ISO SYSTEMS,

VALUE ENGINEERING
AND ANALYSIS
• International Organization for Standardization (ISO), these standards
are guidelines on how to document the processes in specific
industries.
• The goal is consistency and a set of complete, easy to follow
instructions.
• While TQM is focused on employee involvement and product
improvement, achieving a particular ISO certification shows that an
organization is following well-established industry standards.
• ISO standards are just a Quality Management System (QMS) with
specific guidelines on how to document the processes. ISO is not,
however, a way to get around Total Quality Management.  
• Since ISO is focused on consistency and record-keeping, while TQM
is focused on employee involvement and product improvement, they
go hand in hand. 
• Both are customer requirements focused, but Total Quality
Management is really the driving factor. 
• ISO help organizations to improve their performance by specifying
repeatable steps that organizations consciously implement to achieve
their goals and objectives, and to create an organizational culture that
reflexively engages in a continuous cycle of self-evaluation,
correction and improvement of operations and processes through
heightened employee awareness and management leadership and
commitment.
 ISO Standards
 ISO 9001
• By far the most popular family is that of ISO 9000. A family of
quality management standards, there are fourteen in total. It was first
published in 1987.
• The standard details how to put a Quality Management System
(QMS) in place to better prepare your organization to produce quality
products and services.
• It is customer focused, and places an emphasis on continuous
improvement and top management processes that extended
throughout the organization.
• The standard was updated in 2015, and now places a greater emphasis
on risk management.
• The standard is generic, and can be used in any organization in any
sector.
 ISO 14001
• ISO 14000 is a family of standards relating to the environment.
• ISO 14001:2015 is the most popular in the family.
• It establishes requirements for an Environmental Management System
(EMS) and is based on the continuous improvement model PDCA
(Plan-Do-Check-Act). It is a voluntary standard, put in place by
companies who want to improve their processes.
 ISO 27000
• This family of standards concerns information technology, with the
goal of improving security and protecting company assets.
• Started in 2005, the two most popular standards are ISO
27001:2013 and 27002:2013.
• 27001 is management-based system, whereas 27002 is a technical
document, focused on the individual and putting a code of conduct in
place.
 ISO 22000
• This standard is focused on the development and implementation of a
food safety management system, and can help any organization that
works in the food chain.
• 22001 for food and drink, 22002 for food manufacturing.
 ISO 50001
• One of the newest standards, the energy standard ISO 50001:2011 is
nevertheless becoming increasingly important.
• An Energy Management System (EMS) dedicated to improving energy
usage and efficiency. This includes reducing an organization’s energy
footprint by reducing greenhouse gas emissions as well as energy cost.
 ISO/TS 16949
• One of the older standards, ISO/TS 16949 refers to the automotive

industry. TS stands for Technical Specification.

 ISO 13485
• The medical equipment standard ISO 13485 is a single document.
 ISO 31000
• It is very important for an organization in any field to be able to
manage risk effectively. ISO 31000:2009 puts in place a risk-
management system to do. It was created in 2009 as an attempt to
create a universally recognized program to reduce risk, eliminating
the need for the many standards in other industries that include risk. 
 ISO 26000
• A relatively new standard, ISO 26000 focuses on social responsibility
and was released in 2010. It cannot be certified to, but rather provides
guidance on how businesses can operate in a socially responsible way.
 ISO 20121
• The newest standard on this list, ISO 20121 was started in the Head of
Sustainability at the London 2012 Olympics. It is a voluntary event
sustainability management system.
• ISO 20121 is relevant to all members of an event’s supply chain, from
organizers to caterers, and assists these organizations in reducing their
environmental footprint while still being a financial success.
 Process for ISO Certification
a. Create an application /contract
 The applicant and the registrar should agree on a contract. This
contract usually defines rights and obligations of both parties and
includes liability issues, confidentiality, and access rights.

b. Quality Documents Review

 The ISO auditor will view all your quality manuals & documents
related to various policies & procedures being followed in the
organization. Review of existing work will help the ISO auditor to
identify the possible gaps against the requirements stipulated in the
ISO standards.
c. Make an  Action Plan
 After the ISO auditor communicates the existing gaps in your
organization, you should prepare an action plan to eliminate these
gaps. Prepare the list of the required tasks to be performed to bring the
desired changes in your organization. You may be required to give
training to your employees to work efficiently while adapting to new
procedures. Make all the employees aware of the ISO standards in
terms of work efficiency and quality standards.
d. Initial Certification Audit
 The initial certification audit is divided into two categories- Stage 1 and

Stage 2.

• Stage 1:

• The ISO auditor will audit the changes made by you in the organization.

They will then try to identify the possible non-conformities in your

systems and procedures to the desired quality management system. They

will divide these non-conformities into minor and major non-conformities.

The applicant must carefully assess all these non-conformities and get it

aligned as per the desired quality standards through modification in the

techniques and processes used by the organisation.

• Stage 2:
• After all the required changes are done in the organisation, the ISO
auditor does the final auditing. The auditor will check whether all the
non-conformities have been eliminated or not as per ISO quality
standards. If the ISO auditor is satisfied, they will prepare the final
ISO audit report and forward it to the registrar.
e. Completing the ISO Certification
• After all non-conformities are addressed and all the findings are put in

the ISO audit report, the registrar will grant you the ISO certification.
f. Surveillance Audits
• Surveillance audit is basically conducted to ensure that ISO quality
standards are being maintained by the organization. It is conducted
from time to time.
 Advantages

• All your processes are evaluated, standardized and explained to personnel

• Training new employees is much easier
• Problems are detected more quickly and solutions are improved
• Improved customer satisfaction
• Better understanding of customer needs
• Better perception of your company
• Suppliers become more like partners
• Overall communication is improved
• Better knowledge of your company by employees
• Improved participation of employees
 Value Engineering
• Value Engineering (VE) is concerned with new products. It is applied
during product development. The focus is on reducing costs, improving
function or both, by way of teamwork-based product evaluation and
analysis. This takes place before any capital is invested in tooling, plant
or equipment.
• This is very significant, because according to many reports, up to 80% of
a product’s costs (throughout the rest of its life-cycle), are locked in at the
design development stage. This is understandable when you consider the
design of any product determines many factors, such as tooling, plant and
equipment, labour and skills, training costs, materials, shipping,
installation, maintenance, as well as decommissioning and recycle costs.
• Therefore value engineering should be considered a crucial activity
late on in the product development process and is certainly a wise
commercial investment, with regard to the time it takes. It is strongly
recommended you build value engineering into your new product
development process, to make it more robust and for sound
commercial reasons.
 Value Analysis
• Value Analysis (VA) is concerned with existing products. It involves a current
product being analyzed and evaluated by a team, to reduce costs, improve product
function or both. Value Analysis exercises use a plan which step-by-step,
methodically evaluates the product in a range of areas. These include costs,
function, alternative components and design aspects such as ease of manufacture
and assembly.
• A significant part of VA is a technique called Functional Analysis, where the
product is broken down and reviewed as a number of assemblies. Here, the function
is identified and defined for each product assembly. Costs are also assigned to each
one. This is assisted by designing and viewing products as assemblies (or modules).
As with VE, VA is a group activity that involves brainstorming improvements and
alternatives to improve the value of the product, particular to the customer.  
 Objectives of value engineering/value analysis:
• Increased profits – With the cost reduction of a product, the profits
of an organization increased. This results in time reduction. It also
ensures greater returns on invested capital. The competitive position
of company also improves.    
• Improved product Design – With the modification in design, the
customer will get a new and more acceptable product.  
• Efficiency – It increases the efficiency of employees as it motivates
them to come forward with their creative ideas. It also makes
contributions to improve human factors such as creativity, team work
and positive attitude among employees. The team approach also
improves the decision making. 
• Time consideration – A product has value for the customer if it is
available to him on time. So time element has great importance in
value engineering. It may have no value if it arrives later.
• Improvement in quality – This results in improvement in quality,
reliability, performance and maintainability of a product.
Process of value analysis
(i) Select : First we have to select the item that we want to study.

(ii) Gather information : Then we collect all relevant information

about the item.

(iii) Analysis : Then we analyze i.e. what does it do and what is its

value for money.

(iv) Speculate : Next we think of possible alternative idea.

(v) Assess : Then we assess the worth of each of the ideas.

(vi) Reach conclusions : Next we decide what should be done.

(vii) Implement: Then we get the decision implemented.

(viii) Evaluate : Lastly we evaluate to check if the expected result has
been obtained or not.
• The success of this process of value analysis depends largely upon
the scientific attitude of the members, i.e. to keep an open mind to
any suggestion that may be forthcoming from any corner.
 Advantages

1. Improvement in Product Design:

2. High Quality is maintained:

3. Elimination of Wastage:
4. Savings in Costs:

5. Generation of New Ideas and Products:

6. Encourages Team-Spirit and Morale:
7. Neglected Areas are brought under Focus:

8. Qualification of Intangibles:
9. Wide Spectrum of Application:
10. Building and Improving Company Image
 Difference between value analysis and Value engineering
Value analysis Value Engineering

Value analysis is the application of set of Value Engineering is the application of same
techniques to an existing product with a view set of techniques to a new product at the
to improve its value. design stage- project concept or preliminary
design when no hardware exists.

Value Analysis is a remedial process. Value Engineering is a preventive process.

Value Analysis is done after the birth of the Value Engineering is an early stage process.
product.
Value Analysis is done to have better Value Engineering provides better
optimized commercial output. engineering results.