Issue link: https://www.e-digitaleditions.com/i/1051901
Coater's Corner e organizational struc- ture of a successful custom coating job shop business is rooted by the basic prin- ciples that are required to deliver high quality reliable finishing services at a fair and reasonable price. Unlike restaurant franchise businesses such as Starbucks and McDonald's that have a preset business structure and set of written rules to follow for consistent product output, the typical custom coating job shop must create its own policies and operational guidelines that are relevant to their unique company structure and customer base. Regardless of the company size, every service company must have a sound business management structure as a core foundation for the business to operate and prosper. e objective of the business structure is to outline how the business will operate at all levels of the company. As unique as a custom coating job shop company might be, the objectives are always the same – consistent and reliable compliant fin- ishing quality and sustainable profit margins. Understanding the value of structure In June of 2017, I wrote an article enti- tled "Improving the job shop business model" that highlighted some of the basic issues for job shop ownership and management to consider as they navi- gate their company in a positive direc- tion. In that article, I mentioned the importance of the organizational struc- ture of the job shop business. Specific passages on organizational structure were as follows: To succeed, every service organization must develop a sound internal business structure based on the three deliverables – quality, service, and fair price. To meet the business model's objectives, the job shop needs to establish the way it will con- duct business day in and day out. is is accomplished by establishing a formal business structure consisting of policies, procedures, work instructions, and records in accordance with the guidelines of general business practices. is struc- ture becomes the "set rules" by which the company operates. e foundation of this structured approach can be created by fol- lowing the guidelines of internationally accepted business practices such as the International Organization for Stan- dardization (ISO). The purpose of a quality based management system is to promote positive results that keep the com- pany moving in the right direction by managing changes to the business in real time. With a consistent, quality focused structure based on pre-established poli- cies, procedures, work instructions, and records, management can train employees to be proficient in all aspects of the busi- ness. Employee competence can only be realized by providing specialized training to the company's operational structure. [Editor's note: If you're interested in reading the article in its entirety, you can access it for free by searching under the author's name in the online Article Archive at www.pcoating.com.] Establishing organizational structure Following the basic out- line of the International Organization for Stan- dardization (ISO) is the best place for a service company to start creating its structure. Begin by imple- menting a total management system that is based on the organization's qual- ity manual, which is the tool that drives the company vision, objectives, and goals. e purpose of the manual is to address all aspects of how the company will operate. is comprehensive docu- ment will evolve with the company over time. e goal is to get all mem- bers of the organization to understand the basic principles of a living quality management system. The concept of this standardization policy is simple: Say what you do, do what you say, and be able to prove it with documentation. It is easy to say that your company has a solid foundation and rigid structure, but it takes real commitment and disci- pline to be able to prove it with empiri- cal evidence and traceable documenta- tion. I often say to my management team that "just because you say it's so, doesn't make it so." Owners and managers of small compa- nies often believe that they do not need a formal written company structure because they simply know how to make money and have a history of success by operating the company on a wing and a prayer. Without documented policies, procedures, work instructions, and records, ownership and management will remain forever chained to the busi- ness as they struggle to manage the day by day challenges of fulfilling custom- er's requirements on the fly. Further- more, the rank-in-file employees will not be given a fair chance to prosper within the organization as they must await management instructions for even the most mundane tasks due to a lack of training and direction. When there is a change in ownership or man- Michael W. Cravens Powder Finishing Consultants and IKON Powder Coating Organizational structure of a custom coater job shop POWDER COATING, November 2018 19