Development of a New Business Model of the SME Manufacturing Industry from Mass Production to Make-to-Customization

EasyChair Preprint 4006, version 1

Abstract

In the new era, due to the market competition, there are a lot of pressures in the manufacturing industry and SME Company.  Most of the manufacturing companies are facing the challenge, such as increasing in product variety, small lot size and short delivery time, but there is lack of a suitable and practical methodology to ensure their problems.   

The study is mainly based on drilling down into an SME manufacturing company, explores the limitation in its current Make-to-Stock and Make-to-Order business models, and find out the boundaries of its operation process when facing the current market.

This research paper develops a new business model: Make-To-Customization, two-phase operation process and standardization modular design to solve the above problems for SME Company, and then trail run the new business model in the manufacturing company.  The results proven that the new model and operation process not only solve the problems in product variety, small lot size and short delivery time, but also create the synergy effect for transformation the idle parts to business opportunity, and improve the efficiency and effectiveness in the operation.  It provides a clear roadmap of explorer and cost-effective solution for other SME manufacturing companies in continuous improvement their Total Quality Management (TQM) and business model.

Keyphrases: Continuous Improvement, PDCA cycle, standardization

@booklet{EasyChair:4006,
  author    = {George Chien and Felix Chan},
  title     = {Development of a New Business Model of the SME Manufacturing Industry from Mass Production to Make-to-Customization},
  howpublished = {EasyChair Preprint 4006},
  year      = {EasyChair, 2020}}