Manufacturing Business Continuity Plan Example – You are here: Home / Risk Management / Supply Chain Risk Management Series / Supply Chain Risk Management, Part 2: Business Continuity Planning
In this post, let’s focus on disaster prevention and more specifically business continuity planning, with a simple example. We also provide you with a free template.
Manufacturing Business Continuity Plan Example
This is the second post in our Supply Chain Risk Management series, which will roll out gradually over the next few months.
Business Continuity Planning (bcp) & Disaster Recovery (dr) Templates (excel Workbook (xlsx))
The aim is to conduct a planning exercise that leads to corrective action (eg adding controls to prevent or detect fraud, preparing a procedure to properly respond to a PR crisis, keeping an adequate liquidity buffer to survive a recession…). These actions allow the company to reduce its exposure to disasters and/or incur less damage in the event of a disaster.
The Trump administration has often sought clarification from the Taiwanese government, while Wuhan authorities deny that human-to-human transmission has yet been confirmed. They saw lockdowns in Wuhan and neighboring cities. They were warned of the possibility of a global pandemic. And, all that time, what did they do? Nothing at first glance.
“The United States’ response will be studied for generations as a textbook example of a disastrous, failed effort,” Ron Klein, who led the fight against Ebola in 2014, recently told a Georgetown University panel. “What happened in Washington was an incredible failure.” Now let’s look at a great example.
A local supermarket chain in Texas was planning ahead (they even have a full-time staff position as a ‘Director of Emergency Preparedness’) which was not surprising and they took a number of appropriate steps.
Business Continuity Templates (ms Office)
If you are an importer and/or brand owner and you rely heavily on 1 or 2 suppliers, you can ask them to set up a BCP and submit it to you for comments and approval. Typically the objective is to demonstrate their ability to recover production volumes to 75% of expected volumes within 2 months of experiencing critical issues.
Step 1: Make a list of all the events that could keep your company (and other stakeholders) happy and keep your company from running as expected.
Note: If your company has already drawn up a list of risks and opportunities for their ISO 9001:2015 certification, start with that list.
After adding these “fairly common and somewhat unlikely” events, it’s time to add some black swans.
What Is Business Continuity Software? Global App Testing
One of my rules of thumb is “Anything that has a very high impact should be studied and we should have an idea of how to respond to it, even if the overall risk score is very low”. There’s a simple reason for that – we humans aren’t good at calculating probabilities, and computer models have shown their limitations many times.
What are ‘once in a century’ disasters? The 1918 pandemic killed millions on several continents.
George W. Bush pushed hard for a $7 billion plan in 2005, but congressmen seem more concerned with ways to get re-elected… and now we’re in the middle.
What ‘once-in-a-decade’ disasters have so far not been overwhelming, but could become more powerful? With global warming, couldn’t something worse than Hurricane Katrina hit a major city soon?
Important: The Scope Of A Business Continuity Plan (updated)
Another good place to start is to look at the types of events that are often called for in contracts to exclude parties. Here is an example:
Acts of God or a public enemy, fire, flood, epidemic, riot, quarantine restrictions, strikes, freight embargoes, earthquakes, power outages, computer or communications breakdowns, and severe weather, and acts or omissions of subcontractors or third parties.
If your company has a simple activity and a handful of people, you can target 20 lines in the first session and 20 additional lines in the follow-up session.
If you employ hundreds or thousands of people, break the exercise down to one department and/or area. This is not an exercise to be handled entirely by “corporate planning”. Different perspectives are what you are looking for.
Covid Business Survive Adapt And Post Recovery Strategy For Manufacturing Complete Deck
This is the same template we used for our risk and opportunity analysis (to obtain ISO 9001 certification) and for several large customers who ask us for BCP.
It is filled out in the same way as FMEA, so go to this page to understand how it works.
These problems are then ranked on 3 risk dimensions: severity of impact, probability of occurrence, and detectability. (Same issue 2, same table, moves to right-hand column.)
It is clear that the second risk (20 composite points) is more dangerous than the first risk (4 points).
Disaster Recovery Plan It Disaster Recovery Planning In Manufacturing Industry
Besides, the 2nd risk also comes with an opportunity. Taking preventative measures that can be communicated to customers and potential customers can bring in more business. That’s all the more reason to act on this.
All of this is done seriously, and when actions are implemented, risks can be reassessed and the organization’s ability to overcome disasters can be reassessed.
But it all starts with a solid plan. If it gets full management support and is followed, it helps a lot in disaster prevention / mitigation and disaster recovery.
A good article (We Need More Resilient Supply Chains) came out a few weeks ago. It offers a wide range of suggestions to help businesses continue.
Effective Business Contingency Plan
When purchasing devices where (1) supply disruptions are relatively likely and (2) the impact on revenue is high
If you don’t know your supply chain from ‘farm to fork’, you don’t know if you’ll have a shortage when a geographic area hits. Mapping all players (without identifiers if necessary: ”Supplier A”…) if you have enough influence on your suppliers, but it takes time.
For example, according to Reuters, Japanese automakers have made sure to map their supply chain.
Starting in 2011, Toyota spent weeks identifying how its suppliers were affected by the earthquake at the time, and both Nissan and supply chain databases provided a detailed view of their supplier base to identify how their supply chain might be disrupted in an emergency. gives .
Detailed Contingency Plan Examples (& Free Templates) ᐅ
Think of it as a project plan that you set up in advance so that you can focus on following through when and if disaster strikes. It usually includes:
But most importantly, take the time to think through the BCP and work to manage the highest sources of risk.
If your company was caught off guard by the current pandemic and its many consequences, I hope this article gives you the framework you need to be better prepared in the future.
Have you already developed a business continuity plan? Was it helpful? Did you see some blind spots there? Share your experience in the comments!
Business Continuity Plan Template
This free webinar will empower you to transform your supply chain in China to reduce risk. Renaud Anjoran and Paul Adams of Sofeast, two industry experts, talk you through how to take control of your product quality, on-time shipments, long-term price stability and continuity of supply. The coronavirus pandemic is having a global impact. How does it affect your organization? What are the possible scenarios? How do you plan to respond? Use this template as a starting point for your business continuity strategy.
The template is divided into four perspectives. Let’s take a quick look at what goals are included in these perspectives.
An example of a target quantified by leading (with a green rectangle) and lagging indicators. Source: Covid-19 Business Continuity.
In this perspective, we set goals related to internal business systems that help implement business continuity strategies effectively:
Business Impact Analysis: What To Know [2022]
In the stakeholder perspective, we focus on the needs of our stakeholders (employees, customers, partners). Here, we map out such goals:
Another important stakeholder is the community and its needs. If you have a dedicated nonprofit scorecard, you can find a similar goal there.
The Business Continuity Strategy Map template includes several initiatives aligned with the “Community Needs” goal. These initiatives describe how an organization can contribute:
Due to travel restrictions, many companies have shifted from in-person event formats to online events. Although the cost of streaming platforms is low, organizations must fight for the attention of participants. In this article, we share our approach to online events proven to deliver consistent results in terms of customer engagement and long-term business impact.
Covid 19: How Companies Are Changing Track To Join The Fight
Finally, in the financial perspective, we map out relevant financial goals and desired outcomes. In this case, we are talking about:
To access the Covid-19 template, log in to your account, select New > More Templates… Source: Covid-19 Business Continuity.
The latest recommendations from health agencies and new government regulations imply significant changes in the way organizations around the world conduct their business. In times of crisis, it is important to keep the implementation of strategies effective and introduce preventive actions whenever possible.
We have developed some best practices for BSC Designer users in the context of strategic planning. Not a user yet? Sign up now with a free plan.
Business Continuity Planning
Effective leadership and clear strategy are important these days. Create a balanced scorecard-style strategy
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