Compliance in factories and manufacturing companies: how to tackle it!

If you work in a factory, on a production line, or in an assembly hall, you have to comply with all kinds of laws and regulations. This doesn't just apply to the quality of the products leaving your facility; financial matters and working conditions also require attention. That is why it is important not to view compliance as just another checkbox to tick off.

On the shop floor in particular, those strict—or sometimes slightly dry—rules can provide important and meaningful frameworks for safety, quality, and sustainability. If you ignore them too easily, you risk more than just a fine. You could also create dangerous, unhealthy situations with harmful consequences for your product and, worse, for your employees.

In this blog, we zoom in on the role compliance can play on the shop floor and how you can ensure that your employees have the right knowledge and skills embedded in their DNA.

What do we mean by compliance?‍

‘Compliance is working in accordance with applicable laws and regulations,’ according to the ever-popular Wikipedia. In short, it is about ensuring you meet legal and regulatory requirements. We also speak of compliance when you work according to an organization's internal standards, values, and house rules.

Nowadays, in most industries, ISO certification is of great importance for an organization's survival. This is a textbook example of a situation where compliance is necessary to be eligible for that coveted certificate.

Compliance in the manufacturing sector – what should you consider?‍

Most people think of the financial and banking world when they hear the word ‘compliance.’ That is not surprising, as that is where the foundation for monitoring strict adherence to laws and regulations within organizations was laid during the 2008 financial crisis.

Due to globalization, as well as increasing global instability, rules play an ever-greater role in the daily economy, and they are no longer limited to the financial sector. Manufacturing companies also have to deal with compliance. To give just a few examples:

• Do you comply with all tax, import, and export laws and regulations?
• Is your product manufactured in an environmentally friendly way?
• Are schedules in accordance with the Working Hours Act?
• Are employees free from discrimination or bullying?
• Is there a safe and comfortable workplace?
• Do your employees have the right protective equipment?
• Do your trucks and vans meet environmental standards?

Most customers prefer an ISO-certified supplier because they can count on good quality and sustainable production. Furthermore, as an employer, you have a heavy duty of care regarding the well-being of your employees. If you do not comply with the collective labor agreement or the Working Conditions Act, for example, you not only risk fines, but you are also at a disadvantage when it comes to employer branding.

In short, it is important for all parties that both your production method and the product itself are compliant. It is therefore no surprise that we wanted to highlight the topic of ‘compliance in factories and the manufacturing sector’ in a blog.

How do you ensure that your factory, production line, or assembly hall complies with all the rules?

‍When starting your business, you undoubtedly weighed your options carefully and designed your production process in a certain way for good reason. But the world is constantly changing, and with it, the laws and regulations.

How can you keep up with those changes and ensure that your business remains compliant? We provide you with a number of practical tools.

1. Keep a close eye on regulations

Changes in laws and rules can have a major impact on your production process. That is why it is smart to:

• regularly check for updates via industry associations and government websites;
• appoint a compliance officer or team, who not only ensures that your production process is compliant but also that your employees are well-informed about the rules and follow them;
• use software tools that provide alerts for legislative changes or relevant technical developments.
  

2. Make compliance part of your company culture

Compliance moet geen losse taak zijn, die je af en toe toevallig tegenkomt. Veranker het goed in het DNA van je organisatie en maak het onderdeel van je bedrijfscultuur. Dat begint bij:

• Awareness: Ensure all employees understand the basic principles of compliance. This can be done through training, e-learning, or regular on-site toolbox meetings about a compliance topic.
• Leadership: As a manager, lead by example by consistently applying the rules yourself. When management takes compliance seriously, employees will naturally follow suit.
• Transparency: Make compliance a topic of discussion and keep your employees regularly informed about existing and new legislation via newsletters or meetings. Harness the power of repetition!

3. Investeer in technologie en automatisering

De ontwikkelingen gaan snel en gebeuren op allerlei gebieden. Het kan dan ook een klus zijn om altijd up-to-date te blijven. Maak het jezelf makkelijk. Veel complianceprocessen kunnen eenvoudiger en efficiënter worden ingericht door gebruik te maken van technologie. Denk bijvoorbeeld aan:

• Sensors and Internet of Things (IoT): connect smart equipment to the internet, making it easier to monitor the safety and environmental impact of the production process in real time.
• Automatic reporting: configure your systems to automatically receive recent reports on the production process.
• Online knowledge platform: with a knowledge platform accessible to everyone, you make employee training accessible and easy. Don't just think of courses or training—user manuals or emergency numbers can also be a useful part of it.
  

4. Motiveer je medewerkers voor compliance

Toegegeven, wet- en regelgeving scoort niet erg hoog op de interesseladder van de gemiddelde medewerker. Best lastig, want het naleven van regels is niet alleen een kwestie van moeten, maar ook van willen. Een paar tips die kunnen helpen zodat medewerkers compliance omarmen:

• Make it personal: ‘What’s in it for me?’ is always an important question when building support. Therefore, show employees how rules contribute to their own safety and well-being.
• Reward good behavior or proactive thinking: Put teams or employees who proactively commit to compliance in the spotlight. Invite them to share ideas and offer a prize for a game-changer in the production process.
• Visualize compliance: Make the effect of certain measures literally visible by simulating a situation. This can be done on-site, but also in a video or online training. By making rules tangible in this way, employees feel more actively involved and will apply them more spontaneously.
• Use gamification: Think of game elements such as a quiz, simulation game, or challenges to make compliance more fun.
• Create a positive reporting culture: Encourage employees to address each other when rules are deviated from. And encourage employees to suggest risks and areas for improvement without fear of negative consequences. Surprising, highly applicable ideas can come directly from the shop floor, so make use of them!

5. Evalueer en pas aan

Has a (near) incident occurred, or have complaints about certain rules emerged from, for example, an employee satisfaction survey? Then it is useful to sit down together, preferably in a multidisciplinary group, for an evaluation. Discuss what is going on with an open mind and look at where a process could be improved. Sometimes it turns out to be necessary to say goodbye to a certain way of working, and that probably won't go down well with everyone (after all, humans are creatures of habit).

Again, ensure clear, timely communication to increase support. ‍

Would you like to know more about compliance in production facilities?‍

Compliance can be quite complicated. Want to be sure you're not overlooking anything? Experience the power of Pluvo for yourself! Click here for a demo or call +31 (20) 560 5001.