Feedback from ISO 9001:2008 Registered companies shows what you can expect as the payoff from all of your hard work.
Because of the responsibilities called out in the ISO 9001:2008 Standard, organizations often see an increased involvement of top management with regards to the Quality Management System.
This starts with the setting of the Quality Policy and Quality Goals and Objectives. It continues with Management Review looking at data from the QMS, and taking actions to make sure that Quality Goals are met, new Goals are set, and continual improvement is achieved.
In a study conducted by researchers from UCLA results showed that “U.S. publicly held companies traded on the New York Stock Exchange that receive certification under the ISO 9000 Quality Standard show significant improvement in financial performance compared to those companies that have not pursued the standard.”
When ISO 9001:2008 is implemented in an organization:
- Well defined and documented procedures improve the consistency of output
- Quality is constantly measured
- Procedures ensure corrective action is taken whenever defects occur
- Defect rates decrease
- Defects are caught earlier and are corrected at a lower cost
- Defining procedures identifies current practices that are obsolete or inefficient
- Documented procedures are easier for new employees to follow
- Organizations retain or increase market share, increasing sales or revenues
Top reasons given for registration:
- Internal operational efficiency
- Lower production costs because of fewer nonconforming products, less rework, lowered rejection rates, streamlined processes and fewer mistakes
- Access to new markets
- Some markets require ISO 9001 Registration, some markets favor companies with ISO 9001 Registration
- Customer request
- Many organizations are asked by a customer to obtain registration as a requirement to continue or to start doing business with them.
- Reducing costs
- Organizations are recognizing that an effective Quality Management System leads to reduced costs and greater operating margins
What will ISO 9001:2008 do for my organization?
A well designed and implemented Quality Management System, based on ISO 9001 has been shown to provide organizations with the following benefits:
• Reduced costs
• Improved product reliability
• Better process control and flow
• Better documentation of processes,
• Greater employee quality awareness
• Reductions in product scrap, reworks and rejections
Why do companies want ISO 9001:2008?
- Market Pressure
- Many organizations decide to Implement ISO 9001 and obtain registration because it assures customers that the company has a good Quality Management System (QMS) in place. An organization with an effective QMS will typically meet customer expectations better than an organization that does not have an effective QMS. Many organizations require their suppliers to have ISO 9001 Registration.
- Internal effectiveness and productivity benefits
- Other organizations implement an ISO 9001 QMS because it has proven over the years that it leads companies to better operations, improved performance, and improved profitability
See this and other newsletter articles at http://amt-mep.org/files/3313/6482/8964/2012-10.pdf
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How well the ISO system focuses on improving the customer experience. The broadest definition of quality is "Whatever the customer perceives good quality to be." This means that a company doesn't necessarily have to make a product that never fails; some customers will have a higher tolerance for product failures if they always receive shipments on-time or have a positive experience in some other dimension of customer service. An ISO system should take into account all areas of the customer experience and the industry expectations, and seek to improve them on a continual basis. This means taking into account all processes that deal with the three stakeholders (customers, suppliers, and organization); only then will a company be able to sustain improvements in the customer's experience.
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