IE 361
Quality Culture Mini-Paper
ISO 9000
Mike Hansen
Suprapto Santoso
Strerly Sudargo
Melisa Yulianti
September 28th 2001
IE 361
Quality Culture Paper
9/28/01
ISO 9000
Background
Standards are agreements that can be used as guidelines to ensure materials, products, processes
and services meet all the characteristics desired. They reduce costs associated with poor quality and help
to control the quality of goods. Without standards, barriers are created between different regions of the
world. What works in some places may not work in other places. For example, all credit cards have an
optimal thickness of 0.76mm. (http://www.isoeasy.org) Without this standard, credit cards could not be
used worldwide.
History
Following World War II, there was inequality of international standardization in product quality.
But, the European Economic Community of sixteen nations had the idea that uniformity could be
achieved through common standards and that this uniformity is essential. They also recognized the quality
standard as a mechanism could raise the competitive field. In 1946, the International Organization for
Standardization was established in Switzerland. There are differences between American and European in
quality system standards. The British government suggested all private companies to register, to create
agencies to accredit registration, and to authorize training. The United Kingdom formed BS 5750 to
increase awareness and gain acceptance among population. In other hand, American government
intervened in every step. American Society for Quality (ASQ) and American National Standards Institute
(ANSI) has jointly issued a series of standards known as Q9000, which are identical to the ISO 9000
series. (Stimson, 5)
What is ISO 9000
The International Organization for Standardization, or ISO, is an organization devoted to
promoting a worldwide system of standards. It consists of a federation of national standards bodies in
over 140 countries. Their mission is to “promote the development of standardization and related world
activities to facilitate the international exchange of goods and services, and to develop cooperation in
intellectual, scientific, technological, and economic activity.” (http://www.praxiom.com/iso-intro.htm)
More simply, ISO is dedicated to breaking down existing international barriers for the exchange of goods,
technology, and information. ISO 9000 is one of their ways of doing this.
ISO 9000 is just one standard created by the organization. It is a standard that is devoted to
quality assurance and quality management. In 1987 ISO first published their standards for quality. These
standards were revised and republished in 2000. (Stimson, 6) The new version is formally referred to as
the ISO 9000:2000 standards. The ISO 9000 series consists of twenty elements: management
responsibility; quality system; contracts review; design control; document and data control; purchasing;
customer-supplied product control; product trace ability and identification; process control; test and
inspection status; control of nonconforming product; corrective and preventative action; storage,
handling, packaging, preservation, and delivery; control of quality records; internal quality auditing;
training; servicing; and statistics. (http://www.praxiom.com/iso-intro.htm)
Today the ISO 9000 series consists of ISO 9001, 9002, and 9003. ISO 9001 is for design,
manufacturing, installation, and servicing systems. ISO 9002 is the same as 9001 except it does not
include design. ISO 9003 covers the final inspecting and testing of the final product. Each of the three
standards is used to evaluate different processes in an organization. (Stimson, 10)
Becoming Certified
When a company decided to become ISO certified they must consider many things. First they
must identify their goals. Many times this is increased profitability, higher customer satisfaction,
decreased liabilities, or increased confidence in the system. The company should also consider what
other expects as well. All stakeholders, employees, suppliers, customers, and shareholders must be taken
into consideration.
Once the goals have been identified the company needs to evaluate their current standards for
quality assurance. The differences between the current methods and the requirements for ISO 9000
certification must be clearly identified. Many times companies will hire consultants to help with the
evaluation.
Next the company must consider all twenty elements of ISO 9000.
(http://www.isogroup.simplenet.com) It must decide which elements pertain to their particular
organization and which do not. It is very important that all elements relevant to the organization are
identified.
After it is known what needs to be changed, the company may take the necessary corrective
action. This may take very little or great amounts of time. Once the company feels all requirements of
the ISO 9000 standards have been met, they will register to be assessed. An independent and accredited
body will audit the system and verify that it meets the standards of ISO 9000. If the company meets the
standards, the third party will issue a certificate that acknowledges that the company meets the standards.
To maintain the certificate, periodic audits will be required. (http://www.isoeasy.org)
Advantages and Disadvantages
There are many advantages to ISO 9000 certification. It saves companies money and resources
by operating more efficiently. (Stimson, 12) A good reputation is earned which keeps customers coming
back. It also gives employees a clear vision of what needs to be done and how to do it. The worldwide
standards help open the door to new markets for companies. Being ISO certified provides a stable and
comprehensive quality system. Also, many companies are now requiring their suppliers to be ISOcertified. This means that companies with the certification have a larger market share. The only
disadvantage of gaining certification is the time and money it requires to evaluate the old system and
implement the desired changes. However, the return in benefits well out weigh the costs. This can easily
be proven. Currently, it is not required to comply with the ISO 9000 standards; it is a company’s choice
not a government regulation. Yet thousands and thousands of companies are certified. Having a high
standard of quality is important to all companies as well as their customers. When companies become
ISO certified they are guaranteeing this high standard of international quality.
Implementation and Achievements of ISO 9000
Since its implementation in 1987 companies of all types in countries all over the world have
adopted ISO 9000. (http://www.iso.ch/iso/en/iso9000-1400) Certification is still most popular in Europe
where the standards were created, but it is spreading fast. Currently there are more than 408,000 ISO
9000-certified companies in over 150 different countries worldwide. The number of certified companies
is growing rapidly. In the year 2000 over 64,988 more companies and eight more countries were
introduced to ISO 9000 certification. Companies that become ISO 9000 certified range in everything
from basic metal fabrication and rubber production to information technology and educational companies.
(http://www.praxiom.com/iso-intro.htm)
ISO 9000 has helped develop many new things. For example, internationally standardized freight
containers were developed to make international trade cheaper, faster, and easier. These containers can be
used to transport cargo by air, sea, highway, and railroad. The worldwide standard prevents cargo from
being reloaded in different countries. On a smaller scale, the standards have helped make screw threads
standard throughout the world. This makes replacing parts faster and easier. (http://www.isoeasy.org)
The standards set by ISO 9000 have helped the growth of a worldwide market. They have helped
to raise the standards of quality expected by society. By doing this, companies operate more safely and
efficiently. The standards give managers and workers alike guidelines to follow. This leads to more
employee empowerment in companies, which leads to more employee satisfaction. ISO 9000 benefits
every one and enhances the quality of society as a whole.
Bibliography
Stimson, William A. “How to Sustain Quality in Dynamic World.” New York: Amacom, 1998. p.5-12.
http://www.isoeasy.org
http://www.praxiom.com/iso-intro.htm
http://www.isogroup.simplenet.com
http://www.iso-9000.co.uk/5/ol.html
http://www.iso.ch/iso/en/iso9000-1400
http://www.connect.ab.ca