Manufacturing business continuity means safely shutting down during emergencies and restarting operations, not closing forever. Just-in-time production saves money but leaves plants vulnerable to outages. A 5% extra production capacity buffer costs far less than building redundant facilities and provides meaningful protection.
I think that manufacturing is a great example. Manufact— you look at BCP, how do I keep my business running? Manufacturing might fit into the bucket that the first one to think through is how do I safely shutter my operations during an emergency? There's a little bit of a twist on that. Obviously they'll want to get manufacturing up and running. It's great to have a manufacturing facility that's running 24/7 and you are selling out or everything going out the door. On what you have, but many of these manufacturing facilities, they do have some capacity. So they can run, they can shut down for a bit, or hey, we got this batch out of the cycle. So them usually start with, how do I safely shutter my manufacturing facility and then safely bring it back online? 'Cause that's probably a more likely scenario than it is, I'm gonna shut things down. 'Cause you have the different scenario with manufacturing is what may take them out is a fire. So your BCP conversation is about how long do I keep my company running when the manufacturing facility is shut down? So is it the right thing to have overstock? That is not a manufacturing facility decision usually, that's an executive decision going how much money in buffer do I wanna build in? And we all get challenged for this real-time or just-in-time manufacturing, which is great on paper, makes the bottom line look better, but when you have a significant outage, you have no buffer to go into. And it might be worthwhile to say, If we just keep 5% extra capacity, that is cheaper than having redundant manufacturing facilities or redundant lines that are geographically dispersed lines because you have a bit of a buffer there. That may be a decent investment portfolio.
Doesn't sound like a lot. 5%.
