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  • Operations

Click to read the article below and then answer the questions:

VW warns of big production hit as chip shortage worsens

“The crisis, which began last year but was exacerbated by the Texas storms and a fire at a Renesas chip factory in Japan”.

  • Construct a supply and demand diagram to show the impact of these events on the market for semiconductor chips 

“Renault last week suspended production guidance completely, saying there was too much uncertainty in its supply chain.”

  • Assess the benefits to car manufacturers such as VW of operating Just in Time production systems

  • Analyse the possible effects on the stakeholders of VW of the shortage in semiconductors

“The name of the game this year will be flexibility”

  • To what extent is a flexible production strategy necessary to successfully compete in the automotive industry?

Peter McGinn, Harton Academy

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