Standard Operating Procedure - Meaning & Definition

Published by MBA Skool Team, Last Updated: January 04, 2014

What is Standard Operating Procedure?

An SOP is a set of instructions that describes the activities to be done to complete tasks in accordance with industry regulations, provincial laws or even just your own standards for running your business.

Any process operated in non-controlled manner may result in variation and might affect the quality of the end product or services negatively. Standard Operations are a way of ensuring consistency.

Any document that is a “how to” falls into the category of procedures.

SOPs are different for different organizations depending upon the industry they are operating in.

In a manufacturing environment, step by step production line procedures used to make products is an example of SOP.

Developing an SOP requires systemizing all of your processes and documenting them.

Advantage of implementing SOPs

  • Increase in efficiency, and therefore profitability
  • Consistency and reliability in production and service
  • Less scope for errors
  • A way to resolve conflicts between partners
  • A healthy and safe environment

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

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