Tuesday, September 06, 2011
Toyota - Learning how to protect its supply chain from earthquakes
Some very key points in this article about Toyota and how they are approaching Business Continuity Planning....they follow the same model as I teach in my book.
The article does not have it totally correct, but paints some key points.
First they set the target and the goal...to be able to return to full production with in two weeks of any major disaster. The goal is key, it drives the research, and the planning, and the costs.
They are currently about 80% of the way thru identifying what I call "single points of failure". Once these are identified, you look to discover protections, backups, or workarounds. Notice from the article many of the failure points are in their vendors not necessarily in their production facilities.
One of the things they discovered was they need to standardize more of their parts, some parts are slightly different than the same parts for other countries, therefore they could not be used to continue production.
The key is to first set the goal. The article is here.
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