The year 2000 problem is only about computers, correct? If you
inventory, assess and remediate your computer hardware and software, you
may have only completed half of the effort required to deal with the
year 2000 problem. Many important pieces of equipment that we rely on
every day have internal components that include embedded “chips” or
“microprocessors.” Fixing these chips may be the thorniest Y2K problem a
business faces.
This equipment ranges from microwave ovens and VCRs to elevators,
building fire alarm and security systems, environmental control and
monitoring systems, process control systems and medical devices. A
debate is raging among commentators as to whether embedded chips pose a
real danger of failure at the turn of the century. Some predict
catastrophic failures while others claimed that this fear and the entire
year 2000 issue is PR hype. The truth is, as in most cases, likely
somewhere between these two extreme positions. It is unlikely that there
will be massive failures since many embedded chips are not “date aware.”
However, some experts have predicted that between 2 and 5 percent of the
embedded chips in use in equipment today are subject to failure. OSHA
has recently issued a release urging employers to evaluate their systems
with embedded chips.
Several factors complicate the resolution of this aspect of the Y2K
problem. Among these are: (1) the issue is relatively low profile and
low visibility compared to hardware and software issues, (2) it requires
one to work with a variety of unrelated and often unknown parties, and
(3) the systems with these components are often old and obsolete.
Embedded chips are often ignored by companies when dealing with the year
2000 problem. Many consultants have a hardware and software background
and are not familiar with embedded chips. In addition, while it is easy
to identify computers within a business office or factory, the
identification of equipment and components with embedded chips is more
difficult. By their nature, they are “stealthy” and are intended to
operate silently, away from human oversight. Even after identifying such
equipment, it is necessary to determine who made the equipment
(relatively easy if the manufacturer’s identification is still
attached), locate the manufacturer (more problematic depending on the
age of the equipment), ascertain when it was made, and determine who
made the components which may contain embedded chips. This aspect of the
problem becomes very complex as the supply chain from end-user to
component manufacturer gets longer and the equipment becomes older. Once
these questions are answered, it is necessary to determine whether the
equipment is Year 2000 compliant and, if not, determine how to prevent a
failure of the equipment at the turn of the century.
Fortunately, the recently enacted Year 2000 Information and Readiness
Disclosure Act of 1998 should encourage communications among equipment
vendors, their suppliers and customers. The act provides protection
against the use in litigation of certain statements regarding the Year
2000 processing capabilities of a company or its products or services.
The Act also provides that Year 2000 statements are not to be
interpreted or construed as amendments to or alterations of a contract
or a warranty. Therefore, the vendor should be more willing to provide
information regarding the capabilities of its equipment.
The lesson for the company which depends on process control and
similar systems is to seek information from its vendors, engage in
appropriate testing of mission critical systems and prepare contingency
plans for the unanticipated failure of embedded chips.
Peter V. Lacouture is a partner at the law firm of Peabody & Brown in
Providence, and co-chair of the firm’s Year 2000 Group.
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