Contingency plan is basically alternate plan in case original plan fails such as an equipment failure, labor shortage. Purpose is to ensure continuity of supply to customers in case original plan fails. We need to remember contingency is not always having an alternate equipment. It could be keeping enough stock to ensure continuity of supply, importing material, supplying from other plant.
IATF 16949:2016 has many additional requirements related to Contingency planning as compared to ISO/TS 16949:2099. Some of them along with explanation are as follows:
Simple Steps to IATF 16949 Certification Follow our proven and manageable step-by-step process for a successful ISO implementation project. Create a Project Plan to determine. IATF 16949 Small Business Package; Advertise Your IATF 16949 Certification. ISO/TS 16949 is based on the internationally recognized quality management system standard, ISO 9001, and promotes continual business improvement by emphasizing defect prevention and reducing variation and waste in the supply chain. Certification to ISO/TS 16949 is often a requirement for doing business.
1)It is expected that Contingency planning should be done based on Risk analysis. When risk is high contingency planning is needed such as bottleneck machine.
2)Contingency is needed recurring natural disasters such as earthquake, flooding, Cyclone. Point to remember is this is only for recurring disasters. If it has happened occasionally it’s not needed.
3)Contingency plan for Infrastructure- Which may include Building, Material handling equipment, IT infrastructure
4)Contingency plan for utilities such as compressor, Transformer, Cooling tower
5)Contingency plan for labor shortage may be because of holidays, strike etc
6)Contingency plan for Fire. How organizations will ensure supplies in case of fire. e.g. Supply from other plants.
7)Contingency for Cyber-attacks. Organizations use IT systems in Manufacturing. In case of Cyber attack how they will ensure continuity of supply. It may be alternate server/Networks/Recovery plan including backups
8)Contingency for External providers which include product suppliers such as Raw material & bought out item suppliers, process suppliers such as plating /painting , service suppliers such as Logistics service providers, material handling services providers.
9)Contingency plan to include notification process to customers & other interested parties. E.g. There is major breakdown of a key equipment then notification process will include who should inform customer, interested parties, when they should inform, how they shall inform. Many customers will have customer specific requirements related to same.
10)Contingency plan to be tested periodically. This is to validate contingency plan. This can be actual testing or mock drill like we do fire drill. This testing will assure that contingency plan will work for a given situation & will identify gaps if any. Organizations need to act on gaps if any.
11)Contingency plans needs to be reviewed at least annually by CFT including top management. A single function with out involvement of other functions & top management may not product a Good contingency plan hence the requirement. When top management is involved in contingency planning they can visualize risk & may provide resources as necessary.
12)Records of revisions to control plan i.e. revision history including person authorizing change must be maintained. This will ensure uncontrolled changes to this important document.
13)Contingency plan to include provisions to validate manufactured product meets customer specification after restart of production following emergency in which production was stopped & if regular shutdown process were not followed. e.g. There was a fire in the plant. Electrical supply was cut off & regular shutdown process was not followed. After situation came to normal, before production is started again its must be checked if products are meeting customer specs as process might have been affected due to emergency shutdown.
Author is IATF approved IATF 16949:2016 auditor with 27 plus years experience in Automotive Industry with Global exposure.
Hope this clarifies IATF 16949:2016 requirements related to Contingency planning.
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In case you require further assistant you can contact HPGC pvt Ltd. We provide training & consulting services on various subjects including IATF 16949:2016.
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