Trend Observation of Machine Tool - Two Strategies to Create Value

Taiwan Machine Tool Market Trend Observation

Taiwan's machine tool companies were being widely acclaimed that they have organized national teams to support mask manufacturing equipment while the Coronavirus spreading all over the world. With the high concern of what is happening in Taiwan, people are proud of the ability of those machine tool companies to rapidly develop practical equipment for mask manufacturing, they even let the world to see the potential of its development value creation.

Taiwan's machine tool industry started by learning developed countries' machines, combining the advantages of industrial clustering and modularization, which play an important role in the global market. However, recently, developing countries have been rushing to catch up in Taiwan with the same model, causing the number of exports and corporate profits have deteriorated.

The key is to know how to propose integrated solutions from the perspective of customers' using processes to achieve the purpose of increasing work value. The expert reviews the recent changes in machine tool companies, and he thinks that there are two very important strategies to help manufacturing equipment create added value, which is worthy of deep thinking by Taiwan machine tool companies.

Top Equipment vs. Customized Equipment - To provide the top machine tool and uses own production line as a test base to sell the actually verified "successful experience" to customers. Take Japanese company, for example, they refined, compounded and five-axis two factories, which are exemplary. They used the assembly factory as a precise standard for production scheduling and effectively shortened the processing time through compounded changes. In the meantime, they replace the Japanese five-sided machining machine by the German DMC340, and the Japanese machine spindle head was improved to a universal head, which increased the production efficiency by 49% and 15%, respectively. As a result, the explanation board erected at the scene is very convincing to the customers. This causes more than 40 devices on display has similar stories, and effectively improving customers' process time or use efficiency.

Next, is to provide customized equipment to the customers. Combine with the customer's using situation, process needs, and operating habits. Finally, integrate all the customer's needs into the structure of the standard machine tool.

In 2019, a Japanese company's operating profit rate has exceeded 30% while other Chinese companies' profit declined 35% compared to 2010 due to the trade war between USA and China. While examining the reason for sales machines, we found out that 92% of machines have been transformed into customized models. To understand the process at the customer's manufacturing site and effectively integrate the machine tool into products are the keys to create customer value.

Taiwanese Enterprise Value

Customer Value is the Basic of business standing - The above observations show that the two models of value creation have their external product features and internal core capabilities with common characteristics. One is to achieve the goal of increasing profit through the practice of customer value; the other is to refine the change with practice, shortening the delivery time and eliminating waste.

Customer value is the basis of corporate existence. Taiwan's machine tool companies are pursuing the process of transformation and upgrading. It is still common that they sometimes do not understand the customer needs and think of mass production. We encourage Taiwan machine tool companies to deeply understand the basic conditions and their own capabilities of the two value creation models also to make clear decisions. Aiming to effectively design and develop technology also devote to lean manufacturing and lean product development. Finally, it achieves the goal of improving customer profits with customer value.