Guideline Minimum requirements regarding contingency plans and their creation

Change History Guideline Minimum requirements regarding contingency plans and their creation Change History Index 02 Reason 5.8 for change Pt 5.8 time span changed on demand XXX.XXX Date 04.01.2007 Index 03 Reason 5.2 for change Pt 5.2 Assessment changed on demand XXX.XXX Date 19.01.2007

Guideline Minimum requirements regarding contingency plans and their creation 1. Introduction I The standard ISO TS 16949 requires in chapter 6.3.2 for events like Power supply interruptions Manpower shortages Failure of important operating means Field complaints contingency plans so as to be able to fulfill the requirements of the customer also in such cases.

1. Introduction II Basically a difference needs to be made between Guideline Minimum requirements regarding contingency plans and their creation 1. Introduction II Basically a difference needs to be made between contingency plans demanded by the authorities contingency plans demanded by the ISO TS 16949 In the first case the objective chiefly focuses on limiting damage to Man Environment Infrastructure In the second case the objective chiefly focuses on fulfilling our delivery commitments with regard to our customers.

2. Target of this guideline Minimum requirements regarding contingency plans and their creation 2. Target of this guideline Supplying our customers with products on schedule is one of the foremost targets of all plants belonging to COMPANY. In order to put us in a position where we can fulfill our delivery commitments also in contingencies, each plant must create a contingency plan in line with this guideline

3. Contingency in the sense of this guideline Minimum requirements regarding contingency plans and their creation 3. Contingency in the sense of this guideline A contingency in the sense of this guideline will be present when the following production factors are available only on a limited basis or not at all Machines & tools Plants Buildings Transportation means Telephone Electronic data-processing / network Purchased production materials Electric power Water Gas Fuel oil and other combustibles Manpower Field complaints (recalls) will result in increased delivery commitments and must, in the sense of this guideline, be also treated as a contingency.

4. Responsibilities The plant manager is responsible as to presence, Guideline Minimum requirements regarding contingency plans and their creation 4. Responsibilities The plant manager is responsible as to presence, maintaining and operating of the contingency plan. The contingency plan needs to be verified and validated by the plant manager through suitable measures (if required, dummy runs).

5. Approach & risk assessment Guideline Minimum requirements regarding contingency plans and their creation 5. Approach & risk assessment Approach For every event which potentially can result in a contingency in the sense of this guideline, a risk assessment needs to be run first. Risk assessment The risk assessment is run - preferably using Excel - corresponding the following schematic: Event (5.1) Assessment (5.2) Production factor (5.4) Consequences (5.3) Significance (5.5) Action (5.6) Responsibility (5.7) Time need (5.8) Risk priority number (5.9)

Guideline Minimum requirements regarding contingency plans and their creation 5.1 Events Events are such processes which potentially result in the contingency in the sense of this guideline. Such events can be, for example Acts of god like Lightning strike Hail Storms Snowstorms Sandstorms Hurricanes Tornadoes Storm tides Earthquakes … Epidemics Flu Pestilence … Others Acts of terrorism Acts of war Strikes Accidents Plane crashes … This list is to be taken as an example and by no means it claims to be complete! Lightning

Guideline Minimum requirements regarding contingency plans and their creation 5.2 Assessment The assessment of one and the same event is dependent on the geographic location of a plant, the political conditions prevailing there and other factors, and may for this reason differ widely from plant to plant! The assessment in each case relates to a single event. The assessment is performed as follows: 1 = very unlikely 1 is assigned to events which based on experience cannot occur, or to date have not occurred. 2 = unlikely 2 is assigned to events which occurred already during the past 10 years 3 = possible 3 is assigned to events which occurred already during the past 5 years. 4 = likely 4 is assigned to events which occurred already during the past 2 years. 5 = very likely 5 is assigned to events which based on experience have in the past years occurred already several times or which occur regurarly. Lightning 3

Guideline Minimum requirements regarding contingency plans and their creation 5.3 Production factor Here the affected production factors in accordance with section 3 are stated: Machines & tools Plants Buildings Transportation means Telephone Electronic data-processing / network Purchased production materials Electric power Water Gas Fuel oil and other combustibles Manpower If necessary production factors could be specified more detailed, e. g. drilling machine No. 4711 Lightning 3 Electric power

Guideline Minimum requirements regarding contingency plans and their creation 5.4 Consequences The consequence of an event results in a contingency in the sense of this guideline, i. e. restricted production factors or unavailability of production factors Lightning 3 Electric power unavailable

Guideline Minimum requirements regarding contingency plans and their creation 5.5 Significance The significance always relates to a consequence and is assessed as follow: 1 = no influence on the quality of the product or the ability to deliver 3 = can have an influence on quality or the ability to deliver 5 = has an influence on quality or the ability to deliver Lightning 3 Electric power unavailable 5

Guideline Minimum requirements regarding contingency plans and their creation 5.6 Action The action relates to the contingency described under “Consequences” and its target at remedying it. The action must be described briefly and precisely, for example “Start up spare compressor” “Start up emergency power supply” “activate supplier xyz for …” Lightning 3 Electric power unavailable 5 Start up

Guideline Minimum requirements regarding contingency plans and their creation 5.7 Responsibility Here the department must be specified which is responsible for introducing the measure for remedying the contingency. Lightning 3 Electric power unavailable 5 Start up maintenance

Guideline Minimum requirements regarding contingency plans and their creation 5.8 Time needed Here the time needed until the measure for remedying the contingency becomes effective must be stated as follows. 1 = less than 8 hours 2 = more than 8 hours, however less than 5 days 3 = more than 5 days, however less than 10 days 4 = more than 10 days, however less than 14 days 5 = over 14 days Lightning 3 Electric power unavailable 5 Start up maintenance 1

5.9 Risk priority number (RPN) Guideline Minimum requirements regarding contingency plans and their creation 5.9 Risk priority number (RPN) The risk priority number is the product of assessment figure, significance figure and time needed, with a minimum of 1 maximum of 125 Lightning 3 Electric power unavailable 5 Start up maintenance 1 15

6. Conclusions Sort the RPN’s in descending order Guideline Minimum requirements regarding contingency plans and their creation 6. Conclusions Sort the RPN’s in descending order define or try to improve the actions for the high RPN issues try to minimize the consequences, e. g. by redundant production factors … The method described in this guideline allows us to evaluate in a demonstrable way any imaginable event. Lightning 3 Electric power unavailable 5 Start up maintenance 1 15