Magnitude 9.0 earthquake that struck Japan in March 2011 caused extensive damage to the object Renesas Electronics manufacturing wafers, an important link in the global automotive supply chain. Many manufacturers of OEM-only source configured with a spectacular chip off so it forced the "Big Three" Detroit and Japan to complete the production as well. Data from two automotive customers, in particular, allows the instructor to look at issues delayed differentiation, only to find a solution, and / or market position Renesas »as a manufacturer of low-configured and in the context of supply chain disaster recovery. OEM had two different strategies with respect to the cross-use of components between product lines. Thus, a simple numerical task will be to show students the power of differentiation delay components. OEM with a higher cross-use (lower settings functions between the product lines) was greater flexibility, which vehicles they stopped producing in the deficit. In addition, students can look at the impact of the delay of differentiation at the product level, looking at the production process in itself amazing. Here are the settings Renesas is early differentiation. Again, numbers are provided by a working example. Finally, the wider issues surrounding the viability of the market position Renesas can be negotiated. How should they respond to the disaster in the short term? How can they guarantee to customers that they can handle future violations differently? And from the point of view of producers, they need to change their product design to ensure that alternative parts? Such details have drawbacks of their own. Findings in two numerical examples can be used to control the discussion, or general policy framework can be applied.
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by Willy Shih, Margaret Pearson Source: Harvard Business School 16 pages. Publication Date: April 5, 2012. Prod. #: 612071-PDF-ENG
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