These are unprecedented times and the business dynamics for Kansas manufacturers are in unchartered waters. For many manufacturers, plants were closed, employees furloughed or laid off, supply chains ceased to exist, and production evaporated.
Is your manufacturing business in the process of recovering from negative impacts of the COVID-19 pandemic?
You are not alone in trying to recover. Below are questions you should be asking yourself as you restart your business.
Kansas Manufacturing Solutions is offering complimentary webinars that coinside with the sections below. If you answer NO to many of the questions in a section, attending one of our webinars might provide you some recommendations, insight, or ideas to correct your challenge. Go to www.wearekms.com/events for a list of webinars to help you with your recovery.
• Is your company mission and vision still valid?
• Are your strategic goals aligned to your current business situation?
• Have you reassigned resources and priorities to support your current business state?
• Have you revised your financial forecast based on the current and future outlook of the product demand?
• Have you been able to manage your operating expenses without taking any loans from a private lender or the federal stimulus programs (SBA, EIDL, PPP)
• Are you planning on using any your reserve funds or loans for operating expenses?
• Have you been able to manage your operating expenses without removing funds from cash reserves?
• Can you cover operating expenses, at 50% normal production capacity and then at 100% normal production capacity?
• Are your receivables being paid so you have sufficient cash flow?
Human Resource Readiness
• Have employees been contacted to return to work?
• Are employees returning to work?
• If there are vacancies, is there a plan to fill those vacancies with qualified individuals?
• Can you produce the same levels of products with fewer individuals?
• Do you have a training program which will allow for rapid training of new employees to fill the needed skill positions?
• Has the facility been sanitized, and waste removed in preparation for starting up production?
• During the Covid19 crisis were any facility services/utilities that we shut off now turned back on?
• Is all safety equipment ready, including any PPE required to keep the employees safe?
• Have you modified your plant layout so that employees are CDC recommended distance away from each other?
Machinery and Equipment Readiness
• Has a plan been developed to bring mechanics and technicians in prior to starting production on those lines effected by Covid19 stay at home order?
• Has the equipment been started to ensure operability?
• Has the equipment been calibrated to industry standards?
• Has a review of the current demand for the product been conducted?
• Has the Covid19 pandemic caused a dramatic change in demand that was not forecasted?
• Has a plan been made to address the changes in demand?
• Do you know which orders have priority for filling first?
• Have you examined the opportunity to expand to new markets?
Materials and Supply Chain Readiness
• Are the materials needed to return to pre-Covid19 production levels on site?
• Have items with expiration dates been inventoried and inspected?
• Have the critical suppliers been identified and contacted about increasing delivery volumes back to pre-Covid19 levels?
• Are vendors/suppliers operating?
• Do your vendors have your necessary materials available for delivery?
• Have you considered the lead times and how it may affect your production capabilities?
• Do you have enough inventory on hand to sustain you in the short term
• Have you determined how much inventory you will need in the event of a COVID-19 resurgence?
Distribution Chain Readiness
• Have your product distributors been contacted?
• Are they open for business?
• If you use distribution centers, have they been contacted?
• Are they open for business?
Marketing and Communication
• Do you have an external communication plan to your customers
• Do you have an internal communication plan to communicate status and changes in operational policies
• Do you have internal communications/training on proper workplace health safety measures including use of PPE, social distancing, hand washing station usage, etc.…?
• Do you have documented policies? i.e. internet access, computer usage, email and communication, etc.
• Are employees trained on identifying phishing and password protection?
• Does your company use encryption and secure socket layers when using the internet?
• Have you had external penetration testing on your network conducted?
• Have you kept all hardware and software up to date? This includes Anti-Virus, Firewall, Operating Systems, etc.…
• Do you have a disaster recovery plan?
Disaster Contingency Planning (for future issues)
• Has a disaster plan been developed for potential future events? This should include a communication plan for personnel, suppliers, vendors, and a plan for the office or facility.