How Toyota thrives when the chips are down
By Norihiko Shirouzu
(Reuters) – Toyota may need pioneered the just-in-time manufacturing method nevertheless when it includes chips, its dedication to stockpile what have grow to be key components in autos goes once more a decade to the Fukushima disaster.
After the catastrophe severed Toyota’s present chains on March 11, 2011, the world’s best automaker realised the lead-time for semiconductors was method too prolonged to take care of devastating shocks just like pure disasters.
That’s why Toyota received right here up with a enterprise continuity plan (BCP) that required suppliers to stockpile wherever from two to six months’ worth of chips for the Japanese carmaker, counting on the time it takes from order to produce, 4 sources acknowledged.
And that’s the reason Toyota has so far been largely unscathed by a world shortage of semiconductors following …