Achieve Inventory Reduction with Toyota Production System
The value of Taiwan's machinery industry has exceeded the trillion dollar mark for the first time in 2017. Encountered with the many challenges such as manpower shortage and high inventories, experts propose that TPS might be a solution for the future development of the machine industry.
There are some industry triumphs among the manufacturers in Taiwan. Machine tool exports ranked 4th in the world, plastics & rubber machinery 6th, textile machinery 6th, and shoemaking machinery 2nd. These achievements highlight how Taiwanese manufacturers strive to excel in the fierce competition of the global market.
However, machine manufacturers in Taiwan encounter many local issues, such as manpower shortage, lack of industrial land, and material shortages. As a result, experts believe that the adoption of TPS can help reduce the high inventory of Taiwanese manufacturers by 70%, and those resources could be utilized more efficiently.
It is estimated that about 30% to 50% of the inventory in Taiwan could be reduced with TPS, so industrial associations are working together with private TPS groups to promote it in the industry this year. In order to realize lean and smart manufacturing for Taiwan's manufacturing industry, a well-managed production system is now developing within industrial parks.