Wisdom Without Waiting: Are You OK With Y2K?
© John L. Mariotti
Everywhere I turn these days I read another article about the year 2000 problem (or the "millennium bug") and I think to myself--"OK, I am not an information systems specialist, so what can I do about Y2K -- except fret and worry?" First of all, quit worrying about whether your car will run or your TV will work. There is nothing you can do about those except wait and see if some embedded chip in them has a Y2K date error. (You may have to reset the time or date in them correctly if those features exist!) There are some things operating managers can do to protect against, or at least minimize disruptions from the millennium bug, even if they can't control their IS counterparts' efforts.
Here are a few things operating managers can do to protect against, or at least minimize disruptions from the millennium bug, even if they can't control there IS counterparts efforts.
- Change the rules: Management could decide to close the 1999 fiscal year 10 days early (Dec. 20, 1999). Many companies close months and years on accounting calendars that are different than the regular calendar? It is a slow, unproductive time of year for many companies. Most of the systems should still be operating and if you plan for a slightly shorter fiscal year, nothing else need change. The financial closing can then be done over the next ten days (with time off for Christmas of course), and all the records printed in hard copy.
- Change the Schedules: A decision could be made to keep the key people working through the Christmas to New Years week except for the Sat./Sun. for each holiday. Then give them makeup time for the loss of the "eve" holidays either later in the year 2000, or just let them take the week from 1/1-1/8/00 off -- except for systems people and those needed to test revised systems for proper date handling.
- Change the Media: Operating people can decide how late to wait before they print paper copies of key planning tools (Forecasts, MRP, Production Schedules, etc.) and Purchasing can require suppliers to do the same. At least then there would be a record of where things stood at a known point in time--upon which forward planning could be done "manually." (Remember, we once did it that way, and while slow, tedious, it would work for short time while the systems people frantically fix date related glitches.)
- Change the Plan: A decision could be made to advance-print time-phased purchase orders and delivery releases for suppliers and provide them in advance, perhaps covering the entire month of January. This would provide suppliers a chance to plan and protect them against electronic glitches--at least in the case of your company's needs.
- Even though many companies are supplied by sole sources or a dominant source, this might be the time to designate or select specific backup suppliers (and pre-qualify them via small orders) for all critical commodities. This will provide an opportunity to get benchmark competitive quotes, consider new potential suppliers, get a little insurance in case of unforeseen supply problems.
- Most people have already considered carrying extra inventory to protect against Y2K disruptions, but while effective (if you guess right on which inventory) this is a costly remedy which must be used with discretion.
- Alternate channels of communications between suppliers and customers should be planned in advance so that at least three or more ways to convey ("transmit") information/data are available--and not all over the same computer network or telephone carrier.
- Wise companies are already deeply involved with how their suppliers and customers are preparing for the Y2K potential problems. Best practices can be pooled and shared provided all parties are willing. Small companies are the most questionable, and require special attention since they often lack the sophisticated staff to even evaluate what risk they have in their computers and embedded chips. Just as supplier development is a critical part of a healthy ongoing supply partnership, support in this kind of crisis is also a very important aspect of supplier relations.
- Major projects and process changes should be avoided at the critical time of year--perhaps for 30 or more days on either side of the year end. Your own information systems management should be able to provide information about this time window. Other IS change requests should probably be stopped well in advance of the year-end--perhaps as much as 3-6 months depending on how far along your company's Y2K fix efforts are. There is no need to add the complexity and doubt whether problems are Y2K/date caused or due to new systems or other changes.
- Worrying about Y2K won't help much, but really thinking about it, and what else can be done to minimize the risks can help a lot. Put your thinking caps on and build on my list. Then you can be OK with Y2K!
Or draw out your 401(k) on a loan and go for a two month trip to a warm sunny island...then come back about Feb. 15, 2000 and see what happened. (:-) Good luck. That's All For This Topic. Watch for a new one soon.
