J A K O P
A GUIDE TO BUSINESS
CONTINUITY PLAN
business
continuity
planning in
manufacturing
TABLE OF CONTENT
Content Pages
Greeting 1
Business Continuity Plan 2
Biodata 3-4
Advertisement 1 5
Article 1 6-10
Advertisement 2 11
Article 2 12-14
Advertisement 3 15
References 16
by D.R.E
GREETING
First of all, thanks God for His
willing giving us the opportunities
to complete this assignment for
Management of Business
Records(IMR652) on E-magazine
entitled, Business Continuity Plan.
Special thanks also to Miss
Mohsinin for giving us the
instruction and assisting us on how
to do this assignment. Sincere
thanks to all the members for
giving full coorperation especially
on the time you spent to complete
this assignment.
hat
Chapter 4:
business continuity plan
-a comprehensively managed effort
to prioritize key business process,
identify significant threat to normal
operation.
Biodata
ABOUT ME
Name Jakop Anak Michael
Age 26
Date of birth 7.7.1993
Origin Sarawak
Previous school SMK Simanggang
Hobby Drawing
Biodata
ABOUT ME
Douglas Rick Anak
Name
Entalai
Age Just turned 23
Date of birth 1.12.1996
Origin Sarawak
Previous school SMK Merbau, Miri
Hobby Flirting
"Jobs fill your
pocket. travels fill
your soul"
-explore the world-
BUSINESS CONTINUITY PLANNING
IN MANUFACTURING: PREPARING
FOR THE WORST-CASE SCENARIO
A serious crisis or disaster can irrevocably impair or destroy the largest
company.
According to Labour Department statistics, more than 40 percent of
companies hit by a serious crisis or disaster never resume operations.
Of those that do, another 25 percent fail within two years.
Simply stated, business continuity planning (BCP) means making
informed decisions about risk. Understanding the full implications of
the risks you face, knowing your organization's tolerance for risk
exposure, and developing organization wide response plans for various
scenarios are essential components of BCP. The scope and complexity
are challenging for most business models, but for manufacturers,
planning for possible business interruptions can be daunting.
Critical Challenges for Manufacturers
American manufacturers today must fully employ the engineering,
processing, and logistical capacities of their entire supply chains.
America's drive toward customer responsiveness and business process
and supply chain optimization must be as relentless as our foreign
competitors'. Developing strategies for responding to supply chain
disruptions is particularly important because sustainable competitive
advantage is typically driven by increased responsiveness and cost
minimization. Even though we realize the inverse relationship between
risk and efficiency, supply chain planning must also consider customer
satisfaction. From a strategic viewpoint, we have a triangle of
competing objectives:
Providing world class customer service
Reducing working capital
Reducing transaction costs.
Market Realities Meet Legal
Implications
Manufacturing organizations
depend on the continual flow of
product to meet customer
expectations, financial
obligations, and business
objectives--and even to achieve
regulatory compliance.
Manufacturers can possibly face
stiff penalties or cancellation of
orders if they fail to ship on time,
and in the correct quantities.
Unplanned business interruptions
from disasters or crisis events
can, over time, result in serious
financial liquidity problems,
increased operating costs, loss of
stock value, and erosion of
market share. Further, a
company may be obligated to
continue receiving raw material
and parts shipments per existing
purchasing agreements.
Failure to prepare strategies and processes
to manage such threats expose a company
and its upper management team to legal
sanctions and financial jeopardy. Employing
the common law "prudent man rule," courts
can hold senior corporate managers
responsible for actions they should have
taken to prepare for, and respond to,
operational emergencies.
So What's the
Answer?
BCP, tailored to your individual
organization, can not only help
ensure survivability and
minimize the impact of the next
natural, political, or
technological disruption, but
aid in your regulatory
compliance efforts as well. A
thorough business continuity
plan contains the following
elements:
Risk assessment--Considers
probability and severity of a
disaster
Business process mapping--
Cross-functional and across
the supply chain
Business impact analysis
(BIA--Establishes scope and
critical time constraints
IT disaster recovery plan--
Including communication
channels
Testing--Includes
procedures and making
revisions to the test plan.
How Prepared Are We?
The issue of preparedness should be
addressed in two parts: What provisions
has the organization made and how
effective will they be?
What level of preparedness is
acceptable? A BIA and risk assessment,
two essential tools employed in the BCP
process, are also useful here. However,
that course runs deeper than needed if
you just want to find out where you
initially stand. Numerous
stakeholders, from stockholders on down,
will undoubtedly have an opinion. But
without significant education and an
enterprisewide perspective, their input
will be of little value. The manufacturing
supply chain must also be examined, even
though including it adds complexity to the
task. BCP, done right, is not quick and
easy. It is an ongoing program that must
become as pervasive as the threats it is
constructed to mitigate.
For manufacturers, understanding
supply chain processes, vendor criticality,
and vendor continuity maturity is required
to determine the best options to mitigate
likely risks. This understanding comes as a
result of conducting a limited BIA and risk
assessment (similar to assessing your own
organization) on each critical supplier,
facilitating risk mitigation and/or taking
corrective action as needed.
Plan Today for Tomorrow's
Risks
In the event of a disaster, political or
technological disruption, or even a significant
business change, impacts can ripple beyond
immediate financial. Rising backlogs,
contractual penalties, employee problems,
negative publicity, and loss of market share--
not to mention possible legal liability--are real
possibilities.
The potential for supply-chain disruptions
means manufacturing operations are less
predictable than most managers believe. In the
current uncertain political and economic
environment, a supply chain strategy must
consider survivability as well as low cost.
Following a disaster, an organization with a
defined business continuity plan in place may
actually make competitive gains. That company
will have taken steps to mitigate risks within
their supply chains, including planning
significantly beyond the inclusion of alternate
suppliers. The high costs of risk mitigation in
manufacturing's more complex business model
dictates that comprehensive planning, aligned
with organizational strategy, is the only prudent
course. Management must identify, quantify,
and plan today for tomorrow's business risks.
Perry Depew, CRP, is the director for BV
Solutions Group Business Resiliency Solutions
division with more than 25 years of experience
in disaster recovery, business continuity, and
information technology.
Frank S. Brown, MBA, CQIA, Six Sigma
Green Belt, is a senior business analyst and
business process engineer with 17 years of
experience in materials and operations
management in mid-sized manufacturing firms.
S U M M E R
AROMANTIC
AROMANTIC BY
M A K E Y O U R S C E N T
-D.R.E-
A Guide to Business Changes in the world of
Continuity Planning business continuity planning
This publication provides a Business continuity planning
summary and general versus business resumption
guidelines for business planning and disaster recovery
continuity planning (BCP). planning
While governments, not- A Business Resumption Plan
for-profit institutions, and describes how to resume business
non-governmental after a disruption. A Disaster
organizations also deliver Recovery Plan deals with
critical services, private recovering Information
organizations must Technology (IT) assets after a
continuously deliver disastrous interruption. Both imply
products and services to a stoppage in critical operations
satisfy shareholders and to and are reactive.
survive. Although they
differ in goals and Recognizing that some services or
functions, BCP can be products must be continuously
applied by all organizations. delivered without interruption,
there has been a shift from
Business Resumption Planning to
Business Continuity Planning.
A business continuity plan enables
critical services or products to be
continually delivered to clients.
Instead of focusing on resuming a
business after critical operations
have ceased, or recovering after
a disaster, a business continuity
plan endeavors to ensure that
critical operations continue to be
available.
A Business Continuity Why is business continuity
Plan includes: planning important
Every organization is at risk from
a) Plans, measures and potential disasters that include:
arrangements to ensure a) Natural disasters such as
the continuous delivery of tornadoes, floods, blizzards,
critical services and earthquakes and fire
products, which permits b)Accidents
the organization to c)Sabotage
recover its facility, data d)Power and energy disruptions
and assets. e)Communications, transportation,
safety and service sector failure
b) Identification of f)Environmental disasters such as
necessary resources to pollution and hazardous materials
support business spills
continuity, including g)Cyber attacks and hacker
personnel, information, activity.
equipment, financial
allocations, legal counsel,
infrastructure protection
and accommodations.
Creating a business
continuity plan
Having a BCP
enhances an
organization's image A BCP typically includes five
with employees, sections:
shareholders and 1. BCP Governance
customers by 2. Business Impact Analysis
demonstrating a (BIA)
proactive attitude. 3. Plans, measures, and
Additional benefits
include improvement in arrangements for business
overall organizational continuity
efficiency and 4. Readiness procedures
identifying the 5. Quality assurance
relationship of assets techniques (exercises,
and human and maintenance and auditing)
financial resources to
critical services and
deliverables.
Emerging issues
Continuous Service Delivery
Assurance (CSDA) is a
commitment to continuous delivery
of critical services that avoids
immediate severe disruption to an
organization. A BCP includes both
risk evaluation, management and
control and effective plans,
measures and arrangements for
business continuity.
Continuous risk management
lowers the risk of disruption and
assesses the potential impacts of
disruptions when they occur. An
example would be the business
impact analysis component of a
BCP program.
What is business continuity
planning?
Critical services or products are
those that must be delivered to
ensure survival, avoid causing
injury, and meet legal or other
obligations of an organization.
Business Continuity Planning is a
proactive planning process that
ensures critical services or products
are delivered during a disruption.
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references:
a) (Canada, 2018)
b) (BROWN, 2006)
c) https://www.canva.com/
"He who
fails to plan
is planning
to fail"
-Winston
Churchill-
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