Why have systems and processes in your business?
There are so many reasons, perhaps if we address another question “Are your people freelancing and doing their own thing randomly to make signs and print?” Now, that's probably a more apt discussion point as it exemplifies the real problem and answers both issues.
I have a view that any business deserves and can benefits from methods and considerations that deliver a certain amount of predictability. The simplest example is many sign and graphics business face as a direct result of working in the manufacturing fields employing those who I like to call “creative professionals”. I propose that their creativity can be a huge advantage and equally that may lead to them seeing other methods that may fulfil their own personal needs versus they methods your estimators allowed to be used, I suggest is likely to be sustainably different. Add a new staff member in to the mix and well, anything goes! Conversely, an employee who has detailed work instructions to follow is likely to do just that.
The most difficult quandary in my experience is pricing and the lack of any ‘so called’ standards. It's a natural assumption and the most common argument usually prefaces by “How can the possibly make “it” for that price?” - could be the most asked question – seemingly impossible to answer? Conversely, NO – it's the easiest if you accept a few simple concepts.
Consider when estimating time a (1.) skilled craftsperson takes to make a sign, let’s say 10 hours, next could be (2.) equipment and machines need 5 hours to do their part, (3.) materials and media allowance is $500 and for the sake of it lets allow $100 per hour for machine or person. Therefore 12 & 3 = $1000+ $500+$500 = $2000. Then add an overhead, and profit margin and any other business specific business cost. Ok so far?
That's where the argument starts!
Well, in the above highly simplified sample many will already argue they can on ask anywhere from $40 - $100 for (1.) More will put forward the skilled person could take only 5 hours while others will claim 15 hours. Then when we look at older or lower cost machines may only price say 10 M2 per hour while newer machines are capable of say 100m2 per hour just in that example for (2.) that is a 10x increase or decrease dependant on where you are based. Media or (3.) as we all know has massive differences in quality reflected in purchase price notwithstanding purchasing large scale volumes versus single roles. Although you may not like is, those customers who pay in a timely manner will have significant price leverage over the many late payers and that belligerent few would run their debtor accounts out to 120 days plus. And that is just one simple paragraph without the other huge variants of regional wage and property costs advantages, and without the REAL cost and output high level organisation and systems.
Fact is there is no, never will be, and even the very thought of an industry wide agreed pricing structure, guideline or standard will without question lead to what is called price collusion or price fixing. Or ‘up to your arse in alligators” when you consider its illegal in many countries including of course Australia – See here for more information.
Hang on! Are you saying a price list is a part of a Standard Operational Manual (SOP) ? Yes, that and any document that adds to the process of making a sign, print or graphic to name just a few – overhead calculations and formulae’s, suppliers price list, Material Safety Data sheets, your own price list per product and if required each manufacturing department. So, 100% yes literally the more building intelligence into the SOP occurs the more valuable and smart the SOP becomes.
Therefore, answering the questions posed above – Standard Operational Manuals deliver the promise of a business that has considered, documented and continually work towards the Japanese principle of kaizen – continuous improvement.
Depending how analytical you wish to be even continuous improvement can be small steps, medium steps to large steps. Consequently, the dynamics of the business becomes foremost of mind that when developing the manufacturing nature of creative professional can become sympathetic to highly creative or bespoke organisation to perhaps a more regimented or mass production sign or print manufacturing. Of course, the style, type, terminology, manner and even the presentation of the documents to the creative professional who are relining on them. Additionally, the styles are not interchangeable nor are the people.
What is involved is SOP’s or procedures and Systems?
For clarity I will repeat a line from above - Standard Operational Manuals deliver the promise of a business that has considered, documented. Those documents over many decades, across a plethora of industry sectors have developed and evolved from simple typed descriptive paragraphs in the 40’s through the 60’s into world standards including the range from the International Standards Association (ISO). The most common relevant set of these documents are ISO 9001-2 The Quality Standards. In the 90’s they were wildly accepted and promoted by the State and Federal Governments as a preferred supplier opportunity. My own sign and print business became accredited to ISO 9002 in 1993 – 2001 until we sold the business. My summary the system for a larger sign and print business is excellent – that said – Considering around 76% of sign and print business.
My best recommendation is – Most sign and print shops would greatly benefit from a simple set of polices, Process documents and Work instructions that with a little professional assistance and guidance and mentoring can be developed in house.
What are the key documents and steps needed: To gain better knowledge about skills sets, documents, policies, procedures and work instructions explained in a few paragraphs would be quite absurd and potentially overwhelming. The best practice method to build your SOP manual is really invest your thoughts into importantly “what you need”
Sounds too simple to be true! Well, with the correct planning and assistance it is just a detailed series of tasks. There is a serious question to address and that is simply “why?” Again, with the right understanding of the reasons a focused direction why should it not be simple and even enjoyable.
Let’s say a motherhood statement like - The development of a SOP is to be viewed as a step towards the development of a working environment a continuous improvement for all. This grand aim starts with the people who are the main asset and value in the business and therefore the company will ensure their creative, professional and wellness development. Then the tools of our trade including both tangible and intangible items including and not limited to software, machinery and equipment what the future brings. Lastly, but observation of recent decades we open our minds to that of what the future brings.
You may thing the motherhood statement is Ethereal or even fluffy? OK, let me offer a bullet point list as a more tangible so, let’s go…
Start with these documents:
- Review any existing documents that may offer insights as to what was needed and a glimpse to the future gaps
- Next very important step is developing a master template for all future document.
- Concurrently to a wish list think Master Index – like a book your index will offer a direction.
- And Organisation Chart will indicate to all team members where they fit in the picture
- Job descriptions are critical as they support the company and people by offering their concise role or roles. The instructions and guidance they offer your staff to develop is profound.
- Work instructions - instructions and guidance for your staff to assist their effectiveness – it's the answer to “what they do everyday” if they have to ask – the job description has it all.
- Create Policy documents (the normal standards) instructions and guidance for your staff to develop in a timely manner. E.g.. Mission Statement, Statement of capabilities, WHS Policy etc
Actions that will assist and support the documents:
- Review and conduct a personality test – if you have a genuine understanding of each person’s main personality traits like Stabiliser, Analyser, Controller and Persuader as we are all a percentage of each. Understanding each other in a work environment can solve friction and promote harmony and efficiency.
- Access is always an issue – we have created a few SOP web based systems - remote and on site with one click. If you are unsure – talk to us about this low cost long term plan.
- Look towards developing integrations of both manual and digital systems into human-friendly tools including instructions.
- Of course, there more – the principle of ongoing improvements makes it easier and ongoing.
Summary – or why many sign and print business would gain massive advantages
Seriously, I use the word many in the line above as Systems are not for everyone. To encourage everyone in the business it would be counterproductive and if I used the word MOST that would also potentially create havoc in many business – and that would be against my best intention.
We are all different, the sign and print we make is aimed at different markets and importantly the culture of the business is the main prohibitive factor.
If the owner and brand is free spirited with great creative staff I suggest like many business they will grow possibly even exponentially. They could be masters of their craft and the contrasting style culture may not have the swagger and freestyle staff. However, that Creative companies culture in my experience would make a substantially large challenge primality due to that culture. Its not that the staff will not accept the changes its more like the culture has a stronger influence than the owner, worse still they more than likely don't wish to accept that.
Whereas the more disciplined the manufacturing process of attracts management more attuned to work flow, process driven and are craving a more focused and scalable workforce and outcomes.
I my firm belief and proven in applications – its singularly the very best action I took in all my years in sign and print. If you have read this page with interest – next step is easy – call us, or take action for a chat.
