By David Hall

Don't get caught unprepared.  Find out now whether your company's computer systems are Year 2000 compliant, and how to get there if they're not. Despite widespread publicity concerning the Year 2000 (Y2K) computer problem, many small companies are unaware of how it can affect their business.  The problem itself is fairly straightforward.  The millennium bug, or Year 2000 date problem, refers to a flaw in the way dates traditionally have been entered into computer systems.  Many computers that use two digits to keep track of the date will, on January 1, 2000, recognize the double zero not as 2000, but as 1900.

Since computers use dates to make calculations, this glitch could cause them to shut down or generate erroneous information.  The risks include everything from corruption of critical data to the complete shutdown of networks, automated manufacturing, and essential operational systems.  One way or another, the Y2K problem affects everyone.

A common misconception about the Y2K problem is that firms with PC-based workstations and relatively current client-server environments are safe; only companies with legacy mainframes really have a problem.  However, according to some reports, nearly 50 percent of PCs shipped in early 1997 still failed Year 2000 rollover testing.

Even firms that are addressing Year 2000 compliance with their computer systems may be overlooking the potential problems embedded in other systems such as machine controllers, security systems, sprinkler systems, HVAC, and elevators.

Identify your vulnerabilities
Every company should take steps to identify where it may be vulnerable.  First, take an inventory of all of the hardware, software, data, and interfaces that exist throughout your company.  You also want to look at your operational requirements and relationships with suppliers and customers outside the company.  Next, contact the vendors and suppliers of these inventoried items and ask them to provide a written statement verifying that each item (hardware, software, or service) is Y2K compliant.  Otherwise, they should offer an upgrade or replacement product.

If the product in question is a custom software application, and the vendor does not have an upgrade or no longer supports the product, you face a difficult decision.  You will need to weigh the costs and benefits of either rewriting the custom code to become compliant or replacing the program with a Y2K compliant application.

Just as you would confirm Y2K compliance of products, you should confirm the compliance of service providers.  If your service providers (payroll, accounting, insurance, financial, utilities, etc.) cannot verify their compliance or state of compliance, consider alternative outsourcing arrangements, if possible.

Having an information technology (IT) person on staff is great, but not necessary.  Keep in mind that the Year 2000 problem affects all aspects of your business; it's not just an IT problem.  It's a good idea to assemble a Y2K project team or an individual to oversee the effort.  The team should have knowledge of your firm's business activities.  Charge the team with conducting an initial inventory of all your company's hardware, software, and data items.  With that information, you can begin assessing your company's Y2K vulnerabilities.

Don't ignore the problem
If any company ignores the Y2K problem, they run the risk of going out of business!  There are several reasons why this might happen.  For example, you may lose critical data necessary for daily business operations.  Problems with your environmental controls, telecommunications, utilities, security systems, or production automation may force you to close your plant.  Failures with manufacturing operations, shipping, invoicing, processing or receiving orders and payments may threaten client relationships.

There is no simple solution to full Y2K compliance.  However, the less your company depends on microprocessor-embedded systems and/or computer software and external relationships, the smaller your Y2K problem.  There are software tools available that can help a company assess whether its hardware and software are Y2K compliant.  However, assessing the problem is only the beginning.  Defining and implementing a comprehensive Y2K compliance project gets you moving in the right direction.

Companies with a large computer and automated production system with custom software should already be well into their Y2K compliance project.  Companies with fewer computers and embedded systems will take less time to complete a Y2K project.  A major portion of any project, regardless of its size, is testing your systems after implementing solutions.  One important thing to remember is that the cost of Y2K services will increase dramatically as we get closer to January 1, 2000.

Contingency plans
A Y2K compliance project would not be complete without a contingency plan.  Some things a company should consider prior to January 1, 2000: Look at your day-to-day business activities and determine which operations are mission critical.  Consider how you would conduct business if that operation were not available January 1, 2000.  Print and back-up all computer-generated data and operational files.  Determine alternate, non-automated means of producing your products, in the event that your automated processes are interrupted.

Make sure all your suppliers and vendors are Y2K compliant and will continue to provide all necessary materials, services, and assistance to continue your operation.  This includes all services connected with utilities, financial services, accounting and payroll, raw materials, shipping, insurance, security, HVAC, elevators, etc.

There are many products and services available to assist companies and individuals in assessing and managing Y2K projects.  From PC-based Y2K software assessment applications to full-service Y2K project management products and services, a full cadre of products and services exist to assist companies of any size.  A good starting point is contacting your local Oregon Manufacturing Extension Partnership (OMEP) affiliate in Southern Oregon at Rogue Community College Workforce Training Center, White City. OMEP also provides valuable Y2K resources and reference documents, including a self-assessment checklist, via the MEP "Source" web site at http://www.mep.nist.gov.

To find out more about "honest" Y2K solutions for small manufacturers, contact David Hall at 541-826-7555 or call 1-800-MEP-4MFG. OMEP is a not-for-profit organization that assists small and medium-sized manufacturers.  It is affiliated with the NIST Manufacturing Extension Partnership and Oregon Advanced Technology Consortium (OATC).