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A System Thinking Research On Product Lead Time and Quality ¡VA case Study of S Car Accessory Company

Based on the theory of System dynamics and by using the methodology of a case study, the researcher explores the factors influencing the shortened product lead time and the stability of the product quality. In Taiwan, the industry of after-market car accessory has been facing the pressure resulted from our competition with mainland China to provide low-price products. Such competition has intensified since frequent business communications and encounters between Taiwan and China take place. In order to thrive in such competition, not only does the industry in Taiwan need to increase its productivity, but it also has to find means to increase the stability of the product quality and to shorten the product lead time.
Analyzing it based on the process of a production, one can find that product lead time is influenced by the following three factors: the time required to design the product; to purchase the raw materials; to produce the product. When purchasing raw materials, one has to consider both the materials used in product developing and as well as the ones required to mass production. In addition, the time required to acquire raw materials also depends on the reliability of the up-stream supplier and our relations with them. Last but not least, the time required to acquire raw materials also depend upon how professional the purchaser designated buyer in the company is. The time required to design the product is affected by the R/D engineer¡¦s professionalism and his or her familiarity with the product. Consequently, the time required for designing phase is affected by the possible turn-over of the company¡¦s engineers. Further, the design and equipment of the production line and workers¡¦ familiarity with the production process are all determine factors as to the time required to complete the products. The quality of a product is determined by the quality of the raw materials and the process of mass production. The quality of the out sourced raw materials is affected by the attitude and promptness of the purchasing department of the company. Furthermore, the standard operation process of the production line and the design of all concerned fixtures also affect the product quality during the mass production.
By using the Strategy Maps and Balanced Scorecard, one found that, in the case of Company S, the instability of the quality of products and the delayed product lead time were caused by the lack of competency of company buyers, poor management of the supply chains, and ineffectively executed quality control process. In order to improve the situation for Company S, one needs to consider the interactions between all production factors based on the perspectives of the System Thinking. Subsequently, based on analyzing the case of Company S, the current study concludes the following points:
1. Using traditional business management models, the decision-makers cannot detect the dynamics of processes in the company.
2. By only using the Casual Feedback, one cannot easily detect the core of the problem in the company. One also needs to simulate the situation in order to foresee the result.
3. One should use a system dynamic way of thinking to analyze the operations of a corporation in order to foresee potential problems before they arise.
4. The researcher will recommend Company S to establish its own Strategy Mapping, so it can effectively evaluate its policies and strategies.
Key Word: System dynamics, System Thinking, Strategy Maps,
The Balanced Scorecard, Casual Feedback,

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0805108-115011
Date05 August 2008
CreatorsChang, Pu-Lun
ContributorsPing-Yi Chao, Yi -Min Tu, Yang
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0805108-115011
Rightsnot_available, Copyright information available at source archive

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