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
APICS Supply Chain Summit 2019 Bildox Systems Inc
Spandex Rule of Business
• Just because you can get into something, doesn’t mean you should!
APICS Supply Chain Summit 2019 Bildox Systems Inc
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”
APICS Supply Chain Summit 2019 Bildox Systems Inc
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
APICS Supply Chain Summit 2019 Bildox Systems Inc
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
APICS Supply Chain Summit 2019 Bildox Systems Inc
Stop Fixing Mistakes
• Example - 50 employees X 50% X 250 hrs = 6,250 hrs /
year
• If you knew this, how much time would you spend making sure they did the work right the first time?
APICS Supply Chain Summit 2019 Bildox Systems Inc
Why Document Procedures?
APICS Supply Chain Summit 2019 Bildox Systems Inc
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)
APICS Supply Chain Summit 2019 Bildox Systems Inc
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 Supply Chain Summit 2019 Bildox Systems Inc
Why Document Procedures
APICS Supply Chain Summit 2019 Bildox Systems Inc
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
APICS Supply Chain Summit 2019 Bildox Systems Inc
Why Document Procedures?
All of the above reasons include one key element:
o We document procedures to enable us to change behaviours
APICS Supply Chain Summit 2019 Bildox Systems Inc
Why Not to Document Procedures
• I’ve heard, “We need to standardize” – maybe
• Manager has a high need for control
APICS Supply Chain Summit 2019 Bildox Systems Inc
Why Don’t People Follow Procedures?
APICS Supply Chain Summit 2019 Bildox Systems Inc
Validation Documentation Communication
Why Don’t People Follow Procedures?
APICS Supply Chain Summit 2019 Bildox Systems Inc
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
APICS Supply Chain Summit 2019 Bildox Systems Inc
Why People Don’t Follow Procedures
• 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
APICS Supply Chain Summit 2019 Bildox Systems Inc
Why People Don’t Follow Procedures
• 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
APICS Supply Chain Summit 2019 Bildox Systems Inc
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 required Low Importance Work
25%
APICS Supply Chain Summit 2019 Bildox Systems Inc
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
APICS Supply Chain Summit 2019 Bildox Systems Inc
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%
APICS Supply Chain Summit 2019 Bildox Systems Inc
Go and See 12%
Explain Why and Solicit Feedback
13%
Thoroughly Test 19%
Document 4%
Train 25%
Teaching Moments 25%
Maintain / Update 2%
THE ONE DAY PROCEDURE
APICS Supply Chain Summit 2019 Bildox Systems Inc
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!
APICS Supply Chain Summit 2019 Bildox Systems Inc
APICS Supply Chain Summit 2019 Bildox Systems Inc
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.
www.bildox.com
APICS Supply Chain Summit 2019 Bildox Systems Inc
Questions?
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