With the unprecedented events associated with COVID-19, companies are facing worst-case scenarios and looking at ways to manage work stoppage or limited production for essential manufacturing needs. This column provides a practical guideline to create or update your business contingency plan to help you manage your business during a crisis situation.
An effective business contingency plan consists of two categories: business continuity and disaster recovery. Business continuity provides you a structure to identify critical functions in the organization required to execute your business plan over time. On the other hand, a disaster recovery plan is a process to help your organization navigate adverse situations to help your business stay afloat.
Business continuity consists of seven essential elements in a manufacturing organization.
1. Governance: Define the roles and responsibilities of executive leadership. Define a back-up plan in case you have departures of leaders in the organization.
2. Personnel: Define talent acquisition and development of employees. The objective is to retain top performers and continuously develop skills in the workforce.
3. Manufacturing Facilities: This section covers many areas within manufacturing operations. At a minimum, identify all key equipment and back-up plans in case of malfunction and requirements to continue to have utilities, equipment maintenance, compliance with regulations, and security to support operations.
4. Technology Roadmap: Define current and future process capabilities. Identify the direction that the organization plans to take to sustain or increase revenue based on competitive technological advantages. Consider including the protection of intellectual property.
To read this entire column, which appeared in the May 2020 issue of SMT007 Magazine, click here.