Business Continuity Management in Aerospace Manufacturing Pam Dost

Business Continuity Management in Aerospace Manufacturing Pam Dost Business Continuity Program Manager The Boeing Company BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

Global Boeing § Customers in more than 90 countries § Total revenue in 2009: $68. 3 billion § 70 percent of commercial airplane revenue historically from customers outside the United States § Manufacturing, service and technology partnerships with companies around the world § Contracts with 22, 000 suppliers and partners globally § Research, design and technology-development centers and programs in multiple countries § More than 157, 000 Boeing employees in 49 states and 70 countries Partnering worldwide for mutual growth and prosperity BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

Enterprise Implementation Is Complex World-class performance Corporate functions: Business Development and Strategy Communications Engineering, Operations and Technology Finance/Shared Services Group/Boeing Capital Corp. Human Resources/Administration International Law Office of Internal Governance Government Relations Commercial Airplanes Integrated Defense Systems Delivering products and services to commercial and defense customers BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

Business Continuity Matters? § Our shareholders, stockholders, investors, customers, employees and communities rely on continued operational support and services. Priorities – – – – Safe and secure global, enterprise operations Protect assets Restore critical business processes and systems Reduce the length of interruption to business Protect reputation damage Control media coverage (e. g. local, regional, national, global) Maintain, customer, supplier and community relationships Continued operations for the Enterprise BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

Global Corporate Citizenship § We have one simple objective at Boeing: to make the world a better place. § We recognize that our pursuit of that vision has significant impact on the individual communities where we live and work as well. § Our employees around the world live and work in areas that are at risk of potential threats § Collaboration with local jurisdictions and government agencies facilitates healthy communication ensuring everyone is informed and has the most current and relevant information to make timely decisions § If we have prepared employees, we have prepared citizens and communities BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved. Disaster Facts Boeing Domestic Locations

Business Continuity Management Emergency Preparedness Focus: Life, Environment, Property, Assets • Risks identified in: • Employee Emergency Processes and Preparedness • Large Scale Emergency Incident Management • Emergency Planning IT Preparedness Focus: Critical Systems and Applications • Risks identified in: • Functional Testing • Plan Development • Plan Currency Business Preparedness Focus: Critical Business Processes • Risks identified in: • Critical Processes • Operations • Programs BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

BC is like buying insurance. . . § People with perfect driving records drive their cars everyday and still choose to buy insurance. – How much risk are you willing to accept? § What critical programs, processes, systems or operations, if disrupted could put the company at risk? BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

Risk Management Identify material elements of criticality Identify, Plan and Mitigate for the Risk (High Criticality) Assume the Risk (Low Criticality) BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

Business Continuity Approach Natural Disasters Influenza, Pandemic (Floods, Hurricanes, Earthquakes, etc. ) (Avian Flu, H 1 N 1) §Loss of Personnel §Loss of Building §Loss of Suppliers §Loss of Systems Suppliers (Single Source Suppliers, Supply Chain disruptions, JIT Inventory) Terrorist Threats, Cyber Attacks, Outages (Production systems, Communications systems, Financial Systems, etc. ) Potential Threats & Vulnerabilities BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

Recent Events and Benefits § Reducing the negative impact of events to the business § Spring 2009 activated Pandemic Plan for H 1 N 1 § Identifying, understanding and managing multiple and cross-organization events allows us to take calculated risks § Fall 2009 NW region flood planning providing invaluable insight into integration § Preparedness Planning proves to be invaluable to sites with ongoing vulnerabilities § 2008 & 2009 Houston Hurricanes § 2009 California Wildfires § 2010 Iceland Volcano supply chain potential disruptions to critical programs § Enhances our ability to avoid adverse impacts to; § § § § Production capability Economic Health Corporate Image Contractual Commitments Safety, Legal, Regulatory Competitive Position Community Relationships A reasonable investment to reduce impact and speed recovery BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved. 10

Key Elements and Challenges § Governance and compliance § Executive sponsorship, commitment and ownership § Risk assessment plans § Execution plans § Employee engagement § Validate, test, and maintain plans § Integration § Operationalize BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.

Summary – Wrap-Up § Prudent and responsible corporations, agencies and communities, need to weigh their options when investing in business continuity. § What risk are you willing to accept? - insurance § What is the right balance? - criticality § How do you involve and engage your teams, communities, agencies? – Prioritization § What leverage do you need to keep the momentum going? governance § How do you embed thinking about resiliency as part of the normal operating rhythm? - operationalize BOEING is a trademark of Boeing Management Company. Copyright © 2009 Boeing. All rights reserved.