Professional Documents
Culture Documents
14 Years of ISO 9000
14 Years of ISO 9000
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organization-and perhaps the most influential IS0 9000 actually comprises several stan-
and far-reaching-was the issuance of the 1987 dards, which were simplified in December 2000.
bulletin that devised “a series of international Figure1 outlines the previous series as well as
standards dealing with quality systems that can these recent revisions. Before last December, IS0
be used for external quality assurance purposes.” 9000 was the general standard that served as a
The standards provided companies with a series guide to the others. IS0 9001 was the most con-
of guidelines on how to establish systems for prehensive, covering research, design, develop-
managing quality products and services. Busi- ment, production, shipping, and installation. IS0
nesses were given standards to use to document 9002 was less comprehensive; omitting design
practices that affected the quality of their offer- and development, it was for companies that pro-
ings. They could then follow IS0 guidelines to duce, install, and service only existing products.
become certified. IS0 9003 was for companies that perform even
The underlying premise of IS0 9000 certifica- fewer functions, such as final inspection and
tion is that the creation of products and services testing. IS0 9004was a document to guide fur-
is the result of a system, the inputs and outputs ther internal quality development.
of which can be measured at various points as The standards are updated periodically. New
the system adds value. IS0 9000 registration docu- programs, such as QS-9000 and IS0 14000, have
ments the procedures in the system and measures been added over the years. The former was de-
how well they conform to such documentation. veloped by the automotive industry because it
In short, IS0 9000 sets system standards-for needed a more specific and prescriptive system
paperwork, not products-by setting guidelines of standards. Reports Mullin (1998), “QS-9000
for establishing corporate systems. (As we will includes stipulation for 100 percent on-time deliv-
discuss later, the focus on paperwork is one of ery, supplier development programs, and statisti-
the major criticisms of the registration process.) cal record keeping far beyond what is required in
IS0 9000.” IS0 14000 was introduced in 1996 to
provide a series of global standards for environ-
mental management that deal with environmenral
Figure1 audits, labeling, performance evaluations, life-
TheISO9000Series cycle assessment, and terms and definitions.
Now the IS0 9000 series has undergone a
PREVIOUS STANDARD major revision that results in a simplified version
of the original standards. According to the Inter-
Standard Focus
_____-_-----------_ national Organization for Standardization, the
IS0 9000 Quality management and assurance standards basic thrust of the recent revisions includes stake-
for selection and use holder orientation, continual improvement, and
greater user-friendliness. These changes are ex-
IS0 9001 Quality systems model for quality assurance in pected to mollify those who believe the current
design, development, production. installation, standards promote merely consistency rather than
and servicing quality. Instead, says Zuckerman (1999). the re-
IS0 9002 Quality systems model for quality assurance in vised standards are patterned “on national quality
production and installation standards such as the Malcolm Baldrige Awards
in the U.S. There is supposed to be more empha-
IS0 9003 Quality systems model for quality assurance in sis on continuous improvement and process.”
final inspection and testing Currently, companies seeking to become IS0
9000 certified must be audited by an independent
IS0 9004 Quality management and quality system element
guidelines “registrar,” a basic process that should not be
materially affected by the proposed revisions.
I YEAR 2000 REVISIONS The process is daunting and lengthy. However,
several books and articles have been written to
Standard FOCUS facilitate an understanding of it. providing step-
__-__-_------- -_---
by-step instructions for certification procedures.
IS0 9000 Quality fundamentals and vocabulary
Davies (1997) developed a manual in the form of
IS0 9001 Quality management systems [consolidates the a workbook to guide the process. Peach (1997)
previous IS0 9001/9002/9003 standards into a edited The IS0 9000 Handbook, a collection of
single document1 independent papers that cover all aspects of cer-
tification. Johnson (1997) provided thorough
IS0 9004 Quality management system guidelines for per-
coverage in IS0 9000: Meeting the New Interna-
formance improvement
tional Standards, as did Zuckerman in her 1995
Sourer: Ear 2000 yeoisions adupted and updaaledfrom Internatiorzul IS0 9000 Made Easy. Ferguson (1996) described
Oyganizutiotl,for Stundurdization, press release, Y~J 757, 1999-0.3-05. an eight-step implementation procedure using a
46
computerized system designed by Wilson (1994).
Common to most such guides is a stepwise pro- Figure 2
cedure similar to that shown in Figure 2, which IS0 9000 Certification Process
demonstrates that achieving certification is com-
plex as well as expensive, both in terms of dol- 1, IS0 90000 Assessment. The initial assessment is a detailed review of the
lars and man-hours. As a result, certification itself company’s quality systems and procedures compared to IS0 9000 require-
is the main source of criticism of IS0 9000, though ments. This process defines the scope of the IS0 9000 project.
other issues have surfaced over the 14 years since 2. Truining. All employees must be trained in two areas. First, they must
its inception. have an overall understanding of IS0 9000 vocabulary requirements, the
role of the quality manual, and the benefits that will be derived from the
Criticisms of IS0 9000 Certification system. Second, they must understand the actual day-to-day process of
upgrading and improving procedures.
One recurring criticism of IS0 9000 registration
3. Documentation of Work Instructions. All procedures must be described
concerns the formal certification process. The and documented so that they can be understood prior to approval. Once
process that has developed was not envisioned completed, this documentation should outline every process a company
when IS0 9000 was established. Many experts undertakes that affects the quality of its finished products.
believe certification is too costly and consists of a
pursuit of quality certificates rather than a pursuit 4. Quality Assurance Manual. While IS0 9000 standards do not require
a quality assurance and policy manual, they do require that a company
of quality. As Richard Brown (1994) stated,
document everything it does and every system that affects the quality of
the finished product. The manual is often used to assemble all documen-
While rooted in good intentions, once tation in one place.
dissected, it is painfully obvious that IS0
certifications are merely more expensive 5. Registration Audit. The final step in certification is an audit by an orga-
and elaborate schemes that promise high nization chosen as external registrar to see that the system is working as
quality and a competitive edge.. .[Clertifi- described in the quality manual and that it meets IS0 9000 requirements.
L
cation costs are astronomical and grow-
ing, and an IS0 certification means little
in Europe. When the smoke clears, the for certification can vary according to the regis-
only organizations guaranteed to profit trar. In the past, not all companies or countries
from this experience will be those deemed would acknowledge certification from all regis-
to be qualified to do the audits and issue trars because the standards had been interpreted
the certificates. somewhat variably in different countries. One
result of this was that companies such as Hewlett-
In retrospect, this was probably an oversim- Packard, Motorola, Novell, Microsoft, and others
plification. Some recent studies have indicated led a self-certification movement, which provided
that many companies have experienced benefits greater flexibility in meeting objectives, reduced
in terms of profitability, communications, opera- costs, and heightened customer understanding of
tions, and market expansion (to be discussed the quality management systems. Similarly, the
later). Nevertheless, many businesses have taken National Tooling & Machinery Association asked
a wait-and-see approach because some of the its 3,000 members to conform to IS0 9000 stan-
companies that have achieved IS0 9000 certifica- dards rather than pursue actual certification. Thus,
tion have found that actual results did not equal some companies view self-paced compliance as a
those anticipated. Further, there is no question viable option to IS0 9000.
that IS0 9000 registration requires a mountain of Another issue that has emerged over the past
paperwork and adds so much structure that some 14 years is that IS0 9000 is not industry-specific.
believe it interferes with new and better ways of Some critics claim it is too general and fails to
operating. The International Organization for address the unique problems and issues inherent
Standardization has been sensitive to this criti- in some industries. Worldwide, IS0 9000 registra-
cism; its 2000 revisions are patterned on well- tion is strongest in the transportation, chemical,
known national quality standards. oil, electronics, and computer industries. Facing
Beyond the discussion of the overall purpose tough international competition, the chemical
and value of IS0 9000 certification, other criti- processing industry has embraced the standards.
cisms have been raised as well. For example, the In fact, Du Pont created its own IS0 9000 service
regulation and implementation of the standards for use both inside and outside the industry. On
was left up to the participating countries’ indi- the other hand, tool manufactures, automakers,
vidual standards organizations, which select the steelmakers, and some woodworking machine
agencies qualified to issue IS0 9000 certifications. manufacturers are among those who say that IS0
Once registrars become accredited, there is no 9000 registration primarily benefits consultants.
single set of guidelines for them to follow, and One result of this attitude could be seen in
the amount of work a company is required to do the auto industry in the late 198Os, when IS0
obligated for business reasons to pursue registra- system for disseminating information company-
tion.” In short, some companies have spent quite wide and to all customers;
a bit of money on IS0 9000 registration, while it provides the basis for a networked com-
l
ciated with IS0 9000 certification. sophisticated information gatherers and sorters.
Perhaps as a result of improved internal com-
Payoffs of IS0 9000 Certification munications, some companies achieving IS0
9000 certification also report improvements in
Companies seek to become IS0 9000 certified in their operations. This was the case with Clark-
anticipation of significant benefits that will offset, Reliance Corporation. A manufacturer of liquid
or at least mitigate, the high costs. Among the processing equipment, Clark-Reliance scheduled
reasons researchers have identified for pursuing joint meetings between its sales and production
registration is gaining greater market share, meet- departments during the IS0 implementation. The
ing customer requirements, and improving pro- result was an improvement of its on-time delivery
cess efficiency. Others mention lower operating from 30 to 90 percent.
costs or achieving external benefits of higher Nevertheless, company operations do not
quality and competitive advantage, as well as always improve to the level anticipated prior to
internal benefits of improved documentation and IS0 9000 certification (see Table 1). When Sim-
quality awareness. An overview of the top ten mons and White (1999) studied U.S. and Cana-
anticipated benefits is shown in Table 1.These dian firms in the electronic/electrical equipment
findings suggest four primary benefits associated and components industry and compared certified
with IS0 9000: cost savings and/or higher profit- and non-certified firms, they found no difference
ability, better communication, improved opera- in operational performance between the two
tions, and market expansion. groups. Despite this finding, Simmons and White
With regard to cost savings and profitability, were reluctant to conclude that registration does
research findings have generally been positive. A not affect business performance, recommending
survey by Lloyd’s Register Quality Assurance instead that longitudinal analyses be conducted
(“Study Finds.. .” 1994) indicated that IS0 9000 on a larger sample of companies across a broader
registration increased net profits. Simmons and spectrum of industries. Similarly, Lee and Palmer
White (1999) found that, after controlling for size,
IS0 9000-registered companies were more profit-
able than non-registered companies. A joint study Table 1
by Deloitte-Touche and Quality Systems Update Top Ten Anticipated Benefits of IS0 Certification
(Johns 1994) reported that companies claimed
average annual savings of $179,000 from registra- PERCENT AGREEING
tion. Wolak (1994) reported that the costs of reg- BENEFIT Anticipated Achieved
istration were recovered in three years. According 1. Improvement in documentation 73.8 84.j
to the British Standards Institution, says Stanley 2. Improvement in operating standards 68.4 74.5
Brown (1994), firms that achieve IS0 9000 certifi- 3. Improvement in quality awareness 71.6 77.4
cation reduce their annual operating costs by an 4. Ability to sustain market share 67.3 57.4
5. Improvement in perception of 65.1 64.7
average of 10 percent.
product quality
Improved communication has also been cited
6. Ability to increase market share 62.9 45.1
as a benefit. In a survey of IS0 9000 certified 7. Reduction in cases of nonconformity 60.7 54.6
manufacturing companies in New Zealand, Lee 8. Improvement in customer satisfaction 58.6 52.8
and Palmer (1999) reported that both large (more 9. Improvement in competitive advantage 57.8 44.8
than 100 employees) and small companies expe- 10. Reduction in quality audits 50.2 48.0
rienced better communication after IS0 imple-
mentation. Zuckerman and Hurwitz (1996) listed Source: Skrabec et al. (1997)
F
Management,
ourteen years after the debut of the IS0
9000 standards, it is apparent that they J.S. Davies, IS0 9000 Management L$stems Munual
have had a major impact on worldwide (New York: McGraw-Hill, 1997).
commerce. Despite criticisms of the costs and
complexity of the process, and in the face of M. Ebrahimpour, B.E. Withers, and N. Hikmet, “Experi-
ences of U.S. and Foreign-Owned Firms: A New Per-
doubts about the benefits of becoming certified,
spective on IS0 9000 Implementation,” International
the rate of increase in registrations remains high
Journal of Production Research, February 1997. pp.
as more and more companies seek to certify their 569-576.
quality systems. In the United States, where the
adoption rate of companies seeking IS0 9000 W. Ferguson, “Impact of the IS0 9000 Series Standards
certification once lagged behind that of other on Industrial Marketing,” Zndustriul Marketing Manage-
regions of the world, the total number of new ment, July 1996, pp. 305-310.
T.Y. Lee, “The Experience of Implementing IS0 9000 in A. Zuckerman and A. Hurwitz, “How Companies Miss
Hong Kong,” Asia Pacific Journal of Quality Manage- the Boat on IS0 9000,” Quali[y Progress, July 1996, pp.
ment, 4, 4 (1995): 6-16. 23-25.
S. Lorge and A. Cohen, “Can IS0 Certification Boost A. Zuckermdn, IS0 9000 Made Easy: A Cost-Saving
Sales?” Sales and Marketing Management, April 1998, Guide to Documentation and Registration (New York:
p. 19. AMACOM, 1995).
R. Mullin, “Rewrite Aims for ‘Elegant Simplicity,“’ Chemi- A. Zuckerman, “IS0 9000 Revision Might Miss Year-
cal Week, April 8, 1998, pp. 42-43. 2000 Deadline,” Purchasing, April 8, 1999, p. 35.