RenesasElectronic and the Automotive Microcontroller Supply Chain
RenesasElectronic, the Automotive Microcontroller, and supply chain
RenesasElectronic and the Automotive Microcontroller Supply Chain, is thecase study that entailed the impacts of an earthquake in Japan in theyear 2011 (InCiravegna, 2012).The company was a key player in the manufacture and supply of themicrocontroller chips, which were in demand by the automobileindustries. The company products accounted for 40% of themicrocontroller chips produced worldwide, and hence the impact of thequake was widely felt by the automobile industries all over (Pierson& Shih, 2012).
Theprinciple decision problem/issue
Inreference to the case given, the key issue raised is the breakdown ofthe supply chain of the microcontroller Naka’s production wasaffected and hence inability to meet its customers` demands of thechips (InCiravegna, 2012).
Themain players and their roles in the case
RenesasCompany is the key organization in the case. Others are Naka plant,Japans automobile industries, (Pierson& Shih, 2012).
Theautomobile industries needed have a different microcontroller chipsupplying company in case of such a disaster (InCiravegna, 2012).Diversify the company’s production in terms of geographicallocations, in order to maintain the supply of the chips. Constrainsincludes competition from other microcontroller chip manufacturingindustries as well as the financial burden of setting up othersimilar plants (Pierson& Shih, 2012).
Measuresto reduce the menace
Fortificationof the companies (microcontroller) supply chains, and also enactingeffective disaster response teams, which would help in such cases asthe earthquake.
Pierson,M., & Shih, W. (2012). Renesas Electronics and the AutomotiveMicrocontroller Supply
Chain(A). Harvard Business School Cases, 1
InCiravegna, L. (2012). Sustainingindustrial competitiveness after the crisis: Lessons from the