As an increasing number of companies make technological advancements, from adding new equipment and installing industrial-based software to implementing full-fledged MRP II/ERP and supply chain management systems, the need for technical documentation is becoming more and more evident.

Despite this need, technical documentation in manufacturing settings is often overlooked. Instead of assigning resources, companies rely on: the computer programmer to take notes; training to ensure that the shop floor person knows how to use equipment; software manuals to address any software questions; and MRP II systems to be adopted by osmosis.

In a perfect world, all these things would happen and there would be no need for technical documentation.

In our world, however, we watch as companies spend millions of dollars on high-tech equipment, purchase the latest software to run that equipment, pay consultants to put a new system in place, and design and purchase advertising space to sell their wares. Yet these same companies neglect to provide their staff with a much needed tool: documented policies and procedures.

Technical documentation of a company's policies and procedures is a key element to success and can be an integral part of a well run company.

Good documentation will:

• ensure consistency in the performance of a task, job, or process, even when personnel changes
• inform staff about management's policies
• assign responsibility
• provide training and reference material

So, would your company benefit from documented policies and procedures?

If your goal is any of the above bullets, then yes, your company would benefit from having documented policies and procedures in place. Let's discuss how.

As an example, consider Acme Manufacturing's goal of 98 percent inventory accuracy. To reach this goal, management has said that cycle counts will take place daily in specific areas of the warehouse, and that the entire warehouse will be counted weekly.

Management tells employees that cycle counts begin immediately and that the 98 percent inventory accuracy goal is desired in two months. Management does not, however, document this policy or develop a cycle count procedure.

Two months later, Acme Manufacturing's inventory accuracy dropped from 93 to 91 percent. Management is frustrated and can't figure out how accuracy could have dropped. The employees are frustrated and don't understand why inventory accuracy or cycle counts are so important.

Now let's talk about how documented procedures could help.


Ensure consistency
Acme thought they had carefully planned and implemented a cycle count program. The managers agreed with the idea and said they had trained their employees. So why did the inventory accuracy rate drop? One reason may be because cycle counts are not performed in the same manner by different employees. The cure? A documented procedure that outlines how and when to perform cycle counts.

Suppose, in the above scenario, Acme already had a procedure in place and still was not reaching 98 percent inventory accuracy. What then? As a start, Acme should verify the process to ensure that the employees are using the procedure. If they are, then the accuracy of the procedure should be checked. It could be that a step is missing or incorrect, or that the document is unclear.


Inform staff about management's policies
Acme's management says that cycle counts start now, that 98 percent inventory accuracy is the goal, and that if accuracy falls below 98 percent for three straight weeks, a corrective action is required. However, management never issues a documented policy that states these goals and objectives. In turn, 98 percent accuracy is never reached.

Had management made the employees aware of the inventory management and cycle counting goals by implementing a documented policy, the employees would know the accuracy desired and how and when to complete cycle counts. They would also know when to complete a corrective action.

By documenting and implementing a policy, management would be happy because they would be on their way to inventory accuracy. The employees would be happy because they would know what was expected of them.


Assign responsibility
Since the two-month time frame came and went and inventory accuracy did not reach 98 percent, Acme conducts a corrective action. The finding: Employees have heard the phrase cycle count and some training has taken place, but no one has been assigned responsibility for conducting cycle counts.

Without a documented procedure that identifies who is to conduct a task, even the best intentioned employees are at a loss. A well-documented procedure, however, that outlines the correct procedural steps to perform and assigns responsibility will not only improve employee performance, but will also enhance team spirit.

Employees who understand what tasks they are responsible for will then perform those tasks as outlined. Further, if employees have questions about a task, procedures that assign responsibility also identify who to contact for answers.


Provide training and reference material
Acme finally documented their policies and procedures and reached 98 percent inventory accuracy. The new challenge: People are moving to different positions. To maintain the inventory accuracy goal, Acme has to train new people.

Acme uses "on-the-job" training, a good method that is only strengthened if it is supported with good training documentation. In this case, policies and procedures can be used as training and reference material (a big benefit of this type of documentation).

By supporting employees with good training documents, you are providing them with a tool that will help ensure they perform their job correctly. These same documents circle back to the first point — consistency — and help ensure that new employees perform their job tasks in the same manner as the previous employee. In turn, customer satisfaction improves because the product the company delivers to the customer is the same this week as it was last week, even though a new employee is in place.


Let's ask again
Back to our original question: Would your company benefit by having documented policies and procedures in place? My experience says yes. Well-documented policies and procedures are an important tool in the day-to-day operation of any company. They provide employees with a needed job aid — a method of helping them perform their job as the company's management desires.