Our manuafacturing system overview

Our system for managing our manufacturing operations

Overview of our system “How it works”

Summarise your system, how does your system work Imagine someone asking you “How does your xxx system work”

This document will help form a Standard Operating Procedures manual for your manufacturing business

e.g. We manufacture xx and supply to wholesalers in … The system begin with … and ends with …

Critical to the success of our system is:

What critical success factors have you identified to ensure a smooth system

• e.g. good lean manufacturing techniques
• e.g. trained staff
• e.g. access to raw materials

Manufacturing Goals and objectives

Enter  your goals or objectives for the next 3 years.

Quantitative goals

Qualitative goals

Identifying and caring for client property

Purpose

• Identify accurately Customer Property
• Secure Customer Property

Background

A significant cause of customer dissatisfaction is when their property is not effectively cared for or is lost.

Scope

Procedure

(WHO) is responsible for logging customer property to the customer property register

The company has provision in its insurances for “Customers Property in Care Custody and Control” adequate to cover such property

Customer property is stored (WHERE) before being worked on and (WHERE) after being worked on pending collection

Outcome

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What you will need before you begin

Safety hazards awareness

Any safety hazards to be aware of – delete this section if not needed

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Steps

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Tips

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Traps

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Production System Access

Purpose

The purpose of this policy is to define proper controls to production systems and applications. This policy also ensures that any changes made to the production system are documented.

Background

Limiting access to production systems and applications is a significant aspect of security and integrity of the [enter-your-company-name-here] computing resources. Unrestricted access to production systems and applications could adversely impact [enter-your-company-name-here]’s business and financial’s.

For this reason, access to production systems and applications is strictly controlled.

Scope

The scope of this policy applies to non-end users who have access to [enter-your-company-name-here]’s internal production systems and applications.

Definitions

• Technology Resources – [enter-your-company-name-here]’s technology resources comprise of computing, networking, and software applications that can be accessed by authorised [enter-your-company-name-here] users.
• User – For the purposes of all Information Security Policies, a user is defined as anyone with authorised access to [enter-your-company-name-here]’s technology resources including permanent and temporary employees or third party personnel such as contractors, consultants, and other parties with valid [enter-your-company-name-here] access accounts.

Procedure

Section 1        Roles and Responsibilities

The roles and responsibilities for enforcing production access, disseminating and updating account access information, and implementing any change requests are described below.

NOTE: Individuals may have permissions or functions that differ between production systems or applications. The roles listed below identify respective responsibilities as it pertains to job functions.

Production Support

Production Support at [enter-your-company-name-here] includes the following elements:

• The Network Operations Center (NOC);
• Elements of the IT Operations Group whose primary responsibility is production support;
• Elements of the IT Applications Group whose primary responsibility is production support.

Production Support is responsible for monitoring and maintaining all production systems and networks.

Accounts Administrator

The Accounts Administrator ensures that all properly requested changes to user accounts are carried out in an appropriate and timely manner, and that all the required procedures are followed.

Administrator

An Administrator is anyone designated by [enter-your-company-name-here]’s IT Management that may have controlling access to some facets of the operating system, databases, application-platforms, or applications for which they are responsible.

Administrators are responsible for ensuring that user access to sensitive settings or data is restricted to authorised activity levels and for ensuring that security of the data and integrity of the application is maintained at all times.

Developer

Developers, including Business System Analysts, develop code or operations to be run on a production system and may have some production access.

Business Owner

The Business Owner provides approvals and reviews of access on a periodic basis for their area of ownership.

Information Security Services

Information Security Services (ISS) is responsible for the enforcement and compliance of this and related policies having to do with maintaining a secure network and protecting sensitive data. ISS is also responsible for reviewing authorisation processes and auditing production systems access on a regular basis.

Quality Assurance (QA) – Change Management

QA – Change Management is responsible for reviewing and obtaining approval for all production changes.

Section 2        Production Systems

Production systems are systems or applications that provide [enter-your-company-name-here] business functionality. They may contain or process [enter-your-company-name-here] data or deliver the functionality required to run the business.

Production systems also include systems that support the production environment such as:

• Network Equipment;
• Authentication Systems;
• Monitoring Tools;
• Back-up Systems;
• File Servers;
• Remote Terminal Services.

Section 3        General Policies

From a permissions standpoint, [enter-your-company-name-here] systems must adhere to a principle of “least privilege” such that authorised users will not have access beyond the permissions required to perform their authorised job functions.

System-level accounts must not be used unless the user cannot perform the action/function under their normal privileges. Privileges must be elevated only as long as needed. For example, if a user does not need the root access privilege in UNIX to perform a function, the user should use their normal system ID.

Production access activity covered by the scope of this policy must be logged.

Changes or modifications may include, but are not limited to:

• Editing configuration files;
• Deleting or modifying production data;
• Modifying batch processes.

Section 4        Exceptions

Requests for policy exceptions must have a valid business justification. The exception must be documented and approved by the system owner or department manager. Information Security Services will evaluate, approve and store exception requests.

NOTE: Each exception request must be justified, documented, and approved separately. ISS maintains the right to deny any exception from this policy.

Section 5        Enforcement

Network activities may be monitored and logged to ensure compliance with the rules established in this and other ISS policies, procedures, standards, and guidelines.

Any user found to have violated this policy may be subject to disciplinary action, up to and including termination of employment, or legal action as appropriate, or both. No provision of this policy will alter the at-will nature of the employment relationship at [enter-your-company-name-here].

Section 6        Policy Update and Notification

[enter-your-company-name-here] reserves the right to revise the conditions of this policy at any time by giving notice. Users are responsible for understanding or seeking clarification of any rules outlined in this document and for familiarising themselves with the most current version of this policy.

Inspecting and Testing

Purpose

The purpose of this procedure is to ensure that materials and products are inspected and tested for conformance or non-conformance before a product is released, used or installed.

Background

Documented procedures shall be established and maintained to ensure all materials and products used in the manufacturing process are inspected and tested prior to use and release.

Scope

This policy applies to the testing of materials and products used in the manufacturing process, including product received from suppliers, in-process product and/or final product.

Responsible Manager is responsible for:

• Defining means of identifying the test status of received material, in-process product or final product
• Ensuring materials and products are identified and/or segregated by status (e.g., tested/untested, conforming/non-conforming)
• Ensuring the proper disposal of all materials and products failing inspection or testing

Manufacturing staff is responsible for:

• Implementing testing procedures for all identified product and materials
• Ensuring that test equipment is properly calibrated at all times and that the calibration status is current
• Properly disposing of all materials and products failing inspection or testing with authorisation from the responsible manager

Quality Control is responsible for:

• Ensuring all measurement and test equipment is calibrated as required
• Maintaining inspection and test records

Definitions

“Responsible Manager” means the individual directly responsible for ensuring a high quality organisation by complying with policies or procedures.

Procedure

Inspection and Testing – General

5. All products and materials used in the manufacturing process shall be identified and any required test criteria identified.  Inspection may be visual, functional, dimensional, specification or other.
6. An inspection and testing sample plan shall be prepared, identifying number, frequency and type of test required.
7. Identified products shall be tested and results recorded prior to release, use or installation.
8. All incoming material and product shall be received in accordance with What do we do with Defective Product.  Received product and materials that do not pass receiving and/or testing shall not be released to manufacturing.
9. Test records shall identify the test method, test criteria, result, test status and person conducting the test, at a minimum.
10. Tested product and material shall be clearly labelled or segregated to differentiate it from untested or un-inspected product and material.  A tab, label, traveller, checklist, lot or other appropriate method may be used to document the status.
11. Products and materials tested and found to be non-conforming must be clearly identified and placed in a specified area labelled for non-conforming material to avoid any mix-ups.  See What do we do with Defective Product.
12. Personnel performing identified tests shall be trained on the equipment and test method.  Training records shall be maintained and the re-certification cycle identified.

Inspection and Test Records

1. Records shall be maintained to provide evidence that the product has been inspected and/or tested.
2. Records shall clearly show pass/fail status and defined acceptance criteria.
3. Where required, inspection and test records shall accompany the unit/product until final release.
4. Once product is released, inspection and test records shall be forwarded to Quality Control for document control.

Discussing and Identifying Customer Requirements (agreeing Scope)

Purpose

Agree on key deliverables in the customers requirements and document them

Background

• Creating and agreeing on the REQUIREMENTS for a project is only part of the story (what the project is going to do – is the important part!)
• It’s equally important to agree what the BOUNDARIES are of any undertaking and these must show what the project is NOT going to do.
• These elements are bound together and are called the Project Scope Statement which details the project objectives, end-products (deliverables), and requirements.
• The Scope must be agreed with all concerned, and used to create the project plan ‘baseline’. Once agreed, the scope sets the expectations of all stake holders so they are clear about what they are going to get when the project is finished.
• The last thing we want is a disagreement at project hand over about what we have or haven’t done – and what was expected.
• Many projects fail – not because Requirements were not met – but because of difference of opinion about what the project was to deliver.
• Most projects are triggered by some form of requirements document. These are central to success and lead to the project developing some form of functional specification against which the project outcome is designed. But not enough effort is spent getting a joint agreement on these documents, and that is where a scope planning and scope development play a key part.
• “Scope creep” is seen as an industry-wide evil, instead as being viewed as the natural corollary to change control.
• There is a little-known technique that beats all others hands-down for laser-focussed scope planning and development.
• It’s this. At the very beginning of project planning, agree what the end-product along with the major products are to be.

Scope

[e.g. who will this apply to]

Procedure

• Project Objectives – what the project is to do. These should be quantified and measurements agreed. Typically the measurements will include one or more of, cost, time scale, quality, or business benefits.  You will have heard of the SMART acronym for each objective: Specific, Measurable, Accurate, Realistic and tangible, Time bound (time frame plus date).
• Deliverables (End-Products). Each should have a Product Description written. This contains descriptions of the purpose, composition, derivation, and the quality criteria for it to be acceptable to the customer.
• Requirements. This is a specific skill, almost certainly done by specialist team, the customer, users, etc. But it is the responsibility of the project manager to make sure they are captured and agreed. Requirements quantify and prioritise the wants, needs and expectations. They may also describe some aspects of functionality of the project deliverables.
• Project Boundaries. Care must be taken here. This should focus on what is to be excluded from the scope in terms of requirements, objectives, and deliverables. It’s a good idea to create a draft boundary document and circulate it for comments. Or perhaps generate the document from within a meeting with key stake holders.
• Product Acceptance Criteria. This should document the WHAT and the HOW that will be carried out as part of agreeing successful project closure. It must be the Customer/Users perspective. The actual criteria used can be taken from a wide choice of aspects, and may include elements such as ease of use, reliability, operating costs, performance data, etc.  This should also include HOW the objectives, deliverables and other outcomes of the project are to be approved.
• Constraints. All projects have constraints – often put there by humans – sometimes by the rules of physics!  A constraint is anything which impedes the project team’s work. The obvious choices may include, time, cost, quality, key milestone dates or logistics, standards, procedures, directives, compliance, legal and law, health and safety, technology, etc.  Whatever. Get them down and agreed – then plan accordingly.
• Assumptions. In a nutshell, anything you believe to be true. Do not use this section to capture a load of disguised risks (although stated assumptions may lead to generated risks). Documenting them at the start of a project helps test these assumptions and get them agreed.  Should these assumptions prove to be false at a later date, these captured statements can be used as a basis to plan and manage the way forward.
• Project Organisation. Well, as it is initially – it is likely that changes may be necessary to the roles and responsibilities assigned to individuals.
• Initial Risks. Any known risks at this time. It is helpful to include an initial risk analysis so that readers can get a ‘feel’ for each risk.
• Milestones. These may be externally dictated and/or internally created as a result of planning by the project manager. Be sure to have them represent significant points of achievement (or key decision points such as an end-stage assessment).
• Funding Limitations. This is different to cost constraints. It refers to the availability of money to finance the project, and this may have an impact on cash flow. It may state key dates when funds are available, these may be dictated by certain completion criteria, and it also state the amount of funds released at a given point.
• End Product Description. This should include the quality criteria for the product to be acceptable for the customer/user.
• Specification Document. This is usually derived directly from the Requirements document. It is usually highly detailed and created by the specialist team along with input from the customer and users.

Confirming Scope of Order

Purpose

To process orders in requirement with the customers orders

Background

This procedure may or may not be necessary as a separate procedure for your business…  You should always have some checking mechanism to ensure that customers orders are processed accurately and according to requirements.

The degree of emphasis you place on this procedure will vary according to your product value and processes.  For ideas refer to the process for tenders and quotes for large orders.

Scope

[e.g. who does this apply to]

Procedure

What you will need before you begin

Steps

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Tips

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Traps

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What do we do with defective Product

Purpose

Ensure that product which is defective or non-conforming is dealt with effectively.

Background

This procedure is similar to the procedure for dealing with defective supply in purchasing.

Scope

[e.g. who does this apply to]

What you will need before you begin

Safety hazards awareness

Any safety hazards to be aware of – delete this section if not needed

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Procedure

• Inspection and testing reveals product is defective or non-conforming
• Product is set aside (WHERE)
• Product is tagged or clearly marked “DEFECTIVE – NOT TO BE USED”
• Arrange for product to be disposed of
• Note in Defective product log

Steps

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Traps

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Identifying Root Causes when things go wrong

Background

Proper root cause analysis identifies the basic source or origin of your problem. Root cause analysis is a step by step approach that leads to the identification of a fault’s first or root cause. Every system, equipment, or component failure happens for a reason.

There are specific succession of events that lead to a failure. A root cause analysis investigation follows the cause and effect path from the final failure back to the root cause.

Procedure

Add more rows as needed

Completed by

[e.g. bill]

Product Recall

Purpose

To properly handle the delicate task of recalling goods

Outline the necessary steps required to recall post despatch product.

• Determine quantity manufactured.
• Isolate pre-despatch stock and quarantine.

Background

Recalling goods is a delicate task and needs to be handled openly and professionally.

Scope

(who)

Procedure

Case #1: In Transit, no dealer contact.

• Notify transport company.
• Have product recalled before arrival at the dealer.
• Contact Sales Manager.
• Call dealer, offer a plausible reason for delayed despatch.
• Production to remake product and have some, if not all, of the order on next day despatch.
• Notify management.

Case #2:  Delivered, requires dealer contact.

• Contact management.
• Management to decide on damage control options.
• Dealership is given a plausible reason for recall.
• Product to remake product and have some, if not all, of the order on next day despatch.

Case #3:  Product installed, requires end user contact.

• Contact management.
• Follow product complaint procedures.
• Follow warranty procedures.

What you will need before you begin

Safety hazards awareness

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Steps

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Tips

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Traps

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Internal and external R&D

Purpose

Manage R&D processes to ensure:

• Scope of R&D not exceeded
• Proper accountability
• Effective deliverables
• Return on Investment measurable
• Correct record keeping

What is our current strategy

• Employee suggestion systems
• Risk-taking and innovative culture

What is our R&D EMPHASIS

• Basic scientific research
• Product development
• Process development

R&D TIMING

• First mover
• Follower

PRODUCT AND PROCESS DEVELOPMENT

Who

• Separate R&D department
• Cross-functional team
• Some variation

How

• Formal or informal process
• Use prototypes
• Use product test
• Use design reviews
• Use test markets
• How to implement new design
• How to evaluate success of new design

External partners conducting R&D on our behalf

Test Market

Purpose

In this procedure, management conducts market testing to complete alignment of product to market and company strategy.

The procedure starts with prototype release of product and ends with release of the product to market.

Background

Whilst early research and market review will have indicated a requirement for this product, as the product is preparing for release to market, it is necessary to confirm the product’s truly meets market requirements and obviously take such action as is necessary to align the product to the company strategies and market requirements.

Scope

R&D, Management

Procedure

What procedure and/or rules apply

What you will need before you begin

Safety hazards awareness

Any safety hazards to be aware of – delete this section if not needed

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Steps

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Tips

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Traps

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Receiving Orders

Purpose

Identify effective processes for receiving orders from customers to:

• ensure customer satisfaction
• eliminate wastage and rework
• ensure professional, effective and timely responses to requests

Outcome

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What you will need before you begin

Steps

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Tips

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Traps

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Preparing Order

Outcome

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What you will need before you begin

Safety hazards awareness

Any safety hazards to be aware of – delete this section if not needed

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Steps

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Tips

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Traps

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Product Despatch and Delivery

Purpose

The purpose of this procedure is to ensure that product and materials shipped to customers arrives correctly with quality uncompromised and that any product damaged during transit is addressed.

Background

Product quality shall be maintained on all shipped product and materials to domestic and/or international customers during delivery

Scope

Applies to product and materials being delivered from the company to either internal or external customers.

Responsible Manager and/or Environmental Health and Safety Manager is responsible for:

• Determining special delivery requirements
• Creating reference procedures

Handler is responsible for:

• Implementing standard and special delivery procedures

Definitions

• “Packaging” means the final product shipping container, packing material and the marking on the container.
• “Carrier” means a commercially available transportation specialist, such as a courier service or trucking firm.
• “Handler” means the person who arranges product for delivery or receives, manufactures, moves, stores or packages the product.
• “FOB” means Free On Board, a protocol for shipping goods in which the supplier bears the risk associated with safe delivery of the goods up to the point where the goods are passed into the hands of the shipper.
• “CIF” means Cost, Insurance and Freight, a protocol for shipping goods in which the supplier bears the risk associated with the safe delivery of the goods up to the shipping destination.
• “DDP” means Delivered Duty Paid, a protocol for shipping goods in which the supplier bears the risk associated the safe delivery of the goods to the customer and also ensures their safe delivery through customs, including loading and unloading fees, import licensing and related duties payments.
• “Responsible Manager” means the individual directly responsible for ensuring a high quality organization by complying with policies or procedures.

Procedure

Delivery – General

29. Subcontracted delivery carriers shall be identified through an approved vendor evaluation process.  See Supplier Management.
30. Common carriers shall be considered acceptable for delivery unless there are special delivery requirements.
31. Finished products/goods awaiting delivery shall be stored in a designated area to avoid mix-up with other products in accordance with Product Storage.
32. All product and materials for delivery shall be packaged in accordance with Packaging.
33. Deliveries are [FOB].
34. Damaged product received by customers shall be addressed as required.  See Customer Complaints. For damages resulting from transit, the delivery carrier shall maintain liability and return the damaged product to the company.
35. Any damaged product returned to the company shall not be distributed for sale until inspected and if suitable, released for distribution by the Responsible Manager.

Special Delivery

1. Special delivery procedures shall be used as determined by the Responsible Manager.
2. Special delivery procedures shall be prepared and implemented for delivering materials that may be biological, radioactive, explosive, flammable, highly pressurised, corrosive or reactive.
3. Proper training shall be implemented, as required, when following special delivery procedures, to ensure a safe level of delivery.
4. Special delivery may be required for temperature-sensitive or time-sensitive materials and product.
5. All special delivery conditions shall be clearly identified and communicated with the delivery carrier in advance.

Packaging

Purpose

The purpose of this procedure is to ensure that packaging methods are undertaken to prevent damage and/or deterioration.  In addition, packaging shall be used to ensure lot integrity, prevent contamination and ensure product traceability.

Background

Documented procedures shall be established and maintained to ensure packaged product is not damaged or altered.

Scope

Applies to product and materials during manufacturing, warehousing, shipping and delivery to internal and external customers.

Responsible Manager and/or Environmental Health and Safety Manager is responsible for:

• Determining special packaging requirements
• Creating reference procedures

Handler is responsible for:

• Implementing standard and special packaging procedures

Definitions

• “Packaging” means the product shipping container, packing material and the markings on the container.
• “Carrier” means a commercially available transportation specialist, such as a courier service or trucking firm.
• “Handler” means the person who arranges product for delivery or receives, manufactures, moves, stores or packages the product.
• “Responsible Manager” means the individual directly responsible for ensuring a high quality organization by complying with policies or procedures.

Procedure

Packaging – General

6. Where possible, packaging solutions as recommended by the carriers shall be considered acceptable unless special packaging is required.
7. Only product approved for release shall be distributed to customers.
8. The package shall be clearly identified with the following information:
9. shipping destination
10. company name and full return address
11. Special handling conditions, if required
12. Identifying number for traceability (e.g., Purchase Order number)
13. Markings and labels shall be legible, durable, in the required language(s) and tamper-resistant.
14. Packaging instructions shall be prepared by the Responsible Manager.  These instructions shall include information on cushioning, blocking, crating, cleaning and preserving (i.e., moisture elimination), as required.
15. The Handler shall verify the shipped contents against the relevant documentation (e.g., packing list or bill of lading) before sealing the package.

Special Packaging

16. Special packaging procedures shall be used as determined by the Responsible Manager.
17. Where customized packaging materials and/or containers are required, they shall be designed and constructed to protect the product from alteration or damage during distribution, storage and handling.
18. Special packaging procedures shall be prepared and implemented for handling materials that may be biological, radioactive, explosive, flammable, highly pressurised, corrosive or reactive.
19. Proper training shall be implemented, as required, when following special packaging procedures, to ensure a safe level of packaging and handling.
20. Special packaging may be required for temperature-sensitive materials and product.  Heat-sensitive items under temperature control shall be monitored as required.

Develop Production and Material Strategies

Purpose

To identify broad strategies for production and materials management

Scope

This applies to Supply Chain Staff

Procedure

When developing this procedure, address the following perspectives:

• Define your manufacturing goals
• Consider your policies around Labour and Materials
• Define any Outsourcing Policies
• Consider your capital expenses approach relating to manufacturing plant and equipment
• Review your manufacturing capabilities, production network ability and supply constraints.

Outcome

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What you will need before you begin

Steps

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Tips

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Traps

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Supplier Management

Purpose

The purpose of this procedure is to ensure that the company obtains the best possible combination of quality and price from its suppliers.

Background

Comprehensive records will be maintained for all major suppliers.  All suppliers will be subject to periodic review to verify that they provide the best combination of quality and price.

Scope

Applies to the purchasing department.

The [Purchasing Department] is responsible for:

• Ensuring adequate supplier records are maintained
• Making judgements and related recommendations about the value and quality of suppliers
• Maintaining arms-length relationships with all suppliers
• Periodically assessing the potential for improved purchasing value through the analysis of current and potential suppliers

Definitions

• “Electronic Supplier Records” means information about all transactions, contacts, and contracts with  suppliers maintained in a database or other electronic format.
• “Supplier Payment Terms” means specific requirements for payments laid out in the supply contract including timing of invoicing, time to pay and interest charges if payment is delayed.
• “Supplementary Purchase Order” means a purchase order that relates to or modifies a previously-issued purchase order.

Procedure

Purpose of Supplier Records

25. Good supplier records track locations, contact names and numbers, payment preferences, contract provisions, purchase order and payment history as well as any quality issues that may have arisen.
26. Electronic supplier records may be used as an electronic source for the completion of purchase orders and for processing payables.

Purpose of Supplier Management

27. Periodically, supplier records should be analysed to obtain information on the reliability of each supplier, comparison of prices or discounts provided, or volume of business which may lead to the creation of a purchasing contract providing better prices, discounts or payment arrangements.
28. Effective supplier management can produce tremendous economies for the company through improved terms, best balance between supplier quality and cost, and improved cash management through strict adherence to payment terms.

Supplier Records – Contents will contain at a minimum:

• Supplier name and address
• Contact name(s) and particulars
• Alternate supplier locations and telephone numbers
• Related companies if known
• All outstanding purchase orders including expected fulfilment date
• Supplementary purchase orders
  • Completed purchase orders for [x] years, organised by year
  • Retired purchase orders and reasons for retiring the purchase order
• Contract(s) scope and terms
• Payment information by purchase order
• Typical invoice payment terms
  • Commentary on reliability and quality of goods

Supplier Management – Process

29. On a monthly basis purchase orders shall be analysed for suppliers who are consistently overdue on fulfilment and appropriate action shall be taken.
30. Supplier invoices received shall be checked on receipt against purchase order provisions and scheduled for payment according to supplier payment terms.
31. Purchasing agents/buying officers must balance the benefits of the give and take of long-term relationships with existing suppliers against the benefits of potentially better quality, pricing or payment terms offered by alternative suppliers.

Periodically,

32. Purchase history by supplier shall be analysed for possible economies
33. Prices, discounts and payment terms shall be compared to those of alternate suppliers
34. Negotiations shall be undertaken with current or prospective suppliers to obtain better prices, discounts and payment terms
35. Opportunities for supply contracts offering the best terms shall be identified
36. Information about preferred suppliers, new suppliers and good deals shall be provided to operating departments to keep them abreast of purchasing opportunities

Supplier Relationships – Ethics

The company expressly forbids its employees, most particularly purchasing agents or buying officers, from accepting any good, service, gift or other personal offering of more than nominal value from its suppliers at any time.

Select Suppliers

Purpose

• Select suitable suppliers
• Comply with agreed standards.
• Purchase competitively.

Procedure

ASSESSING SUPPLIERS

Suppliers include both material suppliers and service providers.

Materials purchased may include:

• Software
• Communication supplies
• Office supplies
• Safety supplies
• Routine consumables

Services engaged may include:

• Electrical contractors
• IT contractors
• Maintenance Contractors
• Marketers

Suppliers are assessed by these criteria, if and when appropriate:

• geographical locality
• timeliness and punctuality
• previous performance as a supplier
• price
• availability of goods and services
• experience
• range and type of products and services
• business references

SUPPLIER LIST

Include details of preferred suppliers on the Supplier List.

list goes here

Suppliers of critical materials and services, should be qualified with reference to:

• agreed / special prices
• compliance with agreed Standards
• Whenever possible, preference must be given to suppliers on the Supplier List.

Confirming Receipt of Goods and Conformity of Supply

Purpose

• Ensure that product received has actually been received
• Ensure that product received conforms to our requirements
• segregate product that does not conform

Background

If appropriate we can request the right to inspect products and services at the supplier’s premises, at agreed stages.

Where specified, our customers may also be given the right to verify at our supplier’s premises, that the product to be supplied confirms to their specified requirements.

Scope

Good Receivable and Accounts Payable Staff

Procedure

Receive Materials

• check against delivery docket/purchase order
• initial delivery docket
• staple delivery docket to purchase order and hand to accounts payable

Inspect

• check quantity
• check damage
• check specifications
• check for documentation (MSDS or other)

Product has problems

• Confirm to accounts payable that issues exist with the product
• set product aside (WHERE)
• clearly mark “NON-CONFORMING NOT TO BE USED”
• Arrange for disposal/replacement with supplier
• inform Manager (WHO)
• Manager to consider status of supplier on supplier register

If product passes inspection and is ready for immediate use

• start use

If product passes inspection and is not for immediate use

• place in stock storing Hazmat per MSDS
• all other stock stored safely and securely until used.

What you will need before you begin

Steps

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40. ..others

Tips

Any tips learnt from previous experiences that should be passed on – delete this section if not needed

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Traps

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Goods Received Conformance

Purpose

The purpose of this procedure is to ensure that all incoming materials and products are inspected and received in a consistent manner prior to processing.

Background

All incoming product and material shall be inspected and verified for conformance to specified requirements prior to use or processing

Scope

The Receiving policy applies to all employees who receive products and materials at any stage of production.

Handlers are responsible for:

• Ensuring that all bills of lading are signed and dated and forwarded within [4] hours to Accounts Payable
• Forwarding received products and materials to a safe and secure location for storage or for testing and further inspection, if required
• Ensuring any hazardous goods and materials are handled in accordance with the applicable MSDS

[Responsible Manager] is responsible for:

• Confirming that the goods and materials are received and safely and securely stored

Definitions

• “MSDS” means Material Safety Data Sheet.  This is designed to provide both employees and emergency personnel with the proper procedures for handling a particular substance.  MSDSs include information such as physical data (melting point, boiling point, flash point etc.), toxicity, health effects, first aid, reactivity, storage, disposal, protective equipment, and procedures to be followed in the event of a leak or spill.
• “Certificate of Analysis” means a supplier-provided statement of the incoming product’s specification as detailed in a contractual arrangement.
• “Handler” means the person who arranges the product for delivery or receives, manufactures, moves, stores or packages the product.
• “Requisitioner” means the person who originally requested the received goods and materials and is typically the intended recipient of the package.
• “Responsible Manager” means the individual directly responsible for ensuring a high quality organization by complying with policies or procedures.

Procedure

Receiving – General

41. All product and material(s) must be received either electronically or manually with a signature and date on the bill of lading .
42. All received packages shall be inspected for:
    1. Completeness
    2. Handling damage
    3. Transportation damage
    4. Deterioration
    5. Documentation
    6. Accurate paperwork
43. In addition, specified materials and products shall also be inspected for conformance to specified requirements.
44. Received products and materials shall be placed in secure and safe storage.
45. Receiving areas shall be clearly identified for incoming goods or forwarded to the recipient within [X] hours.  Non-conforming product and material shall be placed in a designated area or quarantine.

Material Test Reports

1. When material traceability to purchased material is required, the “Certificate of Analysis”, as supplied by the vendor, must be retained throughout the manufacturing process.

Non-conforming Product

1. Product and materials found to be non-conforming during receiving must be identified with a label and handled in accordance What do we do with Defective Product

Handling Policy

Purpose

The purpose of this procedure is to ensure that methods are instituted to prevent damage and/or deterioration when handling product and materials.  The Handling procedure applies to product and material from initial receipt until final shipping and delivery.

Background

The handling of products and materials shall be monitored and controlled from the point of receipt, through storage and shipping.

Scope

Applies to product while on company property during manufacturing, warehousing and shipping.

Responsible Manager and/or Environmental Health and Safety Manager is responsible for:

• Determining special handling requirements
• Creating reference procedures

Handler is responsible for:

• Implementing standard and special handling procedures

Definitions

• “Handler” means the person who arranges product for delivery or receives, manufactures, moves, stores or packages the product.
• “Responsible Manager” means the individual directly responsible for ensuring a high-quality organisation by complying with policies or procedures.

Procedure

Handling – General

2. Standard handling practices shall be considered acceptable unless special handling is required.
3. Handling through manufacturing and warehousing shall:
   1. Preserve lot integrity
   2. Prevent mix-ups
   3. Protect from damage and/or deterioration
   4. Prevent contamination or other adverse effects
   5. Prevent unauthorized release
4. Care shall be taken when handling product to prevent any damage and/or deterioration.

Special Handling

5. Special handling procedures shall be used as determined by the Responsible Manager.
6. Special handling procedures shall be prepared and implemented for handling materials that may be biological, radioactive, explosive, flammable, highly pressurised, corrosive or reactive.
7. Proper training shall be implemented, as required, when following special handling procedures, to ensure a safe level of handling.
8. Special handling may be required for temperature-sensitive materials and product.  Heat-sensitive items under temperature control shall be monitored as required.

Physical Inventory

Purpose

This purpose of this procedure is to provide guidance for [enter-your-company-name-here] and its subsidiaries regarding the need to take regular physical inventories of the Company’s raw material, work in process, finished goods, and stores inventories.

[enter-your-company-name-here] uses various types of inventory in the course of its business. Maintaining adequate controls over inventory is important to ensure proper balance sheet valuation and recognition of cost of products sold.

Additionally, a physical inventory provides the Company with an opportunity to maintain the accuracy of its perpetual inventory records

Background

This procedure assures that one un-audited semi-annual and one audited annual physical inventory should be taken of raw materials, work in process, and finished goods.

Procedures should ensure that all physical inventory results are summarised, discrepancies are investigated, and necessary adjustments are recorded to adjust the balances on the Company’s records to reflect the results of the physical inventory.

Cycle counts or other periodic verifications can be used in place of an inventory, as long as they provide for the counting of all groups of inventory at least once during the year.  In the event a business elects to utilise cyclical counts in lieu of a complete inventory, the business is required to request and receive approval from the Accountant.

The taking of a physical inventory must be properly supervised and controlled by the Accounting department.

At least one physical inventory should be taken in close proximity to year-end and coordinated with the independent external auditors’ mutual agreement.

Scope

Accounts covered by this procedure include Raw Materials, Work in Process, Finished Goods, and Stores Inventory.

Procedure

The following procedures are intended to assist the business in applying this procedure. The procedures are not intended to address specific control activities applied by the business or statements of operating procedures.

The intent is to provide supporting guidelines to assist operating units in developing necessary activities to ensure that the procedure is understood and being followed.

ANNUAL PHYSICAL INVENTORIES

The physical inventory should be supervised and controlled by members of the business, Accounting and Operations management teams.

Normal operations may need to be significantly or temporarily suspended.

Instructions to participants, who are involved in the physical inventory process, should be in writing and include:

• Location, date, and start time.
• Team designation and rolls of key team members.
• Assignment of teams to specific areas.
• Detailed instructions including examples on how to complete the recording of the physical counts.
• Guidance on how to designate suspect inventory for later review as to obsolescence, damage, or scrap.
• Identification of inventory designated as customer property awaiting shipping instructions (in cases in which the inventory is physically segregated).

Inventory should be maintained in a manner that facilitates physical counting and should be conducted by personnel who are familiar with the inventory being counted.

In cases in which a second team recounts inventory, the recount should be promptly reconciled to the initial count and all differences reconciled.

All sheets or tags used during the physical count should be accumulated and accounted for before completion of the inventory of a specific area.  A process, such as sequential numbering, should be utilised to assure all physical inventory documents are accounted for.

PERIODIC PHYSICAL INVENTORIES – CYCLE COUNTS (STORE ROOM)

Periodic counts must cover all inventories at least once during the year.  They may be more frequent at the discretion of the business Controller.

Perpetual inventory records must be up to date.

INVENTORY NOT ON COMPANY PREMISES

In cases in which Company owned inventory is in transit or otherwise not in the Company’s physical possession it should be verified through the use of existing records that can be reviewed and used to authenticate its existence either through physical measurement at a later date or through some other independent source.

This alternative independent source includes comparing perpetual inventory records received from the company storing the inventory to the business’s own perpetual records.

PROPER IDENTIFICATION OF INVENTORY OWNERSHIP

If practical, all inventory that is being held for customers should be clearly identified in the inventory records and physically segregated.

In cases in which customer owned inventory is co-mingled with Company owned inventory, the physical inventory should count all product on-site.

As part of the reconciliation process, the count should be compared to the total quantities in the perpetual records, thus validating Company owned and Customer owned perpetual quantities as a common group of product.

RECONCILIATION OF PHYSICAL AND PERPETUAL RECORDS

The physical inventory quantities should be reconciled promptly with the perpetual records.  A recap of differences should be developed showing the inventory item, the amount on the perpetual records, the amount counted, the unit difference, and the dollar value of the difference.

The perpetual inventory records should be adjusted for significant variances as compared to the physical quantities counted.

All differences are investigated.

Items that were identified as questionable value should be reviewed and adjusted to reflect their realisable value.

The Accountant should be advised of differences that result in adjustments to the inventory values on the business’s books.

APPLICABLE EXTERNAL GUIDANCE

The need to take physical inventories on a regular basis is based on sound business sense and the need to assure that assets reported on a company’s balance sheet are supported by the existence and control of those assets by the Company.

Product Storage

Purpose

The purpose of this procedure is to ensure that stored product and materials are not damaged or altered prior to use or delivery.  Storage procedures apply to product and material from initial receipt until final shipping and delivery.

Background

Only designated storage areas shall be identified and used to prevent damage or deterioration of the product pending use or delivery.

Scope

Applies to product and materials while on company property during manufacturing, warehousing and shipping.

Responsible Manager and/or Environmental Health and Safety Manager is responsible for:

• Determining special storage requirements
• Creating reference procedures
• Controlling access to secure storage areas

Handler is responsible for:

• Implementing standard and special storage procedures

Definitions

• “Handler” means the person who arranges product for delivery or receives, manufactures, moves, stores or packages the product.
• “Responsible Manager” means the individual directly responsible for ensuring a high-quality organisation by complying with policies or procedures.

Procedure

Storage – General

9. Standard warehousing storage conditions shall be considered acceptable unless special storage is required.
10. Storage through manufacturing and warehousing shall:
    1. Preserve lot integrity
    2. Prevent mix-ups
    3. Protect from damage and/or deterioration
    4. Prevent contamination or other adverse effects
    5. Prevent unauthorised release
11. Inventory shall be kept in a secure location that is locked when not in use.
12. For product that deteriorates over time, the product shall be stored to facilitate proper stock rotation.  Expiry dates for product shall be clearly marked.  In addition, the condition of the product in stock shall be assessed at appropriate intervals.
13. Where possible, labelling in storage areas shall identify the contents and any relevant physical characteristics (e.g., expiry date, temperature limits).
14. If storage areas other than designated areas (warehouse, laboratory and manufacturing area) are used, the Responsible Manager shall designate these areas and specify any limitations and/or restrictions on storage.
15. Access to the storage and/or stock room shall be restricted as noted.  [Add any affected job descriptions and/or security clearances].
16. If a problem is identified during the manufacturing process, any affected parts shall be identified and segregated in accordance with What do we do with Defective Product.

Special Storage

17. Special storage procedures shall be used as determined by the responsible manager.
18. Special storage procedures shall be prepared and implemented for storing materials that are biological, radioactive, explosive, flammable, highly pressurised, corrosive or reactive.
19. Proper training shall be implemented, as required, when following special storage procedures, to ensure a safe level of storage.
20. Special handling and storage may be required for temperature-sensitive materials and product.  Heat-sensitive items under temperature control shall be monitored as required.

Manufacturing – list of attached files

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Corrective_Action_Required.doc

Incident_Report_Form.doc

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