The magnitude 9.0 earthquake that struck Japan in March 2011 caused extensive damage to Renesas wafer fabrication facility, a critical link in the global supply chain of the automotive industry. Many OEMs brine sources customized microprocessors forced by fab as its cut-off of the “Big Three” of Detroit and Japan to shut down production as well. Data from two customers in the automotive industry, in particular, what the teachers on issues of delayed differentiation, sole-sourcing decisions and / or R. .. look Read more »

The magnitude 9.0 earthquake that struck Japan in March 2011 caused extensive damage to Renesas wafer fabrication facility, a critical link in the global supply chain of the automotive industry. Many OEMs brine sources customized microprocessors forced by fab as its cut-off of the “Big Three” of Detroit and Japan to shut down production as well. Data from two customers in the automotive industry, in particular, what the teachers to look at issues of delayed differentiation, sole-sourcing decisions and / or Renesas market position as a manufacturer of low-volume custom components within the supply chain disaster recovery. The two OEMs have different strategies with respect to cross-use of components between product lines. Therefore, a simple numerical assignment will show students the power of delayed differentiation into components. The OEM with higher cross-utilization (lower adjustment of components between product lines) had more flexibility in which vehicles they stopped production during the defect. Likewise, students can on the effects of delayed differentiation at the product level by looking at the production in the fab itself. Here Renesas customization tool gives early differentiation. Even numbers are provided to work examples. Finally, broader questions about the viability of Renesas market position can be discussed. How should they respond quickly to the disaster? How can they assure customers they can handle future problems differently? And by the OEMs perspective, they need to change their product design to allow for the installation of alternative parts? Such parts have drawbacks of their own. The results are used in the two numerical examples to drive this discussion, or a general strategic framework can be applied.
To maximize their effectiveness, color cases should be printed in color.
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from
Willy Shih,
Margaret Pierson
Source: Harvard Business School
16 pages.
Release Date: 5th April 2012. Prod #: 612071-PDF-ENG
Renesas Electronics and Automotive Supply Chain Microcontrollers (A) HBR case solution

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