Age of Industry Section 3-7 Section 3 Lecture Notes 7 of 21 Click the mouse button or press the Space Bar to display the information. Industrialists practiced industrial capitalism, which involved continually expanding factories or investing in new businesses. Growth of Big Business (cont.) In a capitalist system, individuals decide how they can make a profit and determine business practices accordingly. 

Age of Industry Section 3-8 Section 3 Lecture Notes 8 of 21 Click the mouse button or press the Space Bar to display the information. Fast-working, precise machines enabled industrialists to mass-produce, or to produce huge quantities of identical goods. Mass Production Looking to increase their profits, manufacturers invested in machines to replace more costly human labor. 

Age of Industry Section 3-9 Section 3 Lecture Notes 9 of 21 Click the mouse button or press the Space Bar to display the information. Mass Production (cont.) In the early 1800s Eli Whitney, inventor of the cotton gin, contributed the concept of interchangeable parts that increased factory production.

Age of Industry Section 3-10 Section 3 Lecture Notes 10 of 21 Click the mouse button or press the Space Bar to display the information. Mass Production (cont.) Frederick Taylor encouraged manufacturers to divide tasks into detailed and specific segments of a step-by-step procedure.  Using Taylor’s plan, industrialists devised a division of labor in their factories.

Age of Industry Section 3-10 Section 3 Lecture Notes 10 of 21 Click the mouse button or press the Space Bar to display the information. Each worker performed a specialized task on a product as it moved by on a conveyor belt, a concept called the assembly line. Mass Production (cont.)

Age of Industry Section 3-11 Section 3 Lecture Notes 11 of 21 Click the mouse button or press the Space Bar to display the information. As Ford produced greater quantities of his cars, the cost of producing each car fell, allowing him to drop the price. Mass Production (cont.) American automobile manufacturer Henry Ford used assembly-line methods in 1913 to mass-produce his Model T automobiles. 

Age of Industry Ford Assembly Line

Age of Industry Section 3-12 Section 3 Lecture Notes 12 of 21 Click the mouse button or press the Space Bar to display the information. Organizing Business As production increased, industrial leaders developed various ways to manage the growing business world and to ensure a continual flow of capital for business expansion.

Age of Industry Section 3-12 Section 3 Lecture Notes 12 of 21 Click the mouse button or press the Space Bar to display the information. In addition to individual and family businesses, many people formed partnerships–business organizations involving two or more entrepreneurs. Organizing Business

Age of Industry Section 3-13 Section 3 Lecture Notes 13 of 21 Click the mouse button or press the Space Bar to display the information. In the late 1800s, as industries grew larger, corporations became one of the best ways to manage new businesses. Organizing Business (cont.) Corporations–business organizations owned by stockholders who buy shares in a company–also emerged at this time. 

Age of Industry Section 3-14 Section 3 Lecture Notes 14 of 21 Click the mouse button or press the Space Bar to display the information. Business Cycles As market needs grew more complex, individual businesses concentrated on producing a particular kind of product.

Age of Industry Section 3-14 Section 3 Lecture Notes 14 of 21 Click the mouse button or press the Space Bar to display the information. This increase in specialization made growing industries dependent on each other. When one industry did well, other related industries also flourished and vice versa. Business Cycles

Age of Industry Section 3-16 Section 3 Lecture Notes 16 of 21 Click the mouse button or press the Space Bar to display the information. By the late 1800s, manufacturers began to apply more scientific findings to their businesses. Science and Industry Amateur inventors relying heavily on trial and error produced most industrial advances at the beginning of the Industrial Revolution. 