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IM426 – business cases and Case studies in mis

IM426 – business cases and Case studies in mis. 20 – 22 May 2014 Compiled and/or Prepared by – Celeste Ng. Case 7: Business Case: Impacts of Japan Quake on Apple iPad 2 Supply Chain. Case 7: Business Case: Impacts of Japan Quake on Apple iPad 2 Supply Chain (1). NAND flash

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IM426 – business cases and Case studies in mis

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  1. IM426 – business cases and Case studies in mis

    20 – 22 May 2014 Compiled and/or Prepared by – Celeste Ng
  2. Case 7: Business Case: Impacts of Japan Quake on Apple iPad 2 Supply Chain
  3. Case 7: Business Case: Impacts of Japan Quake on Apple iPad 2 Supply Chain (1) NAND flash Dynamic random access memory動態隨機存取記憶體 Touch-screen觸碰屏 Suppliers facilities供應商設施 Shipping out products運輸產品 Employee absences員工缺勤 Interruptions in the electricity supply電力供應中斷 Semiconductor lithography半導體光刻技術 Target production目標生產 Sharp銳利 stock price股價 Large drop大降 Supply-chain crisis供應鏈危機 High demand product高需求的產品 Supply of BT resin供應BT樹脂 Circuit boards電路板 Chips芯片 Pull in the supply chain拉供應鏈 Upfront payments預付款項 Outstanding teamwork and unprecedented resilience優秀的團隊精神和前所未有的應變能力 Contingency plans應急計劃 Severity嚴重程度 First quarter第一季 Fewer devices較少設備 Sold-out stock售完股票 Long wait times漫長等待時間 Ordering online線上訂購 Bottleneck瓶頸 Production lines生產線 Liquid crystal display(LCD) panels液晶顯示器面板 Production shortages生產短缺 Lamination issues曾壓問題 End-unit production端單元生產 Parts delivery and logistic配件送貨和配送 Its launch推出 Earthquake disrupts地震破壞 Disaster-stricken area災區 Electronic compass電子羅盤 Glass in the display玻璃顯示 Sourced採購
  4. Reference: http://www.geography.learnontheinternet.co.uk/images/japan_quake_map_bbc.gif
  5. Reference: http://www.livescience.com/39110-japan-2011-earthquake-tsunami-facts.html
  6. Case 7: Business Case: Impacts of Japan Quake on Apple iPad 2 Supply Chain (2) Purpose: Show how a company (from the IT industry) dealt with the issues associated with its product’s component supplies, caused by one of the biggest natural disaster.
  7. Case 7: Business Case: Impacts of Japan Quake on Apple iPad 2 Supply Chain (3) Describe the impact Japan’s quake had on Apple Logistical problem Parts delivery and logistics were extremely delayed Suppliers had difficulty shipping out products and getting raw materials supplied and distributed Employee absence Because of transport system problems in the disaster-stricken area Interruptions in the electricity supply Have a major impact on delicate processes, such as semiconductor lithography Delay in the production of critical component Temporary shut down of supplier’s facility
  8. Case 7: Business Case: Impacts of Japan Quake on Apple iPad 2 Supply Chain (4) Explain the connection between supply chain and market price Supply chain crisis Apple's inability to meet demand Apple’s stock price dropped sharply Apple’s suppliers’ stock price dropped too What reduced the impact of the supply shortage of components on Apple? Supply chain power – the capability to “pull in” the supply chain due to its size and supply agreements with up-front payments
  9. NAND flash Direct quote from: http://www.kingston.com/en/community/articledetail/articleid/12?Article-Title=NAND-Flash-Technology-and-Solid-State-Drives-SSDs It is non-volatile storage of data. Unlike DRAM memory which must be powered continuously to retain data, NAND memory retains data even when the power is off — making it ideal as storage for portable devices. Kingston USB Flash drives … incorporate Flash memory, technically called NAND Flash NAND Flash consumption has exploded over the last 5 years, and new products, such as NAND solid-state drives, are now making significant inroads into enterprise computing devices, from notebooks, desktops, workstations and servers. NAND Flash costs dropped enough to make new primary storage devices, solid-state drives, possible for client systems and servers. SSDs are direct replacements for the hard disks
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