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Part 3 QS 5
Part 3 QS 5
Introduction to BCM
Moreover, the Toyota Group's major activities are focused in regions that are
likely to be affected by a Nankai Trough earthquake, increasing the chance that
Toyota may be harmed.
The main concept of Toyota's BCM is to focus on disaster recovery in this order: The
Fundamentals of Toyota After a disaster, what are your top priorities?
1
2
Humanitarian
as well as life
3
saving first Early recovery
of the affected
areas Restoration of
Toyota
operation and
production
Why BCM is important?
BCM isn't simply about having overly detailed strategies to restore a company
• Furthermore, having plans that are appropriate for the type of your company
Toyota has named a Global Chief Risk Officer (CRO) as the company's head of international risk
management.
The CRO is in charge of overseeing large risks and leading the company's response to major global
crises.
Regional CROs are hired to administer their own risk management framework under the Global CRO.
Risk management is allocated to senior officers and their sections in the head office (such as
Accounting and Purchasing), whereas risk assessment is allocated to the head of the company and
their company within every in-house business. They work together with the local head offices and
each department to coordinate and collaborate.
Continued…
Toyota will protect our customers' safety and security from cyber-attack risks.
Toyota sees it as our societal duty to safeguard our customers' personal information, and as a result,
information security is being reinforced via governance and risk management.
Toyota and its consolidated subsidiaries developed an Information Security Policy in June 2016 to
define information security fundamental policies and objectives.
Disruption related risk management
1. Mura (unevenness)
2. Muri (overvurden)
3. Muda (waste)
Semiconductors, passives, and other components utilized in such systems are not purchased by
automakers. Instead, they rely on their tier 1 suppliers to procure the chips, capacitors, resistors, as
well as other electronic components required for manufacturing, as well as to maintain relationships
with those vendors.
When it comes to supply chain risk that may influence components used in automotive systems,
however, vehicle manufacturer purchasers are more engaged and have established risk management
methods that affect not just their tier 1 suppliers, but also their tier 2 and tier 3 suppliers.
Automakers' purchasers must be engaged in supply chain risk management to ensure that their
supply networks maintain supply continuity if a natural catastrophe interrupts component or other
material manufacturing, or market circumstances result in part shortages.
Governance structures
Toyota has implemented an executive officer structure to enhance management
efficiency as well as reinforce internal control, as well as a business with an Audit
& Supervisory Board to guarantee honest as well as competent management.
Personnel
Essential records
Raw materials, completed products, as well as goods in production are all included in
inventory.
Ways to support stakeholders to implement
BCMF
The business could adopt BCM more effectively if it had regular meetings with
stakeholders.
Recognizing as well as documenting each risk, as well as assessing it, will aid in
the successful execution of BCM.
Approval for tools to verify and validate BCMF activities,
processes and plans
The business continuity framework was adopted after a meeting with all
stakeholders and discussions with them.
Action plans-activating emergency management and
BCM plans
Following the earthquake and tsunami in Japan, Toyota issued a challenge to its first-tier suppliers to examine their supply
chain and estimate how long it would take them to recover if another catastrophic event interrupted production.
Toyota also wanted to hear how suppliers might bridge the gap between the recovery and the automaker's urgent
requirements for components.
“Once they figured it out, they informed us what their countermeasures were going to be,”. Toyota examined the
countermeasure suggestions it received from all of its suppliers and found "some excellent countermeasures" that might
help reduce risk and keep parts supplies flowing, according to Lewis.
Other supplier proposals "required some tweaking," and Toyota offered recommendations for how they might be
improved.
According to Lewis, two-way communication with suppliers is critical for reducing risk. If a potential risk issue is
discovered, suppliers must notify Toyota as soon as feasible.
Review and Maintenance
To keep the BCM in a consistent condition, Toyota follows the following directives:
The business continuity plan should be maintained in a variety of places, including the principal
site, alternative recovery sites, staff cars, and residences.
The continuity plan is tested on a regular basis to detect gaps as well as weaknesses.
Any major changes in process, people, and resources are evaluated to see whether plan
modifications and testing are necessary.
To prevent misunderstanding and the usage of obsolete information, version control was provided
for the business continuity plan as well as the business continuity test plan..
Integrating current and future initiatives into the business continuity plan change management
process is critical.
The maintenance of the business continuity strategy is delegated to an experienced individual or
team.
Maintenance of the business continuity plan is included in the BCMS budget, according to Toyota.
Mishra, S., Raut, R. D., Narkhede, B. E., Gardas, B. B., & Priyadarshinee, P.
(2018). To investigate the critical risk criteria of business continuity management
by using analytical hierarchy process. International Journal of Management
Concepts and Philosophy, 11(1), 94-115.