Wednesday, January 23, 2013

SMS forces Profitability and Efficiency for your company

SMS and $$$$$$$
For those of you unfortunately blessed by taking our Quality Assurance Class,  you experienced our “F” exercise. Where we hand out a procedure that states, “Simply count the number of ‘F’s’ in the following paragraph.” We’ve done this exercise..well..over a thousand times over 20 years. The result is the same; some say 78 some say 39 and some say 0. Sol then takes the results and relates them to money..remember?

It is a fact!  If your processes are under control, then  you are able to predict, within a set range, the output. When you can predict the output to any process you now may PLAN. Planning gives you efficiency and ultimately  increases profitability. We have discussed in previous blogs what “control” means. Control means that all inputs to the processes are known. The people, machines, materials, environment and methods (procedure). If no “outside” forces influence the process..you now have control. Remember, that control does not mean the output is good. It only means the output is normal (predictable). 

SMS requires a Quality Assurance System to perform audits on all processes. In order to perform audits on processes, the processes must be governed by standard operating procedures. Just the fact that we operate to procedures will see an improvement in efficiency. The SMS requires that Continuous Improvement be an important part of the system. In order to have Continuos Improvement we must have process analysis. Again, Analyzing processes will reveal areas of waste and help streamline processes. 

Finally SMS requires Corrective and Preventative Action. This Corrective action must have a Root Cause Analysis component which again will force companies to look at long term system fixes to prevent incidents from reoccurring. This will automatically make the system more efficient. For testimonial as to the effectiveness of using SMS for profit can be provided. We can easily show you how this can work for your company. Obviously there is much more on this topic. I will revisit in future blogs or you can wade it .........Your thoughts.....

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