No Need to Panic by Yuji Kishira- TOC Article

No Need to Panic – Electronic Components Shortage Can Dramatically Improve Operations

Yuji Kishira
Regional Director Japan, Goldratt Consulting
Apr 14 2011

Serious Shortage of Electronic Components

The production of electronic parts in Japan has been seriously impacted by the March 11 earthquake which hit Eastern Japan. The regions of Tohoku (north eastern Japan) and North Kanto (to the north of Tokyo), major production sites of electronic components, were not spared. In addition to the damage to production facilities in these regions, the devastating earthquake led to power shortages. This left manufacturers no choice but to shorten their operation hours, thus generating global concern about the supply of electronic components. It has been reported that electronic systems assembly manufacturers around the world have been scrambling to procure required components to the extent that some major non-Japanese manufacturers have been paying cash for said parts. The fear is that manufacturing of a product consisting of hundreds of components can be ground to a painful stop if just one part is missing. The damage resulting from such a components shortage is so serious that some analysts say it may affect the global economy.


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