the keys to success of the
  significantly long lifecycle of the Model T

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Discussion - Platform

• Ford realized what most industries want to
  achieve design a strong common platform
  sustaining variety through common interfaces
  thus, only bodies were specific.
• This platform was dynamic and constantly
  improved, benefiting the entire family of
  derivative products
• By extension, Ford proved that it was possible to
  build a common platform and design and assemble a
  specific body. So, under conditions of
  profitability, automakers should be able to build
  a common platform and ensure variety through
  specific bodies, thereby taking full advantage of
  the late differentiation

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Conclusion

• Model T was one of the first platform-based
  products ever produced in quantity and one of the
  most efficiently designed
• Most of Fords techniques are still relevant
  today and should be better considered by industry
• For the lifecycle, industry should recognize that
  wider variation of the product line over time can
  generate a longer lifecycle

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