ISO 9000: What Can It Do For You?
ISO 9000 certification has many benefits for organizations that take the time to go through the process properly and continue to use what they have learned after ISO-9000 implementation.
The benefits we have seen include:
- Continual Improvement – As product, process, and management system problems appear, they are captured, documented and a “root-cause corrective and preventive action” is defined and implemented. Internal auditing then monitors the results to determine if the actions taken work and then reports the results and resolutions to a formal management review. If the problem has been solved, no further action is required. If the corrective and preventive action does not fix the problem, then the process is repeated across the “Five Why’s” and or “Fishbone” of possibilities until the problem is resolved. This practice, which arises through ISO 9000, leads to a defined methodology for enhancing efficiency.
As the company’s processes are performed, revised, and subjected to internal auditing, actions can be taken to avoid mistakes. This benefit of ISO 9001:2015 also improves decision making. Additionally, supplemental training creates further employee competence and the company experiences improved efficiency. New processes can be deployed and additional training provided, and the related company transitions can be quickly implemented as needed.
- Increased Revenue – ISO 9000 Quality Management Systems-certified companies show improvements in financial performance, new business acquisitions and productivity. The Auckland University of Technology, Department of Accounting, with Divesh S. Sharma, reviewed the association between ISO 9000 certification and financial performance at the organizational level with companies in mature quality initiative markets. The study, which was titled, “The Association Between ISO 9000 Certification and Financial Performance”, revealed that ISO 9000 certification is associated with improvements across three dimensions of financial performance: operating efficiency, growth in sales and overall financial performance. These measures of performance are quantified using profit margin, growth in sales and earnings per share.
- Internal Operational Efficiency and Environmental Change – Today’s financial times are worrisome to employees. Employees are seeking stability, improvement of core skills, job security and the feeling that they are valuable to the company. Those in senior management are looking for ways to be more innovative, productive and adaptable, while reducing cost and raising efficiency. Quality Management Systems can be helpful because they help to define roles and responsibilities, provide long-term accountability of internal management, improve planning with objectives, reduce costs, and also provide the proper framework for effective talent management within your organization. Adequate training also allows the entire company to improve product and/or service quality, thus contributing to the overall success of the company. ISO 9001:2015 is a management system that creates Return on Investment (ROI) from certification. We can guide you to that level of success.
- Expanded Markets and Increased Sales – The current economy requires that companies now move into international or emerging markets to broaden sales channels. How is this achieved with an existing product line or service? Certified ISO 9000 quality management systems create the front door entrance requirements for the international recognition and acceptance of your company’s ability to design and/or manufacture, and distribute your products or services. It allows you to do this based on accredited, independent, third party review (both initial and ongoing) of your company’s operations. ISO 9001 certification is accredited in the United States, and by accreditation bodies all over the world.
- Competitive Advantage – If your business competitors are certified, and you are not certified they may have the competitive advantage when you pursue the same customers for revenue. Do you know your competition’s status with regard to ISO 9000 certification?
- ISO 9000 Certification defines the Corporate Baseline for Best Practices – Studies show that quality management systems are effective when properly implemented. Professors Tony Bendall, Louise Boulter and Paul Hannon of the Leicestership Centre for Enterprise within the U. K., with the financial support and assistance from Lloyds Register Quality Assurance, SGS Yarsley and Bureau Veritas, conducted a study on the implications of ISO 9000 and its requirements on Small and Medium Enterprises in 2000. The sample size was nearly 400 respondents of different market sectors and organizational sizes.
Findings indicated that:
- 67% felt that the ISO 9000 / ISO 9001 approach was essential for creating and maintaining viable quality management systems
- Most respondents originally sought ISO for external benefits, but discovered that internal benefits were more important
- 86% stated that their ISO 9001 systems improved management control
- 73% felt that ISO 9000 / ISO 9001 quality systems enabled them to deliver better services to customers and ensured consistency
- 69% reported that ISO 9001 improved productivity and efficiency
- 89% agreed that the internal benefits of ISO 9000 / ISO 9001 “met or exceeded expectations”
We strongly believe that your organization will benefit from the impact of a properly implemented ISO 9001:2015 quality management system. If you are interested in harnessing the potential of an ISO 9001-implementation please, complete our request for service questionnaire.