Abstract
Abstract The trade-offs between making a product in- house and buying it externally are well known to most senior executives. The “buy” approach— a manufacturer purchasing a necessary part from an outside source—frees up resources, reduces capital demands, increases flexibility and improves returns on capital employed, but in a tough market companies may seek to avoid potential quality concerns and supply risks. On the other hand, a “make” approach—developing and building that same necessary part internally— enables the company to utilize available internal capacity; absorb fixed costs and protect intellectual property. but it can lead to unnecessary complexity and divert time and attention away from higher- value activities. This thesis takes Flat panel display of Taiwan as research, main objective of research is make or buy related books and references as basic theory, investigate the crucial element of flat panel industry make or buy decision. In addiction, through process modularity tangency, define production process which enterprise could make modularity. Base on the database collection and interviews, the subjective appraisal is more often used in the company "Make or Buy" model. This research takes the structure of positivism in " make vs. buy decisions." by Mohsen (2011) & Platts (2002) against cases to be referred to "make or buy" decision in each modularity production process. Through this thesis research, the decision model of Platts offered a more confidence answer to us for now and further prediction on this subject. Using the “Make or Buy” theory to inspect the TFT-LCD production process, the first stage is using Mohsen (2011) “Core competency” and “Resource-Based View” to find out the main competetive process. The next is using Platts (2002) theory as ”Technology & Manufacturing Processes”、”Costing”、”Supply Chain Management & Logistics”、”Support System” for the none-competetive process to do the AHP analysis to make the final decision. In the first stage for TFT-LCD process, we find out the Array, CF and Cell process are the main competitive process. In the second stage to evaluate JI and MA production flow, we get the Buy is higher weighted point than Make in MA processs. Also, the study case in company result is aligned and approved the “Buy” method in MA can get more competitive than “Make”mothed. Under the study case get approved by company, the “Buy or Make”decision structure could provide for comapy to decise the process if it will be “Buy” or “Make”, and also could be the reference for company management and development. Keywords：Flat panel display、Make or Buy、Modularity、Decision