Reason Mag Q1 2014 Seite 21

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Our client was not seeking to recover 100 percent of its business immediately scarce resources would not allow this but was looking to ensure that its strategic brands were delivered to its strategic markets de ned Protect the strategic brands The implementation of standardization rationalization and prioritization strategies developed con dence that in the event of an incident that threatened to compromise the company s ability to ful ll its planned pro duction management knew what must be made and what could be sacri ced to ensure the continuity of the business The underlying philosophy was also clear and that is to prioritize not repli cate Our client was not seeking to recover 100 percent of its business immediately scarce resources would not allow this but was looking to ensure that its strategic brands were delivered to its strategic mar kets Business continuity thinking became embedded Investment and capital expen diture decisions were in uenced by the need to consider the resilience of the busi ness while executive board members were appointed to join the business continuity and crisis management teams Our client achieved cost leadership within its manufacturing processes while establishing a level of resilience within the operations that would enable the busi ness to continue and survive in the event of a major disruption to production capa bility The BIA approach con rmed that these two objectives so often considered to be con icting can be uniquely aligned to strengthen a business and make it decidedly more resilient of the market meant that brand loyalty was likely to be very low Efficiency and resilience As the BIAs for the three divisions were completed it became evident that many of the ndings echoed the conclusions being drawn by parallel but unconnected opera tional projects The factors that could block operational resilience and business continu ity were in many cases the same as those preventing maximization of operational ef ciency There was a clear convergence between business continuity and competi tive advantage The scope of BRC s engagement included the development of solutions to improve the resilience of the company s business There were ve common themes Q Standardization The diversity of product and packaging characteris tics and dimensions reduced both op erational ef ciency and the ability to transfer production from one facility to another in the event of operational constraints Standardization of dimen sions and characteristics would enable the use of fewer machine types greater utilization of capacity and increased op erational resilience Q Rationalization The proliferation of brands and variants within those brands should be controlled to reduce the number of stock keeping units This would reduce the number of machine changeovers in normal operations in creasing ef ciency and compromised operations improving resilience Q Prioritization Strategic brands and markets should be clearly established on a companywide basis given that standardization would enable cross divisional mitigation and a tool or methodology should be developed to determine the optimal production plan in the event of reduced manufacturing capacity Q Inventory Inventory of key strategic brands should be increased to a level that in conjunction with the mitigation afforded by the increased manufactur ing resilience would enable the recov ery time objectives to be met Q Equipment location The relocation of certain key pieces of equipment could potentially provide even greater produc tion exibility and increased resilience Implementation The ndings from the operational projects were conclusive the BIAs reinforced those conclusions and con rmed that the drivers for operational change were not limited to operational ef ciency The company s pri mary objective in the event of a compro mised operational capability was clearly Stuart Selden is assitant vice president senior account manager Atlanta operations at FM Global ISSUE 1 2014 Reason 21 the IDEA