The Privatization Policy of Military Factory－A Case Study of the 3rd Air Logistic Center Air Force

• Main Authors: Duu-gaan Chen, 陳篤敢
• Other Authors: Pao-an Lin
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/51608819170879131360

碩士 === 義守大學 === 管理研究所碩士班 === 94 === Privatization and liberalization have been worldwide issues as well as two of our country’s policies. The authorities of our country has realized that it is an unavoidable trend, and begun to promote the required policies in 1980. Owing to the current relations between R.O.C. and Mainland China and the trends of privatization and liberalization, the current defense policies will gradually face the challenge of being privatized, and hopefully adjust to the trend. Meanwhile, the Ministry of National Defense, in considering the changing of war types, condensing of the military forces and reducing of defense budget, is trying to introduce the latest production technology and management techniques into military factories to improve its production capability. Therefore, the promotion of military factories into GOCO (Government Owned, Contractor Operated ) has become one of the important defense policies. After evaluating the military factories of all military types, the Ministry of National Defense chose, in 2000, the 302 Factory Union Logistic and the 2nd Air Logistic Center Air Force as the first two privatization departments to experiment the GOCO, and set model for the further privatization of other military factories. The 2nd Air Logistic Center Air Force launched on November 1st, 2005, expected to be followed by the 3rd Air Logistic Center Air Force which is in charge of the maintenance of aircraft engines. This research is based on the situation of the 3rd Air Logistic Center Air Force, adopting information collection, survey and in-depth interview to discuss the reasons and future development of military factories privatization and to survey the proper plans interacting with the method. The result reflects that GOCO is a trend for the defense aviation industry. The management of military factories into GOCO has become a very important policy of the Ministry of National Defense (MND). The main purpose to promote GOCO by MND is trying to bring the modern business management concept applied in most private industries to the military factories. It is also the MND’s expectation not only to improve the factory’s production capability, but also to decrease the military maintenance costs. Furthermore, the maintenance experience and technology resources of the 3rd Air Logistic Center Air Force will attract the private industries in the aviation industry field, both domestically and abroad. For the military forces, the privatization of the 3rd Air Logistic Center Air Force will not have much of an impact on logistic support. Therefore, throughout GOCO implementation, it can offer many benefits such as management, performance and flexibilities. Privatization is a significant change for the military forces. Meanwhile, it will help set the 3rd Air Logistic Center Air Force a good model of privatization on condition that more plans are made to protect the job rights of the employees, as well as continuing supervision from the military forces on the qualified civilian contractors’ operation is implemented exactly. This research also contributes recommendations for possible problems emerged from privatization of the 3rd Air Logistic Center Air Force as reference to benefit both the military and private business enterprises.