Enhanced operational performance
Information transparency
Although we are not a public company, we voluntarily prepare sustainability reports to optimize corporate development and learn from the best-practice model of exemplary enterprises through the transparent disclosure of business information so as to upgrading our operations.
Through integrating the SAP and ERP systems, we are capable of closing all accounts in one business day every month. Senior officers hold the management meeting before the 20th of each month to review the accomplishment of the monthly KPIs and discuss counteractions for unachieved KPIs.
Budget management process
At the end of each year, the management discusses with each department on their proposed annual budgets and targets in accordance with the medium and long-term goals before verifying the annual plans for individual departments. The management also engages each department in KPI confirmation meetings, during which they lay out all performance indicators from R&D progress, production yield, production efficiency to goals of supporting departments.
Our existing performance management mechanism covers eight strategic issues and spreads out over three tiers in accordance with the Company’s annual strategies to derive our key management index (KMI). These are then expanded to derive the Company’s annual operational targets while the general manager refers back to the Company’s operational approach to determine relevant targets as the key performance index (KPI) at the corporate level. The KPIs are to be reported by department managers at the monthly management meetings in which the general manager and the management team will review and evaluate the status of achievement for follow-up. Each department will establish its corresponding key activity index (KAI) at the department level to be implemented. The KAIs shall be related and instrumental to the achievement of KPIs and they will be included as a component of department managers’ personal performance evaluation. Under the department, KAIs would be the personal KPI for individual employees to create a complete and closed circuit that ties the Company’s annual strategic goals and operational goals together. The review is reported monthly, and the PDCA improvement mechanism is activated if the target is not met.
