E-Z-GO 1998 Annual Report Download - page 34

Year 2000 Readiness Disclosure
Introduction
Much of the world’s computer hardware and software is not designed to process date
information after 1999. This is largely because computer programs have historically used
only two digits to identify the year in a date, but problems related to processing of date
information also may arise because some software assigns special meaning to certain
dates. This Year 2000 problem could, if uncorrected, cause computers and other equip-
ment used and manufactured by Textron and Textron’s suppliers and customers to fail to
operate properly.
Year 2000 Program
In early 1997, Textron began a company-wide program (the “Program”) to assess the
possible vulnerability of Textron to the Year 2000 problem and to minimize the effect
of the problem on Textron’s operations. The Program is centrally directed from the
Year 2000 Program Office at Textron’s corporate headquarters and is executed at each
Textron business unit. The Program addresses five “Major Elements” at the corporate
headquarters and each business unit:
PBusiness Systems: management information systems and personal computer
applications, including the computing environments that support them.
PFactory and Facilities Equipment: equipment that uses a computer to control its
operation either for producing an end-product or providing services.
PEnd-Products: software products, delivered either alone or as a component of
another product, that are supplied to Textron customers.
PSuppliers: assurance that those who sell goods and services to Textron will not
interrupt Textron operations due to the Year 2000 problem.
PCustomers: assurance that those who buy goods and services from Textron will not
interrupt Textron operations due to the Year 2000 problem.
For each of the Major Elements, the Program measures five “Readiness Levels”:
Level I) Management has become aware of the issue. An inventory is being taken
of the items that the Year 2000 problem may affect.
Level II) The inventory of Year 2000 items has been completed. The priority of each
item is being assessed. Actions are being planned to assure that each item is
ready for the Year 2000. Resources are being committed to do the work.
Level III) Planning has been completed. The prescribed actions are being performed,
including testing to verify that the actions are effective. Suppliers and cus-
tomers are being surveyed and their progress is being tracked.
Level IV) Items critical to operations have been remediated and have been put in
normal operation. Surveys of critical suppliers and customers have been
completed. Core business systems continue to be tested. Follow-up check-
ing of suppliers and customers is in process. Contingency plans are being
prepared. Audits to verify readiness are being performed. Remediation of
items that are important to operations, but not critical, is being performed.
Level V) Systems critical to operations have been tested. Audits and associated
corrective actions have been completed. Contingency plans have been
completed. Follow-up checking of suppliers and customers has been
completed. In all material respects, Textron is ready for Year 2000.
Textron has substantially reached Readiness Level IV. Based on information currently
available, Textron estimates that it will achieve full Readiness Level IV by June 30, 1999.
Textron estimates that it will substantially reach Readiness Level V by June 30, 1999, and
achieve full Readiness Level V by September 30, 1999. Textron intends to have a combi-
nation of independent parties and Textron personnel complete an assessment of the
implementation of the Program at the corporate headquarters and each business unit by
March 31, 1999.
30 1998 TEXTRON ANNUAL REPORT