An Application of TOC on Cost Reduction --A Case of the Domestic Automobile Industry

• Main Authors: Frank Lin, 林尚志
• Other Authors: R.K. Lee
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/72129071192857245421

碩士 === 國立交通大學 === 工業工程與管理學程碩士班 === 91 === After the formal entrance to WTO in 2002, every industry in Taiwan is facing the unprecedented stress from competing with imported goods. Because domestic Motor Manufacturers cannot break thought the restrictions on techniques and market scale, when facing the removal of the restriction on the quota of imported motors and sales region, the profitability drops drastically. That is why all the domestic Motor Manufacturers have been strictly implementing the “C/D (Cost Down)” activities since five years ago for eliminating the impact from the relief of the import bans on motors. The result of C/D is satisfying after a series of activities on it and this did bring the Motor Manufacturers the raise of profit from Finance Report, but the profitability of Original Techniques Companies and parts suppliers is not improved. By contrast, those activities bring the negative influences such as cost increasing and profit descending. As a result, the distrust over Motor Manufacturers is growing stronger and stronger day after day, and they are skeptical about the genuine meaning of the C/D activities Motor Manufacturers have been advocating for reacting to the impact from the entrance to WTO. TOC stresses the emphasis on the Global Optimum, and this is consistent with the concept of “Total Profit and Growth Sharing”, which Motor Manufacturers has been emphasizing. The local optimum results deriving from the C/D activities will lead to the more numerous industry crises in the future. The research is to figure out a better strategy for C/D by adopting TOC’s problem-solving method in order to eliminate the harmful influence from the current C/D activities, and expects to gain the tri-wins consequence for domestic Motor Manufacturers, Parts Suppliers and Original Techniques Companies.