by Jeff Thill, Robert Cedergren and Don Emery
Virtually every modern-day manufacturer depends on information technology systems, electronic data, and software applications for the critical information needed to run operations, manage employees, and make key decisions. And nothing can cause a greater operational crisis than unexpected outages.
In today’s just-in-time manufacturing environment, downtime caused by IT outages can significantly impact the ability to manufacture, warehouse, and ship goods, let alone bill for them and collect revenue.
Without a plan for keeping systems available and secure, companies are vulnerable to permanent data loss, not to mention the costly inability to conduct uninterrupted business transactions. In fact, downtime can cost companies up to 16 percent of revenue annually, according to some sources. What business can afford that?
Manufacturers must protect mission-critical IT assets and ensure the constant flow of information by vigilantly managing their systems’ availability. This includes disaster preparedness plans that will help maintain business continuity. Ensuring data is available when needed not only keeps operations humming, but it can even move an organization to the next level of effectiveness through better risk management.
Developing and implementing a high-availability plan requires both proactive and reactive strategies. Here are some key issues to keep in mind as you manage IT system availability and increase capacity.
- Take an inventory of business needs, goals, and priorities. The degree of desired availability varies with each company. Organizations should start by identifying the comprehensiveness of its needs and objectives. For instance, what data, if lost, would spell disaster for the company? What are the downtime tolerance levels for various operations, lines, shifts, and meeting production goals? What data does management consider mission-critical, and when is it needed?
- Build the right architecture. Redundancy by design helps ensure availability. If one system fails, a secondary system can keep downtime to a minimum. Not every system requires redundancy, so it’s important to assess key systems for appropriate needs.
- Monitor and regulate environmental factors. Security measures should be established and enforced to prevent loss of property, both tangible and intellectual. System stability should be protected through proper management of facility elements, like temperature and cleanliness, thereby reducing their effect on system performance.
- Back up everything. Maintaining backups is one of the smartest steps companies can take to protect their data. Processes and procedures for backing up data should be in place and in force; after all, procedures that aren’t followed won’t do much good. Data should be backed up regularly and stored apart from in-house systems, in storage networks that aren’t physically connected to an organization’s infrastructure.
- Recognize security challenges. To ensure high availability, manufacturers must identify exposures and assess the risks that threaten their systems. Companies should review any safeguards that are currently in place and identify vulnerabilities. Third-party vulnerability testing is a good way to assess system availability and integrity, as well as that of all hardware and software. Testing should be performed at least annually to address new weaknesses or issues and introduce security updates that can help keep intruders out.
- Pursue outsourcing opportunities with qualified providers. In this age of constant reliance on technology, most companies come to depend on outside providers for assistance and expertise. Outsourcing allows companies to focus on their core capabilities while ensuring business continuity. It’s important to evaluate hosting providers, network designers, data center options, and business continuity planning sources based on your operational needs and business goals. Assess their experience levels, reliability, security measures, and ability to meet your needs. Spell out all service expectations in a comprehensive service-level agreement.
- Maximize the benefits of technology in support of business objectives. Before adopting any new technology, assess your needs. Determine whether the technology truly has business merits, and validate its bottom-line value. Conduct due diligence and ensure that any system is directly tied to the overall strategic plan. A thorough assessment will assure the appropriate allocation of valuable time and resources.
Manufacturers must take the time now to prepare for outages and periodically check their high-availability plans to ensure reliability. Doing so can prevent costly downtime, along with the grief that comes with missing information, missed opportunities, or lost customers.
About the authors
Jeff Thill is a Wipfli partner serving manufacturing and wholesale entities ranging in size from large, widely owned companies to smaller, family-owned businesses.
Robert Cedergren is a senior manager specializing in information technology.
Don Emery is a senior IT consultant.
To learn more about how Wipfli can help you maximize efficiency and minimize outages, please contact Jeff at our St. Paul office at 651.766.2862, or e-mail him at jthill@wipfli.com.