Do Managers Get Stuck at Pursuing Local Optimal Mindset in Decision Making?

• Main Authors: Hsu, Chun-Chien, 許純健
• Other Authors: Li, Rong-Kewi
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/ga75w4

碩士 === 國立交通大學 === 管理學院工業工程與管理學程 === 105 === Industry 4.0 has been the topic of focus for many years. For being less dependent on manpower and integrating new methods of data collection, most application of Industry 4.0 is to use factory automation, Internet of things, and the adoption of electronics and IT system for enhancing production process. In recent years, many commonly adopted business management strategies such as Toyota Production System, Six Sigma, Lean Production, used to improve process efficiency and quality for business. However, in many business cases across industries, business managers still encounter struggles such as excess stock in inventory and lack of material. According to Theory of Constraints, the pursuit of locally optimal solution cannot get system optimized in all aspects because it only focuses on the decrease of unit cost and finding locally optimal solutions. Besides, according to the Fifth Discipline, system thinking is an important element and is important application for decision makers in organizations. This research will explore the effectiveness of decision made from management levels. Besides, author would like to explore if decision makers in organizations will only focus on the pursuit of local optimization and lower unit costs. Therefore, in this research, scenario has been designed and studied, methods of interview and survey will be used for collecting findings from decision makers . The results of the study shows that managers have the basic management knowledge and make the right judgments in a simple simulation situation. However, once more conditions added in the simulation situation, even in the modern age where information explodes every minute, interviewers fall into the pursuit of local optimization of thinking without noticing they were restricted for finding locally optimal solutions and end up making ineffective business decisions for whole organization