SOP Formulation

Advanced SOP Formulation
Purdianta
Purdianta ® Slide 1
Introduction
The Purpose of this Presentation is to

Provide an Overview of SOP
Formulation and to discuss
Implementation Methodologies
What is SOP?
 Procedure - a specification of the

series of actions, acts or operations
which have to be executed in the same
manner in order to obtain always the
same result in the same
circumstances.
Procedure can indicate a sequence of activities,
tasks, steps, decisions, calculations and processes
that when undertaken in the sequence laid down
produces the described result, product or outcome.
What is SOP?
 Operating procedure - a procedure

for operating something or for dealing
with a given situation.
 Standard operating procedure
(SOP) - a prescribed procedure to be
followed routinely.
What is SOP?
 A standard operating procedure is a

set of instructions having the force of a
directive, covering those features of
operations that lend themselves to a
definite or standardized procedure
without loss of effectiveness.
Every good management system is based
on its standard operating procedures (SOPs).
The SOP
The Ultimate Goals of SOP are:

1. To Provide Consistent Processes
(Documented Systems Provided For Consistency)
With Defined RESPONSIBILITIES
2. Customer Satisfaction
3. Continuous Improvement
Then,
A Management System?
Management
in SOP Formulation
The Definition
 The term “management” characterizes

the process of and/or the personnel
leading and directing all or part of an
organization through the deployment
and manipulation of resources
(human, capital, natural, intellectual or
intangible).
The Operations
 Management operates through various

functions, often classified as planning,
organizing, leading/motivating and
controlling.
 Planning: deciding what has to happen
in the future (today, next week, next
month, next year, over the next five year,
etc.) and generating plans for action.
The Operations
 Organizing: making optimum use of the

resources required to enable the
successful carrying out of plans.
 Leading/Motivating: exhibiting skills in
these areas for getting others to play an
effective part in achieving plans.
 Controlling: monitoring - checking
progress against plans, which may need
modification based on feedback.
PDCA Approach
 PDCA (aka the Deming Cycle,

Shewhart cycle, or Deming wheel) is
an iterative four-step control strategy.
PDCA Approach
 PLAN
Establish the objectives and processes
necessary to deliver results in
accordance with the requirements.
 DO
Implement the processes.
PDCA Approach
 CHECK
Monitor and evaluate the processes
and results against objectives and
requirements and report the outcome.
 ACT
Apply actions to the outcome for
necessary improvement.
Act means reviewing all steps (Plan, Do, Check, Act)
Purdianta ® and modifying the process to improve it before its Slide 14
next implementation.
System vs. Process
in SOP Formulation
System vs. Process
 System
Pronunciation sI stEm
Definition A group of related
things or parts that
function together as
a whole.
Example The school system.
System vs. Process
 Process
Pronunciation pra sehs
Definition A systematic
sequence of actions
used to produce
something or achieve
an end.
Example An assembly-line
process.
Purdianta ® A System is made up of Processes. Slide 17
What is a System?
 Collection of interacting parts

functioning as a whole.
 Collection of subsystems that support
the larger system.
 Collection of processes oriented
toward a common goal.
 The organization as a system.
The Organization as a System,
Subsystems, and Processes
Every company is
made up of systems /
processes. These
interact. And they
extend beyond the
company ‘walls’.
Systems and Subsystems
There are high level systems

and low level systems. High
level systems are composed
various sub-systems.
Organization As An
Extended System
Organization As An
Extended System
Extending Outside the
Organization
An Extended System
Measures in The Extended
System
Quality Through Process
Improvement
What is a Process?
 A series of operations or steps that

results in a product or service.
 A set of causes and conditions that

work together to transform inputs into
an output.
Examples of Processes
Significant and Critical
Processes
 Significant Processes
 Are processes by which the mission-
essential work of the organization is
accomplished.
 Contribute directly to meeting the needs
and requirements of customers.
 Can be traced from output (to external
customer) back to input (to the
organization).
Significant and Critical
Processes
 Critical Processes
 A stage within a significant process.
 One that is deemed as most important for
control and improvement.
Management System
in SOP Formulation
The Definition
 A “Management System” is the

framework of processes and
procedures used to ensure that an
organization can fulfill all tasks
required to achieve its objectives.
Mission and Vision
 The mission is a concise, internally

focused statement of
 the reason for the organization’s
existence,
 The basic purpose towards which its
activities are directed, and
 The values guiding its employees’
activities.
Mission and Vision
 The mission is linked with some core

values.
 It also describes how to compete and
deliver value to customers.
Mission and Vision
 The vision is a concise statement

describing the organization’s middle to
long term goals.
 It is external, market oriented, and
should express in a colorful and
visionary manner how the organization
wants to be perceived by the world.
Mission and Vision
The main differences are:

 The mission is internally focused, while
the vision is externally focused; and
 The mission is in the very long term,
while the vision is middle to long term.
The Vision describes a future identity and
the Mission describes how it will be achieved.
The Example
 “We help transport goods and people

efficiently and cost effectively without
damaging environment” is a mission
statement.
 “We will be one amongst the top three
transporters of goods and people in
North America by 2010” is a vision
statement.
The Objectives
 Objectives are the desired end states;

or precisely, the aims that formulated
exactly and quantitatively as to time-
frames and magnitude of effect.
Process Mapping
in SOP Formulation
Why Process Maps?
 Maps draw a picture that allows the

reader to ‘visualize’ the process flow.
“A picture is worth a thousand words”.
 These Process ‘pictures’ allow the
reader to see the process inputs and
outputs as well as links to other
processes.
Why Process Maps?
 By ‘linking’ all the process maps

together, we can verify that all the
individual processes flow appropriately
and that references from one Map to
another make sense. This makes its
easier for all of us as well!
Typical Top Level
Operations Flowchart
Business As A System
(Process)
Use a Process Flow Chart!
Because:
 We want to understand our current process.
 We are looking for opportunities to improve.
 We want to illustrate a potential solution.
 We have improved a process and want to
document the new process.
Creating a Process Flow
Chart
1. Identify the process or task we want

to analyze. Defining the scope of the
process is important because it will keep
the improvement effort from becoming
unmanageable.
2. Ask the people most familiar with the
process to help construct the chart.
Chart
3. Agree on the starting point and

ending point. Defining the scope of the
process to be charted is very important,
otherwise the task can become unwieldy.
4. Agree on the level of detail we will
use. It’s better to start out with less detail,
increasing the detail only as needed to
accomplish our purpose.
Chart
5. Look for areas for improvement.

 Is the process standardized, or are the
people doing the work in different ways?
 Are steps repeated or out of sequence?
 Are there steps that do not add value to
the output?
 Are there steps where errors occur
frequently?
 Are there rework loops?
Chart
6. Identify the sequence and the steps

taken to carry out the process.
7. Construct the process flow chart
either for left to right or from top to
bottom, using the standard symbols
and connecting the steps with arrows.
Chart
8. Analyze the results.

 Where are the rework loops?
 Are there process steps that don’t add
value to the output?
 Where are the differences between the
current and the desired situation?
Early Process Flow Diagram
Flowchart
Symbols Used In Flowcharts
Basic Flow Chart Example
– High Level
Basic Flow Chart Example
– High Level
Flow Chart Example – Low
Level
Process Map Elements
7 Steps to Process Mapping
Implementation – The Process
in SOP Formulation
Implementation Strategies
 Compressed Project
Drop Dead Date
High Priority Project Management Approach
Intimate high level management involvement
Regular Scheduled Meetings
 Business As Usual
Low Stress
Low Priority Project Management Approach
Slipping schedule not critical
Irregular Meetings
 Meandering
Slipping schedule not important
Low level management support / involvement
Irregular Meetings
Project tends to ‘Fade Away’
Implementation
Commandments
 We cannot give someone a

responsibility without publicly
conferring authority to act.
 If top management doesn’t care, no
one else will care.
 If planned meetings are not attended,
‘someone’ isn’t serious about their part
in the project.
Implementation
Commandments
 Track the project publicly. Publicize

status weekly or bi-weekly.
 Communication may not be
everything, but it is the largest single
stumbling block. No camps with walls.
 If people do not have enough time to
begin with, they won’t have time for
this.
Typical Failure Modes
 Can’t explain systems and/or

documentation.
 Lack of management involvement.
 Personnel not following
documentation.
 Poor communication and/or training.
Typical Failure Modes
 Lack of documentation.
 No or inadequate document control.
 Poor record keeping and systems.
Critical Success Factors
 Dedicated ‘Company Knowledgebase’

(Coordinator).
 Pre-assessment (document and
interview).
 Involved, supportive top management.
 Receptive culture.
Critical Success Factors
 Focus on business rather than

functional areas.
 Prioritize processes based on
customer needs, anticipated benefits,
and potential for success.
Success Based Upon
 Communication - ensure your

‘borders’, talk to your neighbors.
 Communication - your business is a
machine where many parts must ‘talk’
to each other.
 Communication - tell your neighbor
your problems and listen to your
neighbor’s problems.
The Basics
Say What You Do

This means document your systems so you will consistently do the
job the same way every time. We must make sure we have
appropriate documentation. Use common sense!
Do What You Say

This is what the top management want to see. Objective evidence
that what you say you are doing in your documentation is what
you are doing in practice.
The Assignment
in SOP Formulation
Process Mapping
Worksheets
Process Mapping Steps 1
and 2
Process Mapping Step 3
Job Descriptions
 At this time you should be looking at

what job descriptions you have and
determining what job descriptions you
need.
 Please don’t forget job descriptions!
Good Luck!
Should you have any questions,

please contact me at any time.
Thank you for your kind
Attentions!
Additional Material
in SOP Formulation
5S & Visual Control
Productivity Improvement at
The Micro-Level
What is 5S?
 5S is a procedure that organizes

individual workstations or departments.
 The objective is to increase efficiency at
the micro-level by keeping the workplace
neat, orderly and accessible.
 Visual Control uses visual (and other
sensory devices) to guide everyday
decisions. The two ideas are closely linked
and often used together.
The Elements of 5S
(The Original 5S)
The Elements of 5S
Sort through and sort out junk, seldom-used

1 Sort
items and necessary items.
2 Shine Clean and paint and clean regularly.
Set locations; use boundaries & addresses to

3 Set
assure recoil.
Define and standardize work processes, 5S

4 Standardize
activities and tasks.
Make 5S a way of life, institutionalized in the

5 Sustain
organization.
5S “Sort”
(Sorting Out the Junk)
 Sorting through objects in the workplace

is the first step.
 Everything that moves should have a tag
-- tools, parts, furniture and personal
objects.
 Generally, let the person who uses or
owns the item decide.
5S “Sort”
(Sorting Out the Junk)
The Tags
 Include disposal instructions if necessary.
 Appoint a review board for questionable items.
 Review on a specific date.

 Store occasionally necessary items in out of the
way locations.
 Leave Green Tag items in the workplace.

 Set their final location later.
5S “Shine”
(Clean, Polish & Paint)
 With only essential items remaining, it is

time to clean and paint.
 The first cleaning leaves some dirt and
oil. The next cleaning looks better and
third cleaning will prepare for painting.
 All floors, equipment, and almost every
surface should get paint.
5S “Shine”
(Clean, Polish & Paint)
Guidelines for Shine

 Each work team should establish their own
measure of clean.
 Establish a regular schedule for routine
cleaning and deep cleaning.
 The entire team participates.
 Ensure that every crew has adequate cleaning
supplies and equipment.
5S “Set in Place”
(Determining Locations)
 After Sort and Shine, “Set” determines

and identifies the location of each item.
 The methods for determining such
locations may be elementary and intuitive
or formal and elaborate.
“String Diagram” for Material Flow
Principles of Ergonomics
at the sub-micro level.
The barrel should be here. A missing barrel is not obvious. Here, a boundary designates
the proper location.
Clearly, something is An address informs us what is A complete address on both

missing. missing. the barrel and location,
encourages its return.
5S “Standardize”
 At minimum, standardize the following:

 Aisle Marking.
 Cleanliness Standards.
 Color Schemes.
 Cleaning Schedules.
 Signage.
In some programs, standardization is used as an opportunity to

standardize normal work activities and develop work instructions.
5S “Standardize”
5S “Sustain”
 Sustainment is usually the most difficult

part of 5S.
 The attitudes and activities must be
institutionalized and repeated until
become part of the culture and the fabric
of everyday work.
5 S “Sustain”
(The Eight Tools to Sustain 5S)
The Example of 5S
5S in the Office
5S on the Plant Floor
The Benefit & Payoff of 5S
Potential
Benefit Commentary Improveme
nt
Many 5S programs use Safety as one of the S'. An organization's
concern for safety can be a significant contributor to Up to 70%
Safety
morale and pride. It can be measured with Lost Time Injury Reduction
rates or other measures of safety performance.
Cleaning out the junk will sometimes open significant space by
itself. If an analysis and localized re-layout of departments is
5%-60%
Space part of the 5S effort, there may be significant savings.
Reduction
However, such space savings must be consolidated into
larger blocks of space to be useful.
Measurement of productivity can occur in many ways and at many
levels such as overall factory productivity, work team
productivity or micro-motion productivity. Overall factory 15%-50%+
Productivity
productivity is the most important from a competitive Increase
viewpoint but many other factors can influence this other than
5S.
The Benefit & Payoff of 5S
Pride and morale are notoriously difficult to measure but
critically important. While there are survey tools for such Significantly
Pride & Morale
measurement, they are time-consuming. The practical effects Improved
are seen primarily in absenteeism, turnover and productivity.
Absenteeism results from many causes but pride and morale are
two of the more important. Improvements in absenteeism, if 20%-50%
Absenteeism
other factors remain constant, can be assumed as resulting Reduction
from increased pride and morale.
If 5S teams prepare before-and-after spaghetti diagrams, they can
measure reductions in walking distance. There are, however, 20%-50%+
Wasted Motion
other motion savings at the micro level (reaching, bending, Reduction
etc.) that are more difficult to measure directly.
The rigor, discipline and analysis inherent in 5S can contribute to
the development of the "Kaizen Mind." This is a culturally
Number of
induced attitude of constantly looking for and implementing
Suggestions
Kaizen Mind improvement, particularly at the level of an individual worker
1500%+
or a work team. For more on this see "The DNA of Toyota"
Increase
and Quick & Easy Kaizen. One way to measure this is with
the number of suggestions per employee.

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Advanced SOP Formulation

The Purpose of this Presentation is to

 Procedure - a specification of the

 Operating procedure - a procedure

 A standard operating procedure is a

The Ultimate Goals of SOP are:

 The term “management” characterizes

 Management operates through various

 Organizing: making optimum use of the

 PDCA (aka the Deming Cycle,

 Collection of interacting parts

There are high level systems

 A series of operations or steps that

 A set of causes and conditions that

 A “Management System” is the

 The mission is a concise, internally

 The mission is linked with some core

 The vision is a concise statement

The main differences are:

 “We help transport goods and people

 Objectives are the desired end states;

 Maps draw a picture that allows the

 By ‘linking’ all the process maps

1. Identify the process or task we want

3. Agree on the starting point and

5. Look for areas for improvement.

6. Identify the sequence and the steps

8. Analyze the results.

 We cannot give someone a

 Track the project publicly. Publicize

 Can’t explain systems and/or

 Dedicated ‘Company Knowledgebase’

 Focus on business rather than

 Communication - ensure your

Say What You Do

Do What You Say

 At this time you should be looking at

 Please don’t forget job descriptions!

Should you have any questions,

 5S is a procedure that organizes

Sort through and sort out junk, seldom-used

2 Shine Clean and paint and clean regularly.

Set locations; use boundaries & addresses to

Define and standardize work processes, 5S

Make 5S a way of life, institutionalized in the

 Sorting through objects in the workplace

 Review on a specific date.

 Leave Green Tag items in the workplace.

 With only essential items remaining, it is

Guidelines for Shine

 After Sort and Shine, “Set” determines

“String Diagram” for Material Flow

Clearly, something is An address informs us what is A complete address on both

 At minimum, standardize the following:

In some programs, standardization is used as an opportunity to

 Sustainment is usually the most difficult

5S on the Plant Floor

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