Resilient and Sustainable Operations: Beyond the COVID-19 Pandemic

Publication Type:

Conference Paper

Source:

Gerpisa colloquium, Brussels (2023)

Keywords:

“Covid-19”, “Procurement”, “Resilient”, “Supply Chain”, “Sustainable”

Abstract:

Considering the Resilient Sustainable Operation: Beyond the Covid-19

Toshiyuki Baba

Key words: “Procurement”, “Resilient”, “Sustainable”, “Covid-19”, “Supply Chain”

The aim of this research is to consider the resilient sustainable operation. The Covid-19 affects an automobile industry very much. It is not for few countries but all over the world. Japan also has affected and is suffering still now. Sometimes disasters occur which exert a bad influence on an automobile industry, just as the Great Financial Sock in 2009 or the Great East Japan earthquake. Japanese automobile industry overcame those difficult situations. Normally, crisis exerts one-off bad influence on the industry, and they recover from it. One characteristic of influence by the Covid-19 is an intermittent and causing a chain reaction. In the Covid-19 situation, we should stop the production and recover many times.
In this paper, firstly we look back what’s happened from the beginning regards the Covid-19 and its influences to Japanese automobile manufactures. Secondly from this lesson, what we should do for the resilient sustainable operation.

The Covid-19 was reported in December 2019 at Wuhan Hubei China. Hubei are is one of big automobile clusters in China, and many Japanese automobile companies advanced there. At first, we fear for delay of auto parts supply from China. In February 2020, they stop operation for few days in Nissan Kyusyu. In a flash, the convid-19 spread to all over the world. From March to April 2020, they issued declaration of state of emergency for the Covid-19 in many countries. They stop their economic activities and acted lockdowns in many countries. Automobile and auto parts manufactures also stop their operations in many countries. In Japanese automobile industry, they stopped their operation one after another, such as Matsuda, Suzuki, Mitsubishi Toyota, Honda and so on. After end of April, however they gradually restarted their operations, they continued production adjustment for a while. After September 2020, automobile production volume recovers to the same level with those of 2019 which was before the Covid-19. It seemed overcoming difficulties caused by the Covid-19.

The stops of automobile production all over the world generated next problem of insufficient supply of semi-conductors. Now a days, as progress of automobile technology, we use many semi-conductors in automobile production. We use semi-conductors for controlling engine, fuel, cruise, ABS, suspension, power window, air bag, power steering, transmission, parking assist, door lock and so on. We use thirty to eighty semi-conductors for one automobile. Automobile industry became key customer for semi-conductor industry. By stopping automobile production, they shifted their production to other industries such as PC, smart phone, tablet, game, home electronics and so on. When automobile industry wanted to recover their auto production, semi-conductor industry did not have enough capacity for automobile industry. In April 2021, many automobile manufactures should reduce their production.

In early summer, SARS-Cov-2 Delta variant which is one of the variant of the Covid-19 was going around the world. They stopped automobile production all over the world again. In Japan also, they stopped their automobile production such as Toyota, Honda, Matsuda, Subaru, or Suzuki.

Like written above, we should stopped the automobile production many times in a short period by the influence of the Covid-19. How do we act and prepare for sudden stop and quick recover? We would like to consider for the Resilient Sustainable Operation.

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