A COMPARATIVE STUDY OF TAIWANESE PRODUCTION MANAGEMENT SYSTEM WITH DIFFERENT OUTSOURCING STRATEGY
Abstract
Through an appropriate process design and outsourcing decision, enterprises are able to control critical factors and performance indices to maintain flexibility and robustness. This study uses an empirical research to investigate the performance of Taiwanese production management systems. We analyze and compare the differences between the production management system with low, middle and high outsourcing rate strategies through questionnaires. There are four critical factors which influence customer satisfaction, of which flexible capability is the most influential. Satisfied suppliers will promote a good performance within SCM, and it will improve customer services. Enterprises should cooperate with their suppliers closely in their business collaborations. The middle outsourcing rate strategy has better flexibility in product and process change. These findings give enterprises managerial insights to achieve good performance and production management objectives.
