Standard Operating Procedure

What is a Standard Operating Procedure (SOP)?

The word ‘Standard Operating Procedure’ shortly known as SOP, probably originated in

military or healthcare domains to instill best practices in performing a specific function. SOP

is a written document with step-by-step instructions to guide the performer of a process or a

function or an activity. The purpose of SOP is not to teach someone how to do a work or to

impart a skill, but to imbibe best practices that ensures some sort of standardization in

performing a work in a most optimal way. For example, take a SOP ‘Operating a Car’. This

SOP will not teach someone how to drive a car, but it does teach the best practices that shall

be followed while operating a car such as wearing seat belt, never to move the car while the

passengers are within 5 m radius etc.

SOP Classification:

There are three major classifications.

1. SOPs for different verticals such as SOP for Banking, Hospitality, Healthcare,

Government, Retail, Supply Chain, Warehousing, Education, Insurance, Capital

Markets etc. The objective of having this classification is that there are specific

demands for each vertical while creating SOPs and there are government regulations

with respect to these SOPs in western countries.

2. Process SOPS: A process is a set of sequential activities that are performed in a

predetermined order to deliver value to the customers (internal / external). These type

of SOPs are written to cover all the activities in a process. In case if the process is

performed by a team of people then this SOP is referred by all the people involved. In

other words, process SOP has instructions for a group of people who perform all the

activities involved in a single process. For example, an SOP written for Insurance

Claims Processing. Several people from several departments are involved in this SOP.

3. Role SOPS: A role SOP is specifically written for one person or role within an

organization. All the activities performed by a single role is documented here. For

example, a SOP written for the Front Desk Executive in a Hotel.

How to Create SOPs?

SOP creation follows four distinct phases. These four phases of creating SOPs are well

explained in the process map. They are

1. Assessment

2. Development

3. Implementation

4. Continuous Improvement

Assessment: The activities involved during this phase are identifying a sponsor, creating a

project charter, management buy-in, identifying the primary, secondary and management

processes, identifying the stakeholders and defining the need for SOP. This is like a planning

and preparatory phase in SOP creation.

Development: During this phase the process maps for the various processes identified during

the assessment phase is developed and the SOPs are chiselled. This is a very intense phase,

where lots of elicitation activities happen within the organization (Elicitation is the process of

drawing out the requirements from the stakeholders).

Implementation: The developed SOPs are reviewed during this phase and several training

sessions are conducted to move the organization from the current state to the future state.

This is also a change management stage where the practices are corrected to attain a state of

best-practices.

Continuous Improvement: SOP is not a static document, but rather a living document. It has

to keep abreast of the various development that undergoes in the industry. The situations

when a SOP need to undergo change are typically chance in customer preference or

behaviour, changes in regulatory framework, government policies, market dynamics or

disruptions etc. The department or role responsible for the SOP need to sense these need for

changes and appropriately take action and update the SOP. An SOP that is considered as done

and no improvement is carried out has a very short shelf life.

Benefits of Implementing SOP

SOPs are the documents that help organizations to make the best practices as a part of

organizational culture in performing the various processes, functions and activities. The

macro-level benefits of SOP are

Well defined steps to perform a work

Standardization of activities irrespective of who is performing

Improved safety and security in operation

Best quality is delivered consistently in a repeated manner

Easy to train new joinees

Sets a standard on expected performance

Minimizing wastages in processes

A platform for continuous improvement

A document for management intentions in Court of Law.

About the Author:

Mr. Venkadesh Narayanan is the Principal Consultant at Fhyzics Business Consultants

Private Limited. He is a Mechanical Engineer and an MBA with over 20 years of experience

in Consulting, Business Analysis and Process Improvement. Mr. Narayanan is a former

member of Indian Civil Services [IRAS 2000 Batch] and served at Indian Railways, Larsen &

Toubro–ECC, Siemens (USA), Euro-Pro LLC (USA) and Latex International (USA) prior to

joining Fhyzics.

He is also a member of several professional bodies and holds the below certifications:

Certified Business Analysis Professional™, IIBA®, Canada

Certified PMI - Professional in Business Analysis (PMI-PBA)®, USA

Certified Packaging Professional (CPP), IoPP, USA;

Certified Business Process Professional (CBPP®), ABPMP, USA

Certified in Production and Inventory Management (BSCM), APICS, USA;

Certified in Lean from Society of Manufacturing Engineers, USA;

Certified in Six Sigma from Motorola University, USA;

Bacourse.com

The word ‘Standard Operating Procedure’ shortly known as SOP, probably originated in military or

healthcare domains to instill best practices in performing a specific function.

If you know more information Please visit : www.processfolks.com

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