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--> Benefits of ISO 9001
With an ISO 9001 certified
quality management system:
- Your business functions in a disciplined way: almost no matter what
happens, you have a systematic way of handling it; and if you don't
and decide you need one- you do that too
- You have consistent,
repeatable processes and a common, understood system
- You have fewer problems with failures in service or product
quality; as you mature in quality management, you spend more and more
time on improving rather than fixing and reacting
- Your people are clear about what to do, and how it is to be done.
They don't spend time 'making things up' or 'finding things out' or
reinventing wheels, or duplicating effort.
- You have more or better business, because you can sell to new markets
or having the endorsement distinguishes you in the marketplace
- You know more quickly if things are going wrong, and where
- You stop spending money or wasting time on the same old
problems - many problems have been resolved permanently. If
another crops up, you have inner resources and skills to identify &
resolve it faster.
- Better management control and reporting - you
know how your business is doing.
- You don't scratch your head wondering how to respond to tenders
or other questions asking about your quality system, because you
know! (And that 'ISO 9001' phrase works wonders.)
Clients consistently report many benefits from
gaining ISO 9001. These include: greater management control, greater
clarity about what they do and how, improvements in customer
satisfaction, having a 'much better handle' on what they are doing,
increased employee satisfaction, reduced rework and frustration, and
reduced maintenance effort.
Australian Survey of Business Experience
This 2007study looked at why businesses implemented ISO 9001, their
approaches and experiences, including comparing the 2000 version
with the earlier version it replaced.
Is it really better?
Major findings:
- The top 3 reasons for getting certification were externally
oriented:
enhancing the company image, responding to customer demand, and getting 'preferred supplier' status.
Top internal reasons were to establish better control over business operations, and to provide a foundation for continuous improvement.
- The major benefits reported were in: relations with customers, management of business processes, management of business knowledge and information, and in organisation strategy & culture, such as improving their managerial policies & procedures.
(Comment: A frequent 'post-9001' theme from clients: 'now we really know what we have, and where it is, and everyone knows where to find it'.)
- The area reported as least impacted was supplier management.
- Businesses found the 2000 version of the Standard significantly easier
to implement than the previous (1994) version.
- Overall, results validated the 2000 revision of ISO 9001, confirming that the Standard is now much improved in terms of its ease of implementation & simplicity, while still maintaining high levels of impact in business areas.
Some other findings:
- The mean time to implement the Standard has reduced. For ISO 9001:2000, the mean was 8 months compared with a mean of 10 months for the 1994 version.
- Of the difficulties associated with implementing ISO 9001, balancing other priorities with the demands of implementation was the greatest one.
- The 2000 version was associated with substantially fewer difficulties in implementation across all elements surveyed.
Reference: The Implementation of ISO 9000 in Australian Organisations, Australian Supply Chain Management Research Unit, Monash University, supported by JAS-ANZ. Dr D Prajogo & Professor Sohal.
It was conducted by Monash University, in collaboration with
JAS-ANZ. Findings
from 326 organisations, evenly spread between manufacturing and service; majority (87%)
= small to medium- sized organisations. Available from JAS-ANZ.
What Do Customers Know or Care? A UK Study
This survey was carried out by a
professional market research organisation to find out what
consumers know (or care) about ISO 9000. It was done in the
UK, which has perhaps the most mature usage of the ISO 9000 series
worldwide. Findings:
- More than 1/4 (26%) of the general adult population was already
aware of the standards. Knowledge was concentrated among working
people.
- Results suggest positive attitudes towards ISO 9000 and companies
certified to the standard. They tend to perceive products and
services associated with ISO 9000 as being of higher quality.
- Consumers are more likely to contact a company if it uses 'ISO
9000' in the labelling and marking of products/services
- Consumers possess greater levels of trust and confidence in ISO
9000 products and services
- The labelling of products or services with a logo denoting ISO
9000 is likely to cause consumers to prefer them.
- One interesting finding was that it would be 'beneficial for companies having
certification to promote increased public awareness of ISO 9000,
because increased levels of consumer awareness should improve levels
of confidence and trust in their products and services'.
In other words: if you have it, use it. Tell your customers and
prospects you have it and wherever possible educate them in what
that means: particularly the benefits for them.
*Reference: Do consumers really care
about ISO 9001 certification?,
J Tannock & Henry Brown, Nottingham University Business School,
published in ISO Management Systems, May-June 2006 edition, Vol 6 #3/
Other Studies
- A detailed analysis of financial performance of ISO 9000-certified
organizations over a 10-year period, found that companies who implemented a system certified to ISO 9000 gained a
greater return on assets (ROA).
The study was conducted by a distinguished group of business school
academics from The Anderson School at UCLA, R.H. Smith School of
Business, University of Maryland and Universidad Carlos III, Spain.
They found that "Firms that failed to seek certification experienced
substantial deteriorations in ROA, productivity and sales, while firms
that did seek certification generally managed to avoid such declines".
Source: July-August 2002 issue of ISO Management Systems
- In a BSI survey In the survey of 227 US firms, one firm
reported a
sales increase after certification of $6 m. Another
company reported a 75% improvement in customer satisfaction.
(What would a 75% increase in customer satisfaction do for your business?)
Other findings from the survey:
* the transition
and implementation costs were at least covered by savings
(80% reported this)
*better use of data by management
after certification (56% reported)
*improved customer satisfaction
(54%)
* management reviews were more effective (51%), and
*
improved customer communication (41%).
Many said that
they had improved their processes
and streamlined their systems as a result of identifying and analysing
their processes (as required by the Standard).
Certification to ISO 9000 was
seen as a powerful means for
recognising best practice and adopting it elsewhere, and for
identifying the issues that contribute most to customer satisfaction.
Other benefits cited included: a greater understanding of how their organisations worked (leading to shorter training times), clearer
communication and accountabilities, and significant reductions in
product development time and customer complaints.
Source: BSI, a global quality certifier.
- In a 1992 survey of companies who had held certification for several years:
*
Improved management control was reported by 86% of the managers
*
improved efficiency by 79% of managers
* reduced waste (75% )
*
improved market share (71%)
* reduced costs (61%).
Source: LRQA, a global certifier
For nearly 20 years I've worked with the 9000 series of Standards. The more
I've done, the more I see how things improve when
it's used intelligently, and the more respect I
develop for it. Yes, it has its critics (nothing's perfect).
But my experience has been that they are
often influenced by failures in implementation
and/or understanding of the Standard, rather than the Standard itself.
A key question for the critics: What do you propose instead?
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