Based on the Y2K Action Plan, adopted by the Advanced Information and Telecommunications Society Promotion Headquarters on September 11, 1998, central and local governments and private sectors of various areas are improving theirY2K conversion situation.
I. Establishment of raising awareness and information dissemination systems
(1) Raising awareness
The Government has intensively circulated public notices on the Y2K through various media such as newspapers, magazines, television and radio. Ministries and governmental agencies have also made efforts to thoroughly disseminate information on actions to be taken for Y2K compliance by holding seminars vis-a-vis related corporations and industry organizations and issuing notes or brochures.
(2)Establishment of information dissemination system
Homes pages on Y2K created at the Official Residence of the Prime Minister and linked with 22 ministries and governmental agencies and other various related organizations provide information regarding the Y2K conversion situation of both governmental and private sectors. Besides, the ministries and governmental agencies (total of 26 entities) have established a system through which measures are taken against Y2K at the inter-ministerial level under the responsibility of a supervisor of official ranking equivalent to or above the director-general and an inquiry point for Y2K questions.
II. Recent situation of Y2K conversion on five priority private sectors
1. Finance
(1) The Financial Supervisory Agency, based on the related regulations such as Banking Law Section 24, requires banks, insurance companies and securities companies to report quarterly on their Y2K conversion situation since June 1998, and the report presented last December show following points:a./ 74.11 billion yen is estimated as total cost necessary for Y2K conversion of whole financial institutions and the average costs are 12.2 billion yen for a major bank, 5 billion yen for a major insurance company and 1.1 billion yen for a major securities company (average cost for biggest three companies is 5.2 billion yen).
Furthermore, Japanese financial institutions mainly banks realized certain level of "4 digitalization" of main systems during the third major computerization boom from the late 1980's, and it budgeted a certain level of funds totaling several tens of billions of yen, but this amount is not included in the abovementioned costs.
b./ At the end of December 1998, 73% of the financial institutions completed Y2K conversion and 56% of them executed simulation testing on "mission critical systems."
98% of them expected to complete simulation testings as of the end of June 1999, and those which expect to do after July 1999 are now trying to revise their plan in order to complete before the end of June.
N.B.: "Mission critical systems" mean main accounting or out-connecting systems which directly affect crucial systems such as settlement, or those which may cause disruption on business if their Y2K conversions are not completed.
Schedule of Y2K conversion on mission critical systems
(Ratio on number of institutions)
| 12/98 | 3/99 | 6/99 | 9/99 | ||
| national banks | 69% | 90% | 98% | 100% | |
| 48% | 80% | 97% | 100% | ||
| insurance companies | 67% | 93% | 99% | 99% | |
| 51% | 80% | 95% | 99% | ||
| (1% not necessary to complete.) | |||||
| major securities companies | 38% | 70% | 95% | 100% | |
| 16% | 51% | 95% | 100% | ||
(2) Joint industry-wide tests
For the most important mission critical systems such as settlement systems, the Bank of Japan Network System, the Zengin system and the Tokyo Stock Exchange System carried out, in December 1998 and February 1999, a joint industry-wide tests (joint industry-wide tests) with participation all main banks, local banks, second classed local banks and member securities companies of stock exchange, at the unprecedented scale never realized in the world, then verified that the end-to-end processes of banking services were completed without any Y2K troubles. This type of test is to be followed in April, May, and June 1999.
(3) Contingency planning
To prevent eventual troubles, 38% of the total financial institutions should set up contingency plans in March 1999 and the other, before the end of June 1999.
April 6, 1999, the Bank of Japan announced the contain of its contingency plans to public.
(4) Measures taken by the Financial Supervisory Agency
a/. Since last October, the Financial Supervisory Agency has been conducting researches on the Y2K conversion situation of the mains banks under a special system including four experts having specialized knowledge and working experience of Y2K, newly recruited from the private sector.
b/. The Agency may order to comply Y2K or suspend part of the operations over financial institutions in which preparation is behind and where there are concern for the operations for clients or the settlement systems based on related regulations such as Banking Law.
2. Energy
(Electricity)
(1) Current situation of Y2K conversion
As of the end of March 1999,the simulation tests progress rate of important control systems (the average of simulation tests completion rate of each company) is 85%, and will reach 95% by June, 98% by September and all will be completed by November.
Conversion on a few systems will not be completed by the end of June, because some power stations are waiting for their regular inspections to carry out Y2K simulation test. Since testing has already been carried out on similar power station types, such a delay is not a serious concern.
Simulation tests progress rates of important control systems in electricity sector
| 3/99 | 6/99 | 9/99 | 11/99 |
| 85% | 95% | 98% | 100% |
(2) Regarding the important control systems,
i) It is confirmed that there will be no possibility that supply failures and safety problems such as power outages or voltage abnormalities would occer because the systems controlling supply of real time electricity including embedded micro-chips do not use date-related data.
ii) Y2K conversion is necessary for computer control systems monitoring or recording and will be completed according to the above-mentioned schedule.
(3) Regarding management of emergency (or contingency), they are ready to handle emergencies such as natural disasters at any time. For the Y2K poblem, each of them will formulate its contingency plan to ensure full readiness by June 1999, which may contain the reinforcement of communication procedures and responding personnel necessary, the manual operation of geneating plants, preparation for start-up of stand-by generating plant and so on.
(City Gas)
(1) Current situation of Y2K conversion
As of the end of March 1999,the simulation tests progress rate of important control systems among major city companies(the average of simulation tests completion rate of each company) is 83%, and almost all will be completed by June except a portion of some systems which require hardware replacements in September.
(2) Regarding the important control systems,
i) It is confirmed that there will be no possibility that supply failures and safety problems would occur because the systems controlling gas production and supply including embedded microchips do not use date-related data.
ii) Y2K conversion is necessary for computer control systems monitoring or recording and will be completed according to the above-mentioned schedule.
(3) Regarding management of emergency (or contingency), they are ready to handle emergencies such as natural disasters at any time. For the Y2K problem, each of them will formulate its contingency plan to ensure full readiness by June 1999, which may contain the reinforcement of communication procedures and responding personnel necessary, the manual operation of gas production or supply systems and so on.
(Petroleum(refining and marketing))
(1) Current situation of Y2K conversion
As of the end of March 1999,the simulation tests progress rate of important control systems (the average of simulation tests completion rate of each company) is 73%.
Regarding important control systems, simulation tests are implemented using the actual facilities when each system comes due for regular inspection to confirm that no problems would arise. As many regular inspections are scheduled to be conducted in this fall, all facilities will be completed by October .
(2) Each petroleum company investigates its all important control systems including all embedded microchips with the cooperation of their vendors. The systems are repaired or exchanged if they have some problem and will be completed according to the above-mentioned schedule.
(3) Regarding management of emergency (or contingency), they are ready to handle emergencies such as fires in refinery at any time. For the Y2K problem, each of them will formulate its contingency plan to ensure full readiness by September 1999, using the model contingency plan formulated by the Petroleum Association of Japan in February 1999 as a reference, which may contain system of countermeasures, the cooperation system with other companies and response after accident happens and so on.
(Further Actions)
(1) Ministry of International Trade and Industry plans to organize the committees composed by the specialist of the outside in Agency of Natural Resources and Energy (ANRE) for intensive cross-checking countermeasures to the Y2K in important energy sector such as electricity from the technical and neutral position.
(2) In case it be judged that the stable supply of the energy would be influenced, for example when the above committees conclude that companies' countermeasures are insufficient, ANRE should levy reports from companies and/or inspect companies based on the each industry law, and if necessary ANRE should take some measures such as business improvement order.
3. Info-communications
(Telecommunication)
(1) In the field of telecommunication, since we do not use year related data for controls of calls, e.g. connection, transmission and switching, in telecommunication networks, functions of telecommunication networks in principle are y2k bug free. However, some supporting systems such as data accumulation service or billing systems which using year related data may create some concerns.
(2) Current status of Y2k conversion
As of the beginning of March 1999, the y2k compliance evaluation test completion rate on the mission critical telecommunication systems mainly of telephone and leased lines were 69% (74% for cellular phones), and 95% of them will be completed by the end of June (97% for cellular phones). Some systems which will not be completed y2k compliance test by the end of June remains because of some unavoidable reasons such as scheduled hardware replacement, but their compliance test also will be scheduled to complete by the end of September 1999.
Schedule of Y2K conversion on mission critical telecommunication systems
(Ratio on number of systems)
| 3/99 | 6/99 | 9/99 | ||
| Telephone and leased lines | 91% | 100% | 100% | |
| 69% | 99% | 100% | ||
| Cellular phones | 80% | 98% | 100% | |
| 74% | 97% | 100% |
N. B.: the percentages are proportional average according to the scales of carrier.
(3) Contingency planning
93% of careers will establish contingency plans by the end of September 1999. Some careers and associations are drafting example of contingency plans and will complete their work in April, then careers are requested to establish their plans by the end of September 1999.
(4) Further actions
The Ministry of Posts and Telecommunications, if some careers may create disruption for stable telecommunication service supply, when necessary, will take necessary measures, based on the Telecommunications Business Law, such as to request reports or conduct inspections in order to try to avoid any failures.
(Broadcasting)
(1) In the field of broadcasting, there are some concerns on the diffusion of radio-TV programs caused by Y2K disruptions on automatic emission control machines for programing and transmission.
Besides, broadcasting service providers positively take up Y2K in their programs to raise awareness of the national people.
(2) Current situation of Y2K conversion
As of the end of March 1999, for 53% of the mission critical systems, simulation
testings were realized and 67% will be done up to June and 86% for September. For the remaining part, individual hearing on their Y2K conversion will be conducted by the Ministry of posts and telecommunication.
(3) Contingency planning
56% of providers will establish contingency plans up to September 1999. Related companies are requested to elaborate drafts of their plan during April, then all the entities will be strongly requested to establish their plans up to September.
4. Transportation
(Aviation)
(1) Air traffic service systems
At the end of March 1999, simulation test was completely conducted and it was confirmed that no problem occurred. International joint simulation testing was successfully conducted with United States in October and Hong Kong in December 1998. Coordination with the other neighboring states to conduct such international joint test is being offered and proceeded.
(2) Scheduled airlines
According to the survey over the scheduled airlines (11 bodies) as of the first of March 1999, simulation test progress rate on important control systems such as flight-plan systems was 79%, and all the airline except only one will complete Y2K compliance including simulation test up to June 1999. But the remaining company will also do up to the end of July.
Besides, the simulation test progress rate on important clerical systems such as reservation and boarding systems was 87% and it will be completed up to the end of June.
(3) Aircraft
According to the surveys made by the major passenger aircraft manufacturers, BOEING and AIRBUS, there are very few systems on the aircrafts which will be affected by Y2K problems, and every air carrier has already been informed of the measures to be taken. The air carriers are now working to include adequate measures, such as software rectification.
(4) Contingency planning Contingency plans of ATS systems are now under elaboration and they will be completed up to the end of June 1999. Most of the airlines, including three major ones, will establish their plans up to the end of June, and all of them will do by the end of September 1999.
(Railway)
(1) Current situation of Y2k conversion
According to the survey over major railroad companies as of the first of March 1999, the simulation test progress rate on the important control systems such as running operation control systems or electric power control systems was 49%, but it will be 65% up to the end of June and completed for September 1999.
The simulation test progress rate on the important clerical systems such as reservation, ticket vending and passenger control systems was 49% as of the first of March. 46% of the companies will complete Y2K conversion up to the end of June. Those who expect to complete after June are required to accelerate their process.
(2) Contingency planning
More than 80% of railway companies will establish contingency plans up to the end of September 1999 and all of them will do before the end of year.
(3) Further actions
The Ministry of Transport, if it finds some delayed Y2K conversion may risk to affect human security or lives, or create serious upset for national living condition, will give strong orientation to each company to take necessary measures.
5. Health Care
(Medical equipment)
(1) Current situation of Y2k conversion
According to the survey conducted by the Ministry of Health and Welfare between 3,310 medical equipment makers and suppliers as of the end of December, the situations of 3,139 entities, about 95% of them, were revealed. Among those 3,139 entities, 18% of them, 559 companies are producing or supplying equipment associated with embedded chips.
(2) Among 306 bodies which produce or supply priority medical equipment (those like artificial aspiration machines or life keeping equipment that might directly affect patients' lives), it was confirmed that for 70% of them, 213 companies, their equipment would not create any Y2K problem.
Among remaining 93 bodies,
a/. 13 companies (14% of them) have already completed their renovation and simulation testings.The Ministry of Health and Welfare will request those 31 companies to rapidly react for Y2K conversion.
b/. 27 companies (29% of them) are under renovation.
c/. 22 companies (24% of them) are verifying the possibilities of Y2K by asking information from original foreign suppliers.
d/. 31 companies (33% of them) have no plan for Y2K conversion.
(3) Equipment which may create Y2K problems
Among the equipment which may create Y2K problems (investigated 934items), only one item, radiotherapy machine, may cause serious health disruption by Y2K. For this machine, necessary measures have already been taken and the Ministry of Health and Welfare will be informed from time to time when appropriate on its Y2K status. The other items do not create any serious health disruption because they use chronological data only for calendar display or data recording.
The Home Page of the Ministry of Health and Welfare provides to public an information list on those 934 items such as names of companies and products or their Y2K conversion status.
(2) Contingency planning
As among 559 companies which produce and supply equipment associated with embedded chips, 41% of them do not expect to establish any contingency plans, the Ministry will ask them to do it.
(Medical institutions)
(1) Current situation of Y2k conversion
According to the survey conducted between hospitals and general clinics as of the end of March,
a/. For medical equipment, 21% of them do not use any systems necessary for Y2K conversion, 36% of them have completed or under renovation, 35% of them are consulting with equipment suppliers and 8% of them will react for conversion.
b/. For medical information systems, 17% of them do not use anything necessary for Y2K conversion, 47% of them have completed or under renovation, 28% of them are consulting with equipment suppliers and 7% of them will react for conversion.
(2) Contingency planning
Concerning contingency plans to be elaborated by hospitals and general clinics, 46% of them have already established or will establish their plan up to September 1999, 16% of them for the end of year, however, 37% of them do not expect to establish it.
(3) Further actions
The Ministry of Health and Welfare has just send "voluntary general check lists" to all the hospitals, general clinics, dental clinics and childbirth centers at nationwide (about 160,000 sites) and request them to tackle this problem not to create any failures. In that process, the Ministry requires them to report on their voluntary general check situation as of the end of April and June. Based on the result of this information collecting, it will give them necessary guidance.
6. Water Supply
(1) Main water purification facilities such as water treatment or distribution systems use computers to automatically control the quality of treated water in response to row water quality and to evaluate the input level of chlorine or output level of water according to the volume of water consumption. However, as these computers do not use date related information data, main water purification facilities will not stop at Y2K and problems should not occur. Besides, even if a part of these facilities stop their functions, as manual methods are replaced, there will be no disruption.
(2) According to the survey conducted as of the end of March among waterworks at nationwide, one sixth of their systems may have Y2K problem and 40% of them have already been completed for Y2K conversion. Besides, the Ministry of Health and Welfare requested all waterworks to establish contingency plans up to June 1999.
7. Small and Medium sized Enterprises (SMEs)
(1) Current situation of Y2k conversion
According to the survey conducted in March 1999,
a/. good understandings on the importance of Y2K were largely shared.
86% of SMEs recognize its importance.
5% of them have just heard of it, but do not understand it.
| 7/97 | 9/98 | 3/99 | ||
| Working/finished | 38% | 67% | 77% | |
| Not started yet or studying | 62% | 33% | 23% |
c/. About 30% of SMEs use equipment using embedded chips, but SMEs have not sufficiently recognized Y2K problem and their delay are concerned.
| 9/98 | 3/99 | ||
| Working/finished | 51% | 59% | |
| Not started yet or studying | 49% | 41% |
(2) Situation of actual Y2K troubles
2% of SMEs who responded to the questionnaires in March replied that they had actually Y2K troubles. Some accidents occurred such as "Input of date after 2000 was impossible" or "Calculations on data after 2000 were not correct."
(3)Further actions
Thanks to the adoption of the Government's Y2K Action Plan or implementation of assistance programs for SMEs turned by third supplementary Government's budget, the Y2K conversion situation of SMEs has been steadily improved. However, it is estimated that still a number of SMEs have not yet commenced their concrete Y2K conversion works.
III. Current Y2K situation of private sectors
Questionnaires were sent to 61, 558 firms of different 84 private sectors through relevant associations as of March 1999, then 35,328 entities in total (response rate was 57%) returned answers.
(1) In comparison with the survey carried as of December 1998, development was remarkable in all sectors for Y2K conversion both for office operation systems and control systems. The average simulation testing rate was approximately between 60% and 80% for office operation systems and between 50% and 70% for control systems. In each system category, from 10 to 20 points were increased since the survey of December 1999. The number of companies which have completed simulation testings, as well as which completed system renovation, both significantly increased.
(2) The share of companies which have already established contigency plans did not drastically change as of March 1999 since December 1998. However, many companies in most sectors expect to do up to the end of June and the end of September.
IV. Current Situation of the Central Government and the Public Corporations
1. Central ministries and agencies, and public corporations (as of March 1, 1999 /except medical institutions)
| Systems of rank A: | 555 systems | |
| modifications completed (including systems to be identified that correction etc. does not need to be carried out.) | 373 systems (67%) | |
| simulations completed | 251 systems (45%) | |
| establishment of contingency plans | 51 systems ( 9%) | |
| Systems of rank B: | 375 systems | |
| modifications completed (the same as 1. Systems of rank A) | 220 systems (59%) |
2. National medical institutions (as of March 1, 1999)
| Computer systems of rank A: | 1,075 systems | |
| modifications completed (the same as 1. Systems rank A) | 397 systems (37%) | |
| simulations completed | 198 systems (18%) | |
| establishment of contingency plans | 20 systems ( 2%) | |
| Medical equipment of rank A: | 165,222 items | |
| modifications completed (the same as 1. Systems rank A) | 73,188 items (44%) | |
| simulations completed | 37,475 items (23%) | |
| establishment of contingency plans | 1,495 items ( 1%) | |
| Computer systems of rank B: | 10 systems | |
| modifications completed (the same as 1. Systems of rank A) | 5 systems(50%) |
| N.B.: | rank A: | systems closely related with people's daily lives and corporate activities, such as human life, daily lives, properties, economic activity of corporations or maintenance of public safety and order |
| systems concerned with trustful relationships with foreign countries or international organizatio | rank B: | systems of which impacts come to other administrative organizations |
The number of A rank systems at present which is due to carry out modifications and simulations by the end of June are as follows. Modification and simulations of these systems, except the system will be changed to new equipment or systems, are completed by the end of June in principle.
| Central ministries and agencies, and public | 511 systems (92%) | |
| National medical institutions (Computer systems) | 997 systems (93%) | |
| (Medical equipment) | 151,532 items (92%) |
V. Current situation of Y2K conversion of local governments
The statuses of progress achieved in regard to measures taken with respect to computer systems owned by local governments are as follows;
Number of systems scrutinized and reported(as of March 1, 1999):
Prefectural governments (47 entities)
A-ranked systems 1,697 systems
B-ranked systems 754 systems
Municipal governments (3,255 entities)
A-ranked systems 31,028 systems
B-ranked systems 7,455 systems
(1) The progress rate for program modification, etc. at each Prefectural government exceeds 60%, and 60% of all Prefectural governments show progress rates of more than 80%. The progress rate for simulation tests as a whole is approximately 40%.
Almost all Municipal governments now commence modifying programs and 54% of all Municipal governments show progress rates of more than 80%. The progress rate for simulation tests as a whole is approximately 30%.
Ministry of Home Affairs continuously request all local governments to take all measures in conformance with the Action Plan without delay, and is adopting measures described below.
(2) To meet the cost of measures against the Y2K problem taken by local governments, Ministry of Home Affairs has been financially supporting these entities since fiscal 1997 by applying a part of Special Local Allocation Tax. In fiscal 1998, a total amount of 3.2 billion yen, which is 3 times that of the previous year, was distributed to local governments. This financial support continues in fiscal 99.
(3) To promote the preparation of contingency plans at each local government, Ministry of Home Affairs will distribute a handbook to all local governments in April, 1999.
VI. Recent Y2K conversion situation of microcomputer-equipped devices
Questionnaires were sent to total 4,043 manufacturers and distributors of computers, software and microcomputer-equipped devices (referred to below as "vendors") in 28 categories. In a survey of the responses on March 1, 1999, responses had been 1,677 companies ( a response rate of 41%), and the findings can be summarized as follows.
1. Awareness among companies of whether their products require preparation for Y2K compliance
(1) Most companies responded that they had ascertained the need for measures for Y2K compliance in "All of our products" or "3/4 of more or our products". All companies should find out quickly the need for Y2K compliance measures in their products.
(2) Regarding the necessity of Y2K conversion measures for their products, manufacturers in the fields of home electrical equipment ("white goods"), industrial and land transportation vehicles and their motors and toys responded that none of their products required such measures.
N.B. Between cars and their parts, driving control systems of transportation vehicles require Y2K conversion, but they do not directly control the driving operations itself.
2. Provision of information by companies to users on whether their products require Y2K conversion measures
(1) Concerning the provision of information to users who can be identified, among 25 industrial categories required to notify individual users, in 15 categories, approximately 70% of them have notified from 70% to 100% of users.
(2) Many companies having created their Home Page on Y2K compliance, substantial progress made in the provision of information over the Internet to general public. More than 50% of companies operating in the sectors of computers and their related equipment, electric control equipment, electronic gauging devices, communication equipment, civil electronic equipment and office automation machinery are disseminating information through Internet or other similar mecanisme.
(3) Furthermore, the Government will require related vendors to accelerate information dissemination to users.