Page 36 - Taiwan Hand Tools 2023-01 Edition

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INDUSTRY NEWS

that many suppliers did not have the tools or knowledge years. In mid-October of 2022, representatives from the
to analyze and manage the data collected, therefore industry and academia gathered at an event sponsored and
could not effectively take advantage of further optimizing hosted by the Industrial Technology Research Institute and
management and processes. MOEA’s Industrial Development Bureau, called the “Value-
Adding Digital Manufacturing Management Program.” A
As integrating new technologies require time, education, number of suppliers from different industries, including
and most importantly, funds, the National Development the hand tools sector, attended the event to share their
Fund Strengthening Investment Services Project Office experiences and results regarding implementing digital
worked with THTMA to host promotional events at the transformation.
TiTE venue, with the aim to help further educate suppliers
regarding the office’s investment options, and to encourage According to Industrial Development Bureau division
applications to obtain investment. While larger businesses chief Chang Shan-chun, the program is in its second year,
have a leg-up in terms of resources to fall back on, funding with many metal industry suppliers implementing lean
remains one of the biggest differentiators in Taiwan’s hand manufacturing concepts to achieve digital manufacturing
tools industry, as the majority of suppliers are small-and- as their first step. This allows suppliers to quickly identify
medium enterprises. inconsistencies and issues early on in the simplified, lean
manufacturing process and improve flexibility to adapt to
Another factor to consider is in what was normally fast-changing market trends.
considered an unique feature of Taiwan’s hand tool
production chain, but could pose potential challenges, is the As reported by local Taiwanese media, a die-making
subcontracting culture. A single hand tool could go through supplier who partook in the program said that while they
many different subcontractors that specialize in different were designated suppliers for a notable electric vehicle
expertise and manufacturing techniques, before arriving brand, the company was unable to scale up operations
back the original manufacturer as a complete product. quickly enough as their client’s demand grew month by
If the suppliers do not implement digital transformation month, especially due to mismanagement of their primary
as a collective, they risk missing out on opportunities to product revenue causing negative profits. By implementing
scale up and employ efficient measures to their production lean management, the supplier was able to remove
operations. redundant operations and cut down on costs through
redesigning the production process. The supplier shared
An Ongoing Movement that they were able to cut inventory by half for half-made
products, improve machinery operation efficiency, and turn
A myriad of different government-backed schemes to around gross profit margins.
bolster digital transformation implementation measures in
Taiwan’s traditional sectors have been ongoing in the past

Taiwan Hand Tools 2023 Issue