Action plan for INELCO to recover from disasters

that disable the production.

1.

INELCO has two factories in two different locations (Ningbo and Suzhou),

which are in 2 different provinces (Zhejiang and Jiangsu). The distance between

the 2 facilities is some 250km, only. Close enough for fast move, far enough that a disaster on one site will not affect the other.

2.

Each factory has sufficient spare capacity to take over

the other factoriesmanufacturing capability.

There is enough spare space inside the factories

and in the close surrounding area.

Today both factories are running with 2 shifts. With the extra

workforce from either factory INELCO can instantly change to 3 shifts

.

3.

INELCO implemented a workforce in both factories that are naturally visiting the other facility on a monthly cycle.

INELCO can immediately transfer workforce from one plant to the other with no

impact on production.

INELCO has been awarded the prestigious title of an outstanding good employer by

the regional government in both locations.

INELCO’s factory management is well trained as an employer and integrator of existing and new workforce. This allows INELCO to hire new people and integrate them into the working process very quickly.

 Additionally there does exist the option to put some standard products into a „jointventure“ with existing suppliers.

Furthermore INELCO will serve longtime customers with permanent orders first.

Additional or new business will be served, only when production capacity has increased to the same extent.

4.

 INELCO takes great care in the safety and security of the plants.

Both factories are inspected by the local government on a regular basis

to ensure safety.

5.

 INELCO has IT Server in both Asia and Europe that back up all relevant software.

6.

INELCO is completely privately owned and works without any external finance from banks or other institutions. In case of disaster it will be fairly easy to get the necessary funding for the production of existing orders, especially because INELCO has no outstanding debts that are not covered by cash or cash investments.

7.

 TIME LINE:

Production facilities: The recovery time is 1 Week.

Factory: The recovery time for production is 2 Weeks.

 THE TOOLING:

Each tooling had spare parts set for mass production tooling.

 If the tooling was totally disabled for production,

it would take one month to recover.

CONCLUSION:

The combination of strategic, organizational and managerial measures,

supported by educational and motivational factors, guarantees a high degree of security and optimum worst case recover ability for INELCO’s customers.