Question: Read the following case. Based on the information generated from the case, answer the following two questions: (total 25 points) identify the top strengths of

Read the following case. Based on the information generated from the case, answer the following two questions: (total 25 points)

  1. identify the top strengths of Orange with reference to resilience model and indicators presented in the course. (Not more than 300 words)
  2. What are your recommended strategies and initiatives to develop the Technos resilience? Make sure that your improvement initiatives are coherent with each other. (Not more than 300 words)

A high-voltage line in Orlando was struck by lightning in May 2005, triggering a fire at the ABC Electronics manufacturing plant. The fire was minimal, and it was put out in less than 10 minutes. The issue wasn't so much the fire itself as it was the smoke and dust created when putting it out. Computer chips don't like it when they get dirty. The smoke and dust had just damaged a stockpile of merchandise that was about to be sent - millions of tiny computer chips for use in the smartphones.

ABC Electronics had two high-profile customers at the time for its computer chips: Orange and Techno. After assessing the damage, ABC Electronics predicted that production would be restored within a week. Orange and Techno reacted to this knowledge in quite different ways.

ABC electronics called Orange's principal component-purchasing manager, Mr.Hardy, on Monday, May 15 to explain the evolving situation, the fire, and the estimated one-week delay. Mr. Hardy was unconcerned after receiving the first call following the incident on Monday. All worldwide supply chains experience one-week delays. Such incidents necessitate swift action, but manufacturers typically preserve a reserve of safety stock - so that manufacturing and customer service aren't hampered. With existing parts inventories and shipments from other vendors, Orange could easily offset a small delay. Mr. Hardy informed others within Orange, including Tim Koronken, Orange's chief troubleshooter, despite not seeing it as a big concern. Mr. Koronken stated, "We urge negative news to spread quickly." He determined that the situation required more investigation. Orange would call ABC Electronics every day to check on the state of the situation. Mr. Koronken also started a procedure with ABC Electronics to collaborate on recovery efforts. When ABC Electronics called Mr. Hardy two weeks after the fire to describe the full scale of the interruption, Orange's fears were confirmed. ABC has estimated that restoring the cleanrooms and restarting manufacturing will take two weeks. Overall, catching up on the production schedule could take months. Mr. Koronken realized at this point that the interrupted supplies would hinder the production of four million cellphones. Orange was set to release a new generation of telephones that relied on ABC Electronics manufacturing chips. To solve the problem, Koronken and Hardy quickly formed a team of supply chain managers, chip designers, and senior executives from across Orange. The team quickly began working with ABC Elecronics to develop workarounds as soon as possible. They collaborated to re-design Orange phone chips so that they could be produced at other ABC Electronics facilities.

On the other hand, Techno was significantly slower to respond. Taking the restoration time estimate at face value, Techno appears to have done very little just-in-case planning. There were no such alternatives established. The problem was not discovered by the head of the consumer electronics division until many weeks after the incident. It was too late by the time Techno realized the scope of the situation. When Techno ultimately contacted ABC Electronics for help, ABC was unable to supply it since Orange had taken all of ABCs spare capacity. Techno then sought parts from other semiconductor manufacturers. It took six weeks for production at the ABC Electronics factory to resume, by which time Orange, which was always on the move, had already grabbed all of the market's extra capacity.

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