'Next-level genius': Elon Musk credits Henry Ford as the father of mass manufacturing — but wrongly claims he founded Cadillac before getting 'kicked out.' 3 stocks famous for lean production

“Ford deserves a tremendous amount of credit,” Musk said. “In fact, Ford is really responsible for the entire mass manufacturing industry because he actually founded Cadillac, which was the heart of General Motors. Then he got kicked out and started Ford.”

To be clear, Cadillac was founded in 1902 with the remnants of Ford’s first automobile venture five months after he left the company. The brand was based on a single-cylinder engine developed by Henry M. Leland. It would go on to become a part of General Motors in 1909.

Nevertheless, Ford was clearly the pioneer of lean manufacturing, which revolutionized automaking and made his third venture, Ford Motor Company, a massive success.

Toyota

Ford’s lean manufacturing technique inspired Toyota's (TM) Kiichiro Toyoda and Taiichi Ohno to implement similar cost-saving strategies and ramp up production. The duo used Ford’s ideas to create their “Just-in-Time” philosophy, which was yet another revolutionary change for global manufacturing.

To cut costs and eliminate waste, Toyota focuses on manufacturing only "what is needed, when it is needed, and in the amount needed." That means all the parts and equipment needed to manufacture a vehicle on the factory floor are arranged in a way to minimize the time it takes to get from order to delivery.

These innovative manufacturing techniques have helped the company boost production while maintaining quality. Today, Toyota is the largest car maker in the world, producing nearly 10 million vehicles every year. In terms of revenue, it’s the second-largest auto company in the world. Toyota generated $275.2 billion in revenue in the fiscal year that ended in March 2023.

Nike

Athletic footwear might not be the first thing you associate with cutting-edge manufacturing, but Nike (NKE) proves that you should.

Researchers studied the audits of more than 300 factories in Nike’s supply chain across 11 countries and discovered lean manufacturing processes throughout the system. They say this not only reduced costs and boosted efficiency but also led to better compliance with labor standards in different countries.