2016年4月25日月曜日

Is our BCP ready? - Manufacturers jolted into production line suspensions by Kumamoto quakes

I mentioned in my previous blog that we have made progress to deal with the emergency situation caused by big earthquake after the hard experiences. But the following articles remind me that we need to address BCP (Business Continuity Plan) more practically. We have faced supply-chain issues in the manufacturing at the offshore Great East Japan Earthquake on March 11 in 2011, and we do again... Let's see how big companies are doing. 


 
Image Credit: Jiji.com
 
Newspapers reported "Toyota Motor Corp. said Sunday, Apr 17 it will shut down vehicle assembly in Japan over the course of this week because of parts shortages stemming from the two strong earthquakes in Kumamoto, Kyushu, Japan.
 
The world’s biggest automaker posted the announcement on its website Sunday, Apr 17.
"The shutdown will begin on Monday, Apr 18 at a factory in Kumamoto and progress to other plants through Friday, Apr 22."
Toyota said Continuity of operations would depend on the availability of parts.
Toyota Motor Kyushu Inc. has already suspended output at three vehicle assembly plants in Fukuoka Prefecture since Thursday, after a magnitude-6.5 quake rocked Kumamoto Prefecture.

On Tuesday or later, operations will be halted at Toyota’s four flagship plants in Aichi Prefecture and at Toyota Auto Body Co. and Toyota Motor East Japan Inc. Daihatsu Motor Co. and Hino Motors Ltd., both Toyota units, also suspended many of the production lines for Toyota vehicles.”

Among other automakers, Mitsubishi Motors Corp. suspended its production lines in Okayama Prefecture from Monday night to Tuesday.
Many other firms were forced to suspend operations and evacuate workers.

Aisin Seiki Co. has stopped production at two plants in the city of Kumamoto that make engine parts, while microchip maker Renesas Electronics Corp., also in the city, has suspended production of semiconductors for vehicles and sees no prospect of resuming operations anytime soon because of continuing aftershocks.

Officials at Honda Motor Co.’s motorcycle plant in the town of Ozu in Kumamoto Prefecture are having difficulty assessing damage at its facilities, a company source said.

Operations were partially restored at a Panasonic Corp. plant in the town of Nagomi in Kumamoto Prefecture after Thursday’s temblor, but were suspended again after the stronger quake early Saturday.

A Sony Corp. semiconductor plant in Isahaya, Nagasaki Prefecture, was partially shut after the Saturday quake, and employees who were working the overnight shift evacuated.

Mitsubishi Electric Corp. said production was suspended at its semiconductor and engineering plants, both in Kumamoto.


.....Apparently their BCP (I assume they have BCP in place) don't work well....
 
 
Image Credit: Yahoo.com
 
Genpact, the global BPO company I am working for, has 70 operation centers in 19 countries. For the customers who need service in English, there would be enough back-up when any of them got suspended by earthquake or any other disasters. For customers who needs service in Japanese, we have 4 operation centers in China. They also would be back-up each other. Overall there would be enough facilities to ensure Business Continuity in Genpact. But as observed above, we need to check if we put practical BCP in place which will work well in the real situation.
 
If you would like to learn more about BCP, please visit Wikipedia:
 
 
 
Would like all readers share their thoughts or opinions in the comments below. Would love to hear from you!
 
 

Please visit my LinkedIn page as well J


 
 
 
 
 
 
 

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