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Switchgear is the requisite equipment of the electricity and control system so the supply and demand of the switchgear are closely linked to the growth of the using demand of the electricity system. The rapid and strong development of mainland China economy in recent years has caused absorbent effect, which led the domestic industry in Taiwan to the investing reduction. It is predictable that the switchgear demand of the domestic market in Taiwan will grow less. Besides, the switchgear export from Taiwan can’t be competed with the international major companies as well. Therefore, there will be a huge impact on domestic switchgear industry, which will make the competition among those switchgear manufactories more intensively. There are 115 companies of the switchgear manufacture in Taiwan. This case study uses a switchgear manufactory, so-called “N company”, as the example. N company, the leading switchgear manufactory in Taiwan, predicts the demand of the switchgear will less grow gradually in the future. To ensure the leading position in the manufacture, how to change the patterns of taking orders and producing products to lift the competitive ability will increase its revenue and profits.
To seek the strategies to improve, this research applies Theory of Constraints by Dr. Eliyahu M Goldratt to find out the core conflict. The main demands of the clients are quality, delivery time, price and service. However, the major six items of undesirable effects of N company’s can’t be satisfied with its clients’ demands, which imply the crises of the decreases of revenue and profits. Using the analysis of Theory of Constraints Evaporating Cloud, we can get the core conflict , the conflicts of the product manufacture standardized or not standardized from the clients’ demands. Then, draw out the strategy, “Manufacturing the products to meet the client’s demands and to maximize the company’s capacity.” Therefore, N company chooses the international excellent label to build up the technical collaboration and the business partner relationship to manufacture the standardized products, which can make the delivery time shortened, the products standardized by the international institutes, and the inventory built for the well-prepared service. Then, with instructions and promotion, clients will adopt the products.
Because the standards are less and the employees are more skillful, after the product standardization, the quality of the products can be guaranteed. Also, it can use the automatic equipments to manufacture for the production procedure, which will decrease the dependence on the employees and increase the efficiency of the production. To make annual purchasing agreements can dramatically shorten the operation time of the supply chain and decrease the excess of the capital to lower the cost. Not only to meet the clients’ demands on quality, delivery time, price and service but the standardization also lowers the cost the meanwhile and lifts the competitive ability to increase its revenue and profits. After the development of N company in its standardization, according to Theory of Constraints based on future, this research can suggest the study trends for the ongoing improvements in the future.
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