Manufacturing Business Continuity Plan Example

Business Continuity Plan for Manufacturing Businesses

Employees will be informed (by team members) when a tragedy is reported, where and when to report. Because the repair site is local, transportation to the workplace is the same as the worker, unless of course otherwise specified. Directions will be provided during the reporting period if necessary.

Download All Products Today And Save 60% >>

Business Management Software


Rated #1 Excel Dashboards, Scorecards and KPIs Reports

Download Free Templates for Sales, HR, Finance, Marketing, Quality...



Most emergencies have a fairly minimal impact on operations, and many emergency teams have predefined plans that respond adequately to the hazards.

However, specialists argue that every five years businesses can face at least one major disaster of catastrophic magnitude. The impact of these events can be devastating. In fact, recovery from such a common devastation is a lengthy procedure stretching over a few years. In extreme cases, many commercial companies suffer major revenue losses, lose business from important customers, and even shut down permanently never to resume operations.

Preparing for such disasters is essential to your business, especially in the case of industries such as manufacturing, exactly where facilities are installed with heavy machinery and equipment that have a very low margin of deviation. This does not mean anything about the risk that can be run alive and the safety of personnel in the event of breakdowns and malfunctions.

Many of the threats can suggest serious and permanent consequences for your organization that would otherwise be vigorously addressed.

Emergency teams should have a strategy that can be deployed easily once a tragedy occurs. Despite the sensible considerations in performing an emergency response, it is not very advisable to outline a recovery technique after an interruption has broken out, due to the high degree of tension and panic that arise during such events.

Considering Organizational Structure in Business Continuity Planning

Although companies have a business structure that generally looks like companies in a different industry, some specific issues, such as chain interruptions and insufficient assets, resources and experienced personnel, become a little more critical within this industry, taking into account the nature of operations. .

The effect on productivity is certainly the primary goal for just about any manufacturing facility and the primary goal would be to manufacture as many quality units of merchandize as possible at the lowest possible cost. And in view of this, many manufacturers have introduced production methods such as LEAN and inventory methods such as Just in Time. While the practices have increased effectiveness and reduced operating budgets, the level that an unexpected emergency can affect the business has increased even more.

Even in the event that duplicate production lines are available, due to extreme consumer demands, the producer is obliged to think about how exactly the middle will handle the delivery needs if one person of the 2 units fails.

No plan is certainly one hundred percent comprehensive. Even the most detailed and deliberate company, a continuous disaster recovery model, may have overlooked a danger and two. Nevertheless, the production unit should adhere to the considered basic guidelines when designing a resilience framework.

Experts all agree that business interruptions are inevitable, even within the best-guarded production facilities. And a solid BCDR plan becomes the defining aspect that sets a company apart from the competition. That said, it must be recognized, particularly from a manufacturing standpoint, that contingency measures are not really a one-off project, but instead an ongoing effort to improve existing systems.

This is exactly where a business continuous plan comes into play. To give an organization the very best chance of success during a disaster, you must put a current, tested plan in the hands of the personnel responsible for carrying out part of that plan. Lack of the plan doesn’t just mean your business needs more than is essential to recover from an event and incident. You can get out of business forever.

Many people think that a tragedy recovery plan (DR) is definitely the same as a business an ongoing plan, but a DR plan focuses primarily on recovering IT infrastructure and processes after a crisis. It is really just part of the entire company, a continuous plan, as a BC plan looks like a continuous of the entire organization.

Note that the business impact analysis (BIA) is yet another part of the BC plan. A BIA identifies the effect of the unexpected loss of economic functions, usually included in the cost. Such analysis can also help you assess whether or not to delegate core business within your BC plan, which may be its own risk

Whether you’re running a small business or a large business, you’re trying to stay competitive. It’s fundamental to keep current customers while increasing your customer base – and there is no better test of achieving this than immediately after a bad event.
manufacturing business continuity plan example

If your business doesn’t have a BC plan, start by assessing your business processes, identifying which sections are vulnerable, as well as the potential losses if those processes go down for a day, a few days, and a week. This is actually a BIA.

A common business, a continuous planning tool is basically a checklist that includes supplies and equipment, the location of information backups and backup sites, exactly where the action plans can be accessed and who should have them, and how to contact information for emergency responders, key officers and backup site providers.

Remember that the disaster recovery plan is part of the business and an ongoing plan, so if you don’t currently have one master plan, creating a DR plan should be part of the process. And if you currently have a DR plan, don’t believe that all needs have already been taken into account, O warns

When making your plan, consider evaluating key personnel in companies that have successfully experienced disaster. Many organizations test a company’s continuous plan two to four times a year. The schedule depends on your own type of organization, the amount of key employee turnover and the amount of business systems and IT changes that have occurred since the last round of testing.

Common tests include table exercises, structured walk-throughs, and simulations. Test teams are generally composed of the recovery planner and members of both functional units.

A table exercise usually takes place in a conference room where the team reviews the plan, identifies gaps and ensures that all departments are represented in it.

In an organized walk-through, each team member goes through his and his components from the plan in depth to identify weaknesses. Often they work with the exam with a specific disaster in mind. Some organizations include disaster exercises and role plays in the structured walkthrough. Any weaknesses should be corrected and an updated plan distributed to all or all relevant employees.

It’s also a good idea to do a complete emergency expulsion exercise at least once a year. These types of tests can help you determine if you need to make special arrangements to evacuate employees with physical disabilities.

Finally, testing a disaster simulator can be quite complicated and should be done annually. For this test, create an environment that simulates a real disaster, with all the equipment, supplies and personnel (including business partners and additional suppliers) needed. The purpose of the simulator would be to determine if you can run a critical company during the event.

Include new employees in the testing team at every stage of the economic and continuous testing of the plan.

Much attention is paid to creating and initially testing a BC plan. Once that job is done, many companies leave the plan, while other, more critical tasks are given attention. When this happens plans get old and make no sense when they are needed.

Technology evolves and individuals come and go, so the plan needs to be updated as well. At least annually, bring key personnel together to analyze the plan and discuss areas that need to be changed.

Before the assessment, ask the teams for suggestions on how to include them in the plan. Ask all departments and departments to analyze the plan, including branches and some other remote units. If you’ve been unlucky enough to have faced a disaster and needed to put the plan into practice, make sure to include the lessons learned. Many organizations conduct an evaluation in combination with a table exercise and a structured walk-through.

manufacturing business continuity plan example

Subscribe

* indicates required

Rated #1 Excel Dashboards, Scorecards and KPIs Reports

Here is How to Easily Track your KPIs in Excel

Free Business Management Templates