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The Benefits of ISO 9000…..

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Presentation on theme: "The Benefits of ISO 9000….."— Presentation transcript:

1 The Benefits of ISO 9000….

2 Over 350,000 companies world are registered to ISO 9000 The benefits they find include:
Improved consistency of service and product performance Higher customer satisfaction levels. Improved customer perception Improved productivity and efficiency Cost reductions Improved communications, morale and job satisfaction Competitive advantage and increased marketing and sales opportunities.

3 Dun and Bradstreet findings show that:
85% of registered firms report external benefits Higher perceived quality Greater customer demand

4 Dun and Bradstreet findings show that:
95% report internal benefits Greater employee awareness Increased operational efficiency Reduced scrap expense

5 A Case Study: Published in the Dallas Business Journal, August 18, 1997 the study credited ISO 9000 for: Increased Productivity Reduced scrap and waste Record sales level Catching inferior raw materials before they were used A contract with Romania’s state owned oil company.

6 ISO Registration resulted in:
30% Reduction in customer claims 95% improvement in delivery time Reduced defects from 3% to 0.5% 40% reduction in product cycle time. 20% increase in on-time delivery International acceptance and recognition Facilitated trade in international markets Promoting of safety, reliability and quality in food products.

7 CIRAS News Says: Cutting quality cost in half can increase profit more than a 10 percent increase in sales. ISO 9000 is the most promising method for cutting the cost of quality.

8 Registered companies site the benefits of ISO 9000 Registration as:
Improved management 86% of respondents Better customer service 73% of respondents Improved efficiency 69% of respondents

9 Registered companies site the benefits of ISO 9000 Registration:
Reduced waste 53% of respondents Improved staff motivation 50% of respondents Reduced costs 40% of respondents

10 Irwin Professional Publishing survey results show:
30% Of registered companies experience increased customer demand. 50% Of registered companies have decreased number of customer audits. 69% Of registered companies have a competitive advantage in their market. 83% Of registered companies products have higher perceived quality in the marketplace.

11 Survey of NYSE traded companies and ISO 9000
US publicly held companies traded on the NYSE that received registration under the ISO 9000 quality standard show significant improvement in financial performance compared to those companies that have not pursued the standard. The firms that failed to seek registration experienced substantial deterioration in return on assets, productivity and sales. Registered companies avoided such declines. Source:

12 Start seeing these benefits in your organization
Benefits start with your implementation project; you do not need to wait until registration is achieved to start seeing the improvements.

13 What is ISO 9001:2000? The ISO 9001 standard was designed by representatives from many different countries The standard outlines the basic elements of a good quality management system These elements are good business practice Each member country has representatives that make up a Technical Advisory Group (TAG). These groups draft the standard, then members comment and vote on the standard. The document then becomes and ISO standard. These standards are not regulations. They are a method of getting a standard set of criteria for quality management systems. An outside agency, the registrar, will then audit to see if you have all the required elements in place. If you do, you will get ISO 9000 registration. This registration tells others all over the world that you have this quality system in place. As we go through the training, and cover the requirements you will see that these requirements are basically just good business practice.

14 ISO 9001:2000 and the Process Model
The ISO 9001:2000 system is based on a Process Management Approach An organization is a system of interlinked processes The new standard is geared at managing and improving those processes Key processes – those that lead to products and services- must be identified Methods to measure and control these processes must now be included The Process Model Approach We just said the new standard is based on a process model approach. But what is a process model? See slide bullets The standard is moving from documenting processes to managing processes. lets look at the process model….

15 The Process Model Process Model C U S T O M E R C U S T O M E R
Quality Management System (QMS) Continual Improvement Management Responsibility Measurement Analysis and Improvement Resource Management Refer to page 5 of the student manual. The new standard looks very different from its 1994 predecessor. Much of the change is in the organization of the standard. Many of the old requirements remain a part of the Quality Management System section of the new standard. the changes, however, in the new standard are not insignificant. The changes have been planned to take us from a “Life Cycle Approach” based on 20 separate business areas, to a “Process Model” approach. This is a significant change in philosophy, and addresses many of the criticisms of the previous revision of the standard. This example of the process model is included in the standard. The five clauses are all found on the process model. Management Responsibility, Measurement Analysis and Improvement, Product Realization and Resource Management make a cycle. The most important input to this cycle is customer requirements. The output of the cycle is customer satisfaction and continual improvement of the quality system. The standard has been organized around this model. Product Realization

16 How does a company get Registration?
To become registered a company must first implement the requirements of ISO 9000 Evaluate your current quality system Add systems and processes to meet the requirements Document your processes as a Quality Manual, Procedures and Work Instructions Evaluate your current quality system: Many of the requirements of the standard are already addressed by practices in place already. These practices may or may not be documented. Other requirements of the standard may not be addressed at all. These need to be implemented and documented. The standard is designed to bring control and consistency to the companies processes. Documenting the processes is part of this control. It helps ensure that people are doing the same thing, to get consistent results. The document Pyramid: Quality Manual: a top level document that describes briefly what you have in place to meet the standard. Procedures: describe what is done, for example the overall procedure for purchasing or training. What is included in the process? Work Instructions: detailed documents that describe how to perform a process, for example how to fill out a purchase order or how

17 To implement ISO 9001:2000 in your organization:
One of the fastest and most effective ways to implement ISO 9000 is to use The ISO 9000 Store Documentation and Training Package By using this package you will implement a professionally designed Quality Management System in the most cost effective manner available.

18 Start your project with years of expertise on your side:
Use our professionally designed Quality Manual, Procedures and Forms. Save countless hours of your time by editing these proven procedures instead of starting from scratch. These procedures document processes to meet the requirements of the standard, and are ready for you to tailor for your organization. Professionals at The 9000 Store are available to answer your questions.

19 Quality Manual, Procedures and Forms
All documented in Microsoft Word and Excel, they are easy to edit and use These documents have been used by many different types of industries in many different countries for successful registration to ISO 9001:2000

20 Train your employees We offer the most convenient, cost effective training available Computer based training provides each employee with an introduction to the standard and what it means to them

21 Computer Based Training
Employees can take the training at any convenient time Appealing visual and audio content keep the employees attention Quizzes measure the effectiveness of the training Group licensing for $4 per employee

22 Documentation and Training Packages are available at a Package price
This package includes: Project manager’s guide Project manager online training Gap Analysis Checklist Quality Manual, Procedures and Forms Internal Auditor Training Materials package Employee Training Online support for answers to your questions


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