Why People Don't Follow Procedures - Apics Jan 2018 · Why$People$Don’t$ Follow$Procedures SHAWN&DEVEAU,&BILDOX&SYSTEMS&INC. APICS&FRASER&VALLEY&PDM& – JAN&2018

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&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#– 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&not&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&not&“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&not&done&correctly,&a&problem&will&result

Critical&Work&&

15%

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

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&not&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&copy&of&the&presentation,&please&add&your&name&to&the&signup&sheet

APICS$Fraser$Valley$PDM$< January$2018

Questions?