Isuzu Report - Final Phase 1 Report

Conduct of Business Continuity Awareness and
Capacity Building Activities

for Suppliers of Isuzu Motors Co. (Thailand) Ltd.
Interim Project Report

Phase One: December 2016 - August 2017
Table of Contents
1. Executive Summary ......................................................................................................................... 3

2. Introduction .................................................................................................................................... 4
3. Project Implementation .................................................................................................................. 5
3.1 Project Objectives and Outcomes................................................................................................. 5
3.2 Selection of Participating Companies ........................................................................................... 6
3.3 Overview of Workshop Cycle ........................................................................................................ 9
4. Project Results ................................................................................................................................ 9
4.1 Number of Workshop Participants ............................................................................................... 9
4.2 Key Outputs................................................................................................................................. 12
4.2.1 Purposes of Implementing BCP ............................................................................................ 12
4.2.2 Risk Assessment and Business Impact Analysis ................................................................... 12
4.2.3 Business Continuity Strategies ............................................................................................. 13
4.3 Immediate Outcome ................................................................................................................... 16
4.3.1 Evaluation of the Training .................................................................................................... 16
4.3.1 Feedbacks and Observations ............................................................................................... 17
4.4 Economic Benefits for Supply Chain Resilience .......................................................................... 18
5. Challenges and Lessons Learned from the Project ....................................................................... 19
5.1 Top Management Support .......................................................................................................... 19
5.2 BCP Core Group........................................................................................................................... 20
6. Recommendations ........................................................................................................................ 21
Annex 1: Summary Results for Each Supplier ....................................................................................... 22
Calsonic Kansei (Thailand) Co., Ltd. ................................................................................................... 23
Enkei Thai Co., Ltd. ............................................................................................................................ 29
Inoue Rubber (Thailand) Public Co., Ltd. .......................................................................................... 35
Inoac Tokai (Thailand) Co., Ltd. ......................................................................................................... 41
Tsubakimoto Automotive (Thailand) Co., Ltd. .................................................................................. 47
Tokai Rika (Thailand) Co., Ltd. ........................................................................................................... 53
Sumitomo Rubber (Thailand) Co., Ltd............................................................................................... 59
Valeo Automotive Thailand Co., Ltd. ................................................................................................ 65
Annex 2: Business Resilience in Supply Chain Program ........................................................................ 71
2
1. Executive Summary
Recognizing the importance of enhancing the resilience of businesses and their wider supply chains,
the iPrepare Business facility at ADPC has partnered with Isuzu Motors Corporation Thailand (IMCT)
and Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) to provide direct
technical support on Business Continuity Management (BCM) to automotive suppliers in disaster risk
prone areas of Thailand. The training is aimed at enhancing the awareness of Isuzu suppliers on the
value of BCM as well as enhancing their ability to implement such strategies to better safeguard
their business processes against the potentially disruptive impacts of disaster events.
Eight suppliers were selected for participation in the first year based on the criteria as ‘Tier 1’ i.e.
primary suppliers of Isuzu based in Thailand; located in areas vulnerable or prone to disaster risk;
demonstrable commitment and support from top management to engage in the initiative; and
availability of core responsible working group of the participating companies.
The direct technical support delivered to Isuzu suppliers consists of four in-house training workshops
based on BCM training modules developed by the iPrepare Business facility. The workshops are
facilitated by ADPC with inputs provided by Isuzu on technical and sector specific content. The topics
for the 4 workshops are as follows:
1. Setting up Business Continuity Planning framework and project team

2. Business Impact Analysis and Risk Assessment
3. Business Continuity Management Strategy
4. Plan-Do-Check-Act (PDCA) cycle
The total number of trained participants in the first year was 172 of which 98 of those are male and
74 of those are female. The outputs of the project are the Business Continuity Plans for each
individual company. According to the results from Risk Assessment and Business Impact Analysis,
each of the 8 suppliers have developed their own business continuity strategies. Based on the
evaluation conducted at the final workshop, the overall training has achieved the objectives.
Basically, the participants rated highest score on understanding key steps for developing BCP.
For the immediate action after the project, it is recommended that in order to sustain BCM/BCP
development in the long run, the training on this particular subject should be incorporated within
the Human Resource Development policy so that it is mandatory for employees to be trained
regularly. Integrating BCM/BCP as part of corporate strategy is an entry point for up-scaling to reach
international standard and gain competitive advantage for the business and its interconnected
supply chain. Moreover, the project helped participating companies identify various business
continuity measures. In order to implement the measures, companies should be clear about their
priority and develop investment plan. Finally, it should be emphasized that BCP exercise and PDCA
cycle is recommended to be executed at least once a year.
Looking forward, in order to strengthen the supply chain resilience as a whole rather than each
supplier individually, the automotive industry could benefit from a program in Supply Chain Risk
Management (SCRM) as this is an approach for managing risk in the supply chain in a holistic
manner. For one thing, Isuzu should select strategic suppliers to be partners in the project by using
techniques in SCRM. Therefore, it is recommended that the third phase of the project should be
scaled up by embedding integrated risk management in Isuzu’s supply chain.
3
2. Introduction
Private sector engagement in disaster risk management (DRM) has emerged as an increasingly
pertinent concern at both the regional and global levels. In particular, the need for holistic and
integrated efforts towards enhancing business resilience has been underlined by recent high profile
disasters, including the 2011 floods which hit Thailand, particularly Bangkok and its surrounding
provinces.
As well as significant direct impacts on persons, communities and businesses (including key industrial
and manufacturing agglomerations) in Thailand itself, this event was particularly notable due to its
wider economic effects on global supply and production chains. The extensive permanent and
temporary closure of factories and industrial estates situated in Thailand’s central regions resulted in
widespread disruption to production and supply chains for electronics and automotive industries at
the regional and global scale.
The automotive industry was particularly impacted even in the case of companies not directly
located in areas affected by the flooding. Isuzu’s production line in Thailand could not function for
six weeks because many of its key suppliers were inundated and could not deliver critical parts and
components in order for Isuzu to manufacture vehicles over this period.
Recognizing these challenges, IMCT took a number of steps to enhance the resilience of its
operations, as well as that of its suppliers, to disruptive events including natural hazards. An
Orientation Workshop was conducted for Isuzu staff at IMCT in July 2015 by the iPrepare Business
facility1 including lectures and presentations on BCP. Isuzu representatives also attended a ‘Training
of Trainers’’ (ToT) in August 2015 by iPrepare Business.
Following these activities Isuzu representatives delivered a series of orientation workshops on BCP
to 198 of its suppliers from October 2015 to March 2016. Evaluation of the suppliers’ BCPs allowed
1
The iPrepare Business facility for engaging the private sector in Disaster Risk Management is a joint initiative established in 2014 by the
Asian Disaster Preparedness Center (ADPC), the Asian Development Bank (ADB) through the Integrated Disaster Risk Management (IDRM)
Fund and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH within the framework of the Global Initiative on Disaster
Risk Management (GIDRM). It focuses on building disaster-resilient businesses in the region through partnerships to strengthen the
resilience of the private sector, particularly SMEs; providing technical assistance in strengthening resilience on a demand-driven basis;
supporting governments in strengthening the enabling environment that promotes risk sensitive and informed investments by private
sector; and facilitating knowledge sharing at the regional and national levels.
4
Isuzu to classify the level of supplier in regards to whether their existing plans were adequate or
whether improvement of their continuity plans was necessary.
At the same time two Isuzu suppliers, Transtron (Thailand) Co., Ltd. and Standard Auto
Manufacturing Co., Ltd. (Samco), were engaged in a ‘’Resilient SMEs Champions Programme’’2
whereby companies from across Thailand and different sectors received technical support from the
iPrepare Business project team throughout 2016-2017 aimed at enhancing their ability to cope with
disruptive events which might impact upon business operations.
This contributed to a raised interest and recognition of the need for Isuzu to enhance its business
operations more comprehensively and strategically through building resilience of its suppliers and
supply network.
3. Project Implementation
Following the earlier initiative, iPrepare Business partnered with IMCT in December 2016 to launch a
2-year pilot project on ‘Conducting Business continuity awareness and capacity building activities for
suppliers of Isuzu Motors Co., (Thailand) Ltd’. This was aimed at enhancing the capacity of the
automotive company’s key ‘’tier 1’’ suppliers to cope with disruptions arising from both natural and
technological disasters.
3.1 Project Objectives and Outcomes
The objectives set out under the project are:

 To strengthen resilience of IMCT’s suppliers on disaster and climate risk related to business
 To enhance capability in Business Continuity Management (BCM) of IMCT’s suppliers in
order to secure IMCT supply chain and increase productivity of participating companies
Aligned with the outcomes, the following outcomes are expected under the project:
 A practical and standardized Business Continuity Plan (BCP) for participating companies
 Certification from ADPC and IMCT recognizing successful of the workshop cycle by the
participating companies
2
These activities were part of an iPrepare Business regional project on “Strengthening the Disaster Resilience of Small and Medium
Enterprises in Asia” implemented in Thailand, Indonesia, the Philippines and Viet Nam with support from ADB’s Integrated Disaster Risk
Management Fund, by the Government of Canada, and GIZ within the framework of the Global Initiative on Disaster Risk Management
(GIDRM).
5
The kick off meeting was held in December 2016 in which the signing of a memorandum of
understanding (MoU) between IMCT, ADPC, and GIZ took place. The MoU will serve as a framework
for further collaboration for the next two years in the following key areas: (1) conducting of business
continuity awareness and capacity building activity, (2) sharing of knowledge, expertise and BCP as a
business-orientated approach to enhance disaster resilient of business, (3) engaging other key
stakeholders in order to promote the adoption of business continuity management (BCM), and (4)
co-organizing knowledge sharing events.
3.2 Selection of Participating Companies
Eight participating companies were selected from primary suppliers of Isuzu, i.e. ‘Tier 1’ suppliers of
in Thailand for the 1st phase 2016-2017 basing on the following predefined criteria:
 Participating companies should located in an area vulnerable or prone to disaster risk

 Strong commitment and support from top management to engage in the initiative
 Availability of core responsible working group of the participating companies
 Based on the expectation of IMCT, the other 8 companies will be selected for 2017-2018 2nd
phase
Profiles of 8 participating companies
Calsonic Kansei (Thailand) Co., Ltd. Enkei Thai Co., Ltd.
Casonic Kansei, situated in Chonburi, creates Located in Samut Prakarn, Enkei manufactures
climate control systems, compressors as well Aluminum Alloy Wheels and Engine, Engine
as heat exchange and exhaust systems. Mounting, Housing Compressor
(Turbocharger), Superchargers, Power
Steering and Shock Absorbers for Automobiles
and Motorcycles.
Inoue Rubber (Thailand) Public Co., Ltd
Based in Ayutthaya, Inoue Rubber focuses on

two product ranges. Firstly, industrial
elastomer parts and secondly motorcycle tires Inoac Tokai (Thailand) Co., Ltd.
and tubes.
Situated in Ayutthaya, Inoac Tokai (Thailand)
Co., Ltd. produces Low and medium
pressure hoses for automotive, motorcycle
and industrial use.
6
Sumitimo Rubber (Thailand) Co., Ltd.
Based in Rayong, Sumitimo manufactures and Tsubakimoto Automotive

sells tires for passenger cars, construction
vehicles, agricultural vehicles and motorcycles. Tsubakimoto Automotive, located in Chonburi,
is a manufacturer and supplier of timing drive
systems.
Valeo Automotive (Thailand) Co., Ltd.

Tokai Rika (Thailand) Co., Ltd.
Located in Rayong, Valeo produces
Based in Rayong, Tokai Rika is engaged in automotive parts that contribute to the
the manufacture and sales of automobile improvement of vehicle performance and
parts including switches, key locks, shift to the development of intuitive driving
levers etc. principally compressors and clutches.
The detailed profiles of 8 companies are available in the Annex.
7
Selection of images from the different workshops at the participating companies
8
3.3 Overview of Workshop Cycle
The direct technical support delivered to Isuzu suppliers consists of four in-house training workshops
based on BCM training modules developed by the iPrepare Business facility. The workshops are
facilitated by ADPC with inputs provided by Isuzu on technical and sector specific content.
Workshop scope Objectives Outputs
1. Private sector  To provide the better understanding of  Purpose and scope of BCP are
investment in DRM BCP approach and how to apply BCP in identified
practice  BCP team is established
BCP framework and BCP  To encourage private company to
team appropriately identify BCP purpose,
scope, and team
 To raise awareness of importance on
BCP
2. Business Impact  To understand prioritized activities (PAs)  List of key prioritized activities
Analysis and know what should be recovered first products
if business disruption occurs  List of critical resources needed
Comprehensive Risk  To identify critical resources needed for for each key activity/ product
Assessment PAs  Risk assessment
 To identify, assess, and analyze risk
systematically
3. BCM Strategy • To encourage private company to  Strategies in disaster
develop business continuity strategies in preparedness, prevention &
3 phases – before, during, and after mitigation, response, and
incident recovery
• To stimulate any business to have  Minimum business continuity
resumption strategies to recover objective
prioritized activity within RTO
4. PDCA (Plan-Do-Check- • To encourage BCP development based on  BCP exercise (e.g. tabletop
Act) cycle PDCA cycle exercise, IT system & backup site
testing)
 Evacuation drill
4. Project Results
4.1 Number of Workshop Participants
For the demographic data, the total number of trained participants from the 8 suppliers are 172 of
which 98 were male and 74 of those are female. For each company, the average number of the
participants in each workshop are shown in the chart below:
9
Average number of participants for each workshop
TRT - Tokai Rika (Thailand) Co., Ltd. 22.75
IRC - Inoue Rubber (Thailand) PCL. 22.5
CKT - Calsonic Kansei Thailand Co., Ltd. 17.5
TAT - Tsubakimoto Automotive… 16.25
EKT - Enkei Thai Co., Ltd. 13
ITTC - Inoac Tokai (Thailand) Co., Ltd. 12.5
SRT - Sumitomo Rubber Thailand Co., Ltd. 12
VALEO - Valeo Automotive (Thailand) Co.… 7.5
0 5 10 15 20 25
Total Female Male
From the chart above, we can see that Tokai Rika (Thailand) Co., Ltd. has the greatest number of
participants while Valeo Automotive (Thailand) has the least number of participants.
Participants by Gender
43%
57%
Male Female
From the chart above, it can be seen that the number of male participants are slightly more than
female participants with 57% of them are male and 43% of them are female3.
3
The data on gender was collected from all participants in all workshops where the total number of all participants are 172.
10
As for the work experience and professional level of all participants from the 8 suppliers, it is
summarized in the chart below4:
Participants by Work Experience
8%
11%
32%
7%
14%
28%
less than 1 year 1-3 years 4-6 years

7-9 years 10-12 years 13 years and above
From the chart above, it is noticeable that more than half of the participants in this project have
work experience over 10 years while only 8% of the participants have works experience less than 1
year.
Participants by Professional Level

1%
8% 7%
42%
41%
Operational Level Supervisor Level Manager Level Executive Level Others
From the chart above, it can be seen that the vast majority of the participants are in the middle
management level with over 80% are in either supervisor or manager level. Only 7% are in
operational level and only 8% are in executive level5.
4
The data on work experience and professional level of participants was collected only from the participants who filled out the
questionnaire during the 4th workshop only. The total number of participants who fill out the form are 81 while the total number of all
participants in all workshops are 172. Therefore, this data can only be used as a rough estimation of the participants during the last
workshop rather that the precise figure of all participants.
5
The 1% of others in the pie chart identified themselves as specialist without indicating their own professional level.
11
4.2 Key Outputs
The main deliverable of the project is the business continuity plan. Some key components in the BCP
can be summarized as follows:
4.2.1 Purposes of Implementing BCP
The key purposes of implementing Business Continuity Plan identified by each company are to
achieve the following:
 Employees in each company are safe in the event of undesirable incident or disaster.
 Key business activities are able to operate on an ongoing basis in the event of any business
disruption.
 Stakeholders, especially customers and investors, are confident in the continuity of business.
4.2.2 Risk Assessment and Business Impact Analysis
For Risk Assessment (RA), it was notable that 8 companies list fire hazard as the risk they were most
concerned about while only 5 out of 8 list flood hazards as one of the high-rank risks based on
impact and likelihood of the event. Other identified causes of business disruption include employee
strike, gas leak, power outage and loss of data due to computer virus.
For Business Impact Analysis (BIA), Production and Delivery seems to be the activities of greatest
concern since Production appears in one of the top 3 prioritized activities for all 8 manufacturing
companies, whilst 7 out of the 8 companies list Delivery as one of the top 3 prioritized activities as
well. Other identified activities that could cause significant impacts on business processes include
Planning, Order Receiving, Purchasing and Quality Control.
The list of top identified RA and BIA for all 8 suppliers are in the tables as follows:
Company Risk Assessment Business Impact Analysis

(High-risk; impact and likelihood) (Top 3 PAs)
CKT - Calsonic Kansei  Flood  Delivery
(Thailand) Co., Ltd.  Fire  Production
 Power Outage  Quality Control
EKT - Enkei Thai Co., Ltd.  Fire  Production (Painting and
 Employee Strike Checking)
 Gas Leak  Production (Casting and
Machining)
 Storage and Delivery
IRC - Inoue Rubber (Thailand)  Fire  Planning
Public Co., Ltd.  Flood  Delivery
 Production (Mixing)
ITTC - Inoac Tokai (Thailand)  Fire  Delivery
Co., Ltd.  Employee Strike  Order Receiving
 Flood  Production
12
SRT - Sumitomo Rubber  Fire  Production (Secondary)
Thailand Co., Ltd.  Delivery
 Order Receiving
TAT - Tsubakimoto  Fire  Delivery
Automotive (Thailand) Co.,  Flood  Production
Ltd.  Order Receiving
TRT - Tokai Rika (Thailand)  Fire  Production
Co., Ltd.  Data Loss / Computer Virus  Order Receiving
 Power Outage  Purchasing
Valeo Automotive (Thailand)  Fire  Delivery (Export)
Co. Ltd.  Employee Strike  Production
 Flood  Purchasing (Local)
4.2.3 Business Continuity Strategies

Each of the 8 suppliers have developed their own business continuity strategies which can be divided
into 3 phases (before disaster, during disaster and after disaster). According to the top 3 results of
Risk Assessment of all 8 companies, some key proposed strategies of for flood, fire and labor strike
can be summarized in the tables below:
Strategies for Flood

Risk and Phases Proposed Strategies Timing of
of Strategy Execution
Flood  Maintaining water pump to be available for use Before

(Prevention and disaster
Mitigation)  Assigning an alternative site for working in case of
disaster
 Developing plans to train capable employees to be

multi-skilled so that they can substitute to other
employees
 Sourcing for logistic providers who have a capacity to

deliver products even in the event of flooding
 Planning alternative transportation routes during the

time of crisis
 Designating areas for product delivering and picking in

advance
Flood  Mobilizing Emergency Operations Center (EOC) During

(Emergency disaster
Response)  Arranging transportation service for employees to use in
given spots
 Arranging temporary shelter and food & water supplies

for employees to stay at factory
 Rearranging a work schedule in accordance with

affected employees
 Modifying transportation truck to be able to delivering
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products in the event of flooding
 Coordinating with customers to re-arrange

transportation and update the situation
Flood  Transferring FG/ RM to alternative warehouse After

(Continuity and disaster
Recovery)  Modifying transportation truck to be able to delivering
products in the event of flooding
 Coordinating with customers to re-arrange

transportation and update the situation
Strategies for Fire

Fire  Developing plans to train capable employees to have Before

(Prevention and multi-skills so that they can substitute to other disaster
Mitigation) employees
 Preparing plans for outsourcing workers in case

employees are affected by a disaster and cannot come
to work
 Preparing trial plans for producing key products at other

branches/ partner company
 Planning & surveying capability of producing of key

products at other branches/ head office
 Considering to build additional plant in order reduce

negative impact from an existing plant
 Developing an emergency manual on delivering products

at the event of disaster
Fire  Evacuating employees During

(Emergency disaster
Response)  Getting confirmation of employee safety
 Mobilizing Emergency Operations Center (EOC)
Fire  Relocating a temporary production line to the After

(Continuity and alternative site disaster
Recovery)
 Negotiating with customers for arranging substitute
products from other branches/ head office
 Using a temporary warehouse from external service

providers
 Importing critical products from head office by airfreight
14
Strategies for Labor strike
Labor Strike  Developing plans to train capable employees to have Before

(Prevention and multi-skills so that they can substitute to other disaster
Mitigation) employees
 Conducting an annual survey on employees’ satisfaction

lead to solving problems based on analyzed issues
 Developing an emergency plan on delivering products

and planning for acquiring external service provider
 Exercising an employees’ evaluation every quarter, the

results need to be notified by supervisor for further
improvement
Labor Strike  Rearranging production plan in accordance with the During

(Emergency actual volume of manpower disaster
Response)
 Rearranging deliver and production plans and getting
approval on process change in accordance with
prioritized customers
 Negotiating between management and employees’

representative in order to sort out the issue
 Coordinating with customers and key stakeholders to

update the situation regularly
Labor Strike  Relocating capable employees who have multi-skills to After

(Continuity and work for other function in needed disaster
Recovery)
 Negotiating between management and employees’
representative in order to sort out the issue
 Coordinating with customers and key stakeholders to

update the situation regularly
More proposed strategies of each supplier can be found in the annex.
15
4.3 Immediate Outcome
The immediate outcome of the project is that the selected suppliers of Isuzu are equipped with
capacity in the topic of Business Continuity. The evaluation and feedbacks by participants are listed
in the following sections.
4.3.1 Evaluation of the Training
Following the process of project implementation by facilitating a series of in-house workshops, the
project evaluation has been done by 81 participants who attended the final workshop of each
company. The results of evaluation are grouped into 2 major issues, which are the content and the
instructor.
Content Evaluation
Content evaluation by all companies

1.1 Objectives, procedure
and expected results from
the project are clearly
stated.
4.4
4.3
1.6 I can convey the 4.2
1.2 Each workshop
knowledge gained to 4.1 contains suitable amount
extend the results to my 4.0 of time duration.
colleagues. 3.9
3.8
3.7
1.5. The knowledge 1.3 I now understand

that I have learned can be how to develop a
applied to the Business Continuity Plan
organization effectively. well.
1.4 I can develop and

review to improve the
organization's BCP plan.
Overall, the training has achieved the objectives as the participants now successfully understand
how to develop a Business Continuity Plan as they rate this issue as the highest score. However,
whether they can convey the knowledge gained to extend the results to their colleagues is still the
area that can be improved.
16
Instructor Evaluation
Instructor Evaluation by all companies
2.1 The instructor is

knowledgeble in the
subject matter and can
convey the knowledge
well.
4.5
4.5
4.4
4.4
4.3
2. 5 The instructor uses 4.3
4.2 2.2 The instructor is
presentation media and
4.2 able to convene the
training materials
4.1 workshop consistently.
properly.
4.1
4.0
2.4. The instructor

2.3 The instructor can
provides opportunity for
create atmosphere that
participants to ask
encourages participants
questions and make
to be interested in the
comments with
training.
satisfactory response.
As for the instructor ratings, most participants feel that the instructor provides an opportunity for
participants to ask questions and make comments with satisfactory response while the use of
presentation media and training materials is an area that can still be improved.
4.3.1 Feedbacks and Observations
In general, the participants tended to have positive feedback about the project. For example, the
Deputy Executive Director of iRC, Co-leader of BCP team appreciated the project saying that “during
the 2011 floods the company was not clear on what actions need to be taken and everyone had
different ideas, however through the training necessary steps and measures at the time of incident
are now clear and the company can now work toward the same target to address such disaster
events to ensure continuity of the business operation”. Following the completion of the training, the
company is planning to report back on the BCP developed to its top management and also decided
to review the BCP once a year.
17
The experience thus far has indicated that top management in the participating companies are
interested in moving forward the BCM strategies developed through direct technical support, which
implies that they are willing to embed the strategy into their corporate risk management strategy.
Furthermore, some of the participating companies plan to encourage their own suppliers to
implement the same approach on business resilience in order to prevent business disruption from
disasters. Therefore, working with large enterprises is a promising approach as suppliers throughout
their supply chain are interested in managing disaster risk if such an opportunity is provided.
As for the training, some participants felt that the duration of the project was quite short and should
have covered more topics such as supply chain management and productivity improvement.
However, although the focus on making supply chains more efficient and lean makes economic
sense, senior executives must recognize that lean and efficient supply chains face a higher risk of
disruption. There is a direct relationship between efficiency and risk. Firms can no longer afford to
focus solely on cost reduction. Major supply chain investments and initiatives must also take into
consideration how these investments and changes affect the risks of supply chain disruptions. In
many instances supply chain investments and initiatives should be undertaken not because they
reduce costs but because they increase the reliability and responsiveness of supply chains. Such
investments and initiatives should be viewed as insurance against avoiding destruction of corporate
performance should disruptions happen and they should be justified on this basis and not cost
savings.
4.4 Economic Benefits for Supply Chain Resilience
While it is not easy to determine the concrete benefits or the Return on Investment (ROI) from
implementing Business Continuity or Supply Chain Continuity program, some economic benefits can
be estimated from the probability of risk of a disaster and potential loss from the disaster.
During the Thailand great flood in 2011, Isuzu’s production line in Thailand could not function for six
weeks because many of its key suppliers were inundated and could not deliver critical parts and
components in order for Isuzu to manufacture vehicles over this period. As a result, the loss from
the 6-week disruption can be interpreted as a loss of profit from the potential flood risk. A simple
calculation of the loss can be illustrated as follows:
18
Total revenue of Isuzu Motor (Thailand) in 20166 171,620,854,008 Baht
Hypothetical annual gross profit
(assuming 10% gross profit margin) 17,162,085,401 Baht
Estimated opportunity cost for 6-week disruption
(17,162,085,401 * 6/52) 1,980,240,623 Baht
Estimated probability of great flood occurrence
(assuming great flood can occur once in every 50 years7) 0.02
Annual expected loss from flood
(1,980,240,623 * 0.02) 39,604,812 Baht
For the most current available figure, the total revenue of Isuzu Motor (Thailand) in 2016 is
171,620,854,008 Baht. If we assume the annual gross profit margin of the company to be 10%, then
the economic loss from disruption in 6 weeks would be estimated as 171,620,854,008 * 10% * 6/52,
which is equal to 1,980,240,623 Baht. Now, if we estimate the chance of the great flood event in
Thailand to happen once in every 100 years, then the probability of the disaster would be estimated
as 1 divided by 100, which is equal to 0.01. Putting both probability of risk of a disaster and
potential loss from the disaster together, then we have 1,980,240,623 * 0.02, which is equal to
39,604,812 Baht. As a result, a supply chain continuity program could potentially save Isuzu for up
to 39,604,812 Baht annually if the risk from disaster is totally eliminated. However, it is impossible
to totally eliminate the disaster risk from flooding altogether, it follows that the economic monetary
value for Isuzu from implementing the program must be below that number.
5. Challenges and Lessons Learned from the Project

Based on feedback from the participating companies and observations from the project team for the
following key issues, preliminary learnings and possible challenges relating to the capacity building
activities for Isuzu suppliers were grouped into two main issues as follows:
5.1 Top Management Support

1. In order to achieve the BCP goal successfully, many activities require strong leadership and
support from senior executives to encourage the employees to participate enthusiastically
and to provide feedback and insights in the context of each company.
2. Many companies consider the development of BCP as a low priority activity that may delay
or disrupt the completion of regular business. Developing a comprehensive BCP is a large
6
Source: The top 100 companies in Thailand with the highest revenue in 2016, Thailand’s Department of
Business Development, Ministry of Commerce ( https://goo.gl/cK32va )
7
It was reported that Thailand's monsoon rainy season in 2011 was the most severe in 50 years. (Source:
https://www.voanews.com/a/thailand--floods-worst-in-five-decades-130972153/146066.html )
19
undertaking which should consider activities across a variety of different departments which
may operate across a number of shifts. Therefore, BCP preparation may be given lower
prioritization than other staff when some other urgent matters come up, which may prevent
some BCP team members not being able to attend the necessary workshops or having to
delegate new attendees to participate in the workshops instead. So the top management
should make sure that the employees understand this.
5.2 BCP Core Group
1. Many of the participating companies, aside from their role as Isuzu suppliers, are large multi-
national corporations with complex business process and multiple product lines in their own
right. Therefore, executing Business Impact Analysis (BIA) requires the involvement of
representatives from all parties to analyze each issue to lead the effective and practical
implementation of the BCM strategy, which could be challenging as all parties may not be
available to provide inputs into this process simultaneously.
2. Some companies are requested by the head office (based abroad) to establish a BCP or the
local office or factory may have already independently established other contingency plans
already. Therefore, the participants should be guided to understand that the scope and
context of the plan under this project may be different from any existing plans but can still
add value to existing initiatives or strategies. Moreover, information that is already available
may be used and incorporated into this new plan.
3. Different companies have varying levels of knowledge on risk management and business
continuity planning and a number of employees in some companies possessed zero
knowledge or training on this topic before the workshop. Therefore, the achievement and
progress of the workshops in each company can vary significantly, depending on the factors
mentioned.
4. Each company should assign a focal point as a contact person for this project in the
company. This focal point should be a technical person who is capable of working and
collaborating with all parties within the company quickly and easily. This would be more
efficient and can speed up the process rather than assigning secretarial staff to be
responsible for this role.
5. In establishing the team responsible for BCP preparation, many companies may have a
tendency to assign a certain key person to be responsible for multiple roles in responding to
a disaster. However, in reality such a practice could be impractical during a real crisis. So it is
important to advise each company to assign each role appropriately to different staff and
reserve a leadership role for someone who has not already been assigned to other
important responsibilities and tasks during a crisis.
20
6. Recommendations
For the immediate action after the project, it is recommended that in order to sustain BCM/BCP
development in the long run, the training on this particular subject should be incorporated within
the Human Resource Development policy so that it is mandatory for employees to be trained
regularly. Integrating BCM/BCP as part of corporate strategy is an entry point for up-scaling to reach
international standard and gain competitive advantage for the business and its interconnected
supply chain. Moreover, the project helped participating companies identify various business
continuity measures. In order to implement the measures, companies should be clear about their
priority and develop investment plan. Finally, it should be emphasized that BCP exercise and PDCA
cycle is recommended to be executed at least once a year.
Looking forward, while the value proposition of improving efficiencies and reducing costs in the
supply chain is clear, many executives are having difficulties grasping and fully understanding the
economic consequences of supply chain disruptions. As a result, this may have prevented many
executives from making investments and changes that could improve supply chain resilience.
However, many research works have shown that supply chain disruptions have a devastating effect
on profitability.
One study8 shows that firms that experience disruptions on average experience a 107% decrease
operating income, 114% decrease in return on sales, and 92% decrease in return on assets.
Moreover, supply chain disruptions negatively affect sales. The same study also shows that the mean
(median) percent change in sales is about -7% (-3%). Nearly 54% of the sample firms experienced
negative sales growth. Disruptions also increase total costs. The mean (median) change in total costs
is about 11% (4%). Nearly 65% of the sample firms experience an increase in total costs. The drop in
sales together with the increase in total costs explains the economically significant drop in operating
income-based measures.
Therefore, in order to strengthen the supply chain resilience as a whole rather than each supplier
individually, the automotive industry could benefit from a program in Supply Chain Risk
Management (SCRM) as this is an approach for managing risk in the supply chain in a holistic
manner. For one thing, Isuzu should select strategic suppliers to be partners in the project by using
techniques in SCRM. Consequently, it is recommended that the third phase of the project should be
scaled up by embedding integrated risk management in Isuzu’s supply chain.
8
Source: Hendricks and Singhal, “The Effect of Supply Chain Disruptions on Long-term Shareholder Value,
Profitability, and Share Price Volatility”, June 2005
21
Annex 1: Summary Results for Each Supplier
22
Calsonic Kansei (Thailand) Co., Ltd.
Area of Business: Automotive parts
Number of Employee: 1,800
Name of Executive: Mr. Hironori Kimura, President
Location: 700/641 Amatanakorn Industrial Estate

Moo 3 Tambon Bankao, Amphur Pantong, Chonburi
Company in Brief:
Calsonic Kansei (Thailand) Co., Ltd. (CKT) is a global comprehensive automotive parts manufacturer.
CKT’s product lines include CPM & Interior products, Climate Control Systems, Compressor, Heat
Exchange and Exhaust Systems. CKT’s vision is to Establish Brand Name “Calsonic Kansei Thailand” in
Thailand Market and CK Global under the quality policy to be the number one in the world and
highest customer satisfaction. CKT’s mission is Human Resource Development, Standardization and
Visualization.
Business Resilience Initiatives:
Due to the flood incident in 2013 of Phan Thong district, where Amata Nakorn Industrial Estate is
located, several factories in the vicinity of CKT were flooded and damaged to a halt. However, CKT
responded by building sandbag barriers around the factory and managed the water by setting up a
pump to drain the rain water that comes out of the factory. The area surrounding the company is
flooded with the water level about 50-70 cm. Although the flood did not cause any disruption to
production and the building was not damaged, the company staff were impacted in terms of housing
and transportation to work for 2 consecutive weeks. For the employees who live in areas where
there is no flood, the army arranged transportation vehicles for employees to commute to the
company. For the employees who lived in the flood zone, the company allowed employees to take
leave and keep track of the employee conditions throughout the flood duration.
For risk reduction operations, since the 2011 great flood event in Bangkok and Pathumthani. CKT has
implemented a flood response plan by bringing a backhoe excavator to make a flood barrage in front
of the factory as well as improving drainage and installing pumps in many locations around the
factory. Therefore, the flooding incident in Chonburi in 2013 did not affect CKT much. However,
even though CKT was not directly impacted, the Emergency Response Plan has been updated and
reviewed and there is an intention to develop the plan into a full business continuity plan (BCP),
which will also extend to include CKT suppliers in the plan as well.
23
Risk Assessment:
The risk comparison for CKT is shown in the chart below:
Risk Comparison for CKT
Political protest
Wildfire
Hazardous materials
Disease outbreak
Data loss
Bird infestation
Storm
Fire (Production area)
Power outage
Water outage
Fire (Warehouse area)
Flood
0.00 2.00 4.00 6.00 8.00 10.00 12.00
Overall Risk scores Impact scores Likelihood scores
24
Business Continuity Strategies:
For CKT, the workshop results in several strategies for the company to mitigate the potential risks.
Some key proposed measures along with related risks and activities can be summarized as follows:
No. Key proposed measures Related risk Affected activities

1 Developing plan to train capable employees to have Fire, Flood Production,
multi-skills so that they can substitute employees Product delivery
who are not available to work
2 Preparing plan for outsourcing sub-contract workers Fire, Flood Production,
Product delivery
3 Finding temporary location for product storage Fire, Flood Warehouse
4 Purchasing contingency equipment such as Fire, Flood Product delivery,
computers and barcode scanners Procurement
5 Developing plans for product storage in different Fire, Flood Warehouse,
locations Product delivery
25
Demographics of Participants:
For this company, the statistics of participants for each of the 4 workshop modules is shown in the
chart below:
Number of participants for each workshop by gender

for CKT - Calsonic Kansei Thailand Co., Ltd.
30
27
25
20
17
15
14
12
10
0
M1: BCP Framework M2: Business Impact M3: BCM Strategy M4: PDCA Cycle
Analysis
Male Female All
Summary of participants by gender
41%
59%
Male Female
26
The participation breakdown of this company by work experience and professional level is shown in
the charts below. Note that the data on work experience and professional level are collected from
the participants who filled out the evaluation questionnaire during the final workshop only.
8%
17%
17%
25%
33%

9% 9%
18%
64%
27
Workshop Evaluation by Participants:
At the end of the project, participants of the fourth workshop were asked to evaluate the quality of
the training and we have the results as follows:
Content Evaluation
1.1 Objectives, procedure and
expected results from the
project are clearly stated.
4.3
4.2
4.1
1.6 I can convey the 1.2 Each workshop
knowledge gained to extend 4.0 contains suitable amount of
the results to my colleagues. 3.9 time duration.
3.8
3.7
3.6
1.5. The knowledge that I

1.3 I now understand how
have learned can be applied
to develop a Business
to the organization
Continuity Plan well.
effectively.


knowledgeble in the subject
matter and can convey the
knowledge well.
4.3
4.2
4.1
2. 5 The instructor uses 4.0 2.2 The instructor is able to
presentation media and 3.9 convene the workshop
training materials properly. 3.8 consistently.
3.7
2.4. The instructor provides

opportunity for participants
to ask questions. Comment
encourages participants to be
and answer the questions are
interested in the training.
completely understandable.
28
Enkei Thai Co., Ltd.
Area of Business: Manufacturing of Aluminum Alloy Wheels and Aluminum Alloy Parts of Engine,
Engine Mounting, Housing Compressor (Turbocharger), Supercharger, Power Steering and Shock
Absorber for Automobiles and Motorcycles
Number of Employees: 2,233
Name of Executive: Mr. Norito Takei, Managing Director
Location: 444, 2/444, 3/129, 5/129and 6/129Moo 17, Soi 6, Bangplee Industrial Estate, Tayparak
Road, Bangsaothong, Samutprakarn 10540, Thailand
Company in Brief:
Enkei Thai Co., Ltd. (EKT) is a provider of Aluminum Alloy Wheel and Foundry parts to the global
automative and allied industries. EKT business activities include designing, developing, molding,
casting, machining, painting and testing. EKT also support product design and testing for Enkei
group companies in ASEAN and India. EKT customers are those who buy products and services,
suppliers, and employees as well. EKT business management system defines the organization,
responsiblities, policies, objectives and procedures required to meet our goals
Although the Thailand great flood in 2011 did not damage EKT directly, many of EKT’s clients were
affected both directly and indirectly from the flood. Many of the employees were also affected as
well since their houses were flooded. Even though these employees could come to work, their
quality of life in general was impacted upon. As a result, EKT developed a contingency emergency
plan later on in that year to respond to flood disaster, including providing shelters for employees
whose houses were affected by flood as well as helping employees protect their properties from
flood water. In that year, EKT provided an emergency plan for floods for the first time. EKT is keen
to implement an emergency plan to reduce the risk to keep business running smoothly. And in
2016, EKT was given the opportunity to received training in Business Continuity Planning and EKT is
committed to developing a full business continuity plan.
29
Risk Assessment:
The risk comparison for EKT is shown in the chart below:
Risk Comparison for EKT
Pest contamination
Road collapses
Storm and lightning
Wildfire
Earthquake
Hazardous materials
High tide
Disease outbreak
Drought
Protest
Data loss
Flood
Explosion
Power outage
Water outage
Gas leak
Employee strike
Fire
0 2 4 6 8 10 12
30
For EKT, the workshop results in several strategies for the company to mitigate the potential risks.

1 Developing plan to train capable employees to have Fire, Production
multi-skills so that they can substitute employees Employee (painting/checking,
who are not available to work strike casting/machining),
Storage and
delivery
2 Preparing plan for outsourcing sub-contract workers Fire, Production
Employee (painting/checking,
strike casting/machining),
Storage and
delivery
3 Providing fire extinguisher training course to Fire Production
employees (painting/checking,
casting/machining),
Storage and
delivery
4 Switching fire extinguisher system to the one that has Fire Production
no impact to machines and products (painting/checking,
casting/machining)
5 Considering adding another facility for production Fire Production
painting (painting/checking)
6 Improving MDB control system by using visualized Fire Production
control concept to be able to check and compare (casting/machining)
temperature and humidity between inside and
outside of the control system box
7 Conducting annual employee satisfaction survey Employee Production
strike (painting/checking,
casting/machining),
Storage and
delivery
8 Conducting training on employee attitude adjustment Employee Production
as necessary strike (painting/checking,
casting/machining),
Storage and
delivery
9 Developing plan for installing NGV gas detector in the Gas leaking Production
painting facility (painting/checking,
casting/machining)
10 Conducting training for employees on gas safety Gas leaking Production
(painting/checking,
casting/machining)
31
chart below:

for EKT - Enkei Thai Co., Ltd.
20
19
18
16
15
14
12
10 10
8 8
6
4
2
0
Analysis
Male Female All
16%
84%
Male Female
32
8%
8%
8%
58%
17%

18% 18%
64%
33
Content Evaluation
4.5
4.4
4.3
4.2
1.6 I can convey the 4.1 1.2 Each workshop
3.8
3.7
3.6
3.5

to the organization
effectively.

knowledge well.
4.5
4.5
4.4
4.4
4.3
4.2
4.1
4.0

34
Inoue Rubber (Thailand) Public Co., Ltd.
Area of Business: Automotive parts

Number of Employees: 789
Name of Executive: Mr. Takenori Nakamoto ,President
Mrs. Pimjai Leeissaranukul ,Chairman
Location: 157 Moo 5 Phaholyothin Rd., Lamsai, Wongnoi, Ayutthaya 13170
Company in Brief:
Inoue Rubber (Thailand) Public Co., Ltd. “iRC” is a joint-venture company, established on December
15th, 1969 with the aim to manufacture elastomer products for automotive and other industries, and
motorcycle tires and tubes with high quality at the international level. Those quality products are
manufactured from Rangsit, Pathumthani and Wangnoi, Ayutthaya plants. Our Businesses have been
divided into 2 groups namely:
1. Industrial Elastomer Parts

2. Motorcycle Tires and Tubes
iRC Wangnoi, Ayutthaya plant has manufactured and developed Industrial Elastomer Parts based on
customer demands under various specification and application. Our industrial elastomer parts can
be divided into 2 main categories as below:
1. Elastomer parts for automotive industry such as Hose Air, Weather Strip, Engine Mounting
Rubber, Shield Fuel Tank, Rubber Gasket, Trunk Lid Cover, Rubber Fuel Tank Grommet,
Rubber Sound/ Dust Seal etc.
2. For other industries, iRC has aimed to support our customers’ specification such as rubber
parts used in the Railway Infrastructure Projects, agricultural and fishery machineries,
cooling machines rubber cushions for electrical appliances, construction materials, container
seals, and others as customers’ needs.
iRC experienced the Thailand great flood in 2011 with water level around 300 centimeters high
outside the factory. Although iRC assets and production lines were not damaged since the flood
water did not get inside the factory. Nevertheless, there were problems since finished goods could
not be delivered to customers due to flood water outside the factory and many of the employees
could not come to work since their houses and transportation routes were flooded for around 2
months.
For disaster risk reduction activities since 2011, iRC has built a concrete wall to protect the factory
from flood water as prevention and mitigation measures to reduce flood risk. Also, power generator
and water pumping are identified and prepared as part of structural measures as well. Moreover,
iRC has been initiating a team to develop a full-scale Business Continuity Plan in order to prepare for
natural disasters such as flooding which could disrupt their business in the future.
35
Risk Assessment:
The risk comparison for IRC is shown in the chart below:
Risk Comparison for IRC
Neighboring company protest
Road Collapses
Hazardous materials
Data loss
Drought
Power outage
Disease outbreak
Bird infestation
Community protest
Flood
Fire
0 1 2 3 4 5 6 7 8 9
Overall Risk Scores Impact Scores Likelihood Scores
36
For IRC, the workshop results in several strategies for the company to mitigate the potential risks.

1 Investigating vulnerable spots for fire hazard and Fire Production planning
inspect the strength of building structure annually , Production (mixing,
press, CV), Product
delivery, Forecast
receiving, Quality
Assurance
2 Preparing plans for using computer applications on Flood, Fire Production planning
mobile phones or tablets temporarily in case , Production (press)
computers are not available for use
3 Migrating database from server to cloud Flood, Fire Production planning
, Production (press)
4 Installing emergency power generator devices Flood, Fire Production planning
, Production (press)
5 Preparing temporary concrete barriers for use in case Flood Production
of flooding planning, Product
delivery, Production
(mixing, press, CV),
Procurement,
Forecast receiving,
Quality Assurance
6 Arranging plan for outsourcing drivers for product Flood Product delivery
delivery
7 Preparing preventative maintenance plan Fire Production (Mixing,
CV), Forecast
receiving
8 Arranging alternative working sites Flood Forecast receiving
9 Developing plan to train capable employees to have Flood, Fire Production planning
multi-skills so that they can substitute employees who , Product delivery,
are affected by a disaster Forecast receiving,
Quality Assurance
10 Implementing server backup plan Fire Quality Assurance
37
chart below:

for IRC - Inoue Rubber (Thailand) PCL.
35
33
30
25
22
20
18
17
15
10
0
Analysis
Male Female All
36%
64%
Male Female
38
8%
17%
50%
17%
8%

8%
8%
17%
67%
39
Content Evaluation
4.2
4.1
4.0
1.6 I can convey the 1.2 Each workshop
3.7
3.6
3.5

to the organization
effectively.

knowledge well.
4.2
4.1
4.0
3.6

40
Inoac Tokai (Thailand) Co., Ltd.
Area of Business: Low and medium pressure hose

Number of Employees: 846
Name of Executive: Mr. Koji Yamauchi, Managing Director
Mr. Mitsuo Shimomura, Deputy Managing Director
Mr. Suporn Lertchitwuttikul, Executive Director
Location: 157/4 Moo 5 Phaholyothin Rd., Lamsai, Wongnoi, Ayutthaya 13170
Company in Brief:
iTTC was established in 2001to be one of the highest quality manufacturing company in the ASEAN
region, and has been producing low & medium pressure rubber hoses for automotive, motorcycle
and industrial uses. We keep improving ourselves and are dedicated to the highest standards for our
valued customers. We will always pursue customers’ satisfaction, and provide products and services
which will satisfy customers beyond their current expectations.
iTTC experienced the Thailand great flood in 2011 with water levels around 100-200 centimeters
high at the main road outside the factory. Although iTTC assets and production lines were not
damaged since the flood water did not get inside the factory, there were problems nevertheless
since finished goods cannot be delivered to customers due to flood water outside the factory and
many of the employees could not come to work since their houses and transportation routes were
flooded for around 4 weeks. As a result, iTTC arranged for their company facility to be a temporary
shelter as well as providing food supplies to their employees during the flood.
For disaster risk reduction activities since 2011, iTTC has established a team to develop a flood
emergency plan. Moreover, iTTC has been initiating a team to develop a full-scale Business
Continuity Plan in order to prepare for natural disaster such as flood which could disrupt their
business in the future.
41
Risk Assessment:
The risk comparison for iTTC is shown in the chart below:
Risk Comparison for iTTC
Political Protest
Data loss
Hazardous materials
Power outage
Flood
Disease outbreak
Employee strike
Fire
0 1 2 3 4 5 6 7 8 9
42
For iTTC, the workshop results in several strategies for the company to mitigate the potential risks.

1 Developing plan to train capable employees to have Flood, Fire Production,
multi-skills so that they can substitute employees who Product delivery,
are affected by a disaster Order receiving
2 Preparing plan for outsourcing sub-contract workers Flood, Fire Production,
Product delivery
3 Designating areas for product delivering and picking in Flood, Fire Product delivery
advance
4 Sourcing for logistic providers who have a capacity to Flood Product delivery
deliver products even in an event of flooding
5 Arranging an advance procedure to obtain a boat in Flood Product delivery
case of flood since boats will be in shortage in the
market when there is a flood
6 Assigning an alternative site for working in case of Flood, Fire Production,
disaster Product delivery,
Order Receiving
7 Planning alternative transportation routes to avoid Flood, Fire Product delivery
hazardous area during a disaster
43
chart below:

for ITTC - Inoac Tokai (Thailand) Co., Ltd.
25
20 20
15
12
10
9 9
0
Analysis
Male Female All
45%
55%
Male Female
44
43%
57%

38%
63%
45
Content Evaluation
4.5
4.0
3.5
1.5
1.0
0.5
0.0

to the organization
effectively.

knowledge well.
4.2
4.1
4.0
3.9
3.8
3.4
3.3

46
Tsubakimoto Automotive (Thailand) Co., Ltd.
Area of Business: Automotive industry by providing top quality timing drive systems
Number of Employee: 373 (Thai: 365 and Japanese: 8)
Name of Executive: Mr. Sachio Hayashi
Location: Amatanakorn Industrial Estate Phase 4

700/467 Moo.7, T.Donhuaroh, A.Muang, Chonburi 20000 Thailand
Company in Brief:
Tsubakimoto Automotive (Thailand) Co., Ltd will serve the Automotive Industry by providing the best
quality Timing Drive System to the ASEAN Market. A “world engine” is an engine that automakers
build to same specifications in two or more countries. As part of our global strategy, we have
established a component supply system specifically designed to service “world engines.” The six-
point global product and supply system comprises Japan, the United States, the United Kingdom,
Korea, China, and Thailand focused on operational infrastructure, Tsubaki aims to carve out a larger
share of the world market while realizing uniform quality and pricing worldwide.
Although TAT did not get any impact from flood water hitting Amatanakorn Industrail Estate in
October 2013, TAT has been initiating a team to develop a full-scale Business Continuity Plan in
order to align with a requirement from the headquarters to be ready to respond to disaster which
could disrupt their business in the future.
47
Risk Assessment:
The risk comparison for TAT is shown in the chart below:
Risk Comparison for TAT
Terrorism
Neighboring fire
Storm and lightning
Bird infestation
Hazardous materials
Employee strike
Power outage
Data loss
Flood
Fire
0 2 4 6 8 10 12 14
48
For TAT, the workshop results in several strategies for the company to mitigate the potential risks.

1 Revising marketing department’s procedure manual Fire Order receiving
for communication with clients in case of emergency
2 Purchasing alternative tools for contingency plan Fire Quality assurance
3 Examining production capacity of corporate Fire Production
headquarters and affiliates to see if it is sufficient as
an alternative plan in case of disaster
4 Considering purchasing alternative computers for Fire Production
emergency use
5 Compiling database to see which affiliates are capable Fire Product storage,
of producing the same Product delivery
6 Developing plan to train capable employees to have Flood Material planning
multi-skills so that they can substitute employees
7 Preparing plans for outsourcing workers Flood Material planning
8 Adjusting the height of roller racks in the warehouse Flood Product storage,
to avoid flood water Product delivery
9 Outsourcing cleaning services Fire Production
49
chart below:

for TAT - Tsubakimoto Automotive (Thailand) Co., Ltd.
20
19
18 18
16 16
14
12 12
10
8
6
4
2
0
Analysis
Male Female All
42%
58%
Male Female
50
20%
30%
50%

22%
78%
51
Content Evaluation
4.5
4.0
3.5
1.5
1.0
0.5
0.0

to the organization
effectively.

knowledge well.
4.8
4.7
4.7
4.6
4.5
training materials properly. consistently.
4.4
4.4

52
Tokai Rika (Thailand) Co., Ltd.
Area of Business: Manufacturer of Automotive Parts
Number of Employee: 1,641
Name of Executive: Mr. Teruaki Kitano, President
Location: Amata City Industrial Estate 7/114, Moo4, T.Mabyangporn, A.Pluakdaeng, Rayong
21140
Company in Brief:
Tokai Rika (Thailand) Co., Ltd. established in September 1997. TRT is mainly engaged in the
manufacture and sales of automobile parts. The company provides automobile field products
including switches, key locks, shift levers and immobilizers of key product and others. TRT was
achieved ISO/TS 16949 and ISO 14001 certification.
During Thailand great flood in 2011, TRT experienced an indirect impact caused by business
disruption on supply chain system due to the fact that their suppliers in Ayutthaya province were
directly affected and temporarily close the operation. However, TRT has responded to their business
disruption problem by repairing the old Mold which is their asset returning from the supplier.
For disaster risk reduction activities since 2013, TRT has been initiating a team to develop a full-scale
Business Continuity Plan in order to prepare for natural disaster such as flood which could disrupt
their business in the future.
53
Risk Assessment:
The risk comparison for TRT is shown in the chart below:
Risk Comparison for TRT
Drought
Pest contamination
Gas explosion
Magnesium explosion
Storm and lightning
Shuttle bus accident
Flood
Power outage
Data loss
Fire
0 2 4 6 8 10 12 14
54
For TRT, the workshop results in several strategies for the company to mitigate the potential risks.

1 Developing plan to train capable employees to have Fire Production
multi-skills so that they can substitute other (production
employees line)
2 Preparing plans for sub-contracting outsourced Fire Production
workers temporarily (production
line)
3 Preparing plans for maintaining building structure Fire Production
(production
line)
4 Replacing manual fire extinguishers with automatic Fire Production, Order
CO2 system (production receiving,
line, server Procurement (part,
room) in-house),
Production
planning
5 Purchasing new production machines from Japan and Fire Production
adjusting machine specification in order to reduce (production
probability of fire hazard line)
6 Installing partitions to separate the production line Fire Production
area into 3 lines so that a fire event in one line will not (production
affect the other 2 lines. line)
7 Arranging alternative area for machine in case the Fire Production
original area is affected by disaster and becomes (production
unavailable line)
8 Developing plan to use electricity from the power Fire Production
generator of other departments (production
line)
9 Developing plan to use Nitrogen from alternative Fire Production
sources (production
line)
10 Developing plan for a disaster recovery site Fire (server Order receiving,
room) Procurement (part,
in-house),
Production
planning
55
chart below:

for TRT - Tokai Rika (Thailand) Co., Ltd.
30
25 25
24
22
20 20
15
10
0
Analysis
Male Female All
38%
62%
Male Female
56
15%
46%
38%

46%
54%
57
Content Evaluation
4.4
4.3
the results to my colleagues. time duration.
4.0
3.9
3.8

to the organization
effectively.

knowledge well.
4.6
4.5
4.5
4.4
4.4
4.3
4.1
4.1

58
Sumitomo Rubber (Thailand) Co., Ltd.
Area of Business: Manufacture and sales of tires. (For passenger cars, construction vehicles,
agricultural vehicles, motorcycles)
Number of Employee: 6,896 employees including 36 expatriates (Data on 28th Feb 2017)
Name of Executive: Mr. Masaharu Ono
Location:
Head Office: 7/232 Moo 6 Soi Pornprapa, Amata City Industrial Estate, Mabyangporn, Pluakdaeng,
Rayong
Factory No.3: 7/373 Moo 6 Soi Pornprapa, Amata City Industrial Estate, Mabyangporn, Pluakdaeng,
Rayong
Mold Factory: 7/323 Moo 6 Soi Pornprapa, Amata City Industrial Estate, Mabyangporn, Pluakdaeng,
Rayong
Company in Brief:
Sumitomo Rubber Industries, Japan, established Dunlop Tire Factory in Thailand in 2005 as
Sumitomo Rubber (Thailand) Ltd. or SRT. The Amata City Industrial Estate in Rayong covers an area
of 346 rai or about 585,000 square meters, with an investment budget of 12.2 billion Baht.
The first phase of the plant started production in November 2006 with a new manufacturing
technology called "SUN SYSTEM", a production process that combines production into one for high
productivity. The Phase II plant started production in October 2007, and by the end of 2008, the
two-phase plants would have capacity to produce SUVs for SUVs and pickup trucks at 28,000 lines
per day. Meeting the needs of the rubber market in the future, SRT plans to expand its production
capacity to 73,000 lines per day in 2010.
Sumitomo Rubber (Thailand) Ltd. has never experienced any impact from a disaster before.
However, in order to comply with the industry standard, it has decided to join the project as one of
the 8 suppliers in the first phase of the project.
59
Risk Assessment:
The risk comparison for SRT is shown in the chart below:
Risk Comparison for SRT
Pest contamination
Hazardous materials (external)
Disease outbreak
Terrorism
Drought
Hazardous materials (internal)
Wildfire
Road collapses
Data loss
Flood
Power outage
Storm and lightning
Employee strike
Fire
0 1 2 3 4 5 6 7 8 9 10
60
For SRT, the workshop results in several strategies for the company to mitigate the potential risks.

1 Developing plan to train capable employees to have Fire Production
multi-skills so that they can substitute employees (secondary),
who are not available to work Logistics
2 Preparing plan for outsourcing sub-contract workers Fire Production
(secondary),
Logistics
3 Considering improving building structure material to Fire Production
stand fire
4 Studying methods to mitigate impact from fire Fire Procurement
(export, local)
5 Considering plan for installing steam pipeline from Fire Production
other boiler machine
6 Considering plan for installing wind pipeline from Fire Production
other compressor machine
7 Developing preventive maintenance plan for Fire Production
alternative compressor machine
61
chart below:

for SRT - Sumitomo Rubber Thailand Co., Ltd.
18
17
16
14
13
12
10 10
8 8
6
4
2
0
Analysis
Male Female All
44%
56%
Male Female
62
25%
38%
13%
25%

29% 29%
14%
29%
63
Content Evaluation
4.8
4.6
3.8
3.6

to the organization
effectively.

knowledge well.
4.6
4.6
4.6
4.6
4.6
4.5
4.5
4.4
4.4

64
Valeo Automotive Thailand Co., Ltd.
Area of Business: Automotive parts; Compressors and Clutches
Number of Employees: 1,294
Name of Executive: Mr. Boris MATTHISS, Site General Manager
Location: Eastern Seaboard Soi 3, 54 Moo 4 T. Pluakdaeng, A. Pluakdaeng, Rayong Thailand 21140
Company in Brief:
Valeo is an automotive supplier, partner to many major automakers worldwide. As a technology

company, Valeo proposes innovative products and systems that contribute to the reduction of
Carbon Dioxide emissions, the improvement of vehicle performance and to the development of
intuitive driving. It all started in 1923 with the production of brake linings and clutch facings in a
workshop in Saint-Ouen, just outside Paris. Ninety years later, Valeo is a partner to major
automakers and operates in 30 countries, making it one of the world’s leading automotive suppliers.
Valeo Automotive has never been experienced a critical situation as a result of crises or emergency
as the company has maintained an awareness of Business Continuity and work on it to reduce risk
and business disruptions from the disaster that may occur as well as increasing operation ability
continuously.
65
Risk Assessment:
The risk comparison for Valeo Automotive is shown in the chart below:
Risk Comparison for Valeo Automotive
Disease outbreak
Pest contamination
Storm and lightning
Drought
Data loss
Hazardous materials
Power outage
Flood
Employee strike
Fire
0 2 4 6 8 10 12 14 16 18
66
For Valeo Automotive, the workshop results in several strategies for the company to mitigate the
potential risks. Some key proposed measures along with related risks and activities can be
summarized as follows:
No. Key proposed measures Related risks Related activities

1 Developing plan to train capable employees to have Fire, Production,
multi-skills so that they can substitute employees Employee Logistics (export,
who are not available to work strike, Flood local)
2 Preparing plan for outsourcing sub-contract workers Fire, Production,
Employee Logistics (export,
strike, Flood local)
3 Developing plan to install connection pipeline Fire, Flood Production
4 Developing guideline for sourcing alternative Fire, Flood Procurement
suppliers in case of emergency (export, local)
5 Developing plan and specification for purchasing Fire, Flood Procurement
necessary equipment such as computers, printers, (export, local)
scanners
67
For this company, the statistics of participants for each of the 4 workshop modules by gender is
shown in the charts below. The data by gender is collected from the participants in all workshops.
Number of participants of each workshop

for Valeo Automotive (Thailand) Co. Ltd.
12
10 10
8
7 7
6 6
4
2
0
M1: BCP M2: Business M3: BCM Strategy M4: PDCA Cycle
Framework Impact Analysis
Male Female All
40%
60%
Male Female
68
20%
80%

17%
83%
69
Content Evaluation
expected results from the project
are clearly stated.
5.0
4.8
1.6 I can convey the knowledge 4.6 1.2 Each workshop contains
gained to extend the results to
suitable amount of time duration.
my colleagues. 4.4
4.2
4.0
1.5. The knowledge that I have 1.3 I now understand how to

learned can be applied to the develop a Business Continuity
organization effectively. Plan well.
1.4 I can develop and review to

improve the organization's BCP
plan.
knowledge well.
5.0
4.9
4.8
4.7
2. 5 The instructor uses 4.6 2.2 The instructor is able
presentation media and 4.5 to convene the workshop
4.4
4.2
2.4. The instructor

provides opportunity for
participants to ask questions
encourages participants to
and make comments with
be interested in the training.
satisfactory response.
70
Annex 2: Business Resilience in Supply Chain Program
71
The “Business Resilience in Supply Chain” Program is a program that has an intention on
embedding integrated risk management in the supply chain. The program is currently being
developed and the tentative concept of the program is shown in the chart below:
Tentatively, the activities in the program can be grouped into 3 packages as follows:
72
1: Consultancy service to ISUZU
The consultant team will facilitate the process to identify which suppliers really matter to
enhance their supply chain risk management performance. The process would follow the
international know-how such as an influential strategic tool "to guide managers so that they can
recognize the weakness of their organization and formulate strategies for guarding against
supplies disruption". In addition, the consultant team will use GIZ’s Scaling-Up guideline as a
reference for running the strategic planning and implementing the ISUZU’s program on Business
Resilience in the Supply Chain.
2: Deliver a training on a standardized training program for Business Resilience: Embedding

Climate & Disaster Risk Management in Your Company
The two training courses have been developed under the framework of Global Initiative on
Disaster Risk Management (GIDRM), implemented by GIZ, in partnership with the iPrepare
Business facility at ADPC. This training targets different key personnel of the suppliers. One
course, in a seminar format would be delivered to the top executive management of the
companies that are suppliers of ISUZU. A separate course, targeting operational staff of
suppliers (e.g. Mid-management level focusing on business operation e.g. supply chain manager,
procurement manager, production manager, corporate planning manager, premise manager,
marketing manager, plant manager, CSR manager, HR & safety manager), would aim to equip
participants with knowledge and planning skills to build resilience of their business.
3: Consultancy service to build business resilience strategy of the suppliers

A. The consultant team will provide a direct technical support to the strategic suppliers of
ISUZU. It will consist of four in-house training workshops based on the key components
of Business Resilience Strategy Framework (i.e. Business Impact Analysis, Risk
Assessment, Business Continuity Planning (BCP), Risk treatment and transfer, Risk-
informed investment planning.) The workshop will be facilitated by the consultant team
with inputs provided by ISUZU on production technical and industry specific contents. A
unique point of our service is intensify BCP method by integrating the scientific data on
hazards into Risk Assessment (RA) process and Business Impact Analysis (BIA) as well as
a touch based on SCRM concept.
B. The separate consultant team will provide a direct technical support to the specific
suppliers needs in terms of risk-informed investment planning. The long term risk
mitigation options will be prioritized by using the financial return of investment and the
cost-benefit analyses.
C. Building on the output B, the consultant team will assist the suppliers in preparing the
bankable project through financial institute partners. The team will support the access
to the relevant soft loan and grant program.
The Program on Business Resilience in Your Supply Chain will help ISUZU strategic management
team to develop a strategic plan for business resilience. The strategic plan will inform the
management regarding the costs of particular aspects. The table below presents a tangible and
intangible costs of damages and risk mitigation measures. This information will be computed by
the consultant team. During the program implementation, the scenario on cost analysis can be
calculated. This data is to be used as an input to the development of the strategic plan.
73
It should be noted that the design of the program has not been finalized yet. Thus, it is still possible
to adjust the program based on client’s preferences and budget size.
74

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Conduct of Business Continuity Awareness and

Capacity Building Activities

Interim Project Report

1. Executive Summary ......................................................................................................................... 3

1. Setting up Business Continuity Planning framework and project team

3.1 Project Objectives and Outcomes

The objectives set out under the project are:

3.2 Selection of Participating Companies

 Participating companies should located in an area vulnerable or prone to disaster risk

Profiles of 8 participating companies

Calsonic Kansei (Thailand) Co., Ltd. Enkei Thai Co., Ltd.

Inoue Rubber (Thailand) Public Co., Ltd

Based in Ayutthaya, Inoue Rubber focuses on

Based in Rayong, Sumitimo manufactures and Tsubakimoto Automotive

Valeo Automotive (Thailand) Co., Ltd.

The detailed profiles of 8 companies are available in the Annex.

Workshop scope Objectives Outputs

4.1 Number of Workshop Participants

TRT - Tokai Rika (Thailand) Co., Ltd. 22.75

IRC - Inoue Rubber (Thailand) PCL. 22.5

CKT - Calsonic Kansei Thailand Co., Ltd. 17.5

TAT - Tsubakimoto Automotive… 16.25

EKT - Enkei Thai Co., Ltd. 13

ITTC - Inoac Tokai (Thailand) Co., Ltd. 12.5

SRT - Sumitomo Rubber Thailand Co., Ltd. 12

VALEO - Valeo Automotive (Thailand) Co.… 7.5

Participants by Work Experience

less than 1 year 1-3 years 4-6 years

Participants by Professional Level

Operational Level Supervisor Level Manager Level Executive Level Others

4.2.1 Purposes of Implementing BCP

4.2.2 Risk Assessment and Business Impact Analysis

Company Risk Assessment Business Impact Analysis

4.2.3 Business Continuity Strategies

Strategies for Flood

Flood  Maintaining water pump to be available for use Before

 Developing plans to train capable employees to be

 Sourcing for logistic providers who have a capacity to

 Planning alternative transportation routes during the

 Designating areas for product delivering and picking in

Flood  Mobilizing Emergency Operations Center (EOC) During

 Arranging temporary shelter and food & water supplies

 Rearranging a work schedule in accordance with

 Modifying transportation truck to be able to delivering

 Coordinating with customers to re-arrange

Flood  Transferring FG/ RM to alternative warehouse After

 Coordinating with customers to re-arrange

Strategies for Fire

Fire  Developing plans to train capable employees to have Before

 Preparing plans for outsourcing workers in case

 Preparing trial plans for producing key products at other

 Planning & surveying capability of producing of key

 Considering to build additional plant in order reduce

 Developing an emergency manual on delivering products

Fire  Evacuating employees During

 Mobilizing Emergency Operations Center (EOC)

Fire  Relocating a temporary production line to the After

 Using a temporary warehouse from external service

 Importing critical products from head office by airfreight

Labor Strike  Developing plans to train capable employees to have Before

 Conducting an annual survey on employees’ satisfaction

 Developing an emergency plan on delivering products

 Exercising an employees’ evaluation every quarter, the