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Study Of The Strategy Of Capacity Distribution For Cross-strait Operations Of Taiwanese Investment Enterprises-comparison Of Non-parametric Approach And Parametric Approach

Posted on:2011-06-12Degree:DoctorType:Dissertation
Country:ChinaCandidate:X X HuangFull Text:PDF
GTID:1119330335992156Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
Taiwanese enterprises invest mainland China in a large scale and related clan since the joint of WTO organization. The factors concerning cost, environment, emotion, and region form the vision toward market investment. Hence, Taiwanese enterprises face the constant challenge of regional development, the rise of newly developed industries, and capital re-distribution. How to maximize the investment becomes the major issue for Taiwanese enterprises. This research reviewed and evaluated existing theoretical bases to conclude the investment in China for Taiwanese enterprises as well as the cross-strait capacity distribution. Major factors for the trend are based on concentrated region and high-tech prosperity. TFT-LCD industry in the Yangtze River delta area will be the study case. This case is aiming at one of the 3 leading TFT-LCD manufacturing companies in the world. The subject is focused on the liquid crystal display module (LCDM) factories. The capacity planning of LCDM will adopt DEA model in non-parametric approach and Economies of scale in parametric approach to analyze the capacity planning, and to compare the difference between these 2 approaches.The analysis originated from the DEA methodology in non-parametric approach. Appropriate DEA model was chosen to meet the research needs. Regression analysis could apply to screen indexes of the input/output results from the reliable financial datum. Production efficiency, manufacturing technology and operations location were found to be the three impact factors that contributed to the total performance disparity for every inefficient DMUs (Making Decision Units) through the filtration process of DEA methodology. In order to further distinguish the relationship between manufacturing capability and operations location of the inefficient DMUs, the authors combined the production efficiency and manufacturing technology into manufacturing capability. Therefore, the original three impact factors are reduced to two impact factors, i.e. manufacturing capability and operation locations. Cluster analysis will then be adopted to segregate the manufacturing capability and operation locations to stand out the manufacturing performance. The two impact factors divide the two dimensional space into four quadrants. Each inefficient DMU has a corresponding point in the two dimensional space. Then, the priority for performance improvement can be found. Furthermore, DEA model will be applied to calculate the conditions of the returns to scale by summarizing all the decision factors in order to get a feasible solution. In the parametric approach, the model will start with the Fourier Flexible Function. The values of Economics of scale can be introduced according to the parametric calculation with Fourier Flexible Function. The priority for capacity adjustment for all plants can be found according to these values of Economies of scale. Through the above analyses; we can conclude the suggestions as follows:1. China has the advantage competitive labor cost and facility expenses. On the other hand, Taiwan holds the edge for production efficiency and manufacturing technology. In the practical operation, operation location disparity is difficult to decrease in a short term. However, the introduction of sophisticated manufacturing technology and the imitation of production model can help improve manufacturing capability.2. To improve the total operation efficiency will be the major task for Taiwanese enterprises. In total picture, the main operational focus is to minimize the disparity of manufacturing capability of factories in the mainland and in Taiwan, and to accelerate the transfer of production capacity from Taiwan to the mainland. The scale benefit will have an upward trend after improvement in production ability. This trend shows the advantage of volume expansion in China region while, on the other hand, Taiwan region will not show the same amount of scale benefit by only improving manufacturing ability.3. Feasible capacity allocation could be reached by this research result. The foundation is based on Cluster analysis, Analysis of the returns to scale, and Economics of scale to proceed with creating strategic capacity planning and specific methods for capacity adjustments.
Keywords/Search Tags:Taiwanese Investment Enterprises in Chinese, Operation in both sides of Taiwan Straits, Capacity distribution, Data Envelopment Analysis (DEA), Cluster Analysis, Analysis of the returns to scale, Fourier Flexible Function, Economies of scale
PDF Full Text Request
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