Renesas Electronics and the Automotive Microcontroller Supply Chain (A) Harvard Case Solution & Analysis

Color cases should be printed in color, to maximize their effectiveness. The magnitude 9.0 earthquake that hit Japan in March, 2011 caused extensive damage to Renesas Electronics wafer fabrication facility, a vital link in global automotive supply chain. Several OEMs sole-sourced customized microprocessors commencing the fab so that its shutdown persuaded the "Big Three" of Detroit and Japan to shutdown generation too. Information from two automotive customers particularly, allowing the instructor to look at issues of delayed distinction, sole-sourcing conclusions, as well as /or Renesas' market position as a maker of low-volume customized components, in the context of supply chain disaster recovery.

Therefore, a simple numerical assignment will show the power of delayed differentiation in components to students. Similarly, pupils can take a look at the impact of delayed differentiation at the item level by taking a look at the creation process within the fab. Here the customization of Renesas causes early distinction. Again numbers are given to work examples. Eventually, more extensive issues around the viability of the market position of Renesas may be discussed. How should they respond to the disaster in the short term? How can they assure customers they are able to manage future dislocations differently? And from the OEMs' outlook, do they have to change their product design to allow for the incorporation of alternate parts? Such components have downsides of their own. The findings in the two numeric examples could be used to drive this discussion, or a general strategy framework might be employed.

Renesas Electronics and the Automotive Microcontroller Supply Chain (A) case study solution

PUBLICATION DATE: April 05, 2012 PRODUCT #: 612071-HCC-ENG

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