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ECONOMIC factors applying to mass production are dealt with in an endeavor to show how, by following certain laws of manufacturing management based on economic laws, the Ford Motor Co. has attained its very low production costs. Some of these laws, which were put into concrete form as recently as 1926 by L. P. Alford, are quoted, and examples of methods are given to show how they operate.

The only direction in which flexibility of an organization can be considered is that of successful progress. Flexibility uncontrolled is liable to lead to retrogression instead of progression. During the war, every available unit of man-power was called into use, and all specialized intelligence was stretched almost to the breaking point. This was particularly true of the intelligence in the automotive industry. Demands were made in connection with the airplane, tanks, agricultural tractor and submarine chasers, as well as the more stabilized automobile and trucks. The most skilful men naturally gravitated to the most difficult work, in the problems surrounding the airplane and the tank, and, while in general there were not nearly enough men, the scarcity of skill was more noticeable in the older branches of the industry. It was there that the necessity for a flexible organization demonstrated itself. The first necessity was a rigid base from which progress could be made.