ISO 9000

By. Dr.Anil Bhosale

 WHAT IS ISO?

An internationally accepted management model that makes a company

document their processes to maintain consistent practices

Method that dictates how a company should produce their products

through a rigorous documentation process

This prevents repetitive errors from occurring and allows for

improvement

Focuses on ensuring a quality product

 ISO: A BRIEF HISTORY

ISO 9000 created by the International Organization for

Standardization

International standardization began with the International

Electrotechnical Commission (IEC) in 1906

This led to the development of the International Federation of National

Standardizing Associations (ISA) in 1926

The reasons for international standards are:

a cheaper product
less waste
greater interoperability between products
improved usability
ease of maintenance
ISO: A BRIEF HISTORY

But with the start of World War II

ISA operations was put on hold in 1942

After the war in 1946

A delegation of 25 countries met in London and decided to start over and form
an organization "the object of which would be to facilitate the international
coordination and unification of industrial standards"
ISO was formed the following year in 1947 and published its first standard
in 1951

ISO 9000 was conceived in 1987, updated in 1994, and again in 2000
 ISO: WHY USE ISO 9000?
Working for a company that does not have a formalized method
of management creates a chaotic working environment

Time, money, and work hours go into wasteful utilization

higher likelihood of errors and faults appearing in a product

ISO 9000 is a preventive measure so time, money and work hours

aren’t wasted fixing those errors

Provides a highly organized structure of operation

An extensive documentation of processes

Clearly defined responsibilities

Offers a competitive edge for companies

ACompanies with ISO certification are preferred over ones that are not
Sometimes is the main determinant for clients
ISO: WHY USE ISO 9000?
Required for mere survival

Clients may require that companies convert to ISO 9000 or lose their business
Better to get certified before being forced to

Customer satisfaction

A more organized procedure adapts to last minute changes better

Confidence and trust is fostered with client
Good relationship built with client means increased business with referred
customers as well as returning ones

Employee confidence

Employees are happier when they know exactly what they should be doing and
who to report to
Increased communication allows an employee to be full informed at all times
during a project
As a result, employees are more efficient in their work
ISO: HOW TO IMPLEMENT ISO 9000
Decide whether to do it or not

There are many success stories of companies using ISO 9000

But this does not mean its guaranteed to boost profits
An assessment of whether ISO will benefit a company is required before
proceeding
If a company decides to do it they need to commit to it

Select a quality manager

Find someone to be in charge of quality control

He/she should have an unbiased view of quality and the ability to
communicate problems to the chief executive

Set up the ISO 9000 group

Traditionally a committee of all the managers from every department

of the company
grouped together to analyze processes, come up with better solutions and
document them
ISO: HOW TO IMPLEMENT ISO 9000
Foster employee confidence

Very important to the success of ISO 9000

Staff needs to be motivated to accept ISO otherwise it won’t work
Executives should set example by being excited about it

Write a Quality Policy

A mission statement stating the company’s commitment to the ISO standard

and signed by the chief executive

Define employee responsibilities

Responsibilities must be clearly defined and stated for each employee

Employees that know exactly what they should be doing reduces confusion
and inefficiency

Create a manual
A manual needs to be compiled of all the company’s processes and contain
the best practices
ISO: HOW TO IMPLEMENT ISO 9000
Get audited

A company’s procedures are checked and allows for refinement and correction
of errors
Competent auditing firm is required so all problems can be worked out

Get certified

Find an internationally well-known and credible group to certify the company

Allowed to announce certification to clients after this step

Maintain certification

ISO is not a one shot deal, it is a continuous improvement program

Maintain quality systems and gauge client satisfaction
Pursue continuous improvement and have an ISO 9000 maintenance team
Anticipate biyearly surveillance audits, there is the possibility of losing
certification
ISO: DRAWBACKS TO ISO 9000

No process is perfect and ISO does not guarantee profitable results

Bureaucratic processes

Could require intensive documentation

In addition, ISO is not cheap, in time and money

Company time spent on projects need to be halted for the implementation of

ISO 9000
Can take between 6 months to 2 years to reach certification
Costs can range between $3,000-$100,000
 ISO: MARKET IMPACT OF ISO 9000
The customer is the focal point for all businesses to survive
in any market – locally, nationally, and globally

Customer’s needs and requirements are important

ISO 9000 establishes a set of rules and regulations to avoid

poor-quality products and services for a variety of customers
“Product" applies to services, processed material, hardware and software
intended for, or required by, your customer

The degree of positive impact depends on the degree of

involvement in the certification process

Customers can be confident in a company that knows the

importance of quality assurance
They can offer a good quality product and/or service
ISO: REASONS FOR COMPANIES TO COMPLY

A study conducted by Rayner and Porter:

10% - Other reasons

10% - Improve quality 35% - Pressured by

customers

15% - Access new

markets

15% - Gain 15% - Need to

competitive anticipate
advantage registration

80% of the firms considered marketing as the main reason

to be certified by ISO 9000
ISO: OTHER REASONS:
 Comply with public projects

 Government requirements

 Overseas trade and market

 Pressure from larger businesses

 Reduce time failure

 Reduce costs of customers’ claims

 Improve customer service and customer loyalty

 To get things done right the first time

ISO: BENEFITS FROM CERTIFICATION
 A study conducted by McAdam and McKeown

 37% - Increased productivity

 23% - Internal benefits (i.e. reduced cost)

 14% - Greater control

 37% of the businesses received benefits within the first

year of ISO 9000 Certification
ISO: OTHER BENEFITS:

 Quality improvement

 Enhance competitiveness of company

 Cost reduction

 Sales increase

 More systematic record keeping

 Improved internal communication and performance

 Continual improvement of operation

ISO: SERIES
 ISO 9000 (Q90)
 Guideline for selection and use of quality system standards.
It provides insight for various situations and conditions as well as definitions
and explanations.

 ISO 9001 (Q91)

 Minimum quality system requirements for design/development,
production, installation and servicing. It is the most complete standard.
It applies to manufacturing and service businesses engaged in all these
activities.

 ISO 9002 (Q92)

 Essentially a subset of 9001. It applies only to production and
installation activities.
ISO: SERIES

 ISO 9003 (Q93)

 Applies to final inspection and test.

 ISO 9004 (Q94)

 Guideline for quality system elements. It is like a textbook which
describes, explains and recommends.
THANK YOU