04.10.2005

The Financial Impact of ISO 9000 Certification in the United States

The importance of quality

All successful companies need to be able to control quality during
production.Demonstrating control is the key to providing customers with the
confidence that their work will be processed correctly. An effective way of
achieving this is by implementing a quality management system. Companies find
that a quality management system can improve overall efficiency, enhance status
and increase customer confidence.

ISO 9000 is an internationally recognised standard and is recognised as the
benchmark for quality management systems certification.

No business can operate without a management system. Writing it down, as
required by the international standard, ISO 9000, makes sure:


  • it really does exist and
  • it really is communicated to staff.

ISO 9000 should not be seen as an end in itself. An effectively operated system
should result in improvements to the management of quality.

Reducing costs by improving quality

Implementing a quality management system represents a considerable investment
in time and money. However, the long term benefits to your company and your
customers can be great:

Internal benefits

Improves:

  • Management efficiency planning
  • problem-solving
  • supplier control communications
  • ability to change
  • discipline
  • staff morale
 

Reduces:

  • duplicate effort
  • re-work
  • waste
  • costs
  • staff turnover 

External benefits

Improves:

  • product and service quality
  • customer satisfaction
  • repeat sales
  • company image

Reduces:

  • complaints
  • warranty claims

Having a quality management system certified to ISO 9000 provides tangible
evidence of your company's commitment to quality. Your certificate proves you
have been independently assessed and approved as a quality organisation.

Continual improvement

The requirement for continual improvement was implicit in the 1994 version of
the ISO 9000 standard. However, ISO 9001:2000 makes the requirement for
continual improvement explicit. Continual improvement is interpreted as being a
stepped approach to improvement. This means there can be intervals over which
little progress may be obvious but over the longer period overall improvement
is attained.

Research finds financial benefit of ISO 9000 certification
An independent study has found that organisations benefit financially after
deciding to seek certification. The researchers state that careful design and
implementation of consistent and documented quality management systems can
contribute significantly to superior financial performance.

Further info


AplusA-online.de - Source: Lloyd's Register Quality Assurance