You are on page 1of 18

Assign

ment on
Internat
ional
Standar
dization
Organiz
ation
(ISO)
Total Quality Management

MGT-321
Tasfiha Islam Inny
Table of Contents

Introduction.........................................................................................................3
What is ISO?.......................................................................................................4
History of ISO.....................................................................................................4
Organizational Structure...................................................................................4
Different types of ISO Certification..................................................................5
How to Recognize an ISO standard?................................................................8
What's different about ISO 9001 and ISO 14001?.......................................8
Who can join ISO?..............................................................................................8
Who standards benefit?.....................................................................................9
ISO 9000 - Quality Management.....................................................................10
Importance of ISO 9000 - Quality Management...........................................11
Reasons for use ISO 9000.................................................................................11
Contents of ISO 9001:2015..............................................................................13
Seven principles of ISO 9000 - Quality Management....................................14
Top ISO Certification Bodies..........................................................................17
Conclusion.........................................................................................................17

1|Page
Introduction
The International Organization for Standardization (ISO) is an international standard-setting
body composed of representatives from various national standards organizations. Founded on
23 February 1947, the organization promotes worldwide proprietary, industrial and
commercial standards. It is headquartered in Geneva, Switzerland, and as of 2015 works in
196 countries. It was one of the first organizations granted general consultative status with
the United Nations Economic and Social Council.

The International Organization for Standardization (ISO) established to promote the


development of standardization and related activities in the world with a view to facilitating
the international exchange of goods and services, and to developing cooperation in the
spheres of intellectual, scientific, technological, and economic activity. ISO’s work results in
international agreements which are published as international standards. ISO is a non-
governmental system of national agencies whose resolution is the advancement of universal
standards for government and business. Global standards are planned for trade between
nations. They deliver a technical base and an arrangement of the best management practices.
Measures guarantee safe organizational techniques and products that lessen the ecological
effect. ISO Standards advantage business and trade by abridging procedures and decreasing
an association’s environmental risk. Consumers are also advantaged by learning that best in
class practices are thus created for worldwide relevancy.

What is ISO?
ISO (International Standard Organization) is the world’s largest developer of voluntary
international standards. These international standard gives state-of-the-art specifications of
products, services and goods practice helping to make industry more efficient and effective
developed through global consensus, they help to break down barriers to international trade.

Figure: Logo of ISO

2|Page
History of ISO
ISO is the successor to the International Federation of the National Standardizing
Associations (ISA), which operated from 1928 to 1942. In 1946, after World War II, ISA
members and the United Nations Standards Coordinating Committee (UNSCC) held a
meeting on international standards. Their work led to the formation of ISO as a
nongovernmental organization the following year. ISO published its first standard, ISO/R
1:1951 (Standard Reference Temperature for Industrial Length Measurements), in 1951. The
standard is now known as ISO 1:2016. As of 2018, ISO had published more than 22,000
standards.

According to ISO, ISO is not an abbreviation. It is a word, derived from the Greek isos,
meaning "equal," which is the root for the prefix iso- that occurs in a host of terms, such as
isometric (of equal measure or dimensions) and isonomy (equality of laws, or of people
before the law). The name ISO is used around the world to denote the organization, thus
avoiding the assortment of abbreviations that would result from the translation of
"International Organization for Standardization" into the different national languages of
members. Whatever the country, the short form of the organization's name is always ISO.

Organizational Structure
The ISO operates through various governing bodies and policy-making committees. A small
Central Secretariat coordinates and oversees the work of the various ISO bodies, and it
publishes ISO standards.

The General Assembly (GA) is the highest authority within the ISO. Each ISO member
nominates a delegate to the GA. The GA acts on policy, budget, the business agenda, and
other important matters. It also oversees all ISO policy committees. There are four major
policy committees, each of which is open to all ISO members as participants or observers.
They include the following: the Committee on Conformity Assessment, the Committee on
Consumer Policy, the Committee on Developing Country Matters, and the Committee on
Information Systems and Services.

The ISO Council is made up of 13 elected and 5 appointed members. The council sets the
Central Secretariat's annual budget. It also appoints 12 members and a treasurer to the
Technical Management Board. The board, in turn, oversees operations of the ISO technical
committees.

3|Page
The ISO operates two information networks. The first is the ISO Information Network
(ISONET). ISONET has 72 members, and those members are responsible for disseminating
information about ISO standards, technical regulations, and matters related to the standards
and regulations. The second is ISO Online. ISO Online is an Internet service available to the
general public on the World Wide Web in English and French. It provides information about
various activities of the ISO including, but not limited to, facts about the ISO, a catalog of all
ISO standards and drafts, a list of all ISO members and committees, and copies of all press
releases.

Different types of ISO Certification


The International Organization for Standardization (ISO) is the largest publisher of standards
in the world. These standards are critical for regulating business practices, manufacturing,
and quality. So, in view to develop the understanding on Types of ISO Certification are given
below, which could help the organization to understand the Types of ISO Certification and its
specific purpose.

There are many ISO Standard developed by International Organization of Standardization


(ISO) – where each ISO Standards has its own specific purpose.

Some of different Types of ISO Standards are given. below for understanding-

1. ISO 9000 - Quality Management


Quality is critical to remaining competitive in any industry. The ISO 9000 family is the
quality management standard, and comprises of some of ISO’s best-known standards.

ISO quality standards guide companies and equip them with the necessary tools to
continuously improve quality and ensure that customer demands are always met. ISO
9001:2015 is the only standard in the category that you can be certified to, and lays down the
criteria for a quality management system.

There are over one million organizations in over 170 countries that are certified to ISO 9001.

2. ISO / IEC 27000 - Information Security Management Systems


Information security is at the fore of global attention, with rapid increases in cyber threats.
The 27000 category of standards ensures the safety of information assets.

These standards help organizations manage the security of assets such as intellectual
property, financial and employee data, and information held in trust for third parties. ISO/IEC

4|Page
27001 is the most popular standard in this category, and stipulates the specifications for the
implementation of an Information Security Management System (ISMS). There are 33,290
certificates issued for this certification.

3. ISO 14000 – Environmental Management


This is a family of standards that provides the necessary tools and guidelines for companies
to manage their environmental responsibilities. ISO 14001 and all other standards in this
category lay emphasis on environmental systems.

These standards use tools such as audits, communications, life-cycle analysis and
environmental challenges. This standard can be used by any organization regardless of the
industry. More than 300,000 ISO 14001 certifications have been issued in 171 countries.

4. ISO 31000: 2018 - Risk Management


Today’s business world is riddled with uncertainty. Risks facing companies have a direct
impact on the economic performance, reputation, as well as safety and environmental
outcomes.

ISO 31000 cannot be used for certification purposes, but it provides a framework for
managing risks. It offers guidance to organizations for internal and external audit programs,
and enables organizations to achieve objectives in an uncertain environment by facilitating
the identification of opportunities and threats, Organizations are able to benchmark with
internationally recognized practices for effective management and corporate governance.

5. ISO 50001: 2018 - Energy Management


ISO 50001: 2018 provides guidance for companies in implementing an Energy Management
System (EnMS) that aims at improving efficiency in the use of energy.

This aims to reduce an organization’s energy footprint by minimizing greenhouse gas


emissions. ISO 50001 is not obligatory, and many organizations implement it solely to
comply with stakeholder expectations. Over 20,000 certifications have been issued for this
standard with a 69% increase from 2015.

6. ISO 26000: 2010 - Social Responsibility


Though organizations cannot be certified to ISO 26000, the standard provides guidance on
how organizations can embrace social responsibility. It clarifies what social responsibility
entails for organizations to lay a framework for effective action.

5|Page
7. ISO 28000: 2007 – Specifications for Security Management Systems for the
Supply Chain
This standard stipulates the requirements for a security management system in respect to a
supply chain. It is applicable to all types of organizations and provides guidance on all
activities controlled by companies that affect supply chain security. It is crucial in the
management of supply chains in manufacturing, service, storage, and transportation and so
far, there are 356 certifications.

8. ISO 37001: 2016 Anti-Bribery Management Systems


Bribery is a menace in today’s business world. This standard stipulates the requirements and
provides guidance in establishing, implementing and continuous improvement of an anti-
bribery management system. It can be a stand-alone system or can be implemented into the
overall management system.

This standard is applicable to all types of organizations with respect to bribery and helps
prevent, detect and respond to bribery and comply with anti-bribery laws.

9. ISO 45001 – Occupational Health and Safety


Occupational injuries and diseases impact the economy negatively due to poor health, early
retirement and high insurance premiums. To manage this problem, ISO has developed ISO
45001. That has replaced or taken into account international standards like OHSAs 18001 and
IL-OSH guidelines. It provides a framework for employee safety, reducing workplace
hazards and provide safer working environments.

10. ISO 22000 – Food Management Systems


This standard facilitates the development and implementation of a food safety management
system. It incorporates a wide array of standards, including 22002 for food manufacturing
and 22001 for food and drink. This standard is widely used by food manufacturers,
restaurants, and food transportation services. So far more than 30,000 certificates have been
issued.

How to Recognize an ISO standard?


In paper form, an ISO standard is published in A4 format - which is itself one of the ISO
standard paper sizes. It may be anywhere between a four-page document and one several
hundred pages' long. ISO standards are also available as electronic downloads and many are

6|Page
available as part of a collection on CD or in handbook. An ISO standard carries the ISO logo
and the designation, "International Standard".

What's different about ISO 9001 and ISO 14001?


The vast majority of ISO standards are highly specific to a particular product, material, or
process. However, ISO 9001 (quality) and ISO 14001 (environment) are "generic
management system standards". "Generic" means that the same standard can be applied to
any organization, large or small, whatever its product or service, in any sector of activity, and
whether it is a business enterprise, a public administration, or a government department. ISO
9001 contains a generic set of requirements for implementing a quality management system
and ISO 14001 for an environmental management system.

Generic standards can be applied to any organization.

Who can join ISO?


Membership of ISO is open to national standards institutes most representative of
standardization in their country (one member in each country).

Full members, known as member bodies, each have one vote, whatever the size or strength of
the economy of the country concerned.

Correspondent members pay reduced membership fees. They are entitled to participate in any
policy or technical body as observers, with no voting rights.

Subscriber members also pay reduced membership fees. They are institutes from countries
with very small economies that nevertheless wish to maintain contact with international
standardization.

Although individuals or enterprises are not eligible for membership, both have a range of
opportunities for taking part in ISO's work:

Individuals may be selected by national member institutes to serve as experts on national


delegations participating in ISO technical committees

Individuals and enterprises may provide their input during the process of developing a
national consensus for presentation by the delegation. This may done through national mirror
committees to the corresponding ISO technical committee

7|Page
International organizations and associations, both non-governmental and representing
industry sectors, can apply for liaison status to a technical committee. They do not vote, but
can participate in the debates and the development of consensus.

There is a range of opportunities for taking part in ISO's work.

Who standards benefit?


ISO standards provide technological, economic and societal benefits.

For businesses, the widespread adoption of International Standards means that


suppliers can develop and offer products and services meeting specifications that have
wide international acceptance in their sectors. Therefore, businesses using
International Standards can compete on many more markets around the world.
For innovators of new technologies, International Standards on aspects like
terminology, compatibility and safety speed up the dissemination of innovations and
their development into manufacturable and marketable products.
For customers, the worldwide compatibility of technology which is achieved when
products and services are based on International Standards gives them a broad choice
of offers. They also benefit from the effects of competition among suppliers.
For governments, International Standards provide the technological and scientific
bases underpinning health, safety and environmental legislation.
For trade officials, International Standards create "a level playing field" for all
competitors on those markets. The existence of divergent national or regional
standards can create technical barriers to trade. International Standards are the
technical means by which political trade agreements can be put into practice.
For developing countries, International Standards that represent an international
consensus on the state of the art are an important source of technological know-how.
By defining the characteristics that products and services will be expected to meet on
export markets, International Standards give developing countries a basis for making
the right decisions when investing their scarce resources and thus avoid squandering
them.
For consumers, conformity of products and services to International Standards
provides assurance about their quality, safety and reliability.
For everyone, International Standards contribute to the quality of life in general by
ensuring that the transport, machinery and tools we use are safe.

8|Page
For the planet we inhabit, International Standards on air, water and soil quality, on
emissions of gases and radiation and environmental aspects of products can contribute
to efforts to preserve the environment.

ISO 9000 - Quality Management


ISO 9000 is defined as a set of international standards on quality management and quality
assurance developed to help companies effectively document the quality system elements
needed to maintain an efficient quality system. They are not specific to any one industry and
can be applied to organizations of any size.

ISO 9000 is a series of standards, developed and published by the International Organization
for Standardization (ISO), that define, establish, and maintain an effective quality assurance
system for manufacturing and service industries. The ISO 9000 standard is the most widely
known and has perhaps had the most impact of the 13,000 standards published by the ISO. It
serves many different industries and organizations as a guide to quality products, service, and
management.

An organization can be ISO 9000-certified if it successfully follows the ISO 9000 standards
for its industry. In order to be certified, the organization must submit to an examination by an
outside assessor. The assessor interviews staff members to ensure that they understand their
part in complying with the ISO 9000 standard, and the assessor examines the organization's
paperwork to ensure ISO 9000 compliance. The assessor then prepares a detailed report that
describes the parts of the standard the organization missed. The organization then agrees to
correct any problems within a specific time frame. When all problems are corrected, the
organization can then be certified. Today, there are approximately 350,000 ISO 9000-
certified organizations in over 150 countries.

Importance of ISO 9000 - Quality Management


There has been so much written about the benefits of having ISO-9000 registration, there
isn’t enough space on this website to repeat it all. We will attempt to list some of the basic
benefits here.

1. ISO-9000 forces an organization to focus on “how they do business”. Each procedure


and work instruction must be documented and thus, becomes the springboard for
Continuous Improvement.

9|Page
2. Documented processes are the basis for repetition and help eliminate variation within
the process. As variation is eliminated, efficiency improves. As efficiency improves,
the cost of quality is reduced.
3. With the development of solid Corrective and Preventative measures, permanent,
company-wide solutions to quality problems are found.
4. Employee morale is increased as they are asked to take control of their processes and
document their work processes.
5. Customer satisfaction, and more importantly customer loyalty, grows. As a company
transforms from a reactive organization to a pro-active, preventative organization, it
becomes a company people want to do business with.
6. Reduced problems resulting from increased employee participation, involvement,
awareness and systematic employee training.
7. Better products and services result from Continuous Improvement processes.
8. Fosters the understanding that quality, in and of itself, is not limited to a quality
department but is everyone’s responsibility.
9. Improved profit levels result as productivity improves and rework costs are reduced.
10. Improved communications both internally and externally which improves quality,
efficiency, on time delivery and customer/supplier relations.

Reasons for use ISO 9000


The global adoption of ISO 9001 may be attributable to a number of factors. In the early
days, the ISO 9001 (9002 and 9003) requirements were intended to be used by procuring
organizations, such as contractors and design activities, as the basis of contractual
arrangements with their suppliers. This helped reduce the need for subcontract supplier
quality development by establishing basic requirements for a supplier to assure product
quality. The ISO 9001 requirements could be tailored to meet specific contractual situations,
depending on the complexity of product, business type (design responsibility, manufacture
only, distribution, servicing etc.) and risk to the procurer. If a chosen supplier was weak on
the controls of their measurement equipment (calibration), and hence QC/inspection results,
that specific requirement would be invoked in the contract. The adoption of a single quality
assurance requirement also leads to cost savings throughout the supply chain by reducing the
administrative burden of maintaining multiple sets of quality manuals and procedures.

10 | P a g e
A few years later, the UK Government took steps to improve national competitiveness
following publication of cmd 8621, and Third-Party Certification of Quality Management
Systems was born, under the auspices of the National Accreditation Council of Certification
Bodies (NACCB), which has become the United Kingdom Accreditation Service (UKAS).

In addition to many stakeholders' benefits, a number of studies have identified significant


financial benefits for organizations certified to ISO 9001, with an ISO analysis of 42 studies
showing that implementing the standard does enhance financial performance. Corbett et al.
showed that certified organizations achieved superior return on assets compared to otherwise
similar organizations without certification.

Heras et al. found similarly superior performance and demonstrated that this was statistically
significant and not a function of organization size. Naveha and Marcus claimed that
implementing ISO 9001 led to superior operational performance in the U.S. automotive
industry. Sharma identified similar improvements in operating performance and linked this to
superior financial performance. Chow-Chua et al. showed better overall financial
performance was achieved for companies in Denmark. Rajan and Tamimi (2003) showed that
ISO 9001 certification resulted in superior stock market performance and suggested that
shareholders were richly rewarded for the investment in an ISO 9001 system.

While the connection between superior financial performance and ISO 9001 may be seen
from the examples cited, there remains no proof of direct causation, though longitudinal
studies, such as those of Corbett et al. (2005), may suggest it. Other writers, such as Heras et
al. (2002), have suggested that while there is some evidence of this, the improvement is partly
driven by the fact that there is a tendency for better-performing companies to seek ISO 9001
certification.

The mechanism for improving results has also been the subject of much research. Lo et al.
(2007) identified operational improvements (e.g., cycle time reduction, inventory reductions
as following from certification. Internal process improvements in organizations lead to
externally observable improvements. The benefit of increased international trade and
domestic market share, in addition to the internal benefits such as customer satisfaction,
interdepartmental communications, work processes, and customer/supplier partnerships
derived, far exceeds any and all initial investment.

11 | P a g e
Contents of ISO 9001:2015
A fish wholesaler in Tsukiji, Japan, advertising its ISO 9001 certification

ISO 9001:2015 Quality management systems — Requirements is a document of


approximately 30 pages available from the national standards organization in each country.
Only ISO 9001 is directly audited against for third-party assessment purposes.

Contents of ISO 9001:2015 are as follows:

 Section 1: Scope
 Section 2: Normative references
 Section 3: Terms and definitions
 Section 4: Context of the organization
 Section 5: Leadership
 Section 6: Planning
 Section 7: Support
 Section 8: Operation
 Section 9: Performance evaluation
 Section 10: Continual Improvement

Essentially, the layout of the standard is similar to the previous ISO 9001:2008 standard in
that it follows the Plan, Do, Check, Act cycle in a process-based approach but is now further
encouraging this to have risk-based thinking. The purpose of the quality objectives is to
determine the conformity of the requirements (customers and organizations), facilitate
effective deployment and improve the quality management system.

Before the certification body can issue or renew a certificate, the auditor must be satisfied
that the company being assessed has implemented the requirements of sections 4 to 10.
Sections 1 to 3 are not directly audited against, but because they provide context and
definitions for the rest of the standard, not that of the organization, their contents must be
taken into account.

The standard no longer specifies that the organization shall issue and maintain documented
procedures, but ISO 9001:2015 requires the organization to document any other procedures
required for its effective operation. The standard also requires the organization to issue and

12 | P a g e
communicate a documented quality policy, a quality management system scope, and quality
objectives. The standard no longer requires compliant organizations to issue a formal Quality
Manual. The standard does require retention of numerous records, as specified throughout the
standard. New for the 2015 release is a requirement for an organization to assess risks and
opportunities and to determine internal and external issues relevant to its purpose and
strategic direction. The organization must demonstrate how the standard's requirements are
being met, while the external auditor's role is to determine the quality management system's
effectiveness. More detailed interpretation and implementation examples are often sought by
organizations seeking more information in what can be a very technical area.

Seven principles of ISO 9000 - Quality Management


The ISO 9000:2015 and ISO 9001:2015 standard is based on the following Seven principles
of Quality management.

1. Customer focus
2. Leadership
3. Engagement of people
4. Process approach
5. Improvement
6. Evidence-based decision making
7. Relationship management

13 | P a g e
1. Customer Focus
This almost goes without saying. An organization that doesn’t focus on customers won’t be
around for long. Although a customer focus is critical, many times this can be lost in the
priorities of a quality system and the various processes involved.

The focus should include current—and future—customers. Besides continuously meeting or


exceeding customer expectations, companies should measure customer satisfaction.
Conversely, failing to meet customer expectations should also be tracked. Every function and
department should be involved.

2. Leadership
As with any quality idea, support must start at the top. Without good leadership, an
organization will suffer. Leaders should set a vision and goals for the company.

Think back to an inspiring leader you’ve met. Perhaps this was at work or even at a quality
event. For those who were at the 2014 ASQ conference, Mike Abrashoff, former commander
of the USS Benfold, may come to mind. At the event, he described the challenges of taking
over an underperforming war ship. Morale was low and turnover was high. By uniting his

14 | P a g e
crew with their common purpose along with praise and appreciation, he was able to transform
the ship. This theme continues in the next principle.

3. Engagement of People
An engaged workforce is one that you want to have. This means the abilities of the staff are
used and valued. It also enables continuous improvement, learning, and discussion of any
issues. With an engaged workforce, staff are held accountable for their actions. Rather being
seen as a passive place to clock in every morning, the job requires everyone in the
organization to be active and engaged in their work.

4. Process Approach
As with so many things in quality, a process approach outlines the steps for success. This
means activities are managed as processes, measured, and connections between activities are
identified. Opportunities for improvement are tracked. Quality doesn’t just happen. It requires
processes behind the scenes to ensure the success of the organization.

5. Improvement
A strong quality system requires change. Without improvement, companies will eventually
be outshined by the competition. Aiming to maintain the status quo does not inspire anyone.

This means the company’s performance and capabilities should be developed on an ongoing
basis. These improvement activities should align with goals, and staff should be encouraged
and empowered to make improvements. When improvements are made, these should be
measured. And finally, celebrated! When things go well, it’s important to acknowledge it.
Quality isn’t all stressful audits and data analysis. Sometimes it’s formal recognition and
praise.

6. Evidence-based decision making


As you may have guessed, gut feelings are not the way forward. Rather, data is king. Of
course, this should be no surprise to the quality professional. Organizations should make sure
data is accessible, accurate, and reliable. It should be analysed and decisions made based on
it. Still, data analysis should be balanced with practical experience. The numbers tell the
story, but it is important not to discount experience as well.

7. Relationship management
Finally, the people are the important part of any organization, and the relationships between
suppliers and other partners are critical. Suppliers should be selected carefully based on the

15 | P a g e
ability to create value as well as manage costs. Partners should be aware of plans and
information that would help them in their work. A spirit of collaboration should be the goal.
Coordinating improvement activities can help both parties. Recognizing supplier successes
will also go a long way to maintaining a strong relationship.

Juggling ISO requirements may seem difficult, but these principles can light the way toward
better quality. Maintaining a quality management system and improving your organization
can be done. It takes work and consideration of a range of factors, but these seven principles
are a good start.

Top ISO Certification Bodies


Top ISO certification of ISO 9000 - Quality Management are given below-
Serial Accreditation Name of the Certification Bodies
No. No.
1 QM001 DNV GL Business Assurance India Pvt. Ltd.
2 QM002 Tuv India Pvt. Ltd.
3 QM003 Bureau Veritas (India) Pvt. Ltd.
4 QM004 Integrated Quality Certification Pvt. Ltd.
5 QM005 AGSI Certification Pvt. Ltd.
6 QM006 IRCLASS Systems and Solutions Private Limited
(Operating certification services through its Division
Indian
Register Quality Systems)
7 QM008 BSI Group India Pvt Ltd.
8 QM009 International Certifications Services Private Ltd.
9 QM010 TUV Rheinland (India) Pvt. Ltd.
10 QM011 TUV SUD South Asia Pvt. Ltd.

Conclusion
The ISO is an international organization that has had and will continue to have significant
effects on business in many areas including, but not limited to, quality management and
environmental performance. Although it is a private organization, it has had significant
effects on the behaviour of businesses around the world and it has received significant input

16 | P a g e
and attention from governments around the world. In the process of globalization of business,
the ISO is playing a significant role in working to harmonize business practices.

------------------Thank You----------------

17 | P a g e

You might also like