Business continuity plan sample for manufacturing
The business continuity plan sample for manufacturing is very important. This to keep sufficient the supply chain and manufacturing companies operating normally.
The supply chain is now growing increasingly complex. Making many manufacturing industry companies feel worried about their business continuity planning.
There are certain the survey state that 35 percent of businesses very worry about potential supply chain disruptions. 77 percent stated that increasing the complexity of the supply chain would be the biggest risk to their business continuity.
Manufacturing industries are vulnerable to disruptions, such as in the event of natural disasters, crime, even terrorism, and more recently coronaviruses have cut off many supply chains.
If you are the owner of a large manufacturing company, are you ready with the conditions that might occur that cause your supply chain to be broken?
For the continuation of your business, an audit of your business continuity plan needs to do.
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What is a business continuity plan (BCP)?
Business continuity planning is a strategic plan in which there is a plan to create a prevention system in a company. To prevent if there is a potential threat to the company.
The business continuity plan will ensure that protect personnel and assets will be able to function quickly and perfectly in the event of a disaster.
In the Business continuity plan, it will involve key company people and key personnel to provide input in the BCP. It will define any risks that may affect the company’s operations, including the supply chain.
Business continuity plans are a very important part of a company’s risk management strategy. Possible risks such as natural disasters, fires, floods, or bad weather conditions, or epidemics such as coronaviruses, and cyber attacks.
After identifying all the risks and recording them, the next is:
- Concludes how the risk will affect the company’s operations.
- Furthermore, creating safeguards and procedures to reduce risk
- After the procedure is complete, it needs testing to make sure they work
and make sure it’s the latest.
Business continuity plans are an important part of all companies because threats and disruptions if not handling with BCP.
Hence revenues and costs will be much higher, which will cause a decrease in profitability. Meanwhile, if only rely on insurance, this is impossible because it covers all costs.
Why company need Business Continuity Planning (BCP)
To operation business, sometimes can not be separated from some unexpected conditions, so vulnerable to risks such as disasters that vary in small to large scale disasters.
A business continuity plan is one way to help a company continue to operate in times of unpredictable and risk-prone conditions.
For example, it might be a factory that occurs a fire, then with this Business continuity plan will reduce the burden of these risks.
Business continuity plans are different from disaster recovery plans, which focus on recovering a company’s IT systems after a crisis.
Companies in big cities may have put a Business Continuity Plan in place.
Before the disaster occurred they had taken the necessary steps such as backing up computer files and clients outside the office.
So that if something catastrophic happens in their office they still have access to important company information.
Although the Business continuity plan cannot work on all company access, for example, if there is an epidemic, such as a recent coronavirus novel.
Because the coronavirus outbreak that frightens all countries has halted economic activity very drastically and cut the supply chain of manufacturing companies.
How to make a Business Continuity Plan
In preparing the steps to create a Business continuity plan, it requires important and not arbitrary steps.
Here to the following are some steps companies must follow to develop a solid BCP.
- Business Impact Analysis: in this analysis by conducting business research to identify the company’s functions and resources for the time and possible disaster or disruptions.
- Recovery: In this step, companies must be able to identify and implement steps to restore important business functions when a disaster or disruptions occurs.
- Create a special team. This team has an important task that will form a plan to manage the things that are important when disruptions or disasters occur.
- Training: This special team must receive training and testing, where all team members must be able to complete the training with a well-planned plan and strategy.
And to support the performance of a special team the company can make a checklist of all important details. Such as emergency contact information, resources that may be needed by the special team.
And where all backup data and other information are stored, and other important personnel. But besides testing a special team, the company must also test the Business Continuity Plan itself.
This is to ensure that BCP can be applied to many different risk scenarios, this test should be carried out several times.
The existence of this BCP test will greatly help identify weaknesses in the plan which can then improve for better BCP performance.
Important note, for a business continuity plan to run successfully, all employees must know the plan, even if they do not belong to the special team.
Impact Analysis of Business Continuity Plan
In developing this Business Continuity Plan, it is very important to analyze the impact of business continuity.
This analysis aims to identify the effects of disruption in business processes. So that using information from this analysis can make recovery with better performance.
Companies can provide operational and financial impact worksheets due to disruptions to help carry out business continuity analysis.
The worksheet can be given to a special team to record business functions and processes that are very familiar with this business.
The worksheet can consist of several materials as mentioned below.
- Impact, it records both financial and operational results from loss of functions and business processes.
- Identify when these functions will be lost and the planning process will have an identified business impact.
Doing this analysis will help the company identify so that it can prioritize the processes that have the greatest impact on the financial and operational functions of the business.
So the priority becomes the first plan that must be resolved immediately.
Sample audit Business Continuity Plan
You have a team audit or consultant to develop your checklist by adjusting to the size and nature of your business, and developing this audit provides an idea of what ideas should be included in
- Review of all available Business Continuity Plan documentation, risk reports, a summary of previous audits, and all other relevant documents.
- Providing opportunities for various department heads, facility managers, and other leaders to provide input on the current Business continuity plan.
- A team audit receives input from IT departments related to potential risks to the company’s inventory management system.
- Conduct analysis to identify gaps in the plan, such as new sources of risk, changes in business structure, or plans that do not function as expected.
- Look for and find relevant good practice solutions, industry standards, and regulations that have emerged since the last audit.
Next step Tim audit
The next step for the team audit is the following
- Adjust plans to tackle new risks, make the best regulations, and update all appropriate documentation.
- Furthermore, making a final audit report with a summary of audit results and actions taken.
- The audit team also needs to consider whether there is a simple way to streamline the Business continuity plan.
- If something is missing then you can update it to distribute your business continuity plan.
- In BCP it is also good to adopt a high-tech approach, for example by using business continuity applications, which streamline the planning process.
- The audit team can communicate updates to all stakeholders.
Your team can choose to do a full audit once a year or every two years, with high-level audits in between.
Considering the nature and size of your organization will help you find the schedule that best suits you.
Be sure to revisit the plan often enough to take into account any changes to the organization or its risk profile.
1. What is included in a business continuity plan?
The business continuity plan is to provide an explanation of instructions that all in the organization must comply within the face of such a disaster.
It includes business processes, assets, human resources, business partners, and more.
2. How do you start a business continuity plan?
Some sources say there are some ways to start your business continuity plan
Determine the greatest potential risk.
- Determine Your Power Needs.
- Make a communication plan.
- Prepare your supply chain. …
- Your company also needs to have enough insurance to recover.
- Protect all your important data in the Cloud for extra security.
- Test plan.
3. What is a business continuity plan template?
This is a business continuity manager and IT team tool to outline strategies for keeping a business operating even in the event of a disruption.
Large manufacturing companies need BCP. By having a special team as a savior when there are technical problems such as natural disasters, fires, and so on.
This will save the company, and much different if a company does not have a Business Continuity Plan. The losses caused by unexpected events are far greater.
This is an important meaning for companies to make BCP.