The bicycle business in this country had passed through a similar
experience. When first placed on the market bicycles were expensive; it
took $100 or $150 to buy one. In a few years, however, an excellent machine
was selling for $25 or $30. What explained this drop in price? The answer
is that the manufacturers learned to standardize their product. Bicycle
factories became not so much places where the articles were manufactured as
assembling rooms for putting them together. The several parts were made in
different places, each establishment specializing in a particular part;
they were then shipped to centers where they were transformed into
completed machines. The result was that the United States, despite the high
wages paid here, led the world in bicycle making and flooded all countries
with this utilitarian article. Our great locomotive factories had developed
on similar lines. Europeans had always marveled that Americans could build
these costly articles so cheaply that they could undersell European makers.
When they obtained a glimpse of an American locomotive factory, the reason
became plain. In Europe each locomotive was a separate problem; no two,
even in the same shop, were exactly alike. But here locomotives are built
in parts, all duplicates of one another; the parts are then sent by
machinery to assembling rooms and rapidly put together. American harvesting
machines are built in the same way; whenever a farmer loses a part, he can
go to the country store and buy its duplicate, for the parts of the same
machine do not vary to the thousandth of an inch. The same principle
applies to hundreds of other articles.
Public-domain text, read in full here on John Shaqi.
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