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Business Continuity at Micron

Micron understands that its continuity of business impacts many stakeholders, including customers, team members, and shareholders.  As part of Micron’s mission, we recognize that a robust Business Continuity Program (BCP) is essential to providing reliable service for our customers and maintaining organizational resiliency.

Micron’s BCP establishes how we prepare for and respond to unexpected events anywhere in the world.  Further, elements of contingency planning are part of Micron’s ISO/TS 16949 certification efforts.  Micron engages key service providers to monitor events globally that have the potential to disrupt our  continuity of business.  Micron’s key suppliers are mapped into these service providers’ systems for expedited feedback should an event occur.  If a disruption occurs, Micron will communicate with customers as appropriate.  In case of an event which impacts Micron’s ability to conduct business, our Recovery Time Objective will always be as soon as possible.

Global, Functional Area, and Site Crisis Management

Crisis management is that part of business continuity that identifies the immediate steps taken to minimize the impact of a disruptive event.  Micron utilizes a flexible system of global (corporate), designated functional areas, and site plans to manage disruptive events as they occur.  The flexible system allows designated functional areas and sites to manage localized events but requires events that have global impact to be escalated to the Global Crisis Management Process as detailed within the Global Crisis Management Plan.  This process allows Micron to apply the right amount of resources to effectively manage and mitigate the event; thereby, ensuring customer expectations are met.  Micron uses a standard set of events that are included in crisis management and business continuity plans at the global level.  These events include, but are not limited to:

  • Natural Disaster
  • Loss of Power or Other Key Utility
  • Hazardous Material Release
  • Product Quality, Field Returns
  • Fire
  • Supply Chain Disruption
  • Pandemic or Emerging Health Issue
  • Loss of Key Personnel
  • Cyber Security
  • Loss of Confidential Information
  • Terrorism
  • Violation of Regulations

Global Crisis Management

Micron understands that not all crisis events will impact its business continuity at the global or company level; however, it is critical to have a global process in place to effectively manage the corporation’s response to those which do.  This process, which is executed by Micron’s Global Crisis Team, is summarized below.

Global Crisis Management Cycle

The Global Crisis Management Process is divided into five phases.  Within each phase, unique roles and responsibilities are defined and linked to appropriate procedures.  Furthermore, all phases have specific inputs and outputs that signal the transition from one phase to the next, until the end of the process.  The global event management team structure is dynamic and based on three severity levels:

  1. Informational – No material impact to Micron’s business or customers
  2. Moderate – An event requiring more information or monitoring
  3. Severe – An event of immediate impact to Micron’s business or customers

Any event categorized as severe immediately triggers activation of the Global Crisis Team, with its extended team members who have subject matter expertise, and the primary executive with decision-making authority related to the event.  Micron’s executive Enterprise Risk Management Steering Team is also informed of all events classified as moderate to severe for review, additional input, and participation within Micron’s Crisis Management Process, as necessary.  This provides Micron a strong command and control structure to effectively manage crisis situations, initiate business continuity strategies, and return control to the responsible functional area for final execution once the event is stabilized.

Functional Area Plans

Designated functional areas within Micron are required to have response plans and procedures for their specific business functions.  These plans and procedures detail how minimize disruptions and provide alternate strategies to resume operations and recover from internal disruptions or from disruptions to external suppliers. Functional area plans and site crisis management plans work in conjunction with each other to support and strengthen Micron’s BCP.

Site Crisis Management

Micron’s manufacturing sites maintain unique, site-specific crisis management plans and procedures that outline how to manage events at the site level, taking into account all local conditions and environmental inputs.  Detailed recovery procedures describe how to rapidly resume production and return the site to a safe and stable condition.  If an event impact goes beyond site crisis management, it is escalated to the Global Crisis Team.  While no plan can remove all possibility of disruption, having pre-established and comprehensive site crisis management plans in place is a strong line of defense for Micron’s organizational resiliency.

Customer Considerations

Facilities with redundant capabilities (both manufacturing and support processes) often may be a mitigation strategy in the event of business disruption at any site.  Micron’s worldwide manufacturing footprint provides unique advantages for us and our customers.  Micron recommends that customers partner with Micron to evaluate product qualification status and cycle times that may be associated with sourcing product from an alternate sites or other appropriate mitigation strategies.  Risk mitigation is a shared responsibility and we encourage open dialogue on these matters.