A Study of Production Model of Kaoliang Liquor Industry— The Case of Kinmen Kaoliang Liquor Inc.

• Main Authors: Chin-shih Chang, 張金石
• Other Authors: Pao-tiao Chuang
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/zgph72

碩士 === 國立高雄大學 === 高階經營管理碩士在職專班(EMBA) === 96 === Kaoliang liquor has become synonymous word of Kinmen. The Kinmen Kaoliang Liquor Inc. (herein referred as KKL), which is a huge enterprise as well as a monopoly in Kinmen, contributes billions of dollars revenue annually to local government. It is a crucial financial source of Kinmen government. 55 years after its foundation, KKL has increased its production scale and promoted itself into one of top-thousand-enterprise in Taiwan. It has become the industry leader in domestic white wine production. Though KKL has been dedicating itself to improvement and innovation for decades, its current production model still adopts conventional push system. That is, its annual production plan is based on the annual budget. This renders itself insufficient ability to provide customized production. In addition, in the current production model, raw materials are purchased in advance in accordance with the budget. This results in overstock and increases its economic burden and pressure of costs. Furthermore, its production plan, material procurement, and distribution plan are working separately as individual parts of the company. This results in an imbalance between production and market demand. The objective of this study is to propose a pull production model in response to the problems existed in the current production model of KKL. The proposed model aims to reduce production cost and warehousing inventory by way of an information accessing and sharing mechanism to quickly respond the costumer needs and market demand. To ensure the pull production model works well with the distribution model, this study also proposes an idea of“virtual purchasing and distribution center”that play an intermediate to integrate the internal resource of enterprise resource planning and the external resource of supply chain management. This kind of virtual integration can be helpful in reducing the transportation and production costs and improving the production competitiveness and the overall enterprise performance. The results of the study indicates that the pull production model can benefit in the aspects of improving deficiency of existing model, reducing production cost, upgrading product quality, as well as raising production efficiency and production speed. Meanwhile, the“virtual purchasing and distribution center”can benefit in the aspects of improving the streamline flow of production and marketing planning and increasing its functioning performance, improving the efficiency of the supply chain, as well as enhancing the flexibility and adaptability to the change in customer needs and market demand. Finally, to pursue the long-term effectiveness of innovation and improvement, the KKL should move toward privatization and clear off the restraints of state ownership that enterprises have; nevertheless, a strategic plan should also be established to avoid going into the hands of financial conglomerate groups.