Robust contingency plans for every eventuality.
This plan outlines the means by which Nemco would deal with a major disaster such as a total loss of a building and all its contents due to fire or some other natural disaster.
All data on our system is backed up overnight and copies are held off-site. The system back-up includes all networked PCs so covers SMT machines, AOI machines and any test PCs that are networked. All the drawing office design and data files are covered by the back-up so the only manufacturing data lost would be paper drawings, typically A0/A1 size drawings that cannot easily be scanned. Since these drawings are customer supplied, they can be quickly replaced.
Nemco operates across 2 sites in Wedgwood Way in Stevenage. The main building is 25,000 sq ft, of which 15,000 sq ft is manufacturing and the balance office space. The second unit is 35,000 sq ft, comprising component stores and manufacturing. We also have 5,000 sq ft of office space in Unit B that is currently unused. Some of the facilities are duplicated across the two units; both have the basic services such as 3 phase power and compressed air so the infrastructure is there to run both SMT and through hole assembly. The flow solder machines and SMT lines are in Unit A with the selective flow solder machine in Unit B. We have a written agreement from Samsung that they will supply two new pick and place machines within 4 weeks if a major disaster occurs.
The two buildings are separated, with a joining corridor that has fire resistant doors. If either building is destroyed we would move as much as possible to the remaining building and also aim to secure temporary accommodation within a week, if necessary splitting the administration and manufacturing functions between different sites. Our initial priority would be to re-establish SMT assembly, running shifts if necessary to maximise output. In parallel we would secure new premises for the longer term, which we believe could be completed within a month. There has been suitable space available for the last 2 years on our current industrial park and although the situation can change, Stevenage seems to have plenty of industrial space available at present.
The majority of the WIP and the finished goods stock is in unit A with the material stock being located in Unit B. It is therefore very unlikely that all stock and materials would be lost. Taking a worst case, the first priority would be to re-source for the short term production requirements. Once a replacement computer system is set up (we estimate 2 weeks for this) we will be able to run MRP and prioritise the longer lead-time parts. PCBs can be bought on a fast turnaround and most of the common materials can be sourced within a week or so. There will inevitably be some items that are on longer lead-times but broker stock and assistance from customers will help to alleviate these. We would second other admin staff into the purchasing team during this period as this activity will be the highest priority for the first few weeks.
We have insurance cover for the capital equipment, stock and work in progress and we also have enough liquidity to fund the replacement material purchases whilst the insurance claim is processed, also the increased cost of working during the period of recovery. We hold business interruption insurance to the value of £ 4.9M which would fund this increased cost of working including, if necessary, subcontracting SMT assembly during the early part of the recovery.