December 22, 1998
Millennium Update
PROGRESS HIGHLIGHTS
On our manufacturing
sites we completed the planned inventory of devices containing embedded
chips on time. This revealed the need for some systems to be upgraded.
We have plans in place to complete all the necessary work by June
1999.
Our integrated business system, utilising SSA
BPCS software, was successfully migrated to a Millennium compliant
version and computer in October 1998 and has completed all its Millennium
checks satisfactorily.
Our project to make a range of older in-house
mainframe systems compliant is also running to schedule. The software
updating is complete and we are currently carrying out integrated
user trials of the upgraded systems on a separate IBM MVS mainframe
to check out any Millennium effects; this phase is planned for completion
in mid-1999.
In co-operation with our service providers IBM,
Origin and GE Capital, we are auditing all our PCs and servers,
and we intend that all our critical PC-based end-user applications
will be signed off early in 1999. Our LAN's and Wide-Area Network,
together with all our buildings and other office equipment, will
be proved by mid-1999.
We are well through the work of engaging with
our critical trading partners, including suppliers of engineering
goods and services, shipping and haulage firms, utilities etc. This
must and will continue throughout 1999 because no one can give absolute
guarantees of compliance in advance.
In December 1998 we put in place a wide-ranging
organisation to prepare and implement special operating regimes
and contingency plans for the Millennium cutover weekend and beyond.
This has full top management support and involvement.
Our programme is subject to regular review by
our internal audit function and by KPMG, ICI's external auditors.
We believe that audits of ICI Chlor-Chemicals Millennium readiness
by customers or suppliers would add little to anyone's confidence,
and could even divert skilled resources from their essential tasks.
We are planning a 'Millennium Day' to share details of our preparations
with our business partners.
OVERALL PROJECT
STRUCTURE
The ICI Chlor-Chemicals Millennium Project covers
all business areas. Safety, Health and Environment (SHE) are our
prime concerns, and it also includes our relationship with our customers
and our suppliers. A multi-disciplinary team is addressing Millennium
issues in manufacturing, engineering and information technology.
Suppliers of raw materials, transport, goods and services have been
contacted to avoid business disruption prior to, during and after
the Millennium change. Our customers are being kept informed about
our progress.
ICI Chlor-Chemicals has adopted the BSI standard
definition of Millennium compliance1 for use in its internal processes.
The ICI corporate project is sponsored by the
ICI Chief Financial Officer (CFO) and by the Vice President for
IT. A Corporate Millennium co-ordinator was appointed in 1997 to
oversee the projects in the different ICI Businesses.
In ICI Chlor-Chemicals, the CFO is the overall
sponsor for the Millennium project. The Information Systems Manager
is the overall co-ordinator. The set of business and functional
projects is directed and monitored by two geographical steering
groups (Europe/Global and North America) and managers have been
appointed to look after each specific Millennium project.
The steering groups meet about every 6 - 8 weeks
to discuss progress, to share best practice and learning, and to
resolve issues. Each group has representation covering each of the
Chlor-Chemicals businesses operating in the region and the functional
lead for customer and suppliers, 'enterprise' IT systems, 'legacy'
IT systems, 'embedded chip' plant systems, technical and laboratory
systems, desktops and networks.
The project in ICI Chlor-Chemicals was started
in early 1997 and includes the following different phases :
-
Inventory - The inventory produced
for Millennium covers manufacturing, engineering (including
site engineering), laboratory and measurement equipment, services
(electricity, water, steam, compressed air etc.), IT infrastructure,
core business applications, general office and E-Mail packages,
IT services providers, suppliers (services, raw materials, transport,
financial institutions, voice and data etc.) and customers.
It is believed that components containing microprocessor have
been identified and checked for date functions. All items are
logged in global databases for further tracking. All critical
inventories have been completed in 1998.
-
Risk assessment - This is seen as
an iterative process and is occurring regularly during the project.
Based on the inventory, an assessment process was used to identify
high risk components, critical raw materials and services suppliers
and other items that could have a major impact. The criteria
are based on potential SHE risks, substantial loss of production
or discontinuity of business processes. These issues are handled
with the highest priority. Areas of medium and low risk are
also being handled with appropriate priority.
-
Contact suppliers - All critical
contractors, business partners and suppliers, identified by
risk analysis and prioritisation, have been contacted with a
request for compliance information about the goods and services
we purchase. Replies are evaluated on the basis of predetermined
criteria and appropriate follow up is being put in place when
necessary (e.g. reminders, questions for more information and
business risk analysis of suppliers). All actions are registered
in global databases.
-
Evaluation - Supplier statements,
information in the public domain, results of internal / external
testing and commercial contacts are used to evaluate the compliance
status of the items in the inventory, the services and the IT
issues. The results of the evaluation are being used in the
implementation planning.
-
Implementation - The implementation
of solutions in the different areas including replacement of
hardware and software, upgrades, ceases, modification of contractual
arrangements, compliance assurances of suppliers etc. have mostly
taken place during 1998. All the principal 'enterprise' transaction
processing systems used to handle customer orders and supplies
of raw materials are now Millennium compliant and running on
new Millennium compliant computers. Significant work is progressing
to ensure that critical process control equipment in our production
plants is compliant. The work to complete this process is scheduled
to fit in with the plant periodic maintenance shutdown plan
and will be complete in mid-1999. The phased introduction of
common standard new equipment across our plants is allowing
us efficiently to use resources. Work on completing the integrated
testing of the 'back office legacy systems' that run on the
ICI mainframe computer will be completed in mid-1999. Work on
modifying the 'legacy' applications was completed earlier in
1998.
-
Project review and Sign Off - Both
at company and business level, regular project reviews take
place and progress is reported to senior business and corporate
management. The executive team of ICI Chlor-Chemicals is being
briefed on Millennium issues each quarter and has approved all
necessary expenditure. An internal process will ensure that
people involved in the Millennium project will sign off for
their different levels of accountabilities resulting in a letter
of compliance from the CEO of ICI Chlor-Chemicals to the ICI
Group. Internal and external auditors have been involved in
the project to evaluate the processes and the progress made
towards Millennium readiness compliance. All audits have concluded
that our progress is satisfactory and that forward plans are
comprehensive and achievable. The Millennium work in ICI Chlor-Chemicals
was simplified by the recent replacement of the core business
applications by BPCS, Oracle and Lotus Notes. The introduction
of standard policies for PC purchases and the upgrade of the
LANs has eliminated a range of potential issues. New purchases
and contracts for goods and services containing software do,
where commercially possible, contain Millennium clauses.
-
Contingency & Business Continuity
Planning - Business continuity plans for the Millennium,
built on our existing emergency planning arrangements, will
be developed further early in 1999 in order to prepare for possible
problems. We aim to ensure "business as usual" to
meet our customer requirements. We however recognise that ensuring
Millennium readiness is an ongoing process based on the awareness
of the people in our own organisation and in those of our customers
and suppliers. Information campaigns are ensuring that people
are kept informed of the planning, the progress and the remaining
issues.
For enquiries contact the Press Office:
Craig Welsh
Telephone: 01928 511528
Fax: 01928 569459
Email: craig.welsh@ineoschlor.com
