Doohickeys R Us Manufacturing BUSINESS IMPACT ANALYSIS

1 Doohickeys R Us Manufacturing BUSINESS IMPACT ANALYSIS Doohickeys R Us Manufacturing 1 REV8/18/2006 HIGHLY Confidential Summary The Doohickeys R Us Manufacturing , (DRUM), a publicly traded company that maintains a headquarters office in North Conway, New Hampshire, along with 10 Manufacturing plants and distribution centers geographically disbursed around the world. The ten plants/distributions centers have been grouped into three geographic regions: 1. DRUM Americas 2. DRUM Europe 3. DRUM Pacific Rim The company maintains a just-in-time DRUM Manufacturing and inventory system to provide clients quick to market delivery.

2 A BUSINESS IMPACT ANALYSIS (BIA) was performed during the year 2004. The purpose of the BIA was to identify the DRUM's critical BUSINESS functions and to identify the effects of a disruption to the ability to perform those functions. During the BIA, the Corporate Contingency Planning group interviewed each senior BUSINESS manager and their appropriate managers at the Headquarters office and the 10 global Manufacturing plants and distribution centers. The BIA identified four core BUSINESS functions and one support organization that are essential for maintaining the corporation s mission critical BUSINESS functions.

3 They are as follows: Plant Scheduling The Global Plant Scheduling Department is responsible for coordinating the procurement of raw materials from vendors and the scheduling of Manufacturing resources to meet customer orders received. Plant Manufacturing The Global Manufacturing Department is responsible for Manufacturing and quality assurance of goods. There is significant demand for the DRUM 405 Deluxe, a critical component used by the medical field in the manufacture of breathing apparatus. The Recovery Time Objective for this component is 4 hours.

4 Product Shipping & Distribution The Global Shipping & Distribution is responsible for coordinating the delivery of manufactured goods to customers within five days of receipt of orders. Doohickeys R Us Manufacturing BUSINESS IMPACT ANALYSIS Doohickeys R Us Manufacturing 2 REV8/18/2006 HIGHLY Confidential Order Processing Center (Client/Server and Midrange systems) incoming orders are received via phone, fax or the online orders submission system, and input to the order processing system. Output from the Order processing system is sent to the plant Manufacturing and shipping Scheduling systems three times per day.

5 Corporate Data Center provides systems management and data processing support for mission critical applications and BUSINESS functions Product Manufacturing , Shipping & Distribution The BIA study grouped the ten Manufacturing and distribution plants into three geographic regions, they are as follows: 1. DRUM Pacific Rim, which includes the Sydney, Tokyo, Malaysia and Hong Kong Manufacturing /shipping centers, manufactures and distributes products based on daily scheduling transmissions received from the Scheduling Department at corporate headquarters.

6 The monthly revenue average for this region has been estimated at $350 million. The IMPACT of an interruption in order processing or scheduling disruptions is estimated to be 20 % per day, a financial IMPACT of million dollars. 2. DRUM Americas, which includes the North Conway, Atlanta, San Pablo and Mystic Manufacturing /shipping centers, manufactures and distributes products based on daily scheduling transmissions received from the Scheduling Department at corporate headquarters. The monthly revenue average for this region has been estimated at $450 million.

7 The IMPACT of an interruption in order processing or scheduling disruptions is estimated to be 20 % per day, a financial IMPACT of $ million dollars. 3. DRUM Europe, which includes the London, Munich, Rome, and Brussels Manufacturing /shipping centers, manufactures and distributes products based on daily scheduling transmissions received from the Scheduling Department at corporate headquarters. The monthly revenue average for this region has been estimated at $325 million. The IMPACT of an interruption in order processing or scheduling disruptions is estimated to be 20 % per day, a financial IMPACT of $ million dollars.

8 Doohickeys R Us Manufacturing BUSINESS IMPACT ANALYSIS Doohickeys R Us Manufacturing 3 REV8/18/2006 HIGHLY Confidential Each of the Manufacturing plants were analyzed for natural, environmental and human disasters which resulted in identifying secondary suppliers for all raw materials in each region. Global Production Status Meetings There are three GPSM meetings per day to review Manufacturing , shipping and distribution schedules in each of the three regions. The meeting schedules are as follows: DRUM Euro region at 8:00 DRUM Americas at 12:00 DRUM Pacific Rim at 5:00 The BIA determined that if the schedules continue to be transmitted but the meetings are unable to take place, there is no IMPACT to the Manufacturing process.

9 However, if the schedule transmissions are interrupted, the meetings become extremely critical for communication to the regions and maintaining BUSINESS functions. Order Processing Order processing for all customers is centralized in the New Hampshire Headquarters. Incoming orders are received via phone, fax or the online orders submission system. Normal operation hours for the order processing center are from Monday through Friday 7:00 to 6:00 All orders received are batched and input to the scheduling system three times a day, one transmission per region.

10 The BIA study determined that any interruption to the order processing function would result in a 20% loss in revenue in each of the regions, due to Manufacturing and shipping delays. Corporate Data Center The Data Center operation is centralized in the New Hampshire office and is supported over two shifts six days a week. The BIA determined that the following applications are mission critical: Order Processing System (OPS) 8 hours Recovery Time Objective Plant Manufacturing and Scheduling System (PMS) - 8 hours Recovery Time Objective Shipping and Distribution Management System (SDMS) - 8 hours Recovery Time Objective Doohickeys R Us Manufacturing BUSINESS IMPACT ANALYSIS Doohickeys R Us Manufacturing 4 REV8/18/2006 HIGHLY Confidential The BIA determined that any interruption lasting more than 8 hours would result in 20% loss in revenue in each region.