Policies and procedures affect the bottomline

A company we worked with had experienced the significance of having accurate procedures. An out-of-date procedure with incorrect product specifications was used by an operator to set up a paper-making machine.

For an entire shift the machine created product that was unusable. It cost the company $80,000. Luckily most of the product could be recycled, but the loss of eight hours of production impacted heavily on the company's production schedule. The delay rippled through downstream production and caused further delays and more expense. Planners needed to re-schedule manufacturing operations. Orders needed to be juggled. And so it went on.

Procedure changes

The company went on to install procedures online. When product specifications or processes changed, they were updated online immediately. Operators could refer to the information knowing that they were looking at the most up-to-date version.

Procedures do not remain static. Often only a small part needs to be updated, but a clear process needs to be established to avoid reference to out-of-date information.

Procedure updating

If you cannot afford to use an electronic form for procedures, or your manufacturing floor environment is unsuitable for electronic screens, then you will have to use printed (preferably laminated) procedures.

An important step after producing your procedures is to institute a system of review. We would all like to think that changes will be made to procedures as soon as they happen on the shop floor. However, it is so easy for a small adjustment to be made by an engineer, and no one thinks to alter the procedure. At best it is noted on the workstation whiteboard or notice board.

By setting and sticking to a routine of six monthly review, those changes can be captured and recorded in re-issued procedures.

Why are updated procedures important?

If you have a stable workforce, a lot of knowledge rests in the heads of your long-term employees. They pass on their knowledge to newer employees as it becomes necessary. However, not all knowledge may be passed on, and your experienced employees may not be around when something unusual happens or the machine is set up for a rarely manufactured product. They might:

• Be sick
• Have left for another job
• Be working a different shift
• Not be contactable by phone

Capturing their knowledge so anyone can access it is imperative.

Attitudes to knowledge capture

When a company instigates knowledge capture of procedures it may fall foul of employee attitudes. Employees often see their experience and knowledge as the worth that ensures their continued employment. If they surrender that knowledge they may believe they have weakened their bargaining power.

Bringing in an outside group of technical writers can reduce that resistance, because the writers are not seen as a threat. They have no 'history' with the employees.

Building relationships

This attitude was evident at an Australian site we worked on. The site was heavily unionised and the workforce was resistant to any surrender of their knowledge to management.

Our first task was to create relationships with the union leaders and sell the benefits of what was planned. As often happens in these cases, the leaders most resistant at the outset went on to become our greatest advocates.

As the intranet grew and the performance support information was added, they started eagerly checking 'what was up', and even asking when the next stage would be completed.

For more about previous work we have done, click here.

Edutech KM Ltd

PO Box 25-241, Victoria Street, Christchurch;
phone: 64-3-337-0234
fax: 64-3-337-0235
info@edutechkm.com
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