1 P&G BCP Process SCRLC February 2007 Meeting Craig Babcock, Procter & Gamble Business Continuity...
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Transcript of 1 P&G BCP Process SCRLC February 2007 Meeting Craig Babcock, Procter & Gamble Business Continuity...
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P&G BCP ProcessSCRLC February 2007 Meeting
Craig Babcock, Procter & Gamble
Business Continuity Planning
Center Of Expertise
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Agenda
Introduction
P&G Background
BCP Background
P&G BCP Process
Questions / Comments
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Introduction
Craig Babcock Business Continuity Planning Manager - Manufacturing,
Purchasing, Contract Manufacturing, Distribution Global Fire Protection Manager 27 Years At P&G
Management Positions In Manufacturing, Warehousing, Technical Engineering, Safety, Fire Protection
Led P&G Industrial Hygiene & Safety Technical Network Current Member of the Health Safety & Environment Leadership
Team for P&G
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P&G Background
The Largest Household & Personal Care Products Company In The World
#24 On The Fortune 500 List 70+ Billion Dollars In Sales 22 Billion Dollar Brands 3 Billion Times A Day Someone Uses A P&G
Product 180 Brands; 22 Product Categories 140,000 Employees; 80 Countries
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P&G Background
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P&G Product SupplyBackground
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P&G Product SupplyBackground
Organized By Business UnitIncludes Manufacturing, Engineering, &
PurchasingHorizontal Processes In Place To Leverage
Size And Best Practices P&G Makes Most Of It’s ProductsMore Contract Manufacturing Is Occurring
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BCP Background
Started July 2000 By The Board Of Directors Protect NOS, globalization, consolidation Audit Committee tracking BCP (2001 – present) Global Internal Audit audits BCP as part of General Controls
CIO Is The Corporate Owner Vice Chair provides executive sponsorship VP’s & GM’s on Leadership Council
BCP Well Established Throughout P&G Gillette / Braun / Duracell has strong program Wella acquisition is getting on board
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BCP Leadership Council Direction, Priority SettingIssue Resolution, MeasurementLink to GLC
BCP Center Of Expertise Methodology, Standards, tools, training, counseling, calibration
Global Process Owners Develop & deploy business unitCBAs (e.g., global EAPs), standards & tools
Business Units Execution of BCP process, Plan ownership, testing, maintenance
BCP Organization
BCP Company Structure
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BCP Organization
BCP COE
BCP COE (2.25 FTE) IT Disaster Recovery (0.5 FTE) Fire Protection (2 FTE) Workplace Services (0.25 FTE) Internal Controls Consultant (0.10 FTE) Discussion: How Many FTE’s Do You
Have?
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BCP Implementation
Phase One – 2002 / 2003
Developed BCP Methodology (CBA’s, tools, etc.) Deployed to 87 Plants (sites, suppliers, etc.) Deployed to Global Purchasing Deployed to GBS Service Centers Deployed to Total Order Management Processes Deployed to CS/L Physical Distribution Center
sites Deployed to eBusiness
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BCP Implementation
Phase Two 2003 / 2004
Deployed to 36 GO Sites Deployed to 23 R&D Sites Deployed to 23 PS Sites Prototyped with Contract Manufacturing
White Strips, Actonel
Many more sites have implemented since
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BCP Tracking BCP Scorecard
BCP COE tracks overall progress and status Plans maintained and up to date Tested once/year GIA CSA’s completed as scheduled Key Supplier BCP Plans reviewed (i.e. HP, IBM) Next scheduled test Leadership review
Updated 4 times/year
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Recent Crisis Events
Earthquakes – Kobe, Turkey, Pakistan Hurricane / Tsunami – New Orleans, Asia NA Tornadoes – Jackson, Lima North East US Power Outage Data Center Outages, IT Virus and Worms Civil Unrest / War – Caracas, Manila, Middle East Loss of Key Suppliers Fires and Floods SARS
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BCP Process
Overview
1. Identify Business Interruption Limit
2. Risk Analysis and Critical Program Review
3. IT Disaster Recovery Review
4. Loss of IT, Site, People Contingency Plans
5. Crisis Management Plan
6. Document and Approve BCP Plan
7. Test / Exercise BCP
8. Maintenance
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BCP Process
Step 1 - BIL
Determine the Business Interruption Limit (BIL) for each work process Manufacturing Offices
Determine the Recovery Priority for each work processes High, medium, low Strategy for initial recovery Discussion: Does Anyone Use A Similar Step In
Your Process?
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BCP Process
Step 2 – Risk Analysis
Complete Risk Analysis Identify threats to the Site / Work Processes Determine an overall Risk Rating for each identified
threat
BIL’s help frame the Risk Analysis Short BIL’s create more concerns Longer BIL’s create less concerns
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BCP Process
Step 2 - Critical Programs
Critical Programs help manage, control and reduce risks to the site
Ensure the programs are current and maintained Review follow-up action steps to see where BCP
exposure exists Use Business Interruption risk filter Examples
• No sprinklers in part of facility
• Lack of critical spares
• Local IT operations (LIM)
• Discussion: Do You Have Separate Risk Mitigation Programs?
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BCP Process
Step 3 - IT Disaster Recovery
Review Regional Data Center applicationsCritical applications only (see BIL’s)Participate in an IT DR Regional Exercise
Review Local IT DR Infrastructure – WAN, LAN, PBX, etc.Critical applications on local servers
Confirm site readiness
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BCP Process
Step 4 – Contingency Plans
A Contingency Plan is a set of procedures used to restore the business operation
Loss of SiteLoss of ITLoss of PeopleAny high or medium risk from the Risk
Analysis
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BCP Process
Step 5 – Crisis Management Plan
The set of procedures used if the Site Leader declares a Crisis
Site/Crisis Team Leader, Team Members, Back-ups Command center location and backup Assessing Crisis and Business Recovery Priorities Invoking contingency plans Linking with Category, Country, Regional Crisis Teams
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BCP Process
Step 6 – BCP Distribution Crisis Team Leaders - keep a copy at work,
home, and in car (trunk, boot, etc.) BCP Functional Leaders - keep your specific
plans (Loss of IT, Site, People) in a similar manner
Many sites now distributing CD’s and USB memory sticks Still need paper copies though
Use document revision controls
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BCP Process
Step 6 - Management Approval Typically review with the Site Leader, the Category
Director, and the Manufacturing Director / VP Review and approval required every year Leadership may ask to see your BCP at any point in time,
particularly if prompted by world events The BCP COE should review for content, feasibility, and
standardization Discussion: What Level Of Management Approval Is
Required?
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BCP Process
Step 7 - Plan Testing
The Site Leader and the Site BCP Owner will determine the complexity and timing of tests The BCP COE can also serve as a resource for
determining scope of testing required
All sites must test at minimum once every year Choose either Loss of IT, Site, or People Rotate scenarios Test Local IT DR annually Update/Test call trees every qtr. Discussion: How Often Do You Test?
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BCP Process
Step 8 - BCP Maintenance
Ways to maintain Incorporate BCP into change control processes Post BCP Action Plan, Test Results, etc on Activity
Boards / Sharepoint Make BCP part of scorecards and Mgmt. reviews
Site BCP Leader forwards qtr. status to COE Site BCP Leader conducts BCP CSA
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BCP Program
Learnings
This is a big effort across the Company but only 1 to 2 effort weeks per site leader
Well structured CBA disarms ‘too much work’ emotion & provides roadmap to follow
The BCP Process reveals unknown risks within the plant and to suppliers
Role of leadership key, role model behavior and organization will engage
Keeping the BCP updated will require leadership attention or it will fade away
Purchasing was and continues to be a big chunk of the work in PS
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BCP Program
Learnings
Sites are much more dependent on IT than they were 6-7 years ago.
Finding that some IT applications do not have sufficient contingency plans was an eye opener
Organizations will try to reinvent the wheel - a standard process is key to robust BCP
Auditing for compliance is essentialSome plants are using BCP material for on boarding
new managers because of detail about site capturedExamples of plans are helpfulTests are used to improve the plans
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BCP Program
Learnings From Disasters
Katrina Expect Rapid Competitive Response Lead, Do Not Manage Need Exceptional HR Resources
JacksonBlue Ash Data Center
Widespread IT Outages Are Very Impactful Our Back-Up Plans Were Not Robust Enough
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