Study on innovation capability of Asian local manufacturing firms

Abstract:

The purpose of this study is to explore the current capability of assembling, processing or production of automobile components for Asian local firms and evaluate their potentiality for innovation through a case study on automobile industry in Thailand. Specifically we will compare Asian local firms with Japanese affiliated firms and investigate their differences of technological level or philosophy of production by employing our unique standpoints below.

 Production based on approval drawing or drawing given from the client
 Customized operation or generalized operation
 The number of clients
 Capability of designing
 Degree of diversification for products
 Relationship with clients (Vertical or Horizontal)

Our final target is to clarify how the Asian production model is different from the so-called Japanese production model characterized as “Kaizen or 5S”. Also, based on the result of our study, we will propose to Japanese car makers how they should foster and utilize Asian local firms in near future since their procurement is exclusively depending on Japanese affiliated firms in Asian area at the moment.