TSMA Yearbook 2018

118 2018 Yearbook C. Taiwan Productivity 4.0 1. Manufacturing industry is facing the external challenges of changing business models and threats from the front and the rear, the internal problems like insufficient labor force, etc. Therefore, there are strong demand to introduce productivity 4.0. a. International challenges 1. In order to meet the diverse market demands, production methods are upgraded from the whole- factory and production line automation to the customization system, featuring small-volume and large-variety products. The competition in industry and service changes from price reduction to customer-value creation. 2. The developing countries continue to rush into the mass-production markets. Industrial countries target high-end customization markets. Obviously, this is a dilemma of pincer attack. b. Domestic problems 1.The growth of per capita production value in Taiwan declines. There is need to enhance labor force quality and efficiency so as to support a higher level of salary. 2..Due to limited resources such as land, labor, water and electricity, industrial development faces the pressures of environmental protection and sustainability. 3.Under the situation of aging population and low fertility, it is estimated that in 2020 the shortage of working population will reach 1.96 million people. This urgent labor shortage problem needs to be resolved. 4.Traditional marketing model cannot substantially drive productivity. Enterprises need to upgrade from the enterprise-to-enterprise model to a customer-tailed system, that is, enterprise to enterprise as well as customer. c. Productivity 4.0 is the solution Productivity 4.0 brings the following advantages: (1)flexible production lines which can respond quickly to daily-changing customization orders; (2)optimal enterprise structure which captures high-end