The twenty-first century will be the era of the knowledge economy. A business should apply knowledge management to develop product innovation and commercialize the outcome for economic value. Due to the fact that most small electrical appliances industry enhance cost and don’’t accept for consumer, therefore at initial stage, it is very difficult to pursue differentiation from product innovation. However rare studies pay attention to a more integrated framework of how knowledge can be effectively practiced and integrated. How to promote knowledge innovation and to develop new product through knowledge management is one of the most important subjects. Therefore, we purpose to offer an integrated framework of knowledge management upon manufacture innovation to help firm meet time pressure and increase effectiveness, Particularly in those economic entities that are short of industrial experts who response of knowledge management. A successful management system that brings benefits of human resources saving includes confirm of knowledge acquirement, build process flow for knowledge category, build knowledge map for hand tool industry, store of business knowledge, and develop capability of product innovation. The KMS applications include “Build up supply chain information center” ”Knowledge classification process flow” “ CE knowledge guide” “Business alliance knowledge integration” “Develop manufacture innovation capability” process etc., We got the supply chain knowledge resource of CE (ex. Drinking fountain) via our research result. The first level knowledge source includes “Sterilization”、”Filter“、”Product category”、”Environment protection”、 ”quality and inspection”. The second level knowledge is described in the content. We can assist our employees to investigate the potential knowledge via KMS from organization “internal” or “external”. We can easily to get proper solution via systematic procedure from the complicated manufacture innovation.
