SOPs (often pronounced S-O-P) are basically just another way to think about processes. Specifically, with a focus on formally defining the best way of doing something.
In business terms, that means saving time and money by building a clear, concise set of instructions for all of your internal processes. Policies (or standards) are important too; SOPs are kind of like a hybrid of policy and procedure.
Traditionally, SOPs were useful in principle, but often suffered from being difficult to maintain and crucially, hard to enforce. What good is an SOP if it lives its life sat on a dusty stack of paper forms? Your SOPs should be actionable, and that’s where BPM software like Process Street comes in.
If you understand how to build, maintain, and optimize SOPs with software, you can supercharge your standard operating procedures.
In this article, we want to give you everything you will ever need to know about SOPs, including:
Consumer Reports publishes an annual reliability survey, which includes data on over 470,000 cars.
In this report, owners of Tesla’s Model 3 experienced a number of problems, including chassis hardware, paint and trim related faults, indicative of a build quality that fell far shorter than expected standards set across the automotive industry. The Model 3 represents Tesla’s first real attempt at a mass-market electric vehicle, and the issues surrounding its launch created much frustration and controversy among electric vehicle enthusiasts.
This lack of quality assurance has lost at least one major $5 million order of Model 3 vehicles from a rental company, in relation to problems with the service and performance of previously purchased vehicles.
In an email, NextMove wrote:
“Tesla Model 3 vehicles, which NextMove was supposed to take over after payment and only a short examination, sometimes had serious defects: defective tires, paint and body damages, defective charge controllers, wrong wiring harnesses or missing emergency call buttons. Such quality defects would have endangered the safety of the customers and the profitability of NextMove.”
Stefan Moeller, Managing Director of NextMove, went on to say:
“We had to insist on compliance with general quality standards and processes in order to protect our renters and our business model.”
Why did Tesla have so many problems? Crucially, Tesla made the decision to deliver the product to market and sort out the issues later.
Basically, they didn’t have a strong enough system for managing quality.
We call these Quality Management Systems (QMS) – and they work.
The rest of the auto-industry follows a specific quality management system structure. It’s called ISO/TS 16949:2009 and it’s a variant of ISO 9001.
People follow quality management systems for various reasons; they improve quality first and foremost. But they also have a positive impact on the bottom line.
The return on investment (ROI) of a quality management system is typically impressive:
As a guide, a recent study undertaken through the American Society for Quality (ASQ) showed that for every $1 spent on your QMS, you could expect to see an additional $6 in revenue, a $16 reduction in costs, and a $3 increase in profits. On average, they saw that quality management reduced costs by 4.8% – ASQ
In this Process Street article, we’ll be looking at how ISO 9001 can be used to assure quality control across all types of organizations, with benefits like improved company performance, higher demand for products, and a competitive advantage towards increasing market share.