Bottlenecks in a Process

Bottlenecks in a Process

Locating a manufacturing process free of constraints is a challenge for every operations leader. Every location will have some level of political, cultural, or environmental bottlenecks to address. The rolling transmitter manufacturing plant in Japan is no exception. However, management can mitigate the majority of the constraints allowing production to remain in Japan by conducting a thorough risk assessment.

The earthquake and tsunami in Japan reflect the essential need for contingency plans to minimize weather-related constraints. Although these events can be difficult to forecast, Japan has a history of earthquakes, typhoons, and tsunamis affecting the supply chain (Komatsubara, Fujiwara, Takada, Sawai, Than Tin, & Kamataki, 2008). Additionally, studies reveal the location and topography of Japan create increased rainfall from typhoons even when they do not directly pass over the continent (Yongqing, Yuqing, & Fudeyasu, 2009). Thus, geographic and environmental factors present the possibility of a bottleneck to transportation and production of the required part.

The current political environment of Japan also appears slightly unstable. Japan has had five prime ministers in the past four years (Kapila, 2010). Multiple governmental parties vie for control, which adds to the instability. However, the Democratic Party (DP) and the Liberal Democratic Party (LDP) represent 80% of the voting populace (Kato, 2004). Prevalent internal power struggles over foreign and domestic issues could have cascading effects on trade stability. Political and regulatory barriers can present an obstacle to export depending upon the needs of the government and local economic conditions.

Japanese actions during World War II still create cultural tensions between Japan and China (Ge, 2001). Both countries have expanded their economies over the past two decades with China surpassing Japan in 2001 (Central Intelligence Agency, 2011). Large projects involving China and Japan may be affected by these tensions.

All these factors contribute to possibilities of bottlenecks, from transportation issues, to labor force challenges. Management can use the knowledge of potential bottlenecks from the described factors and quickly mitigate these constraints through a well-managed inventory system with safety stock and demand forecasting. Risk management will include contingency plans for an alternate source in rare circumstances. Once a proper buffer inventory is established, the Japanese manufacturer should consistently supply the rolling transmitters to the assembly plant in Taiwan.

References

Central Intelligence Agency. (2011). The World Factbook. Retrieved November 18, 2011, from Central Intelligence Agency: https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html

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