What are SLA's - Service Level Agreements

A service level agreement (SLA) can be as complicated or as simple as your organisation wants to make it - we opt for simple, but accurate.

An SLA is basically a formal agreement between internal stakeholders that helps to identify value requirements and clarify responsibilities in the context of the end customers precise value requirements.

The SLA clarifies expectations, reduces potential conflict and creates a platform from which to drive continuous improvement. It is a living document and needs to be reviewed regularly with the aim to ensure that value requirements are met in the most effective way and "waste" is continuously eliminated.

A good example of a value adding SLA between the morning shift and afternoon shifts might read - Morning Shift agrees to leave no un-processed pallets for despatch at the end of their shift. Afternoon Shift agrees to leave no un-processed pallets for morning shift to complete at the end of their shift.

This can be drawn up in a semi formal format, signed by all parties and pinned on the team toolbox meeting board.

Almost immediately we now have two shifts responsible and accountable for their work, no work carried over, no delays, and no conflict between the two shifts.

The teams can create as many of these SLAs as appropriate, but everyone needs to be in acceptance of the SLA terms and the SLA displayed for all the teams.