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Tuesday, March 22, 2011

12 Days to Collapse Of the Auto Induetry Failure in the Global Economy

The Japanese earthquake and Tsunami on Friday March 11 2011 2:46 Pm local time devastated the eastern coastal areas of a 250 mile swath of the country, as well as having a major impact on the rest of the country. This caused power outages, travel stoppages and massive disruption of normal business in addition to the thousands of dead and injured all over the country.
But this is not about the loss of life and the devastating effect to the people of Japan, though they have our prayers. This is about the lay off and shut down of effected industry’s in the US and around the world A mere 12 days since the events and many companies are without parts to run their assembly lines, All the car makers in America and Europe, Sony, Hitachi, even the highly anticipated Apple I pad 2 has been effected and is in short supply.
Think about this, while a significant event, this really only impacted one country, and yet due to the nature of just in time inventory, if it’s not just in time you’re in trouble.
A single point failure is defined as: Element or part of a system for which no backup (redundancy) exists and the failure of which will disable the entire system.
The global  economy has not served to lessen our risks of failure, in reality each part is so very dependent on the other , “we don’t even know” how all the interdependencies affect  one another, and  we can’t even calculate the possible damage or the effect of one country’s infrastructure or economy being removed , even for such a short time.

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