Wednesday January 28th, 2004

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How do I develop operational procedures and policies?

Many planning tools can be used effectively in general business and operations control. Developing basic operational procedures and policies helps to make production more flexible and enhance quality.

Coordination

Operations and quality frequently rely on what may seem like an obvious element: coordination. Operational procedures and policies can help may the coordination of people, materials and equipment more consistent.

To start, consider the following key questions:

1. What is to be done (produced)? 
2. What is needed to do the job? (What materials?)
3. Why does it need to be done at all? o Why in that way? (Is there a better way?) 
4. Who is to do the job? (List every person, department or supplier involved) 
5. Who is to receive the end results? (Product, advertising, brochure, etc.) 
6. Where is it to be done?
7. When is it to be done?
   
   If you make notes under each heading every time you're faced with a task involving several people, and a variety of material and equipment (you own or others'), you'll be doing a lot more “production planning” than you may think. The tendency is to take these things for granted because “that's the way we've always done it”, however, these thoughts are the basis for operational procedures and policies. Here are some other areas to think about and document in your operational manual:
   
   Equipment
   
   It is essential to keep a full description of all your equipment. Information should include:
   
   Name and technical specifications Maximum operating capacity (rate per hour and any work -size limitations) Operators required, including skills. Setup time. Maintenance schedule and parts list.
   
   This information becomes readily available for such things as developing times on a clow chart for each operation or for calculating labor time on the cost sheet.
   
   Time Standards
   
   It is important not only to know the average time for completion of a cprticular operation, by lavor and/or machine, but also to monitor the time taken, to imporove upon it and make sure that your standards are adequate. While time and motion studies may not be appropriate (and may be too costly), sampling work-including the observation and timing of different operations-should be carried out regularly. It is important to maintain a balance between precision and speed. Your time standards, both for setup and operation, should reflect this.
   
   Preventive maintenance
   
   Aside from employee absenteeism, a stoppage in production in any area of the plant, is machine breakdown. Not only is there a direct cost in terms of other machinery standing idle and employees being underutilized, there frequently is a cost in making up lost time-that is, overtime or delayed shipments causing customer dissatisfaction or even loss of orders.
   
   A simple but effective program of preventive maintenance can save you many more dollars than it costs. Most manaufacturers recommend periodic maintenance-stick to their schedule. Depending on the type of equipment, a simple tag, similar to the one left by fuel companies on your home furnace, can be kept on the machine to be filled in each time maintenance (including oiling, cleaning and testing for worn parts) is carried out.
   
   Quality control
   
   Quality control is best carried out as close to where the activity takes place as possible because in the way poor quality can be spotted quickly and rectified before it has progressed too far down the system. There should also be a final inspection after the product is completed.
   
   Whether you need to record variations in length, color or weight (for example), set up a system that records deviations and when they occur. This way, you will be able to detect errors by particular machines or operators, or even those that occur at particular times of the day. This will allow you to take much faster remedial action.
   
   It is important to record all reject and the reasons for them, even if you use a simple inspection slip. In addition, it is also a good idea to do occasional spot checks at different points in the production or assembly process.
   
   Substitute material
   
   From the point of view of possible shortages of materials, timing problems, sources of supply and cost considerations, it is also highly desirable to maintain a list of substitute materials and suppliers, in case you need them. These should be kept by the person responsible for purchasing.