The percentage of family-owned business in Taiwan is up to 75% in listed companies. In Taiwan, traditional manufacture are mostly the basic industries, and are the bases of economic development. We treated manufacturing industry of metal products in central Taiwan as subject. We conducted a case study by observation and expert interview. We focused on current problems encountered by the second generation of successor in case company. We then established a case study by presenting the issues of production techniques, knowledge management, R&D and organizational reform, etc. We than pinpointed the problems of production, marketing, procurement, research and human resource which the company might need to solve.