Introduction
An Standard Operating Procedure (SOP) is a procedure specific to your operation that describes the activities necessary to complete tasks in accordance with industry regulations, laws or even just your own standards for running your business.
Any document that is a “HOW TO” falls into the category of procedures.
In a simple language, A standard operating procedure (SOP) is a document composed of step-by-step instructions used to complete a routine operational task.
SOPs are policies, procedures, and standards you need in the operations, marketing and administration disciplines within your business to ensure success in terms of efficiency, consistency & reliability in production and service.
Developing an SOP is about systemizing all your processes and documenting them in a written or digitalized form.
What types of organizations need SOP’s?
Organizations of all types use SOPs to achieve efficiency, uniform performance, quality control, and regulatory compliance.
For eg: In a manufacturing environment, the most obvious example of an SOP is the step-by-step production line procedures used to make products as well train staff.
Every business has a unique market, every entrepreneur has his/her own leadership style, and every industry has its own best practices. No two businesses will have an identical collection of SOPs.
Below is a listing of just a few typical SOPs, which you may consider for your business.
Production/Operations
- production line steps
- equipment maintenance, inspection procedures
- new employee training
Finance and Administration
- accounts receivable – billing and collections process
- accounts payable process – maximizing cash flow while meeting all payment deadlines
Marketing, Sales and Customer Service
- approval of external communications: press releases, social media, advert, etc.
- preparation of sales quotes
- service delivery process, including response times
- warranty, guarantee, refund/exchange policies
- acknowledgment/resolution of complaints, customer comments and suggestions
Inventory/Warehouse
- Inventory Handling
- Packing / Un-packing process
- Insurance of Stock
Procurement/Purchase
- Seeking of purchase quotations from different vendors
- Know your Vendor Policy
- Optimal Supply Chain management
- Shipping and inward policy
Information Technology
- Use of Internet and Social Media for Business Purposes
- Asset Issue Policy
- Asset Procurement Policy
- Software Implementations
Employing Staff
- job descriptions
- employee orientation and training
- corrective action and discipline
- performance reviews
- use of Internet and social media for business purposes
Benefits of SOP’s
- A way to streamline business processes for better operational controls
- Increases efficiencies, and therefore profitability
- Consistency and reliability in production and service
- A way to resolve conflicts between stakeholders
- Reduces the need for repetitive manual training, thus eliminating training costs
- Protection of employers in areas of potential liability in personnel matters
- A roadmap for how to resolve issues and the removal of emotion from troubleshooting allowing needed focus on solving the problem
- A first line of defense in any inspection, whether it is by a regulatory body, a partner or potential partner, a client, or a firm conducting due diligence for a possible purchase
- Value added to your business should you ever wish to sell it
What is Digital SOP and it’s benefits?
A digital SOP is a customized training video designed to understand a process, exactly in the manner of how it has to be performed.
- Reduces the hassle of reading.
- Eliminates the cost of manual trainers.
- Save some Billable hours.
- leave the worries of manual training to your staff.
- promote ease of access.
- leave the fear of asking the processes to your bosses repeatedly.
- improve work efficiency by reducing unwanted errors.
If you have any queries with regard to SOP’s, feel free to write us at info@perspectiveconsultant.com and we shall get back to you.