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    Planning for Business Continuity Planning for Business ... Planning for Business Continuity Planning for Business ... Presentation Transcript

    • Planning for Business Continuity to Ensure Supply Chain and Operation Continuity Prepared by Vintcom Technology Mr. Tanusit Skunnawat BCM Consultant
    • Agenda • Introduction • Present & Future Trend in SCM • Mapping BCM with SCOR Model • Identifying Sources of Supply Chain Discontinuity • Key Concept of GPG of BCI • Examples of Crisis Management for SME Manufacturers • Q&A
    • Why BCM • The changing nature of business – Increasing dependency on ICT – Increasing system interdependency – Increasing commercial complexity – Increasing technical complexity – Increasing expectations from customer – Increasing Threat
    • Global Risks Economic Societal • Oil price shock/energy crisis • Pandemics • Infectious and chronic • US deficits/fall in US$ diseases in developing world • Chinese economic hard • Liability regime landing • Fiscal crisis – demographic shift Environmental Technological • Breakdown of critical • Climate change information infrastructure • Loss of fresh water services (CII) • Natural catastrophe – • Emergence of risk associate with technology storms, earthquake, flooding
    • The 11 Greatest Supply Chain Disasters Source:
    • The 11 Greatest Supply Chain Disasters (cont.) Source:
    • High Consequence- Low Probability Disruptions Ford- West Coast Madrid Toyota Sept. 11 Ports Attack Firestone Terrorist Brake Lockout Blackouts GM Labor Tire Attacks Katrina Plant Fire Philips Iraq US - Strike Recall Plant War Europe Fire Tsunami FMD 2002 Ok. 1997 1998 1999 2000 2001 2003 UK tornado 2004 2005 UPS Quebec Ice Taiwan - GM Labor Storm Earthquake SARS Strike Scandals: Enron, Nor’Easter Andersen, London Worldcom Attacks Ref: Adapted from Dr. Debra Elkins, General Motors
    • Ericsson Case
    • Threats to Company Profitability • Business Discontinuity – Loss of Revenue Lost Customers – Extra costs and expenses – Reputation
    • Agenda • Introduction • Present & Future Trend in SCM • Mapping BCM with SCOR Model • Identifying Sources of Supply Chain Discontinuity • Key Concept of GPG of BCI • Examples of Crisis Management for SME Manufacturers • Q&A
    • Supply Chain Management “Supply Chain Management encompasses “the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.”
    • Opportunities & Threats More product • Shorter product introductions and products for unfaithful life cycles customers: • Customization Tougher competition Longer chains, more • Globalization parties involved, tougher competitors: • Outsourcing Tougher supply chain management
    • Information Technology: A Supply Chain Enabler • Information links all aspects • Bar code and point-of-sale of supply chain – data creates an • E-business instantaneous computer – replacement of physical record of a sale business processes with • Radio frequency electronic ones identification (RFID) • Electronic data interchange – technology can send (EDI) product data from an item – a computer-to-computer to a reader via radio waves exchange of business • Internet documents – allows companies to communicate with suppliers, customers, shippers and other businesses around the world, instantaneously
    • Build-to-order cars over the Internet Source: John Wiley & Sons, Inc. (2006)
    • E-automotive Supply Chain Supply Chain Automotive E-Automotive Processes Past • Customer sales • Push—sell from • Pull—build-to-order inventory stock • Production • Goal of even and • Focus on customer stable production demand, respond with supply chain flexibility • Fast, reliable, and • Distribution • Mass approach customized to get cars to specific customer location • Customer • Shared by dealers and relationship • Dealer-owned manufacturers Source: John Wiley & Sons, Inc. (2006)
    • E-automotive Supply Chain (cont.) Supply Chain Automotive E-Automotive Processes Past • Managing • Large car • Small inventories with uncertainty inventory at shared information and dealers strategically placed parts • Procurement • Batch-oriented; inventories dealers order • Orders made in real time based on based on available-to- allocations promise information • Complex • Simplified products based • Product products don’t on better information about design match customer what customers want needs Source: John Wiley & Sons, Inc. (2006)
    • Relationship between Facilities and Functions along the Wal-Mart Supply Chain Source: Adapted from Garrison Wieland for “Wal-Mart’s Supply Chain,” Harvard Business Review 70(2; March–April Source: John Wiley & Sons, Inc. (2006) 1992), pp. 60–71.
    • Amazon.com Source: John Wiley & Sons, Inc. (2006)
    • A WMS Source: John Wiley & Sons, Inc. (2006)
    • RFID in the Supply Chain •RFID technology will facilitate more efficient and timely tracking of goods throughout the entire supply chain Source: John Wiley & Sons, Inc. (2006)
    • Agenda • Introduction • Present & Future Trend in SCM • Mapping BCM with SCOR Model • Identifying Sources of Supply Chain Discontinuity • Key Concept of GPG of BCI • Examples of Crisis Management for SME Manufacturers • Q&A
    • SCOR - 5 distinct Management Processes Plan Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source Return Return Return Return Return Return Return Return Suppliers’ Supplier Your Company Customer Customer’s Supplier Customer Internal or External Internal or External SCOR Model Building Block Approach Processes Metrics Best Practice Features
    • SCOR Model Processes Make Deliver Plan Source Transform Provide products Develop a course Procure goods of action that best product to a to meet demand, and services to meets sourcing, finished state to including order meet planned production and meet planned management, delivery or actual or actual transportation requirements demand demand and distribution Return Return products, post-delivery customer support
    • Performance Management - SCOR metrics impact on Income Statement - Source: iCognitive
    • Performance Management - SCOR metrics impact on Balance Sheet - Source: iCognitive
    • 6 Steps BCI GPG 2. Understanding your business: 2. Understanding your business: Business Impact and risk assessment Business Impact and risk assessment 3. Continuity Strategies: tools are used to identify the critical tools are used to identify the critical 2 Determining the selection of deliverables and enablers in your deliverables and enablers in your business,…. alternative strategies available to business,…. mitigate loss,…. 6. Exercise & Plan Maintenance: 6 3 Ongoing plan testing, audit and change management of 1 1. BCM Policy & Program Management the BCP and its processes 4. Developing the Response: 5. Establishing the Continuity Improving the risk profile through Culture: 5 4 improvements to operational Introduction of the BCM process by procedures and practices, …. education and awareness of all stakeholders, …. Risk Assessment / Business Impact Analysis MTPD, RTO,RPO
    • RTO/RPO Justification
    • Agenda • Introduction • Present & Future Trend in SCM • Mapping BCM with SCOR Model • Identifying Sources of Supply Chain Discontinuity • Key Concept of GPG of BCI • Examples of Crisis Management for SME Manufacturers • Q&A
    • Risk Identification
    • Vulnerability / Risk Map Source: MITSloan MR: A Supply Chain View of the Resilient Enterprise
    • Possible Areas of Threat to ICT • Human Error • Application Failure • Network & Telecom Failure • Information Security Threat – Virus, Worm, etc. • Power Outage • Etc.
    • Other Critical Areas • Wide Area Disruption – Fire Blackout – Earthquake – Terrorism – Etc. • Pandemic Flue • 3rd Party Services Disruption BCM for the whole value chain
    • Agenda • Introduction • Present & Future Trend in SCM • Mapping BCM with SCOR Model • Identifying Sources of Supply Chain Discontinuity • Key Concept of GPG of BCI • Examples of Crisis Management for SME Manufacturers • Q&A
    • The Business Continuity Institute • Established in 1994 • Introduced 6 steps Good Practice Guideline (GPG) in year 2002, current version 2008 • Mission Statement of the BCI : Promote the art and science of business continuity management
    • A Unifying Process
    • 6 Steps BCI GPG 2. Understanding your business: Business Impact and risk assessment 3. Continuity Strategies: tools are used to identify the critical 2 Determining the selection of deliverables and enablers in your business,…. alternative strategies available to mitigate loss,…. 6. Exercise & Plan Maintenance: 6 3 Ongoing plan testing, audit and change management of 1 1. BCM Policy & Program Management the BCP and its processes 4. Developing the Response: 5. Establishing the Continuity Improving the risk profile through Culture: 5 4 improvements to operational Introduction of the BCM process by procedures and practices, …. education and awareness of all stakeholders, ….
    • Understand Organization Identify MTPD For each Product or Service
    • Scope and Context of BCM • Approved Budget and Top Management Support • Formal Disaster Authorities • Emergency Response, Incident Management System, and Business Recovery • Embedded BCM
    • What is Business Continuity Planning Planning to ensure the continuation of operations in the event of a catastrophic event. Business continuity planning goes beyond disaster recovery planning to include the actions to be taken, resources required, and procedures to be followed to ensure the continued availability of essential services, programs, and operations in the event of unexpected interruptions.
    • RTO/RPO Concepts Lost Data Restore Technology Capability Move to Resume Return Alternate Vital Records Notifications Business Home Site Restore Communications (If necessary) Data Synchronization (Data) Recovery Point Objective Restore Business Functions Recovery Time Objective
    • The Impact of an Incident
    • Maximum Tolerable Period of Disruption
    • Phases of Recovery
    • BCM to Reduce Guesswork
    • Timeline
    • Agenda • Introduction • Present & Future Trend in SCM • Mapping BCM with SCOR Model • Identifying Sources of Supply Chain Discontinuity • Key Concept of GPG of BCI • Examples of Crisis Management for SME Manufacturers • Q&A
    • Example Checklists for SME Manufacturers 1. Is the vendor a single or sole source supplier? 2. Which product(s) or service(s) does the vendor support and what percentage of revenue/earnings do they address? 3. How close is the vendor to your production facility? Will a local or regional disaster affect both you and the vendor and impact recoverability? 4. How often is the vendor's product delivered (if applicable)? 5. What is the average on-site inventory level of the vendor's product (if applicable)? 6. How long does it take to order and take delivery of the vendor's product? 7. Does the vendor employ unique production processes and capabilities where an alternate vendor would be difficult to find? Risky Business -Failing to Assess Supply Chain Continuity by Michael Porier & Brian Zawada
    • Recommendations • Maintaining safety stock • Monitoring transportation entities and planning for contingent shipping arrangements • Observing product transportation paths, looking for potential bottlenecks • Developing plans to allow for acceleration of shipments • Implementing a crisis communications process with key vendors • Developing continuity plans to address in-house product receipt, inventory management and product shipment processes, with an emphasis on labor interruption and other single points of failure Risky Business -Failing to Assess Supply Chain Continuity by Michael Porier & Brian Zawada
    • Business Continuity Planning Asia Pte., Ltd. • Established in 2000 • Vision: – To be the preferred Business Continuity Management (BCM) partner in Asia – To be one of the leading organizations, to set the BCM direction, providing quality and total BCM solutions for organizations in Asia
    • Vintcom Business Continuity • Services Solutions – Training, Coaching, and Consulting • Symantec – Business Continuity • Disaster Recovery • High Availability – Security – Information Risk & Compliance – Storage – Infrastructure Operations • Network Infrastructure – Optical Transport for Storage & Server – Out of Band Management for Remote Site – Free Space Optic for Fast Restoration – WAN Optimization
    • Thank you & Questions ? Vintcom Technology Co., Ltd. Ltd Tel: 02-636-8272 ext: 810 tanusit@vintcom.co.th