Why$People$Don’t$Follow$Procedures
SHAWN&DEVEAU,&BILDOX&SYSTEMS&INC.
APICS&FRASER&VALLEY&PDM&– JAN&2018
APICS$Fraser$Valley$PDM$< January$2018
Objective
• To&share&best&practices&for&creating&effective&procedures
Agenda
• Why&document&procedures?
• Why&people&don’t&follow&procedures
• Best&practices&in&procedure&documentation
APICS$Fraser$Valley$PDM$< January$2018
About$the$Presenter
• Principle&at&Grassroots&Business&Coaching&– focused&on&supply&chain&and&
operations&in&small&to&medium&sized&businesses
• CEO&at&Bildox&Systems&Inc.&– procedure&documentation&software
• BA&Psychology&from&University&of&Western&Ontario
• Supply&Chain&Management&Professional&Designation&(SCMP)
• 15&years&of&Lean&Practice
• Buyer&for&Costco&Wholesale
• Reviewed&over&1200&procedures&in&55&different&businesses
APICS$Fraser$Valley$PDM$< January$2018
Pop$Quiz
• How&many&people&use&Standard&Operating&Procedures&(SOPs)?
o For&those&who&don’t,&how&many&believe&you&should?
• How&many&people&have&them&and&don’t&follow&them?
• How&many&people&have&created&SOPs&in&the&past?
o How&many&have&had:
• 100%&compliance
• 50%&compliance
• Less&than&25%&compliance
• How&many&people&have&been&given&bad&SOPs&to&follow?
APICS$Fraser$Valley$PDM$< January$2018
Why$Document$Procedures?
APICS$Fraser$Valley$PDM$< January$2018
Why$Document$Procedures?
• Reduce&health&and&safety&risk&
• Improve&efficiency&or&effectiveness&
• Improve&job&satisfaction&(clear&expectations&=&higher&job&satisfaction)
APICS$Fraser$Valley$PDM$< January$2018
Why$Document$Procedures
APICS$Fraser$Valley$PDM$< January$2018
Why$Document$Procedures?
• Reduce&health&and&safety&risk&
• Improve&efficiency&or&effectiveness&
• Improve&job&satisfaction&(clear&expectations&=&higher&job&satisfaction)
• Reduce&business&risk&(increase&institutional&knowledge)
• Improve&quality
• Meet&external&standards&
APICS$Fraser$Valley$PDM$< January$2018
Why$Document$Procedures?
• Reduce&mistakes&such&as:
o Manufacturing&defects
o Picking&&/&shipping&errors
o Billing&errors
o Incorrect&information&– to&customers&or&suppliers
o Others?&
APICS$Fraser$Valley$PDM$< January$2018
Why$Document$Procedures?
• Leadership&Meeting&Example&– Jan&18th 2018
o Production&Manager&to&Sales&Manager&– “Your&sales&people&are¬&
following&the&correct&procedure&for&returns”
o Shawn&to&Production&Manager&– “What&is&the&right&procedure?”
o We&discovered&that&there&is&no&procedure
o No#Standard#means&No#Problem#(and&that’s&a&problem)
• David#Meier#– Co5author#Toyota#Way#Fieldbook
APICS$Fraser$Valley$PDM$< January$2018
Why$Not to$Document$Procedures
• I’ve&heard,&“We&need&to&standardize”&– maybe
• Manager&has&a&high&need&for&control
APICS$Fraser$Valley$PDM$< January$2018
Why$Don’t$People$Follow$Procedures?
APICS$Fraser$Valley$PDM$< January$2018
Validation Documentation Communication
Why$Don’t$People$Follow$Procedures?
APICS$Fraser$Valley$PDM$< January$2018
Why$People$Don’t$Follow$Procedures
• Validationo Process&owner¬&involved&
o Lack&of&process&owner&buyein&(beware&the&counterfeit&“Yes!”)
• 7$/$38$/$55$Ruleo Lack&of&leadership&buyein
o Didn’t&solicit&feedback&from&
other&stakeholders
o Not&thoroughly&tested
• Examples?
APICS$Fraser$Valley$PDM$< January$2018
Why$People$Don’t$Follow$Procedures
• Documentationo Too&complex&or&wordy
o Written&for&you&(not&your&audience)
o Procedure&is&out&of&date
o Multiple&versions&available
o Procedure&is&hard&to&find
o Procedure&in&many&formats
“I#brought#6#versions#of#a#procedure#to#a#meeting#and#asked#the#management#team#– which#one#are#we#supposed#to#follow?”#– Vancouver#Canucks#Executive
APICS$Fraser$Valley$PDM$< January$2018
Why$People$Don’t$Follow$Procedures
• Communicationo We&explain&“what”&but¬&“why”.&“Start&with&why&to&inspire&others”
o Use&the&wrong&method&of&communication&“I&sent&the&email…”
• Examples
o Large&molding&manufacturer
• Large&purchase&from&a&new&vendor
• Spent&half&day&calling&all&15&buyers
APICS$Fraser$Valley$PDM$< January$2018
Why$People$Don’t$Follow$Procedures
APICS$Fraser$Valley$PDM$< January$2018
Why$People$Don’t$Follow$Procedures
APICS$Fraser$Valley$PDM$< January$2018
LEARNING$FROM$TOYOTA
• Highly&detailed.&If&this&work&is¬&done&correctly,&a&problem&will&result
Critical&Work&&
15%
• Some&parts&will&need&to&be&more&carefully&defined,&some&parts&will¬&
Important&Work&&
60%
• Little&detail&requiredLow&Importance&Work&
25%
APICS$Fraser$Valley$PDM$< January$2018
BEST$PRACTICES
• Helpful&Assumptions
o You&don’t&know&everything&(none&of&us&is&as&smart&as&all&of&us)
o Everyone&wants&to&do&a&good&job&(I&know,&it’s¬&always&true&but…)
o A&procedure&that&is&80%&right&and&followed&is&better&than&100%&right&and&
ignored
APICS$Fraser$Valley$PDM$< January$2018
BEST$PRACTICES
• Go&and&see&
• Explain&why
• Listen&to&ideas
• Thoroughly&test
• Document&the&new&procedure
• Train&the&new&procedure
• Update&when&required
APICS$Fraser$Valley$PDM$< January$2018
APICS$Fraser$Valley$PDM$< January$2018
LEVERAGE$TECHNOLOGY < ABOUT$BILDOX
o SaaS&tool&to&help&companies&create&and&share&SOPs
o Helps&to&solve&many&of&the&issues&identified
o APICS&FV&members&– Under&25&users&e Free
o www.bildox.com ePromo&Code&“APICS&FV&2018”
o For&a©&of&the&presentation,&please&add&your&name&to&the&signup&sheet
APICS$Fraser$Valley$PDM$< January$2018
Questions?