Capability Integration in Engineering-Manufacturing System

• Main Authors: Cheng-Chih Hsieh, 謝承志
• Other Authors: 周雍強
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/99935262838967225234

碩士 === 臺灣大學 === 工業工程學研究所 === 95 === In an industrial environment where new and high technology is being rapidly applied, firms are faced with competition on rapid product change and never ending development of high quality products. Such situation deems enterprises to have fast response R&D and face a business environment with high degrees of change and volatile demand. This type of industry has two major characteristics – “Rapid Product Change,” testing the firm’s engineering capability and “Demand Variability,” testing the firm’s manufacturing capability according to changes within the environment. Firms do not need to independently improve its engineering capability nor manufacturing capability alone, moreover but to develop the integration between these two capabilities. Engineering capabilities and manufacturing capabilities must be integrated so as to complementarily benefit on its integrative effect. A firm’s engineering capability being able to consider manufacturing capability will enable to understand clearly the development path of engineering capability. When the engineering capability has already taken the initiative to improve the market conditions, an appropriate combination of manufacturing capability is further required. The study mainly researches on the production capacity strategy of manufacturing capabilities. It provides a framework for strategically combining appropriate mix of production capacity after the firm has promoted engineering capabilities which initiate the improvement on market conditions. Basic results are as follows: when demand is uncertain, the engineering capabilities influence the product prices greater than production costs. When engineering capability is stronger, the production capacity strategy must be more active and the impact of engineering capabilities influence on the product prices is less than production cost, and vice versa. Some examples are the advancement in semiconductor manufacturing processes where prices easily loosened, LCD manufacturing, Taiwan adopting a more mature plant, Korean company’s earlier intervention with new machine and under stock of Wii. In addition, when situations where the engineering capability only influences the demand changes and the engineering capability impact makes demand changes smaller, the capacity strategy must accordingly be more cautious, but when the engineering capability impact makes demand changes bigger, the contrary is applied. The logic behind is that under the analysts risk assumption, demand changes are bigger, the probability of facing larger demand tends to be higher, therefore deserving to strike on a higher profit.