| Summary: | 碩士 === 中華大學 === 行政管理學系(所) === 97 === Abstract
This paper discusses, from an operational point of view, the performance benefits of Armaments Bureau’s Manufacturing Center No. 302 Factory’s outsourced manufacturing operation. The paper uses secondary research (quantitative methodology), and incorporates results from in-depth interviews and client organization’s satisfaction survey (qualitative methodology) to evaluate the performances of the outsourced operation. The secondary research data of outsourced manufacturing operation of No. 302 Factory during a period of 5 years is provided by Universal Joint International Co., Ltd. (“UJIC”). The survey, which was done in the form of questionnaires, incorporates the five dimensions of service quality of the PZB model (reliability, responsiveness, thoroughness, empathy, and tangible) as well as the clients’ satisfaction level to evaluate the performances of the outsourcing operations. A total of nine stake-holders, chosen for their knowledge and familiarity with the outsourced manufacturing operation, were interviewed
The outsourcing procedures of Armaments Bureau’s Manufacturing Center No. 302 Factory are strict, and the tender process and the subsequent negotiation and contract finalization are governed by “Standards for Business Outsourcing Operation” as established by the Central Personnel Administration of the Executive Yuan. JIC has been managing the factories for five years and has economized the defense budgets of up to $739,830,000. This has created financial benefits that amounted to $1,599,690,000. As a result, the level of customer satisfaction regarding the products and services has climbed 78.63%. All of the above are benefits to have been expected to arise from the government’s policy of having “state-owned” military factories to be outsourced and become privately operated.
The research has uncovered four issues that should be considered in contract negotiation and drafting so as to ensure the smooth operation of the outsourced military factories.
1.The substantive terms of the contract should be such that they are compatible
with the mechanism and principles of a free market.
2.The military had limited the use of idle assets in the factories, which goes
against the general administrative policy that idle assets should be fully
utilized.
3.The annual budget for the outsourced manufacturing of military products had
not, as is required by the contract, been properly and proportionately
earmarked in the annual administration budget proposal so that the government
budget allocated insufficient funds to these military products.
4.Inadequate communication and coordination on both sides (the client and the
supplier) lead to delay in decision-making and in the delivery of the
products.
The findings of this paper and the recommendations hopefully will serve as reference for the Ministry of National Defense in its future endeavors to promote the policy of outsourcing its military factories.
Keywords: Armaments Bureau’s No. 302 Factory, Universal Joint International Co., Ltd,
Outsourcing, PZB satisfaction model
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