Stop Fixing Mistakes - APICS Vancouverapicsvancouver.starchapter.com/images/...•David Meier – Co-author Toyota Way Fieldbook . APICS Supply Chain Summit 2019 Bildox Systems Inc

Stop Fixing Mistakes

Why People Don’t Follow Your Procedures

SHAWN DEVEAU, BILDOX SYSTEMS INC.

APICS SUPPLY CHAIN SUMMIT 2019

APICS Supply Chain Summit 2019 Bildox Systems Inc

Objective

• To share best practices for creating effective procedures

Agenda

• Why document procedures?

• Why people don’t follow procedures

• Best practices in procedure documentation

Spandex Rule of Business

• Just because you can get into something, doesn’t mean you should!

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 Western University

• Supply Chain Management Professional Designation (SCMP)

• 15 years of Lean Practice

• Buyer for Costco Wholesale

• Reviewed over 1200 procedures in 60+ businesses

• Passionate about “Unleashing Potential”

Pop Quiz

• How many people use Standard Operating Procedures (SOPs)?

• How many people have created SOPs in the past?

• How much time do you spend fixing mistakes?

o Less than 1 hr per day

o 1-2 hrs per day

o 2-3 hrs per day

o 3+ hrs per day

Survey Results

• 50% of respondents spend more than 1 hr per day fixing mistakes

• At 1 hr per day that’s 250 hours per year.

• This ignores costs such as freight, rework, customer goodwill and others

Stop Fixing Mistakes

• Example - 50 employees X 50% X 250 hrs = 6,250 hrs /

• If you knew this, how much time would you spend making sure they did the work right the first time?

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 (ISO, Worksafe)

• Reduce mistakes such as:

o Manufacturing defects

o Picking / shipping errors

o Billing errors

o Incorrect information – to customers or suppliers

o Others

Why Document Procedures

• Leadership Meeting Example – Jan 18th 2018

o Production Manager to Sales Manager – “Your sales people are not 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 – Co-author Toyota Way Fieldbook

All of the above reasons include one key element:

o We document procedures to enable us to change behaviours

Why Not to Document Procedures

• I’ve heard, “We need to standardize” – maybe

• Manager has a high need for control

Why Don’t People Follow Procedures?

Validation Documentation Communication

Why Don’t People Follow Procedures?

Why People Don’t Follow Procedures

Validation - Is this the right work?

o Process owner not involved

o Lack of process owner buy-in (beware the counterfeit “Yes!”)

o Lack of leadership buy-in

o Didn’t solicit feedback from other stakeholders

o Not thoroughly tested

• Documentation – Is it easy to find and clear?

o 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

• Communication – Did you explain why?

o We explain “what” but not “why”. “Start with why to inspire others”

o Use the wrong method of communication “I sent the email…”

• Examples

o Large wood products manufacturer

• Large purchase from a new vendor

• Spent half day calling all 15 buyers

LEARNING FROM TOYOTA

• Highly detailed. If this work is not done correctly, a problem will result

Critical Work

• Some parts will need to be more carefully defined, some parts will not

Important Work

• Little detail required Low Importance Work

BEST PRACTICES

• Go and see

• Explain why and solicit feedback

• Thoroughly test

• Document the new procedure

• Train the new procedure

• Act on teaching moments

• Maintain as required

BEST PRACTICES – THE ONE DAY PROCEDURE

Task Time Spent % Time Spent

Go and See 1 hr 13%

Explain Why and Solicit Feedback 1 h 13%

Thoroughly Test 1.5 hrs 19%

Document 20 mins 4%

Train 2 hrs 25%

Teaching Moments 2 hrs 25%

Maintain / Update 10 mins 2%

Go and See 12%

Explain Why and Solicit Feedback

Thoroughly Test 19%

Document 4%

Train 25%

Teaching Moments 25%

Maintain / Update 2%

THE ONE DAY PROCEDURE

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 not always true but…)

o A procedure that is 80% right and followed is better than 100% right and ignored (progress, not perfection)

If your organization is willing to take these steps, you will spend less time fixing mistakes!

LEVERAGE TECHNOLOGY - ABOUT BILDOX

o SaaS tool to help companies create and share SOPs

o Helps to solve many of the issues identified

Shawn Deveau

CEO Bildox Systems Inc.

shawn@bildox.com

www.bildox.com

Questions?

Stop Fixing Mistakes - APICS Vancouverapicsvancouver.starchapter.com/images/...•David Meier – Co-author Toyota Way Fieldbook . APICS Supply Chain Summit 2019 Bildox Systems Inc

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