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With the rapid changing market environment and the ease of information acquisition through the Internet, it is hard to yield profit unless an monopoly or oligopoly are present. Therefore, every industry is trying its best to acquire high profit rate and market share given the competitivity among themselves.
In A company case, It is a professional manufacturer of vehicle and motorcycle parts forging manufacturer, the company has growth faster recently, but there is no significant enhance in profit and revenue , from financial figures, both in cost of product and quality are the majority proportion, therefore hoped that through this study to reduce critical costs, in order to increase the company''s operating performance.
The purpose of this research is to combine the ROIC analysis and certain management methods in order to alter organization’s performance and process, in hope to enhance efficiency. The research design is illustrated in the following:
1. Discovering the factors for company’s profit by breaking down ROIC
2. Analyzing significant factors and provide the corresponding strategies.
3. Verifying test result strategically
4. Standardizing the result and process, and provide suitable advices for company’s management based on the result, which in turn enhance company profit.
The results from this study, the main factor affecting the company''s profitability is the cost of quality, through Advanced Product Quality Planning (APQP) and design simulation can reduce the failure costs, and shorten development time, faster and more efficient to meet customer demand for quality and delivery in new product development, to control the variation when process, increasing the company''s profits.
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