rolling out business continuity planning (bcp) for manufacturer company

Rolling out Business Continuity Planning (BCP) for Manufacturer

Company

Click to start

Working on

Food Industry

Who we are?

Leads

Mohammad Khaliqur Rahman 150131

Shafiuddin Russel 150165

Forwarder

Md. Rafiqul Islam 150132

Defender

Uttam Banik 150137

Information Spy

Samsun Nahar 150119

BCP Objectives

Documents

Allow timely recovery of critical business operations

Minimize loss

Meet legal and regulatory requirements

Execute Testing

Document test result

Review process and test results

By test review

By Process review

By Event review

Test BCP Update Regularly

Project Domain

Biscuits and Wafers

Product Line

Noodles:

Chatni:

Project Domains

Work Activity

Work Environment

Business Process

Work Flow

Inform Local Police Station

Secure Documents

Activate fire protection

system

Secure machineries

Identify Causes/Demand

Negotiation with labor

leaders

Demolish/Violence?

Deploy Law Enforcement

Withdrawal Strike

Continue Core Business Functions

Open up all business wings

Labo

r Str

ike

Yes

Review and Update BCP

No

Start

EVENT

Impact

DisasterEventLabor Strike Y Y Y Y Y Y Y

Vehicle and product robbery N Y Y Y N N Y

Internal fraud N N Y Y N N Y

Power Outage Y Y N Y N N N

Food raw materials affected by moisture and insects

Y Y N Y N N N

Pro

du

ctio

n D

isru

pte

d

De

live

ry S

ch

ed

ule

fa

ile

d

Da

ma

ge

o

f A

sse

ts

Fin

an

cia

l L

oss

Re

pu

tatio

n h

am

pe

r

Lo

ng

tim

e e

ffe

cts o

n

reve

nue

Org

an

izatio

n b

ad

im

ag

e

on

c

usto

me

rs

** Y = More Negative, N = Less Negative

Disaster Impact Analysis

Basic Risk Assessment Process

We have followed following five Steps for Risk Assessment

Death by Cause in 2006 in Bangladesh (%)

Accident and Related,

10.04, 10%

Asthma and Related,

17.57, 18%

Infectious Disease, 10,

10%

Indirect Food and

related Complcation,

21.54, 22%

Foodborne Illness,

23.58, 23%

Old Age, 17.27, 17%

Source: Statistical Yearbook of Bangladesh 2010

What is Highest Risk?

Hazards from Farming to distribution

Farming Transport Production Packing Distribution

AnimalsChemicalsElectricityWeatherFloodCold

TemperatureTraffic JamPoor Road

Strike

ClassificationLabelingBSTI SealExp Date

Faulty Pack

Failure of DIS.Low Production

Hazard on Food Production

Severe Weather Event

Slips & Trips

Contact with Steam

Hot water

Hot Oil

Knives

Hazardous

Substances

Gas

Electrical

Fire

Machinery

Temperature

How we Rating the risk…

Consequence

Like

liho

od

Low (1) Medium (2) High (3) Extreme (4)

Almost certain (4) 4 8 12 16Likely (3) 3 6 9 12Possible (2) 2 4 6 8Unlikely (1) 1 2 3 4

Evaluation of Likelihood

Within the next 12 months the event is:

Almost certain Frequent occurence/ greater than 90% chance

Likely Regular occurence/ greater than 60% chance

Possible Occasional occurence/ greater than 10% chance

Unlikely Has never occurred/ less than 10% chance

Risk Rating: Likelihood X Consequence

High: 8 to 16Medium: 3 to 6

Low :1 to2

Evaluation of consequence

ExtremeFinancial impact greater than 100 Crore / international media attention / Government or stakeholder intervention / Total service disruption / Bankrupt.

HighFinancial impact greater than 50 Crore / national media attention / Adverse comment by minister or external auditor / significant service disruption / disabling injury.

MediumFinancial impact greater than 1 Crore/ Local media attention / Service user complaints / Service disruption / Lost time / Injuries.

LowLow level financial loss / isolated complaints / minor service disruption.

Food Factory Risk Assessment

Hazards Who harmed & how Risk level

Slips & Trips

Staff, visitors may beinjured if they trip

over objects or slip on slippery floor

Medium

Severe Weather EventLoss of buildings, personal property and businesses

High

ManualHandling

Staff may sufferpulled muscles,

strains and bruising.

Medium

Contact withsteam, hot water, hot oil and

hot surfaces

Oven staff, foodservice staff may

suffer scalding or burn injuries

Medium

KnivesStaff could suffer

cuts and finger amputationsMedium

Food Factory Risk Assessment Hazards Who harmed & how Risk level

GasAppliances

Staff and customerscould suffer serious or fatal

injuries as result of gas release or explosion

High

ElectricalStaff could suffer

serious or fatal injuries as result of electric shock

High

Fire

Staff and customerscould suffer serious injuries

and fatalities from burns and smoke inhalation

High

MachineryStaff could suffer

serious injury from contact with dangerous parts

Medium

Workplacetemperature

Kitchen staff maysuffer ill health when they overheat in hot working

conditions

Medium

Business Impact analysis (BIA)

Identified Business Areas Those Can Be Impacted

Fin

ance

Man

ufa

ctu

rin

g

Op

erat

ion

s

Info

rmat

ion

Tech

no

logy

Hig

hM

ediu

m

Hu

man

R

eso

urc

es

Mar

keti

ng

& S

ales

Faci

litie

s &

Se

curi

ty

Low

Res

earc

h &

D

evel

op

men

t

Lega

l/C

om

plia

nce

War

eho

us

e

S

U

P

P

L

Y

C

H

A

I

N

Quantitative or Qualitative Impact

Med

ium

Hu

man

R

eso

urc

es

Mar

keti

ng

& S

ales

Faci

litie

s &

Se

curi

tyFa

cilit

ies

&

Secu

rity

War

eho

us

e

Lega

l/C

om

plia

nce

War

eho

us

e

BIA Matrix

BC DR Templates Used

Work Flow Diagram

Raking Systems Book: Business Continuity & Disaster RecoveryChapter- Project Initiation Page-110

Disaster Impact Matrix

Risk Assessment Matrix

BIA Matrix

Lecture 4: Page – 24 of Dr. Syed Akhter Hossain

Lecture 4: Page – 25 of Dr. Syed Akhter Hossain

Lecture 6: Page – 35 of Dr. Syed Akhter Hossain

Lecture 8: Page – 31 of Dr. Syed Akhter Hossain

Activities (In Reality)

Informal Approval

Initial Business Process Analysis

Formal Proposal

Discussion/ Meeting

Final Approval Total Planning to Develop BCP

Business Process Analysis

Hazard Identification

Risk Assessment

Standards & Industry Best Practices, Testing, Maintenance, Awareness and Training

In RealityHurdles -1

Unawareness

Resist new things that pay cost

What is BCP?

Why BCP?

Any Extra Cost?

Hard to make them aware about BCP

Absence of practically long vision

BCP will ensure your business continuity after your death!!! Top Management Mindset

Unawareness

Make practice BCP guided process and regularly monitoring

Worry about operational

costRigidity

to change process

Hiding Tendency

Hard to make them convince about redundant process or steps for BCP:

Dedicate ongoing resources

Middle Management

TOP

Ma

na

gem

ent

Wo

rk F

orc

e

Ensure drills are conducted regularly at all units

BCP will make you relax while you work or at home

In RealityHurdles-2

Critical Analysis

200 Crore Project 50% invested for automated machines

Installed During 2008, Useful Lifetime = 10 years

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

20

0

46

.9

Cro

re

50

100

150

200

20

0

86

.4

20

0

11

2.6

20

0

11

3.9 17

0

13

1.6

14

0

14

0

Straight Line Depreciation Method

Depreciation = (Cost - Residual value) / Useful life

=(100-40)/10=16%

11

0

15

0

80

17

0

50

19

0

Production Capability

Market Size/Sales

1. Hazard Identification2. Risk Identification3. Risk Assessment4. Risk Mitigation Strategy

Practical Risk Assessment with Small Example

The End

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Q & A