Japan’s Economy Grinds To A Halt After Earthquake Paralyzes Critical Supply Chains

Earlier today Toyota was one of many Japanese companies to announce that it will suspend most car production across Japan as a result of critical supply chain disruptions caused by the recent destructive earthquake and numerous aftershocks. All of the major assembly lines will be shut down across its four directly-run plants, and Toyota will be halting production in stages at other group companies as well.

According to the Nikkei Asian Review, most of the Toyota group in Japan will be effectively shut down through at least the end of this upcoming week, with a production loss of as many as 50,000 vehicles, including brands such as Prius, Lexus, and Land Cruiser.

“Decisions regarding recommencement of operations at plants in Japan will be made on the basis of availability of parts,” the company said in its announcement.

It isn’t just Toyota.

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Rick Johnson
8 years ago

Bring your production plants to North Carolina.

ToneDeaf
ToneDeaf
8 years ago

Obviously the Kanban system doesn’t work after natural disasters.

Kanban is a scheduling system for lean and just-in-time (JIT) production. Kanban is a system to control the logistical chain from a production point of view, and is an inventory control system. Kanban was developed by Taiichi Ohno, an industrial engineer at Toyota, as a system to improve and maintain a high level of production. Kanban is one method to achieve JIT.