A Case Study for a Supply Chain Analysis of the Product Family Development in a Coating Machine Agent Facing Technology Evolution

• Main Authors: JUI-HUNG CHEN, 陳睿閎
• Other Authors: Juhwen Hwang
• Format: Others
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/m7w65w

碩士 === 國立東華大學 === 運籌管理研究所 === 102 === The coating machine industry had developed in Taiwan in 1960s. During the past sixty years, the coating machine was affected by paint, and the products had passed several times of evolution all over the world. The paint and coating technology in Taiwan were derived from the Europe and United States. Therefore, the coating machine agents sold the products to local customers by learning technology and knowledge of products that were from foreign countries. Moreover, they can develop their own product family and substitute products to meet the market demand. From the perspective of the coating machine agents, this research took Taiwan's P company for example. In this study, we investigated the development of the product family facing technology evolution. Firstly, we studied industry-relevant coating topics, and discussed the relationship between coating and surface treatment. Next, from the background of paints, we understood the interaction among paint, coating machine and coating technology. Then, the paint and coating technology were derived from the developed country. After that, the coating machines were improved to satisfied the downstream industry. Moreover, when the demands of downstream industry were stable, the product life cycle of coating machines had unchangeable. Finally, because the diversity of demand and economies of scale are different in many areas or markets, local service providers learned coating techniques from global service providers, and developed their product family. In this study, based on the past demand data of the coating machine market, Firstly, the coating machines were divided into two groups: original products and substitute products. Secondly, we forecast the sales of original products and substitute products by adopting the Bass diffusion model and regression analysis. Furthermore, we compared the before and after variation of product life cycle by selling the substitute products. Thirdly, we combined sales trends and total profit of the coating machine in the company's nearly 20-year history try to examine the influence with the development of product family which caused by technological evolution. Based on experimental results, we summarized that the coating machine has longer product life cycles through incremental innovation and technological breakthrough was less frequent. So P company can develop substitute products and build their product line. Next, when P company’s substitute products enter the market, the process would help the diffusion rate speed up, increase potential demand and extend the product life cycle. If the trend maintained constant, substitute products can make profit for P company. Then, the coating procedure included local service providers supply substitute products and imported products to downstream industry. When sales volume of substitute products increases, it can push the sale of imported products up. After that, from the perspective of the supply chain members, local service providers learn product skills from global service providers and cater to the local market, it can develop substitute products. The issue about how to integrate the products which can apply the marketing is important for local service provider. Global service providers sell their standardized product and get marketing information by local service providers. The second issue about how to utilize coating techniques effectively to create and improve the products is their core values. In order to satisfying the end-user multiple demands, the downstream industry can get suitable products form local service provider. Another issue about how to improve efficiency and productivity is their most important task. Finally, in this study, we use the original Bass diffusion model for real sales data analysis to get the sales trend of the B2B products – coating machines. Based on observations, the forecast trends fit reality and have a similar distribution.