The "Year 2000" (Y2K) Computer Problem
Guideline For Businesses To Draft
A Contingency Plan

April 1999



Advanced Information And Telecommunications
Society Promotion Headquarters

Conference To Promote Y2K Measures
(Government Of Japan)




Preface This Guideline's Target Group Companies

* Small and medium size enterprises(SMEs) are the target group

* All businesses should be prepared
Misunderstandings about the Contingency Plan Please read carefully the following sentences. If your own perception coincides with one of those ideas, you must by all means read this manual thoroughly.

It will enable you to be well prepared for the Y2K problem.
Contents

Introduction
To Business Managers
This Guideline's Target Readers
Misunderstandings About The Contingency Plan
  1. What Is The Contingency Plan For The Y2K Problem?
    1-1 What Is The Y2K Problem?
    1-2 What Needs To Be Implemented Prior To The Contingency Plan?
    1-3 When Should The Contingency Plan Be Drafted?
    1-4 To What Extent Should The Social Infrastructure Find Consideration

  2. Ten Steps For Drafting The Contingency Plan
    Outline Of The Procedure For Drafting The Contingency Plan
    Step 1Select The Respective Operations To Be Subjected To The Contingency Plan (Selecting Targeted Operations)
    Step 2State The Flow Of The Targeted Operations (Clarifying The Flow Of Operations)
    Step 3List The Management Resources To Be Used In The Targeted Operations (Listing The Resources To Be Used)
    Step 4Investigate The Prevailing Status Of The Countermeasures Adopted Against The Y2K Problem For Each Resource And Simulate Occurrence Of The Problem For Each Resource (Scenario Simulation)
    Step 5Define And Specify The Details Of The Countermeasures To Be Adopted Against Occurrence Of The Problem (Defining And Detailed Specification Of The Countermeasures)
    Step 6Define The Structure And Roles In The Headquarters (Defining Of Structure And Roles In The Headquarters)
    Step 7Prepare An Action Plan Covering The Danger Days (Drafting Of An Action Plan For The Danger Days)
    Step 8Prepare An Action Plan Addressing The Problems' Occurrence (Formation Of Action Plan Addressing The Problems' Occurrence)
    Step 9List The Emergency Contacts Within The Company (Organizing In-house Contacts)
    Step 10Prepare A Preparatory Plan Covering The Resources Necessary For Implementing The Countermeasures
    GOALDocument The Plan (End of Drafting The Contingency Plan)

  3. Steps To Be Taken After Having Drafted The Contingency Plan
    3-1 Approve And Budget The Plan (Approval And Budgeting Of The Plan)
    3-2 Implement Prior To Countermeasures Advance Preparations
    (Implementation Of Advance Preparations)
    3-3 Review And Revise The Plan (Review and Revision Of The Plan)
    3-4 Educate And Train (Implementation Of Education And Training)

  4. Sample Of A Contingency Plan
    (A Simulated Case Of A Company, Which Designed The Plan In Accordance With This Guidebook)

  5. Checksheets

  6. Worksheets

  7. Glossary

Introduction

To Business Managers
This Guideline's Target Readers

This guideline(Guideline for Businesses To Draft A Contingency Plan) is targeted at,but not necessarily limited to, the following readers:

Misunderstandings About the Contingency Plan

Please read the following sentences carefully. If your own perception coincides with one of those ideas, you must by all means read this guideline thoroughly.

It will enable you to be well prepared for the Y2K problem.


1. What Is The Contingency Plan For The Y2K Problem?

What Is The Y2K Problem?

1-1 What Is The Y2K Problem?


What Needs To Be Implemented Prior To The Contingency Plan?

1-2 What Needs To Be Implemented Prior To The Contingency Plan?


When Should The Contingency Plan Be Drafted

1-3 Schedule For Drafting The Contingency Plan

* When should one draft the initial contingency plan?

* Is it enough to make the plan just once?


To What Extent Should The Social Infrastructure Find Consideration?

1-4 Idea About The Social Infrastructure

* Can we expect that the social infrastructure will not be affected?

* Method for confirming the progress achieved by the social infrastructure in implementing countermeasures

Figure 1-4-1, List of Home Pages, of the main industrial organizations, local governments, and the central governmental agencies regarding the Y2K problem [INSERT Figure 1-4-1]


2. Ten Steps For Drafting the Contingency Plan Outline of the Procedure For Drafting the Contingency Plan

The following steps should be observed in drafting the contingency plan for the Y2K problem (Figure 2-0-1 refers). Concrete explanations are provided for on each of these steps in the following pages.

Establishment Of The Fictitious X Company

Figure 2-0-2, Main characters of this guideline and structural flow chart of X Company business environment


[ STEP 1 ] Selecting The Target Operations

[ STEP 1 ] Select The Respective Operations To Be Subjected To The Contingency Plan

2-1 Selection Of The Operations

[ Procedure ] <The example of Company X>

[ STEP 2 ] Clarifying The Flow Of Operations

[ STEP 2 ] State The Flow Of The Targeted Operations

2-2 Clarifying The Flow of the Targeted Operations [ Procedure ] [ Note・Important Point ] <The example of Company X>

1. Receiving orders
Worksheet No. 2-(1)

[ Note ]
Procedure Serial No.: Serial numbers for every operational procedure.
Operational Procedure: Detailed accounts of operational procedures
Resource: The resources (equipment) used in the operational procedure
Resource Serial No.: Serial numbers for the resources used. The same number is attached to the same resource.
Notice: Comments, if necessary.

2. Purchasing
Worksheet No. 2-(2)

3. Production
Worksheet No. 2-(3)

4. Shipment/Delivery
Worksheet No. 2-(4)
Figure 2-2-4 List of operational procedures


[ STEP 3 ] Listing The Resources To Be Used

[ STEP 3 ] List The Management Resources To Be Used In The Targeted Operations

2-3 Listing of Resources [ Procedure ] [ Note · Important Point ] <The example of the Company X>

Worksheet No. 3
Figure 2-3-1 The List of Resources

[ Note ]

[ STEP 4 ] Scenario Simulation

[ STEP 4 ] Investigate The Prevailing Status Of The Countermeasures Adopted Against The Y2K Problem For Each Resource And Simulate Occurrence Of The Problem For Each Resource

2-4 Scenario Simulation

1) Establishing The Allowable Stand Still Periods [ Procedure ] <The example of the Company X>

Worksheet No. 4

[ Note ] 2) Investigation of Existing Measures [ Procedure ] [ Note · Important Point ] <The example of Company X>

Worksheet No. 5

[ Note ] 3) Scenario Simulation
  • It is necessary to establish the probability for disruptions to occur, and it is also necessary to establish the duration needed for recovery in case of breakdown, in order to draft the specific plan for each resource.

  • Prepare, based on the measures implemented so far to deal with Y2K related problems, which are confirmed in Section 2, a scenario for each resource (the probability of the occurrence of trouble ). [ Procedure ] [ Note · Important Point ] <The example of Company X>

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

    [ Note ]

    [ 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

    1) Define the countermeasures [ Procedure ] [ Note · Important Point ] <The example of Company X>

    Worksheet No. 7

    [ Note ] 2) Specification of the countermeasures [ Procedure ] [ Note · Important Point ] <The example of Company X>

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

    [ Note ]

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

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

    2-6 Defining Of The Structure Of And Roles In Headquarters [ Procedure ] [ Note · Important Point ] <Example of Company X>

    Worksheet No. 9

    [ Notes ] <Example of Company X>

    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"

    1) Designating "Danger Days" [ Procedure ] [ Note · Important Point ] <Example of Company X>

    Worksheet No. 11

    [ Note ] 2) Drafting Of An Action Plan For "Danger Days" [ Procedure ] [ Note · Important Point ] <Example of Company X> (January 1st, 2000)

    Worksheet No. 12-(1)

    [ Notes ] <Example of Company X>(January 4th, 2000)

    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

    2-8 Plan Of Action If A Problem Should Occur [ Procedure ] [ Note · Important Point ] <Example of Company X>

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

    [ Notes ]

    [ STEP 9 ] Organizing In-house Contacts

    [ STEP 9 ] List The Emergency Contacts Within The Company

    2-9 Organizing In-house Contacts

    1) Prepare A System For In-house Contacts [ Procedure ] [ Note · Important Point ] <Example of Company X>

    Worksheet No. 14

    [ Notes ] 2) List Contact Information For Service Providers. [ Procedure ] [ Note · Important Point ] <Example of Company X>

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

    [ Notes ]

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

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

    2-10 Plan For Resources To Deal With The Emergency [ Procedure ] [ Note · Important Point ] <Example of Company X>

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

    [ Notes ]

    [ GOAL ] Document The Plan

    [ GOAL ] Document The Plan

    2-11 Document The Plan [ Procedure ]

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

    Approve And Budget The Plan 3-1 Approval And Budgeting Of The Plan

    Implement Advance Preparations Prior To Countermeasures

    3-2 Implementation Of Advance Preparations

    Review And Revise The Plan

    3-3 Review And Revision Of The Plan

    Educate And Train

    3-4 Implementation Of Education And Training

    4. Sample Of A Contingency Plan

    Sample Of A Contingency Plan (Example Of Company X)

    4. Sample Of A Contingency Plan

    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 4: List of Contact Numbers of Service Providers

    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

    7. Glossary (in the Japanese alphabetical order)
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