• Assume and write down in Worksheet No.6 a probability for the occurrence of trouble for each resource, which you confirmed in Section 2, and categorize it into 4 groups, namely very big, big, middle, and small, by referring to the existing measures as well as the target period needed for recovery.
  
  
• Assume and write down, based on the obtained information, the period needed for recovery in case of breakdown.

• The probability of occurrence of trouble is assessed to be high, when progress in the realization of measures ( its implementation, trail test, and so on) is slow.
  
  
• Also, the probability of trouble is assessed to be high, because of a lack of awareness, that is when the implemented measure is not so much in the domain of public knowledge. On the contrary, any company, which has prepared the contingency plan, explained its progress in implementing measures, and announced the target period for recovery, is considered to have a low probability for being disrupted in operations.
  
  
• The period for recovery means the time span needed to replace it with equipment, to which the necessary changes have been made, or with substitute equipment, when the resource is microcomputer equipment.

Worksheet No. 6
Figure 2-4-3 The List of Problem Occurrence Simulation

• Resource Serial No., Resource, Provider of Services, Measure (implemented), Target period: They are the same as those in Worksheet No. 5.
  
  
• Probability (VB: very big, B: big, M: middle, S: small) : The expected chance of the occurrence of problems in reference to "Measure" and the "Target period".
  
  
• Day: The expected time span needed for recovery in reference to "Measure" and the "Target period".

[ STEP 5 ] Defining And Detailed Specification Of The Countermeasures

[ STEP 5 ] Define And Specify The Details Of The Countermeasures To Be Adopted Against Occurrence Of The Problem

2-5. Defining and Detailed Specification of the Countermeasures

• You should decide on the countermeasures to be adopted, taking into account the scenarios for problem occurrence at each resource (probability and stand still period) identified in Section 3 of STEP 4, as well as the allowable stand still period for every resource identified in Section 1 of STEP 4.
  
  
• The selected operations are basically defined as those, which must by no means be interrupted. It is necessary to continue operations by adopting alternative operations.
  
  
• Means should be worked out to ease the effect of the problems on the operations, if the resource can not be substituted for.
  
  
• If there are more than two measures, then there is a need to decide, which should be adopted, by taking into account the cost and effectiveness of the measures.

• Decide upon the measures for each resource by taking into account the problem scenarios (probability and stand still period) identified in Section 3 of STEP 4 as well as the allowable stand still period of each resource identified in Section 1 of STEP 4.
  
  
• Write down the types and outlines of measures in Worksheet No. 7.

• Loss of a database in the system will have a tremendous effect on the whole management. It is essential to prepare backup data in advance, in order to ease the effect.
  
  
• It is effective to ensure a support system among suppliers in case of emergency, in order to prevent shortage of supply on the occasion of any disruption.
  
  
• It may be necessary to provide downgraded or simplified service, because it is somewhat implied by the alternative operations. Such type of operations should be decided upon, taking into account the complexity and the volume of work. (For example, accounting with a fixed rate, making the amount even, and so on).

Worksheet No. 7

• Resource Serial No., Resource, Possibility of Occurrence, and Expectation of Duration: Are the same as in Worksheet No.6
  
  
• Allowable Stand Still Period: The same with No.4 (Write the shortest term in the same resource)
  
  
• Alternative measure "Implementation": Y: If the alternative measure will be implemented. N: If the alternative measure will not be implemented. "Content": The specific plan
  
  
• Other measure "Implementation": Y: If the alternative measure will be implemented. N: If the alternative measure will not be implemented.
  
  
• "Type of measure", "Content": The kind of measure and specific plan.

• Detail the operational working procedures, in order to implement the measures.
  
  
• The procedures should be described specifically in an instruction book, since alternative manual work will be done by people, who are unaccustomed to such work.
  
  
• In detailing procedures, the necessary resources needed for the alternative plan (equipment, handwritten slips and ledgers, and so on) will become clear.

• Complete Worksheet No. 8 with the detailed operational working procedures, which have been selected to be implemented with the alternative plan (refer to Section 1 of STEP 5) among all the operations contained in Worksheet No. 2, which you completed in STEP 2.
  
  
• At the same time, write down 'the necessary resources' (equipment, material, furniture, list, and so on), which will be required for the work.

• Complete the Worksheet No.8 as well, when it is necessary to detail the procedures (mainly for operational works) of the measures (to minimize the effect of problems) besides alternative operations determined in Section 1 of STEP 5.

Worksheet No. 8
Figure 2-5-2 List for Specifying the Countermeasures

• Operation : The same as in Worksheet No. 2.
  
  
• Operation Procedure Serial No., Operation Procedure: The same as in Worksheet No. 2.
  
  
• Resource : The same as in Worksheet No. 2.
  
  
• Measure : Taken from Worksheet No. 7, using 'Resource' as a keyword.
  
  
• Order : Serial number.
  
  
• The Person in Charge : The person, who is in charge of operations.
  
  
• Procedure: The detail of operations.
  
  
• Necessary resource: All equipment, materials and devices necessary for work.

[ STEP 6 ] Defining Of The Structure Of And Roles In Headquarters

[ STEP 6 ] Define The Structure Of And Roles In Headquarters

• An Emergency Headquarters is to be established with the view to mobilize the strength of the full company to deal with a problem immediately after it has occurred, and also to permit rapid judgment to be made. For these purposes, it is necessary to establish a thorough system so that all information will be gathered by such Headquarters, immediate management decisions can be sought, and appropriate directions for action given.
  
  
• There will be a critical delay in taking action, if time is required for deliberations over whether or not to establish an Emergency Headquarters after a problem occurs. It is important to decide on the criteria for establishing an Emergency Headquarters in advance so that it can become operational quickly.
  
  
• Whether or not the Emergency Headquarters is in a position to function effectively depends critically on gathering accurate information rapidly. For this purpose, this Headquarters should be organized so as to permit direct communication, without interference by others, between the on-site people and top management. (If information must pass through mid-level intermediaries, not only will it take too long to reach top management, but there is danger that it will be manipulated.)

• Decide on the functions, divisions, and responsibilities for the Y2K problem in your company's Emergency Headquarters, and enter them into Worksheet No.9.
  
  
• Include an organizational chart, names of responsible people, and names of whom to contact into Worksheet No. 10.

• It is important to have all of the equipment needed to gather and analyze information in place at the location where the Emergency Headquarters will be located, and to give orders in advance.
  
  
• The Emergency Headquarters will be located under normal circumstances inside Company Headquarters, but it must also be taken into account that Company Headquarters functions might be paralyzed. It is necessary to prepare for an alternate Emergency Headquarters location elsewhere, for example at a company branch office, if necessary.
  
  
• If a company has widely separated branches, then each branch should have its own Emergency Headquarters, with a General Headquarters within the Company Headquarters.

Worksheet No. 9

• Functions: The structure of the Emergency Headquarters.
  
  
• Responsible Divisions: Divisions (persons) responsible for the functions.
  
  
• Roles: Responsible items.

Worksheet No. 10
Figure 2-6-2 Organizational Chart of Emergency Headquarters Dealing with the Y2K Problem

[ STEP 7 ] Drafting Of An Action Plan Addressing The Problem's Occurrence

2-7 Drafting Of An Action Plan For "Danger Days"

• Days, on which serious problems could occur in your company, should be thought of as important management days. The problems could affect not only your own systems and equipment, but also your customers' and even the social infrastructure.
  
  
• January 1st, 2000 is not the only a day, on which the Y2K bug can occur. Problems occur only when your chips and software are in operation. It is necessary to take measures to deal with possible problems the first time your systems and equipment operate in 2000.
  
  
• The dates given in Figure 2-7-1 below are commonly thought of as days, on which problems can occur. These days, and the days on which systems and equipment will first operate in your company in 2000, should be designated as days, on which problems are likely to occur.

• Designate, based on reference information and the particular circumstances in your company, "danger days" in Worksheet No. 11, such as the ones given in the figure below.

• In some cases, "danger days" have already been designated by a team assigned to carry out preventive measures for simulated tests. In such a case, those days should also be designated as "danger days".

Worksheet No. 11

• Company X does its billing once a month in nighttime batch processing. Since its system will start operating for the first time in 2000, Monday, January 17th, has already been designated as a "danger day".

• Having a plan of action for the danger days will permit rapid response to the problem, if a problem should occur.
  
  
• Decide on and write down the details of your company's actions to be taken on the danger days, which you designated in Section 1 of STEP 7.

• Prepare Worksheet No. 12 for each of the "danger days" designated in Section 1 of STEP 7.
  
  
• For each of the "danger days" and each resource that is affected, decide on, and write down, what items have to be checked, who will be responsible for performing the checks, and when and where the work will be done.
  
  
• Decide on, and write down, the criteria for deciding whether a problem exists during the checks, and the channels through which notices of problems are to be circulated.

• Companies that have overseas branches can use the time difference to detect in part problems of systems and microcomputer equipment early, and take quick action to prevent the whole system from being shut down.
  
  
• Checking output on the danger days, such as the operational results (results of system management or products) by sampling will enable you to remove the cause of the problem before its impact affects your customers or business partners, and to respond quickly to the problem, which it has caused, although one can not see it at a glance.
  
  
• Whether or not it is necessary for someone to report to work on a "danger day" that is not an official working day, such as New Year's Day, to perform checks will vary from one company to another, depending on the type of industry the way the company operates, the probability of a problem occurring, and management's policy. Decide on whether or not it will be necessary for someone to report for work in your company, considering these factors.

Worksheet No. 12-(1)

• Resource ID number and Resource name: These are to be copied from Worksheet No. 6.
  
  
• Work to be performed: Whether or not there will be work that day, and if so, the nature of the work is to be entered.
  
  
• Check method: Enter the method by which the check is to be performed.
  
  
• Employee responsible for check, Work time and Work place: Enter the name of the person responsible for doing the work, when it is to be done and where it is to be done.
  
  
• Criterion for assessing that a problem has occurred: Enter the specific criterion for assessing that a problem has occurred.
  
  
• Route for circulating notice of problem: Enter the channel by which notice is to be circulated, if a problem should be rediscovered.

Worksheet No. 12-(2)
Figure 2-7-4 Plan for Action on Danger Days

[ STEP 8 ] Formulation Of An Action Plan Addressing The Problems' Occurrence

[ STEP 8 ] Prepare An Action Plan Addressing The Problems' Occurrence

• If a problem should occur, having a plan of action that clearly defines each person's responsibilities will permit rapid response and minimize losses due to ripple effects caused by the problem.
  
  
• There will be in the action plan some actions that will change depending on the timing with which they are taken. Consider the actions to be taken at each of the important transition times: [initial action], [allowable time limit of system stoppage], [time of restoration from the trouble], and [between initial action and allowable time limit of system stoppage]. It is important to decide in advance on the timing of the various actions.

• Prepare Worksheet No. 13 for each of the resources designated in Worksheet No. 6.
  
  
• The actions, which each responsible employee is to take at each of the points in time [initial action], [allowable time limit of system stoppage], [time of restoration from the trouble], and [between initial action and allowable time limit of system stoppage] should be decided upon and written down.
  
  
• The "allowable time limit of system stoppage" is the time entered in Worksheet No. 4. It is expected that there will be many cases, in which it is essential to take action before this time.

• A separate sheet shall be prepared for each person detailing his/her specific responsibilities, if a more specific action plan is necessary.

Worksheet No. 13
Figure 2-8-1 Plan for Action When a Problem Occurs

• Responsibility, Responsible Division and Responsible employee: Enter these into the worksheet.
  
  
• Initial action, Time between initial action and allowable time limit of system stoppage, Allowable time limit of system stoppage and System restoration time: Enter the action plan for each point in time from immediately after the problem occurs until the system is restored.

[ STEP 9 ] Organizing In-house Contacts

[ STEP 9 ] List The Emergency Contacts Within The Company

2-9 Organizing In-house Contacts

• It is necessary to prepare a list of contact information for key company employees, including Emergency Headquarters' members, and employees, who would be involved in restoring the system to normal and switching to alternate interim means of doing the work.
  
  
• It is also important to determine the schedules on the designated "danger days" of these key employees.

• Using Worksheet No. 14, list the contact information for key company employees,�@who would be involved in crisis management.
  
  
• Contact information should include secondary contact information, such as mobile telephone numbers.
  
  
• This worksheet should also be used to supervise schedules on designated "danger days".

• The list must include top management officials (or alternates), who have the necessary authority to make in an emergency decisions quickly.

Worksheet No. 14

• General category: Enter the responsibility at Emergency Headquarters' level.
  
  
• Detailed: Enter the responsibility on a detailed level.
  
  
• Name: Enter the name of the responsible person.
  
  
• Primary contact: Enter the person's primary contact information, such as home telephone number or mobile telephone number.
  
  
• Time and place of whereabouts on the designated "danger date": Enter the person's schedule (whereabouts) on each designated "danger date".

• If an emergency occurs, it will become necessary to quickly contact service providers for each resource (manufacturer, vendor, external service provider, and so on) for help in determining the cause of the trouble, information on the prospects for system restoration and starting the restoration work.
  
  
• For this reason, it is necessary to prepare for each resource a list of contact information on the service providers.

• Enter the contact information on the service providers into Worksheet No. 14, which were obtained in the survey of service providers carried out in Section 2 of STEP 4.

• If a problem actually occurs, service providers should be contacted from the Emergency Headquarters, NOT from the work site. (This procedure permits all of the relevant information to be coordinated at Emergency Headquarters.)
  
  
• If a problem occurs in a resource, which is used by many industries, such as the social infrastructure, there is danger that the public contact office of the industry concerned will be deluged with inquiries to the point that normal telephone contact will be obstructed. For this reason it is necessary to designate a single person to be responsible for contacting that service provider and, if the line is busy, to wait for a while before attempting to contact them again.

Worksheet No. 15
Figure 2-9-2 List of Contact Information for Service Providers

• Resource ID Number, Resource name and Name of service provider: Enter these from Worksheet No. 6.
  
  
• Responsible Division and Name of responsible individual: Enter the names of the�@responsible Division and the responsible individual.
  
  
• Contact information: Enter the contact telephone number.

[ STEP 10 ] Plan For Resources To Deal With The Emergency

[ STEP 10 ] Prepare A Preparatory Plan Covering The Resources Necessary For Implementing The Countermeasures

• Organize the equipment, supplies, records, and so on the detailed emergency plan sheet which was prepared in Section 2 of STEP 5, and prepare a plan.
  
  
• In some cases, the plan for dealing with an emergency will involve not only a plan for switching to alternate means of doing the work, but also a plan for reduced operations that require advance preparation (Section 1 of STEP 5). Such plans should also be included in the list.
  
  
• Depending on the kind of preparation involved, it might sometimes be necessary to place orders with suppliers and wait up to several months for delivery. It is important to make such preparations well in advance so that there will be no difficulty in meeting any deadline.
  
  
• It is necessary to begin preparations well in advance to allow time for training, including dry runs.

• Copy the "Necessary resources" section of Worksheet No.8 that was prepared in�@Section 2 of STEP 5, into Worksheet No. 16.
  
  
• Copy the "Operations reduction plan" section of Worksheet No. 7 that was prepared in Section 1 of STEP 5 into Worksheet No. 16.
  
  
• Designate a time limit for preparations and the responsible Divisions and individuals.
  
  
• Use the "Progress" column in Worksheet No. 16 to monitor the progress of preparations.

• If the system data base is to be used as a source record and printed out, portions of the data base that are updated every day could become meaningless as time passes after the data are printed out. An example is the inventory supervision records. It is necessary to obtain the latest versions immediately before the designated "danger days" (for example after work is finished on the immediately preceding work day).

Worksheet No. 16
Figure 2-10-1 List of Resource Preparation Plan

• Preparation ID number: Numbers are assigned for administrative purposes. In this example, a different series of identification numbers is assigned to operations to be performed for work reduction.
  
  
• Purpose: Whether a particular operation is for switching to an alternate means of�@working or for work reduction is entered, in order to make it easier to distinguish among the purposes of the operation.
  
  
• Procedural step number: Enter the procedural step number of every step that will�@use resources.
  
  
• Remarks: Enter the necessary quantities, and so on. If additional details are needed, they might best be entered on a separate appended sheet.

[ GOAL ] Document The Plan

[ GOAL ] Document The Plan

• Prepare a "contingency plan" that incorporates all of the details prepared thus far as a completed document.
  
  
• After the plan that was prepared has received the approval of management, distribute it to the relevant Divisions and company employees.
  
  
• Double check to make sure that everybody who needs to have a copy of the plan, receives one.
  
  
• It is also necessary to consider producing crisis management manuals that contain only those items from the danger management plan that will be needed to�@permit employees at their work stations to respond effectively in case of a crisis.
  
  
• There should be one for supervisors that includes the crisis response policies, responsibilities of supervisors and specific actions, which they will be required to take; and another for ordinary employees that contains basic precautions and simplified descriptions of the roles that each employee must play.

• Organize the contents of the worksheets prepared in accordance with this guideline, referring to Chapter 4 (Example of A Contingency Plan), into a formally written Contingency Plan.
  
  
• It is also possible to prepare from the basic Contingency Plan detailed plans, for example for alternate work procedures, as separate documents.

3. Steps To Be Taken After Having Drafted The Contingency Plan

• Once the plan has been formulated, it must be approved by the CEO and then announced within the company in the name of the CEO. Announcing it in the CEO's name will put all employees on notice that the plan is official and that it must be implemented. It also serves to inform employees that the company is determined to deal effectively with the Y2K bug problem and make it into the 21st century.
  
  
• A budget must be provided for, at the same time, for preparatory measures, employee training and awareness activities. It is important that this matter be approved by the CEO as a special budget. If budgeting is left to the Divisions, there is a danger that preparations will be incomplete.

Implement Advance Preparations Prior To Countermeasures

• Implement the prior preparations planned in STEP 10 (Plan For Resources To Deal With The Emergency).
  
  
• Check the progress of the preparations periodically to make sure that all of the preparations will be completed in time.

Review And Revise The Plan

• It is necessary to review the Contingency Plan that has been prepared within appropriate time intervals.
  
  
• Information regarding the readiness of systems and microcomputer equipment, and the situation regarding customers and the social infrastructure, as well as information concerning the probability of a problem occurring, will be announced from time to time, as the year 2000 approaches. It is possible that it will become�@necessary to strengthen elements of the plan; conversely, it might become possible to relax elements of the plan.
  
  
• It is important to review and revise your contingency plan into an upgraded version that focuses on the most serious risks, as updated information becomes available.
  
  
• Aside from substantive developments regarding the Y2K bug problem and preparations, it is possible that, for example, reassignments of employees might make it necessary to change the names of responsible individuals in the plan. It is necessary to update the plan based on the latest information, and make sure that the updated information is distributed to all employees.

Educate And Train

• It is necessary that the plan be executed effectively in case an emergency occurs. An armchair theory is meaningless. It is important to train employees for the realization of the plan.
  
  
• Training makes all employees aware of their roles and responsibilities.
  
  
• Training also exposes inadequacies in the Contingency Plan, making it possible to revise the plan as it becomes necessary.
  
  
• Training is an activity that makes all employees aware of their roles as well as the purpose of the Contingency Plan, using the Contingency Plan and the Crisis Management Manuals based on it. Hold explanatory meetings and implement exercises using electronic media to accomplish these purposes.
  
  
• Training can be divided into desktop training and practical training. Desktop training involves members of the Emergency Headquarters, who assemble and simulate their responses to an actual emergency. The advantages of doing this are that it does not take much time, and it is possible to simulate a variety of scenarios. Practical training tests the ability of the individuals, who will have to respond to the crisis to do their respective jobs, using actual equipment. In particular, if the plan calls for some jobs that are normally computerized to be done manually on an emergency basis, it is likely that the people, who have to do the work, will not be accustomed to doing it manually, and that they will need practice.

4. Sample Of A Contingency Plan

Sample Of A Contingency Plan (Example Of Company X)

• An example of a Contingency Plan of the hypothetical Company X, which is based on this guidelines, is presented below. This example is for reference only. The actual content and format must be matched to the circumstances of your company.

Contingency Plan for the Y2K Problem
Month Day, 1999
Company X; K.K.

<Contents>
1. Purpose of the Contingency Plan
2. Operations that are affected by the Plan
3. Resources that are affected by the Plan
4. Anticipation of problems that might occur
5. Policy toward dealing with the problems
6. Designation of "danger days"
7. Establishment of the system and role of an Emergency Headquarters
8. Action plan for the designated "danger days"
9. Action plan for when a problem occurs
10. Plan for prior preparations
11. Employee training
12. Revision of the plan

Annex)
Annex 1: List of affected work operations
Annex 2: Detailed plans to be carried out when a problem occurs
Annex 3: List of emergency contact telephone numbers within the company
Annex 4: List of telephone numbers of service providers

1. Purpose of the Contingency Plan
This plan aims at keeping the core operations of this company going in case the computer Y2K bug problem connected with the year 2000 occurs, and it aims at minimizing the damage to this company by restoring to normal affected operations.

2. Affected operations
This plan aims mainly at the following core operations of this company.
1) Order receiving
2) Purchasing
3) Production, and
4) Shipping and delivery.

3. Resources that are affected
The plan concerns the management resources listed below, which are essential for carrying out the core operations listed above, which are vulnerable to being affectedby the Y2K bug problem. It includes both, in-house resources and external resources (other companies, with which we do business, and the social infrastructure).

Figure 4-3-1 List of Affected Resources

4. Anticipation of problems that might occur
The problems that can be anticipated in the resources, which are addressed in this plan, as well as the time span over which they would stop functioning, if a problem occurs, are listed below.

Figure 4-4-1 List of Anticipated Problems

5. Policy regarding actions to be taken, if a problem occurs
The actions that are to be taken in case a problem occurs in any of the resources covered by this plan are described below. These actions include not only the actions to be taken after the occurrence of a problem, but also the actions to be taken in advance, in order to minimize the impact of a problem, if one should occur.The preventive actions, which were taken in advance, in order to prevent problems from occurring in the first place, have been omitted here, because they are covered in the separate "Plan to deal with the Y2K bug problem".

1) Basic policy
The resources that are affected by this plan are essential to the conduct of business.It is necessary, in principle, to prepare a plan for continuing the conduct of businessby alternate means, if necessary. It is necessary for the case of all those resources, in which the probability of a problem occurring is considered very high, to take specific action with a view to reduce the impact, and it is as well necessary to prepare a plan for continuing the conduct of business by alternate means.

2) Policies regarding actions to be taken for each affected resource
The following actions shall be taken for each affected resource.

Figure 4-5-1 List of Actions to be taken

6. Designation Of "Danger Days"
In contrast to ordinary disasters, it is possible to anticipate the days, on which the Y2K bug problem is likely to occur. This hypothetical company has designated the following "danger days", on which there is a relatively high probability of problems occurring, and it is conducting checks and making preparations with emphasis on these dates.

Figure 4-6-1 List of Designated "Danger Dates"

7. Establishment And Role Of The Emergency Headquarters
An Emergency Headquarters is to be established so that, when a problem occurs, the whole company can be mobilized and swift judgment exercised.

1) Location at which Emergency Headquarters is to be established
The Emergency Headquarters shall be established in the conference room next to the President's office on the 3rd floor of the Company Headquarters building. If it is impossible for the Emergency Headquarters located there to function, then the Factory Director's office on the 1st floor of the factory shall be used as an alternate location.

2) Criteria for establishing the Emergency Headquarters
The Emergency Headquarters shall be established in the following cases.
(1) From the start to the end of business on all designated "danger dates".
(2) If a problem occurs in any of the resources covered by this plan.

3) Organization of the Emergency Headquarters
The Emergency Headquarters shall be organized as illustrated in the following Figure 4-7-1. 4) Functions of And Roles within Emergency Headquarters
The functions and roles of each member of the Emergency Headquarters are as indicated in the following Figure 4-7-2..

Figure 4-7-2 Functions and Roles within the Emergency Headquarters

8. Action Plan For The Designated "Danger Dates"
Checks related to the designated "danger dates", on which there is a high probability of a problem occurring, should be performed according to the following schedule.

1) January 1st, 2000
Action Plan for Designated "Danger Dates" (1)

Figure 4-8-2

2) January 4th, 2000
Action Plan for Designated "Danger Dates" (2)

3) The remaining items in this document have been omitted here.

9. Plan For Action When A Problem Occurs
If a problem occurs in any of the resources covered by this plan, the responsible individuals shall deal with it according to the following procedure.

1) Resource ID Number S4 (Order receiving supervision system)

Figure 4-9-1 Plan for Action when a Problem Occurs

2) Additional items in this listing are omitted here.

10. Plan For Advance Preparations
The operations listed below shall be carried out, in order to prepare the resources, for which there is a need to respond to problems as set forth in this plan.

Figure 4-10-1 List of Plans for Preparation of Resources

11. Employee Training

1) Employee Awareness Education
Based on this plan, a "Y2K Bug Danger Response Manual" with regular employees as the target group should be prepared and distributed, in order to deepen understanding of the Contingency Plan. In addition, regular employees must be made thoroughly aware of the necessary precautions.

2) Employee Training
Training based on this plan shall be conducted according to the following schedule.

(1) Emergency Headquarters simulation drill
Date: Month X Day X
Participants: Emergency Headquarters members
Detailed plan: A desktop simulation drill shall be implemented, which envisions the occurrence of an actual problem.

(2) Alternate means of operation drill
Date: Month X Day X to Month Y Day Y
Participants: Divisions involved in implementing the alternate means of operations
Detailed plan: The procedure shall be tested that would be used to switch to alternate means of operations, should a problem occur, as well as the actual use of the alternate means of operations.

12. Revision Of This Plan
This plan shall be reviewed in Month X taking into full account the progress that hasbeen achieved in taking the necessary measures with regard to each resource and the probability of each type of problem occurring, and the response plan shall be strengthened or relaxed as indicated.

<Annex>

Annex 1: List of affected operational procedures

1) Order receiving operation
2) Purchasing operations
Items on this list are omitted here.
1) Order receiving and ordering systems (inventory checking)

Annex 3: List of Emergency Contacts

Annex Figure 4 List of Contact Numbers of Service Providers

5. Checksheets

The checksheets are for the purpose of scrutinizing relevant conditions in your company, and for using the results of this process in your Contingency Plan.

6. Worksheets

6. Worksheets
The following worksheets have been designed for use in the Contingency Plan.
They are used in this guidelines as design samples for the X Corporation. Utilize those worksheets for designing your company's own Contingency Plan. The shadowed areas in the worksheets suggest that you can copy the last results into those areas.

7. Glossary

• Designated "danger date" ... A date, on which there is a risk that a problem will occur in a resource that is being used. Also referred to as a ZERO-DAY.
  
  
• Maximum allowable stoppage ("stand still"; "out-of-order") time ... The maximum allowable time, after a problem occurs in a resource and the resource stops functioning, after which operations must be resumed. Determined by the frequency with which the resource is used.
  
  
• Impact reduction strategy ... A strategy formulated in advance, in order to minimize the loss, if a problem should occur.
  
  
• Service provider ... A manufacturer or vendor, which provides a system or equipment to one's own company, or an industry or business entity that provides a service, such as electricity or communications, is referred to in this guideline by�@the generic term "Service Provider".
  
  
• Resource ... Systems, equipment, services, social infrastructure, and so on that are used in business operations, are referred to in this guideline under the generic term "Resource" or "Business Resource".
  
  
• Progress in taking action ... Progress in taking preventive action to prevent the Y2K bug from occurring in a given resource or in taking other appropriate action (including the formulation of a Contingency Plan). The probability of a problem occurring in that resource and the time required after the problem occurs until the�@system is restored can be anticipated to some extent by checking on such progress.
  
  
• Alternate means of operations ... Means of operations, which are used as a substitute for a resource, in which a problem occurs, causing that resource to stop functioning.
  
  
• Vendor ... A business that supplies computer systems or other equipment to our company.
  
  
• Simulation test ... Testing of a resource, in which the Y2K bug might occur; the operation is tested by setting the date to a "danger date".
  
  
• Occurrence of a problem ... The occurrence of a condition, in which a resource cannot continue to function normally, with the Y2K bug being the cause of this problem. This is distinguished from a condition in which, if a system stops operating or an error occurs, one can at least expect some kind of output from the system.
  
  
• Preventive action against the Y2K problem... Actions that are taken in advance, in order to prevent the Y2K bug from occurring in a business resource. This refers specifically to such actions as having software or hardware modified or replaced, or running a simulation test.