Importance of Standard Operating Procedures in Industries.
- repalle0402
- 6 days ago
- 3 min read
Why SOPs Matter in Industries?
Key Points:
Reduces process variation
Prevents quality defects
Improves safety
Ensures audit compliance (ISO, internal audit)
Enables training of new employees
Reduces dependency on individuals
“SOPs are not documentation — they are risk-control tools.”
What an SOP Is (and What It Is Not)?
Definition:
A Standard Operating Procedure is a documented, approved, and controlled instruction describing how to perform a process consistently and safely.
Clarify the Difference:
Not SOP | SOP |
Informal instructions | Approved document |
Personal working style | Standard method |
Verbal knowledge | Written & controlled |
One-time note | Version controlled |
Types of SOPs in Manufacturing (Example)
Process SOP (e.g., Inventory Control)
Equipment Operation SOP
Safety SOP
Quality Control SOP
Maintenance SOP
Administrative SOP
Example: Inventory Control falls under Process + Control SOP.
How to Create a Comprehensive SOP
Step 1: Process Understanding
Key Actions before writing the SOP:
Walk the process physically (Gemba)
Interview process owners
Observe variations
Identify risks
Identify inputs & outputs
Use a simple tool:
SIPOC (Supplier – Input – Process – Output – Customer)
Step 2: Create a Standard SOP Structure Template
1. Document Control Section
SOP Number
Version
Date
Prepared by
Approved by
2. Purpose
(Why does this SOP exist?)
Example: Inventory Control
“To establish a standardized method for receiving, storing, issuing, tracking, and controlling inventory to ensure accuracy, prevent stockouts, minimize excess inventory, and support uninterrupted manufacturing operations”.
3. Scope
(Where it applies)
Example: Inventory Control
“This SOP applies to all raw materials, consumables, spare parts, packaging materials, semi-finished goods, and finished goods handled within the manufacturing facility”.
4. Definitions Abbreviations
Key terminology – Inventory Control
Term | Definition |
FIFO | First In, First Out |
FEFO | First Expiry, First Out |
GRN | Goods Receipt Note |
MRP | Material Requirement Planning |
SKU | Stock Keeping Unit |
ERP | Enterprise Resource Planning System |
5. Roles & Responsibilities
Who does what - Example: Inventory Control
Store In‑Charge
Ensure proper receipt, storage, and issuance of materials.
Maintain accurate stock records in ERP.
Conduct periodic stock audits.
Storekeepers
Follow SOP steps for receiving, storing, and issuing materials.
Maintain cleanliness and safety in storage areas.
Production Department
Raise material requisitions.
Return unused materials with proper documentation.
Quality Control
Inspect incoming materials.
Approve or reject materials based on quality standards.
Finance / Accounts
Verify GRN and supplier invoices.
6. Identifying Required Tools & Documents
Example: Inventory Control
Material Requisition Form
GRN (Goods Receipt Note)
ERP System
Stock Register
Inventory Audit Checklist
Barcode scanner (if applicable)
7. Procedure (Step-by-Step)Numbered sequence with clear explanations
Example: Inventory Control
7.1 Material Receiving
Verify the supplier delivery challan and the purchase order.
Unload materials safely using appropriate equipment.
Inspect packaging for damage.
Forward materials to Quality Control for inspection.
QC approves/rejects materials and updates the inspection report.
Create GRN in ERP for accepted materials.
Label materials with item code, batch number, and date of receipt.
7.2 Storage of Materials
Store materials in designated racks or bins.
Follow FIFO for general materials and FEFO for expiry‑based items.
Maintain segregation of:
Raw materials
Consumables
Rejected materials
Hazardous materials
Ensure temperature‑controlled storage where required.
Update ERP stock levels immediately after storage.
7.3 Material Issuance
Receive Material Requisition from Production.
Verify authorization and availability of stock.
Pick materials following FIFO/FEFO.
Issue materials and record the transaction in ERP.
Obtain a signature from the production representative.
For excess material returns:
Verify condition
Update ERP
Return to the designated storage area
7.4 Inventory Tracking & Monitoring
Update stock levels in ERP after every transaction.
Monitor minimum and maximum stock levels.
Generate daily/weekly stock reports.
Flag slow-moving and non-moving items.
Maintain traceability for batch-controlled materials.
7.5 Stock Audits
Daily Cycle Count
Conduct random checks on selected SKUs.
Compare physical stock with ERP data.
Record discrepancies and investigate root causes.
Monthly Stock Audit
Perform complete stock verification.
Submit audit report to management.
Annual Audit
Conduct a full inventory audit with finance and external auditors.
8. Controls & Checks
(Validation points)
Example: Inventory Control
Quality Control in Inventory
Ensure materials are stored in clean, dry, and safe conditions.
Maintain calibration of weighing scales and measuring tools.
Segregate rejected materials with red tags.
Ensure traceability for all materials used in production.
9. Records & Documentation
(What forms to maintain?)
Documentation & Records – Inventory Control
Document | Responsibility | Retention Period |
GRN | Stores | 3 years |
Material Requisition | Production | 1 year |
Stock Register | Stores | 3 years |
Audit Reports | Stores/Finance | 5 years |
QC Inspection Report | QC | 3 years |
10. References
(Related SOPs)
Example: Inventory Control
ISO 9001: Quality Management System
Company Purchase Policy
Material Handling Guidelines
ERP User Manual
11. Safety Precautions – Inventory Control
Wear PPE: gloves, safety shoes, and helmets.
Follow safe material handling practices.
Use forklifts and pallet trucks only by trained personnel.
Ensure proper stacking to avoid toppling hazards.
12. Revision History – Document Control
Rev No. | Date | Description of Change | Approved By |
00 | Initial Release |
Please get in touch with S3 Optistart Consulting at www.optistartconsulting.com for more details.
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