Development and Experience of Taiwan Carton Industry (I)

The corrugated box industry in Taiwan before 1970 was known as the "grass creation period," when it was an era of low productivity and high profits. Opportunities create profits, and production leads the competition, with the delivery period as the core of competition. Profits are up and down 30%. Due to unstable raw material quality, large equipment errors, poor manual operation efficiency, and large losses, due to the seller's market, the product is still in short supply, and there is no pressure from the customer to request quality. Therefore, the order quantity is determined by relying on rapid delivery. Manufacturers with fast goods have mastered the advantages. It can be said that they are "competitive with delivery deadlines." Although the losses are high and the efficiency is low, the profits are quite high.
â–  Equipment 1) Loss: More than 15% cardboard, more than 20% cartons.
2) An electric fork type single-faced corrugating machine with a width of 1.4M, with an average speed of 15m/min or less, developed into a 1.4m, 1.5m and 1.6m steam fork double-faced corrugating machine with an average speed of 50m/min. the following.
* At that time, the company listed the rubber compounding formula as company secrets, and the technician had to rely on experienced technicians to adjust the paste fork. The manual paper was replaced by manual handling. The length of the base paper was cut by more than 5 meters and the base paper, moisture, and basis weight were not stable.
3) Use monochrome or dual-color vertical printing presses with an average of 30 sheets/minute.
4) Using a hand-held nail car, the staple speed is about 7 pieces/minute.
â–  Management 1) Home-style small factories adopt authoritative management.
2) The daily working hours exceed 10 hours, with two days off per month.
3) The general delivery time is 7-15 days, and there is no awareness of quality standards.
â–  Sales 1) As a new packaging material for corrugated cartons, the market demand is extremely large. Order transactions are all overcharged by suppliers and rebates are rampant.
2) There is no target management mechanism for the monthly salary system.
3) Priority should be given to those business people who can be good at communication and be good at communication.
The 1970s were known as "long-term growth," an era of high efficiency and high profits. During this period, everyone began to put technology first, which is cost-based competition, with profits of around 20%. This stage emphasizes the design and arrangement of production management, system processes, and corporate planning. It intends to increase paper stocks, increase vehicle speed, reduce losses, and increase production efficiency. In addition, in terms of process technology, more efforts are devoted to automating die-cutting and box-making to shorten the manufacturing process, reduce labor, and improve operating technology. In particular, it looks at the bad habit of abolishing sales rebates. In this period, competition based on cost reduction was basically adopted. Through the upgrading of technical personnel, high efficiency and high profits were created, which led to the rapid growth of cartons.
â–  Loss of equipment 1): more than 8% cardboard, more than 13% cartons.
2) 1.8M, 2M, and 2.3M steam fork type double-faced corrugating machines are commonly used. The design speed is increased from 150 meters/minute to 200 meters/minute, and the average speed is increased from 70 meters/minute to 90 meters/minute.
3) Two-color water-based printing press 70 sheets/minute.
* The water-based ink has poor print gloss, but the delivery speed is fast and is initially rejected by customers. However, after the use of water-based ink, the compressive strength of the carton has been improved, and the printing touch-cutting is completed once, and only the grooved portion is encountered. The need for slot machine processing, this is not a small improvement in the carton industry in Taiwan.
4) The use of automatic box-making machine, its speed is about 15-20 / minute, fully automatic box machine about 100-150 / minute.
* The sticky box process was also rejected by customers at the initial stage of use. The carton factory had to first promote the three-layer cardboard box at a favorable price, and then gradually expand it to a five-layer low-to-medium-sized carton. The reason for using the stick box process is that although the output of the automatic nail box machine is two to three times that of the manual pin box, the production efficiency is affected due to the instability of the initial flat yarn quality.
■ Management 1) Introduce “non-constrained sports”, “case explanation” and “proposal system”, establish production, production management, quality control, property management, personnel, and accounting systems, and hire professional consultants from abroad to strengthen the technical level Aspects of improvement and equipment flow planning.
* In order to correct the shortcomings of technology, equipment and personnel, various operating standards and product specifications have been formulated.
2) Formulate “Personnel Appraisal System” to achieve clear rewards and punishments, allow employees to compete fairly, and enter into “employee share options” so that employees have a sense of participation, gradually adopt an organizational management system, and adopt a participatory system management to enhance Organizational power.
3) The carton factory at that time attached great importance to the length of service and working ability of the employees. Therefore, the “structure table of salary for working people” was the main axis of payroll management at that time.
â–  Sales 1) Start to adopt growth strategies and segment market areas, set up offices in various locations, and provide services nearby.
2) Conclude "Sales incentive method", "Sales calculation method for salaries", "Method for compensation for loss of sales" and include it in the sales management system.
a Incentive schemes for the expansion of land, individual and group awards.
b The initial value of the actual salary is based on the amount and the price. The carton is based on the amount of the order. The value of the order is later used as the basis for the payment. The cardboard part is based on the delivery amount and the salary is based on the amount of the payment. .
c Repeal the "rebate system" to establish honest transactions.
The 1980s was known as the “development period” and was an era of good quality and high profits. With "sales in command", the carton factory mainly competes with product quality, and the profit is about 10%. During this period, due to the popularity of automated packaging equipment and the fact that there are many batches of orders in the market, the carton plant has also changed in terms of equipment, management, and sales. In order to adapt to customer needs, quality is the center, delivery time is rapidly oriented, for example, , Product quality stress cracking strength, compressive strength, printing beautiful, accurate dimensions, etc., the industry have established a complete "quality assurance system", and with sales staff for high-margin orders to gain profits. The development period is basically a quality-oriented competition and strives for high value-added profits.