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2011/EPWG/WKSP/006 Session 1

Case Study: Private Sector Business Continuity Planning (BCP) - Suzuki Kogyo

Submitted by: Suzuki Kogyo

Workshop on Private Sector Emergency PreparednessSendai, Japan

1-3 August 2011

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ＡＰＥＣ

Workshop on Private SectorWorkshop on Private Sector Emergency Preparedness

Suzuki Kogyo Co., Ltd.

Senior Managing Director: Suzuki Shinya

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Presentation Outline

1. Profile of Suzuki Kogyo

2 Wh W E bli h d BCP2. Why We Established a BCP 

3. BCP in Action

4. Impact of the 3/11 Earthquake

5 BCP Based Reconstruction5. BCP‐Based Reconstruction

6. Summary of Suzuki Kogyos’ BCP 

Response2

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Suzuki Kogyo Co., Ltd.

URL http://www.suzukitec.co.jp

１．Overview of Suzuki Kogyo

■ 67 EmployeesFounded: July 15 ,1966Capital：JPY 60,000,000

■ Five Company Features45 f i b d t h i l k・45 years of experience, based on technical know-how

・Maintains intermediate treatment and recycling facilities

・Manages water supply treatment and sanitation facilities

・Received ISO certification (ISO9001／ISO14001）・Efforts for safety (placement of an external safety supervisor)

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■Locations of Suzuki Kogyo Offices and Factories

The Pacific Ocean

500mfrom coastline

Ｃ: Industrial Waste Intermediate Treatment

Facility“Eco Museum 21”

A: Headquarters B: Industrial Waste Recycling Center “Saiseikan” 4

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２．Why We Established a BCP

■Heard the car parts factory suffered damage from Niigata Chuetsu earthquake in 2007 so car parts supply and car manufacture were suspended

■Major earthquakes have struck offshore Miyagi Prefecture several times

□ From 1793 to 2008: 6 major earthquakes

□ Event probability ＝ within 10 years 70％ /within 20 years over 90％/within 30 years 99％

□ Expected magnitude in eastern Sendai City ＝ 7.6 □ Expected height of Tsunami along the coastline ＝ 2～3 meters

■Realized the necessity of preparing for the next big earthquake, and decided to develop an appropriate BCP

□ 2008.9.8 Established a BCP development team with 10 management members, with goal of completing development of BCP manuals

□ Held seminars five times so far, including simulation drills5

３．BCP in Action

■Our Key Operations ,Proactive Countermeasures, and Target Schedule

Division in Charge Responsibilities Schedule Prior Preparation and Countermeasures

Sales ①Emergency Management

1 Day *Contract and manifest safekeeping *Execution of Memo of understanding  with business partners (MOU)

②C t ti C t 3 Dbus ess pa e s ( OU)

②Contacting Customers 3 Days

Business Operations ③Drain System Cleaning 3 Days *Secure alternative suppliers *Install generators for power *MOU

④Water Tank Cleaning 6 Days

“Eco Museum 21” Environmental Recycling

⑤Incinerator Countermeasures

6 Days *Earthquake Warning broadcast  equipment*Secure access to crucial parts and equipment*MOU

General Administration

⑥Internal System Management

3 Days *Server backup system installation*Satellite telephone distribution (one in each plant)p a )

*Employee training (three times annually, five times in total)

Satellite Phone

Earthquake Warning Broadcast Equipment

Employee Training 6

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４． Impact of the 3/11 Earthquake

【Earthquake Timing】： Friday, March 3, 2011 2: 46 p.m.【Earthquake Scale】： Magnitude 9.0【Maximum Intensity】： Downtown Sendai - 6.0*, Miyagi Prefecture - 7.0*

Headquarters Recycling Facility Eco Museum 21

Employee Deaths/injuries

none

Facility Damage some damage (caused by earthquake)

some damage (caused by earthquake)

destroyed (by earthquake and 5 meter tsunami)

■Damage sustained by our company*Japanese Scale

Equipment Damage

majority of PCs, electrical equipment, etc.

some damage, such as cracked surfaces, missing shutters

extensive flooding and complete plant destruction

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□ Area Flooded by the Tsunami

Eco Museum 21

Headquarters

Saiseikan

(Recycle Center)

Red：Areas inundated by tsunami floodingBlue：Devastated residential areas

Headquarters

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■Headquarters Damage ■ Recycling Center Damage

Sales Department Branch Office

9General Administration Department Recycle Facility

■Photos of the Damage Sustained

□ Comparison of the area before and after the tsunami

coastline

Eco Museum 21Eco Museum 21

coastline

Pre-TsunamiPost-Tsunami

coastline

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■Eco Museum 21 Damage

Tsunami height

5 meters

Flooded Cleaner Truck

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100meter-runoff

the Vacant Lot of the Office Flowed Office

■ Eco Museum 21 Damage

Flooded Wheel LoaderFlooded Loading Shovel

12Flooded Incinerator Flooded Control Unit

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■Eco Museum 21 Damage

Flooded Incinerator Clashed Trailer to the Building

Flooded Inorganic Sludge Dehydration Facility Clashed car flooded inside of the Building

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５．BCP‐Based Reconstruction

Restoration Activities (1)

March 11 14：46 Earthquake hits Japan

15：30  Disaster prevention headquarters 

established;  BCP put into operation

・Begin safety and damage checkg y g

・Power restored using generators

(radios, televisions and satellite phones are distributed)

・Satellite phones used to ensure safety

・Arrangements made to secure large‐scale operational generators

22：00 All employees determined safe

March 12 ・Damage to headquarters and recycling plant confirmed

・Sales department reaches out to major customers

・Establish contact with incinerator manufacturer

・Procure additional food and fuel

March 13 ・Establish contact to assist customers 

(letter of appreciation was received later)

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Restoration Activities (2)

March 14 ・Restore company’s internal systems

・Confirm damage sustained at Eco Museum 21

・Inspect the incinerator (by manufacturer)

・Establish BCP support contract with li d h tsuppliers and merchants

March 15 ・Request companies in other prefectures to cooperate, as outlined in the BCP

・Initiate a carpool to conserve fuel

March 17 ・Work with the companies in other prefectures to handle customer needs

March 19 ・Initiate a patrol of the area around EM21 to search for items dispersed by the tsunami

・Begin cleaning EM21 premises, for example by cleaning the equipment  and premises of mud

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■Recovery Targets Compared to Actual Recovery Time

IMPORTANT WORK RECOVERY TIME

Day  1

Day2

Day 3

Day4

Day 5

Day 6

Day 37

Day 38

Emergency Measures

BCP Expected Recovery Time

Actual Recovery Time

Expected Recovery Time w/out BCP in place

3/11

Measures

Contact with Customers

Drain System Cleaning

Water Tank Cleaning

Incinerator Operation (for organic and inorganic sludge)

Internal System Management

Expected Recovery Time of 3 months

April 18 – Normal Operations Resumed

April 18 :Power supply and industrial water supply restored

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■Eco Museum Reconstruction Efforts

March April

111213141516171819202122232425262728293031 1 2 3 4 5 6 7 8 91011121314151617181920

Equipment Inspection

Heavy Runoff Collection

Instrument Inspectionand Overhaul

Generator Installation

Janitorial

Obtain Industrial Water

Temporary Office Setup

Begin Formal Operations(Organic Sludge Dehydration Facility)Begin Formal Operations

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(Inorganic Sludge Dehydration Facility)Access to Industrial Water

Electric Power

Truck Scale Installation

Begin Incinerator

Begin Production at EM21

■Reconstruction Efforts at Eco Museum

April 5 (Day 25): Recovering Inorganic Sludge at the Dehydration Facility

April 4 (Day 24): Recovery of Organic Sludge at the Dehydration Facility

April 18 (Day 38): Restoring the Recycling Center Incinerators

April 18 (Day 38): Truck Scale Restoration

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■Photos of the Reconstruction Efforts at Eco Museum

Operation with Reconstruction

Operation with Cleaning

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Completed Reconstruction

Completed Reconstruction

６．Summary of Suzuki Kogyos’ BCP Response

（1）Although this disaster was more severe than assumed under the BCP, each employee recognized the aim of the BCP and responded to the disaster according to the established planto the established plan.

Necessity of conducting employee training during normal periods

（2）Recovery work began soon after the disaster because there were contingency agreements in place with other manufacturers, local electricity companies, and construction companies.

Necessity of building relationships with business partners and securing backup equipment that can be used in an emergency

（3）Portable generators successfully supplied electric power to radios, TVs, lighting and satellite telephones until larger generators could be installed. Access to the phones made communication with business partners in other areas and business continuity with customers possible.

Necessity of securing measures including telecommunications and transportation in an emergency

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2011 Our Slogan

Noboru SUZUKI

President,

Suzuki Kogyo21