More Related Content Similar to Business continuity and recovery planning for manufacturing (20) More from ARC Advisory Group (20) Business continuity and recovery planning for manufacturing1. BY ARC ADVISORY GROUP DECEMBER 2001
Business Continuity and Recovery
Planning for Manufacturing
BCRP Is Essential for Survival .................................................................. 3
Strategic Objectives ............................................................................... 3
Business Impact and Risk Analysis........................................................... 4
Critical Operations Identification ............................................................ 6
Collaborative Manufacturing.................................................................. 8
Disaster Prevention ................................................................................ 9
Collaborative Asset Lifecycle Management ............................................ 10
Damage Assessment............................................................................ 12
Recovery Strategy and Procedures ........................................................ 13
Recommendations ............................................................................... 14
Enterprise & Automation Strategies for Industry Executives
2. ARC Strategies • December 2001
100%
80%
60%
40%
20%
0%
0 2 5 Years
Business Failures After a Disaster without BCRP
Disasters Cause 3 Out of 4 Businesses to Fail within 5 Years
10
9
8
7
6
Cost
5
Investment
4
Potential Loss
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12
Level of Protection
Balance BCRP Investment Cost for the Needed Level of Protection
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3. ARC Strategies • December 2001
BCRP Is Essential for Survival
Business continuity and recovery planning (BCRP) is not a new concept, but
it has experienced an enormous amount of renewed interest since the Sep-
tember 11, 2001, terrorist attack on America. A recent Web survey shows
that more than half of the businesses responding were not prepared for a
disaster with a functional BCRP. However, all businesses are currently con-
sidering, implementing, or updating a comprehensive BCRP strategy.
Current events and available statistics support an overwhelming need for
disaster recovery planning.
While failure to plan for a major disaster frequently results in many business
failures, the chances of surviving a disaster double with a good BCRP strat-
egy. About 40 percent of businesses without a BCRP fail immediately
because they have no plans for a rapid recovery and insufficient funds to
cover the expense of extended downtime. Another 25 percent
BCRP Systematic Approach
fail within two years from lost business revenues and cash flow
problems. In fact, only 1 out of 4 businesses without a BCRP • Strategic objectives
stay in business more than five years after a disaster. • Business impact analysis
• Critical operations identification
Survival after a disaster is the name of the game for any busi- • Disaster prevention
• Collaborative management
ness. The impact may even be indirect if, for example, one of
• Damage assessment
your primary suppliers or key customers are the victims of the
• Recovery procedures
disaster and can no longer do business with you. The inability
to obtain critical materials from a supplier or order cancellations from a key
customer can hurt production, revenues, and profits. A serious disaster can
impact the entire value chain from sales and production to shipping and bill-
ing, regardless of your direct involvement in the disaster. That is why every
business must create a good business continuity and recovery plan.
Strategic Objectives
A comprehensive BCRP should be developed using a systematic approach,
beginning by understanding the strategic objectives for business survival.
The main objective of any BCRP is to quickly recover from any business dis-
ruption regardless of the magnitude. The recovery plan must insure
continuity of important business operations by documenting the most cost
effective recovery procedures for many possible scenarios. A cost effective
Copyright © ARC Advisory Group • ARCweb.com • 3
4. ARC Strategies • December 2001
recovery requires a focus on minimizing downtime and lost productivity
while maintaining customer satisfaction and avoiding disruption to existing
supply and distribution channels. This is best accomplished by creating a
disaster recovery team with assigned responsibilities and expectations.
This team should consist of key personnel and alternates from each group in
your organization. Selected individuals must understand existing processes
and workflows within their areas. At the first meeting, the team should
agree on a workable schedule for planning, preparing, reviewing, and testing
the plan. The team should initially meet frequently to identify risks and im-
pacts from various threats such as terrorism, vandalism, natural disasters,
labor strikes, mistakes, and failures. What impact would various threats
have on each team member’s area or department? How could they be pre-
vented and what are the best procedures for a fast recovery?
Business Impact and Risk Analysis
Business impact and risk analysis (BIA) are essential elements of any busi-
ness continuity and recovery plan. Knowing the probability of different
business disruptions and their impact will help determine the required in-
vestment needed for the desired level of protection. The disaster recovery
team must determine the correct investment for the level of protection
needed based on a comprehensive BIA.
Certainly, the risks of terrorism have increased, but are still not as probable
as the most common business interruptions such as power outages, hard-
ware failures, software problems, or employee mistakes. Over 45 percent
<1% Terrorism of survey respondents said hardware and software problems were
5%
War, Strike
8%
major disruptions, followed by 16 percent for power failures, 14
Natural Disaster
10% Theft, Vandalism percent for mistakes, 10 percent for vandalism and hackers, 8
14% Mistakes, Bad Planning percent for natural disasters, 4 percent for fires, and less than
16% Power Outage
1 percent for terrorism. All employees make mistakes, but
45% HW/SW Failure
Business Interruption Threats
minimizing their business impact requires an in-depth
cause and effect analysis. Proper planning, good train-
ing programs, and enforcement of approved procedures can prevent most
operational mistakes. Bad planning such as inadequate supply chain redun-
dancy or lack of backup resources can be avoided with a better
understanding of business processes and workflows.
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5. ARC Strategies • December 2001
Most risk analysis can be done using common sense, such as the risk of a
natural disaster based upon your geographic location. Similarly, a manmade
disaster such as terrorism, theft, vandalism, or a labor strike can be logically
related to the type of business or proximity to a high-risk facility. Minimiz-
ing your dependencies on single suppliers, sole distributors, and primary
customers if they are impacted by a disaster can help prevent extended sup-
ply and demand chain interruptions. If your business involves a vola-
tile or sensitive environment, then unexpected mistakes or failures can Without
have more serious consequences. BCRP
LOSS
Potentially unsafe or life threatening conditions warrant serious pre- With
vention and recovery investments. Agencies such as OSHA and the BCRP
EPA enforce strict regulations and impose heavy fines for businesses DAYS
that do not comply with rigid standards defined by industry for creat- Loss from Disaster
ing hazardous environments. For example, the chemical industry is
expected to conduct HAZOP analysis on dangerous materials and processes
to determine the proper safety precautions and procedures for both normal
and abnormal conditions. Knowing what to do in case of any emergency in-
volving a hazardous environment can prevent injuries and save lives.
The primary objectives of a risk analysis are proper safety and avoiding finan-
cial losses, but it should also consider the impact of business interruptions on
profitability. BIA minimizes cumulative losses by establishing business conti-
nuity objectives and identifying the cost of various outages with and without
BCRP. Losses can become very significant as the time period for recovery in-
creases due to a lack of a proper plan. ARC’s survey placed average downtime
losses at $35,000 per hour, ranging from less than $10,000 per hour for small
businesses to over $100,000 per hour for large companies.
A comprehensive BCRP can speed recovery to profitability by minimizing
tangible and direct losses such as lost sales, lost production, and missed de-
liveries. A good BCRP requires a BIA matrix that identifies the best
procedures for most business interruption scenarios. The BIA identifies and
can eliminate tangible and indirect losses resulting from penalties, fines, un-
expected fees, and lost market share. It should also include the best ideas for
avoiding the less visible, but equally serious, intangible losses from lack of
confidence in meeting expectations, eroded customer satisfaction, and dam-
age to reputation.
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6. ARC Strategies • December 2001
Critical Operations Identification
A comprehensive BIA includes mapping the current operational model of
your business with the major profit and loss centers and their primary proc-
ess workflows, procedures, and information requirements. This exercise will
provide the disaster recovery team with a better understanding of the critical
business dynamics and permit identification of the critical operations re-
quired for a faster disaster recovery. Knowing the critical operations will
help with financial justifications for special precautionary duplication of im-
portant functions and information. Duplication means faster recovery times,
but it can be expensive to implement fully redundant and fault tolerant envi-
ronments, disk and server mirroring, or backup wireless communications.
Limiting duplication techniques to criti-
cal operations is a good way to balance
investment costs with the needed level
of protection.
Production
Once critical operations are identified, then a minimum working business
model is determined, consisting of product sales, production, and delivery.
For most manufacturers, recovery of plant floor operations will be the most
challenging, given the complexity of production logistics. The first challenge
is how to complete or recover any Work In Progress (WIP) operations for
both damaged and undamaged goods. The next is future production plan-
ning and scheduling based on capabilities versus expectations. Production
objectives after any interruption must be based on predetermined options,
influenced by real-time data such as the extent of damage, supplier & cus-
tomer commitments, revenue opportunities, and backup production options.
Supply chain problems such as insufficient materials are a common cause of
production downtime following an unexpected disaster or business interrup-
tion. The BCRP must identify how to obtain sufficient raw materials
internally from inventory and externally from suppliers that are essential to
sustain production along with maintenance, repair, and operating materials
to keep critical equipment running reliably. Any problems with perform-
ance, availability ,or reliability of equipment assets can severely impact
production and jeopardize compliance with quality standards and regula-
tions. Lack of compliance can easily ruin product quality or shutdown
operations, resulting in significant losses.
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7. ARC Strategies • December 2001
IT Operations
In most manufacturing environments, information technology is deployed
throughout the facility from the shop floor to the top floor. Network infra-
structure and communications exist for all organizations from sales and
marketing, through production and engineering, to distribution and service
support. Recovering all these complex systems and maintaining levels of inte-
gration enjoyed prior to a disaster is extremely difficult if not impossible. The
9/11 disaster totally destroyed the facilities and infrastructure of many busi-
nesses, making alternate site redundancy the only option for fast recovery.
Fortunately this type of disaster is rare, but must still be covered by the BCRP.
Many IT disasters are self-inflicted through poor planning and lack of proper
change management. Large manufacturers often paralyze their business op-
erations by improperly implementing a new enterprise application such as
enterprise resource planning (ERP), customer relationship management (CRM)
or supply chain management (SCM). Examples include the three year com-
bined ERP, CRM and SCM implementation at Hershey that interrupted order
processing and shipping functions for three months, causing third quarter
sales and profitability to drop 12.4 percent and 18.6 percent respectively.
Other companies experiencing business interruptions from poorly planned
enterprise application implementations include Nike, Whirlpool, Dow Chemi-
cal, Boeing, Dell Computer, and Apple. Implementation problems are
frequently caused by bad timing for a switchover and the complexity of appli-
cations. In any case, most of these mistakes can be avoided or quickly
recovered with a good contingency plan within the scope of BCRP.
A good contingency plan requires guaranteed system and data availability,
tested backup procedures, and proven implementation methodology with
best practices for change management. The ability to recover all systems,
applications, and information for critical operations is an essential require-
ment for contingency planning, business continuity, and disaster recovery.
The methods may vary from comprehensive system backups or fully redun-
dant and fault tolerant environments to a duplicate backup site. No matter
what the approach is, the ultimate objective is to return to normal operations
with no loss of functionality or information.
Sales and Service
Customer satisfaction is the key to success for any business. Maintaining it
following a disaster or major business interruption is paramount. That is
why every business continuity plan must consider the best ways to continue
Copyright © ARC Advisory Group • ARCweb.com • 7
8. ARC Strategies • December 2001
meeting customer expectations during difficult times. Automating sales and
support processes using appropriate enterprise applications such as ERP and
CRM can help with recovery efforts for orders, deliverables, financials, and
service. Although ERP and CRM are often complex applications, they do
create a comprehensive database of customer sales and support requirements
that can easily be backed up and recovered by IT operations. Automation
can be the medicine for quick recovery. But as a minimum, every business
should document a manual system for sales, delivery, and support
A Web-based portal can become
as a last resort recovery procedure.
a primary communication vehicle
for employees, suppliers, and
In many cases, a good e-business strategy can provide sufficient
customers following a disaster.
capabilities to satisfy customer requirements for ordering prod-
ucts and obtaining needed support. A web-based
communications portal with e-commerce and e-support functions should be
considered for collaboration between your company employees, key suppli-
ers, and existing customers. The actual network hardware and software
infrastructure can be outsourced to a reputable service provider, reducing
your risk of losing all capabilities after a disaster. The portal can also act as
the primary communication vehicle for your disaster recovery team while
planning, communicating, and even executing the BCRP.
Collaborative Manufacturing
The new Internet economy has greatly improved the efficiency of product
and asset lifecycle management from on-line ordering and just in time pro-
duction, to rapid delivery, and real-time support. A new Collaborative
Manufacturing Management (CMM) model has evolved that encourages
suppliers, customers, and partners to share knowledge and best practices for
optimizing business operations and improving profitability. CMM improves
supply and demand chain operations by optimizing product and asset lifecy-
cle phases. It shortens latency times between ordering and product delivery
by significantly improving process workflows through collaboration.
These highly optimized CMM models rely heavily on proper coordination of
the supply chain between suppliers, manufacturers, and customers to opti-
mize production costs and maintain lean inventory levels. Any extended
interruption to this business model can result in major supply chain disrup-
tion and significant losses. Manufacturers that adhere to this very
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9. ARC Strategies • December 2001
competitive and efficient business model Business Enterprise Axis
must consider multiple recovery options or
t
pp
to minimize losses from unscheduled HR ERP
FIN Su
Lifecycle Axis
business interruptions.
Buy-Side
Buy-Side
PLM/S
Sell-Side
Sell-Side
Exchange
Exchange EAM
CPS/ Exchange
Exchange
The preferred options are to transfer SCM APS CRM
TMS Customers
Pro-
production to another existing manufac- Suppliers cure GLS
Value Chain
PLM/D BPM
Axis
turing line within your plant or to
Logistics Logistics
Logistics
PAM
another plant site with equivalent capa- CPM Exchange
Exchange
RPO PIM
bilities and extra capacity. Many n /PSO MAS
ig
D es Automation
industries such as food and pharmaceu-
Production
ticals already use multiple production
lines and plant sites to optimize produc- ARC’s CMM Model
tion costs based on regional demand, and
they should deploy these options in their BCRP. Other manufacturers with-
out redundant production capabilities must consider using third party
manufacturers or even competitors to survive an unexpected disaster. The
competitive approach must be handled carefully to avoid losing customers,
but is possible through contracting, repackaging, or even negotiated referrals.
Disaster Prevention
Avoiding an unnecessary disaster is a far less disruptive approach to busi-
ness continuity and recovery planning. The old saying “an ounce of
prevention is worth a pound of cure” has significant meaning with respect to
business interruptions. The losses from unexpected downtime can be very
significant and often avoided by simple precautions. There are many policies
and procedures that can be implemented to prevent accidents and protect a
business against common disasters. Fire and water damage can be prevented
through periodic safety audits and careful facilities planning using fireproof-
ing, proper drainage, and other proven techniques. Power interruptions can
be minimized with a UPS and backup generator for critical equipment and
operations. Even theft and vandalism can be deterred by implementing a
basic security model.
ARC’s basic security model focuses on prevention and detection of security
threats and rapid recovery of impacted operations when security is breached.
The model looks at securing tangible assets such as equipment and facilities
Copyright © ARC Advisory Group • ARCweb.com • 9
10. ARC Strategies • December 2001
as well as intangible assets such as software applications and information.
Securing physical assets starts with locks for protection, alarms for detection,
and spares for recovery. Similarly, protection against environmental threats
on assets such as power failures can be protected as previously mentioned
with a UPS and generator. Once a power failure is detected the equipment
can undergo an emergency shutdown to avoid damage and be automatically
restarted for rapid recovery when power is restored.
Business knowledge and information is probably the most valuable asset for
many companies and is usually the most difficult to capture and preserve.
Most IT organizations spend considerable time managing critical business
systems and data that is often integrated with plant floor production sys-
tems. The security threats to critical data have increased exponentially as
more manufacturers rely on Web-based solutions to optimize operations and
generate additional revenues. Protection, detection, and recovery of business
information is an essential part
Security
Model Physical Viral Access Backup Power Failure
of every BCRP.
Protection locks shield passwords scheduled UPS / Generator
Software applications and data
Detection alarms scan trace notification shutdown
Recovery spares clean change restore restart
must be protected from com-
puter viruses introduced by
hackers or unintentionally by employees during everyday operations. Ac-
cess by hackers and unauthorized users must be prevented using password
protection. Business data must be protected using scheduled backup proce-
dures in case of corruption or accidental loss. Breaches in information
security must be quickly detected with scan algorithms for viruses, trace
routes for unauthorized user logins, and notification of successful data back-
ups when completed. Rapid recovery of critical business applications and
data must be guaranteed to minimize downtime and enable continued opera-
tions. Recovery procedures include data cleaning procedures to eliminate
computer virus signatures, password changes to prevent future unauthor-
ized access to business systems, and system backup restores to repair
corrupted applications and information.
Collaborative Asset Lifecycle Management
The complexity of many new assets requires extensive training and costly
equipment for proper maintenance, forcing customers to share maintenance
10 • ARCweb.com • Copyright © ARC Advisory Group
11. ARC Strategies • December 2001
responsibility with suppliers. For example, repairing a new automobile re-
quires expensive diagnostic equipment and frequent training to understand
computerized performance indicators and fault detection parameters. Only
dealerships can justify the cost of this equipment, forcing customers to rely
on them for most maintenance requirements. This embedding of intelligence
in new products is becoming popular because it reduces support costs and
optimizes performance, availability, and reliability.
Smart technology is driving Collaborative Asset Lifecycle Management
(CALM), which promotes collaboration between suppliers, customers, and
internal organizations for sharing knowledge and integrating important ap-
plications for optimization of the various asset lifecycle phases. Customers
are demanding better support from suppliers through the entire asset lifecy-
cle, from sourcing to redeployment. Suppliers are assuming more asset
management responsibilities through out- Collaborative Asset Lifecycle Management
sourcing agreements with performance
Manufacturer Supplier & Manufacturer 3rd Party Service
guarantees.
Source Operate Maintain Decommission
Placing more responsibility on suppliers is a
best practice for business continuity and Current EAM Solutions
rapid recovery from a disaster. A fast and
proper response to a business interruption Capital Equipment Lifecycle
can prevent a serious disaster. Knowing how to contact the right person or
supplier immediately or having access to the right asset information and
spare parts will minimize downtime. Having a good supplier contractually
involved with revenue responsibility can expedite a rapid response to your
problems.
A rapid response from anyone will require an accurate and fast evaluation of
the situation. Several new remote monitoring, access, and notification tech-
nologies can expedite the recovery process. Simple network management
protocol (SNMP) can monitor device health, performance, and configuration
over an IP network, while global positioning systems (GPS) and radio fre-
quency identification (RFID) can track asset location. These and other
technologies properly supplemented with email notification can identify
problem areas, expedite spare parts and tools, and notify the needed re-
sources for the solution. Remember that action speaks louder than words in
an emergency and that CALM provides strong decision support based on
proactive asset management.
Copyright © ARC Advisory Group • ARCweb.com • 11
12. ARC Strategies • December 2001
Damage Assessment
A successful recovery requires identifying the problems and potential dam-
age. A good measure of disaster magnitude is the time and cost to recover.
Recovery in less than a day is usually minor, although short outages may
hide less obvious damages such as loss of customer confidence. Comprehen-
sive damage assessment procedures will help quickly assess losses. The best
way to identify and measuring damage should be documented. Before and
after photos of assets and operations can help determine losses and damage
when a major disaster destroys all or a portion of your facilities.
Event Category Extreme Impact Major Impact Minor Impact No Impact
Health and Safety Loss of Life or Limb Hospitalization Local First Aid None
Financial Loss $$$ $$ $ 0
Information Loss $$$ $$ $ 0
Compliance FDA Revoke License FDA Suspend License FDA Review License None
Production Loss Days/$$$ Hours/$$ Minutes/$ None
Environmental Damage Permanent /Offsite Long term/ Onsite Temporary/ Local None
Loss of Trust or Reputation Permanent Long Term Temporary None
In fact, loss of facilities, such as in the case of the Oklahoma City bombing,
should be a special consideration of any BCRP with provisions for backup
mobile communications and replication of operations at an alternate or mir-
rored site. Availability of an alternate site is an important safeguard for
rapid recovery from any disaster where damage is extensive. Safety concerns
or extensive damage to the facility, information center, or any other critical
operation makes relocation to the alternate site a practical decision. Reloca-
tion time to the new site will depend on the estimated time for recovery as
determined by the damage assessment process. A mirrored site can normally
assume full redundant operations very quickly with minimum business in-
terruption because it provides real-time backup for business information.
The right level of protection will depend on the likelihood of various threats,
the risk tolerance of the business, and the cost of deploying redundant opera-
tions. Any manufacturer fortunate enough to have similar multi-site
operations should consider mirroring each other’s information as a more cost
effective solution.
12 • ARCweb.com • Copyright © ARC Advisory Group
13. ARC Strategies • December 2001
Recovery Strategy and Procedures
Mirrored hot sites that can immediately takeover operations for another
damaged site is the ideal scenario for BCRP. Unfortunately, very few busi-
nesses or manufacturers can afford this model. Results from our survey
showed a very small percentage of companies performed real-time backup of
data, and few could tolerate more than a day of unexpected downtime. Most
companies relied on comprehensive planning and daily backups for a fast
recovery, with smaller businesses even settling for weekly data backups. The
survey showed that a 1-to-3 day downtime, although costly, was not fatal. It
also indicated that the average BCRP solution was 3 years old, with annual or
periodic updates. Unfortunately, less than half of the companies tested their
BCRP, and only a few companies had adequate recovery teams in place, with
the average being five or fewer members.
In any case, successful recovery
Supplier
BCRP Supplier Solutions References
requires a complete backup of
Binomial Phoenix Disaster Recover Bayer, Unocal, Chevron,
current information, available Glaxo, Raychem, Trane
spares, and properly trained
Comdisco Revolution, ComPAS, IFF, Dow Chemical, Union
personnel. This is best accom- Complete BIA, CPT, Pacific, Thomson Consumer
plished by frequently moving Continuity Resource Electronics
mission critical data offsite, Compaq DRTape, Storageworks Molson, Borden Chemical
cross training personnel in im- Ernst & Young e-Risk, e-Security Morgan Stanley, American
portant areas, and maintaining Express
the right spares and latest HP Business Continuity Services Mitsubishi, Rockwell, Pacifica
documentation at multiple sites.
IBM Business Continuity & Degussa, Eli Lilly, Inver
The BCRP should be docu- Recovery Services House, Gillette,Tenneco
mented, updated, and tested Presage Business Recovery Planner AT&T, Braun, Chrysler, Coca
periodically, as well as shared Cola, Emerson, GM, Sie-
mens, US Navy
with strategic suppliers and cus-
tomers. It is also wise to SunGard Precovery, e-Planner, CBR, Domco, NYSA and other
Megacenter WTC Companies
participate in the BCRP of your
Strohl Systems BIA Professional, LDRPS (web Alabama Power, Lockheed
key suppliers and primary cus-
server), Incident Manager Martin, Nestle, Solectron
tomers, since their failures can
seriously impact your opera-
tions. Every BCRP should include provisions for alternate supply and distri-
bution channels for suppliers, partners, and customers.
There are many BCRP service providers including Compaq, Ernst & Young,
HP, and IBM, but only a few large software solution suppliers such as Strohl
Copyright © ARC Advisory Group • ARCweb.com • 13
14. ARC Strategies • December 2001
Systems, SunGard, and Comdisco. SunGard provides software and services
to its customers. Several service providers including IBM and Compaq de-
ploy Strohl Systems BCRP solutions for their clients. SunGard is acquiring
ComDisco, and HP may merge with Compaq creating several stronger BCRP
solution suppliers. For do it yourself companies, Binomial International,
Presage, and several other suppliers offer a low cost entry-level solution.
Most BCRP suppliers provide critical support after tragic events such as fires,
storms, floods, and terrorism. IBM, SunGard, and Strohl Systems operate
worldwide recovery centers that can mirror sites or load backup tapes to
support IT operations during a disaster. For example, both Gillette and Mer-
cedes Benz took advantage of IBM’s Sterling Forest, New York, recovery
center to support operations during hurricanes in Puerto Rico and New Jer-
sey. Morgan Stanley built its own fully redundant data center at the World
Trade Center, which was completely destroyed on September 11. Mirroring
permitted the original site 15 blocks away in Manhattan to continue full op-
erations with little disruption. Morgan Stanley is currently working with
Ernst & Young to recover and rebuild WTC redundant data center operations
at another location.
Recommendations
According to the ARC survey, most businesses have implemented strong
user authentication and data integrity security with user passwords, daily
backups, and virus protection software. Few businesses, however, have in-
vested in proper BCRP documentation with good risk analysis and
understanding of security threats, nor have they adequately prepared a dis-
aster recovery team to deal with an unexpected disaster. The likelihood of a
serious manmade disaster has increased significantly since 9/11 making
BCRP an important investment for most companies. ARC suggests that
every company focus on the following.
• Determine business interruption risks and action responses
• Identify the recovery team and strategic objectives in advance
• Deploy safety and security measures to minimize risk
• Understand and automate repetitive critical operations
• Develop procedures to quickly assess extent of damages
• Document and periodically test a comprehensive BCRP.
14 • ARCweb.com • Copyright © ARC Advisory Group
15. ARC Strategies • December 2001
Analyst: Houghton LeRoy
Editor: Ed Bassett
Distribution: All EAS Clients
Acronym Reference: For a complete list of industry acronyms, refer to our web
page at www.arcweb.com/arcweb/Community/terms/indterms.htm
B2B Business-to-Business GPS Global Positioning System
B2C Business-to-Consumer HMI Human Machine Interface
BCRP Business Continuity and Recovery IT Information Technology
Planning ITRAMIT & Remote Asset Management
BIA Business Impact Analysis MRP Materials Resource Planning
BPR Business Process Reengineering OSHA Local Area Network
CAGR Compound Annual Growth Rate PAM Plant Asset Management
CALM Collaborative Asset Lifecycle PIMS Process Information Management
Management System
COM Component Object Model RFID Radio Frequency Identification
CNC Computer Numeric Control ROI Return on Investment
CPG Consumer Packaged Goods SCM Supply Chain Management
CRM Customer Relationship Management SNMP Simple Network Management
CMMS Computerized Maintenance Protocol
Management System UPS Uninterrupted Power Supply
EPA Environmental Protection Agency TMS Transportation Management System
EPM Enterprise Production Management WIP Work In Progress
ERP Enterprise Resource Planning WMS Warehouse Management System
Founded in 1986, ARC Advisory Group is the leader in providing strategic plan-
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utilities, and global logistics providers, as well as to software and solution suppli-
ers worldwide. From Global 1000 companies to small start-up firms, ARC
provides the strategic knowledge needed to succeed in today’s technology driven
economy.
ARC Strategies is published monthly by ARC. All information in this report is pro-
prietary to and copyrighted by ARC. No part of it may be reproduced without
prior permission from ARC.
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