group a - assignment no. 2

7/30/2019 Group a - Assignment No. 2

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GROUP A - PRESENTORS NAME :REEMA SAXENA: 11PT-027

SUDERSHAN POL: 11PT-040PT11-14@imt: Group-A

Assignment No. 2: Let us try to find out the correlation between ISO9001:2008 certification and business success. Visit the web site of

some successful Indian Companies and find if their facilities are ISO

9001 certified. Find the proportion of companies that are ISO Certified

and highly successful. Draw your conclusions.


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About ISO Certification

ISO (International Organization for Standardization) is the worlds largest developer of voluntary

International Standards, founded in 1947.

The ISO 9000 family addresses various aspects of quality management and contains some of

ISOs best known standards. The standards provide guidance and tools for companies and

organizations who want to ensure that their products and services consistently meet customers

requirements, and that quality is consistently improved.

There are many standards in the ISO 9000 family, including: ISO 9001:2008 - sets out the requirements of a quality management system

ISO 9000:2005 - covers the basic concepts and language

ISO 9004:2009 - focuses on how to make a quality management system more efficient and

effective

ISO 19011:2011 - sets out guidance on internal and external audits of quality management

systems.

The ISO 9001:2008 is a standard for the "Quality Management System". ISO 9001:2008standards basically focus what the organization do to fulfill:

Customer's Quality Requirements,

Applicable Legal & Regulatory requirements,

Develop Customer Satisfaction, and

Attain Continual Improvementof its performances in chase of these objective


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Correlation between ISO 9001:2008

Certification and Business Success

Despite of the numerical success of ISO 9000 quality management systems,the certification is not a risk-free undertaking.

The organizations often lack flexibility in the design and implementation of

quality management systems, the level of the utilization of employees skills

and knowledge is low.

ISO 9000 certification can deliver business and financial benefits, but the

managers of organizations should carefully design the ISO 9000

implementation strategy.

To develop a mature quality management system, critical success factors for

ISO 9000 certification benefits should be considered in the early phases of

their planning and designing processes.

Strategic orientation is a moderating factor influencing the relationshipbetween ISO 9000 certification benefits and the firms financial performance.

For continuous improvement of processes, people and system, the rewardsystem, team work, the measurement of performance and communicationduring the post-certification period are all critical success factors for the

sustainable quality management system and for successful results of ISO9001:2008 certification.


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Critical Success Factors for ISO

9001:2008 Certification Benefits

Influence of Strategic Factors

Influence of Motivation Factors Influence of Financial Factors

Influence of Continuous Improvement Factors

Influence of Auditing Factors


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Influence of Strategic Factors

Product and Service Quality is the key to customer satisfaction andcompetitive success. Thus quality may be considered as a strategic

competitive tool and organizations can not afford to ignore the

strategic implementation of quality for their competitive position.

Top management acts as a driver of the implementation of quality

management systems through the provision of necessary resourcesas well as a key to continuous improvement through the creation of

values, goals and systems to satisfy customer expectations and

improve organization performance.

Managers of organizations should carefully design the ISO 9000

implementation strategy. With a well developed ISO 9000 strategy,the implementation of the standard can be better aligned with the

environment of an organization so as to accomplish competitive

advantages and optimal performance.


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Influence of Motivation Factors

ISO 9001 certification benefits can be classified into external andinternal. The external ones are related to improvements in terms ofmarketing and promotional aspects, increase in customersatisfaction and the improvement of market share, while internalbenefits are related to organizational improvements, the rewardsystem, team work, the measurement of performance and

communication, continuous improvement.

The value of quality management systems, according to the 9001standard, depends on the way they are implemented. Thecompanies concerned about internal reasons are those which:

obtain higher profits deriving from the implementation of a

quality system; reach a greater practical implementation of quality

management principles;

are most likely to progress towards total quality management.


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Influence of Financial Factors There is a multitude of variables that could influence a companys business

financial performance: from the financial perspective - ISO certification would be beneficial to the

promotion of activities, improvement of profitability and the productivity of

facilities;

from the customer perspective - ISO certification would create positive

customer sentiment for specific manufacturing industries, promote customers

long-term support and enhance customer satisfaction and loyalty; from the internal process perspective - ISO certification would effectively

improve the standardization and systematization of production processes and

further reinforce the overall working environment;

from the learning and growth perspective - ISO certification would allow

enterprises to effectively use market information to understand customers

behaviour and reactions, make corporate goals more compliant with socialneeds and improve corporate reputation and brand image;

from the corporate mission perspective ISO certification would definitely and

effectively establish trust between enterprises and customers to enhance

customer satisfaction. Through the standardization and systematization of

operations, production processes could be improved along with corporate and

brand image.


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Influence of Continuous

Improvement Factors

Continuous improvement stage of the post-certification period is

very important if an organization wants to continuously improve and

reap the long term benefits of having a quality management system

in place. Continuous improvement of processes, people and system are very

important factors for the sustainable quality management system.

The proposed framework could assist in developing products and

prioritizing critical operational functions and ISO 9001:2008

requirements. The organizations that sought ISO 9000 certification with a

proactive approach driven by continuous improvement strategy

were more likely to derive significant benefits, as a result.


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Influence of Auditing Factors

Quality auditors are in a powerful position to increase the ability tounveil conformity and thus increase the value of certifications. Themain reason for conducting audits is to obtain factual input formanagement decisions, but the vast majority of audits only producedata for use in granting a certificate, for improving documentation or forenforcing conformity.

There are a number of approaches generally used in conductinginternal and external quality system audits, and not all of them aresuccessful. Out of Element based auditing, Department basedauditing, Process based auditing and Task based Auditing, the processbased auditing is more effective.

In process based auditing, the auditor seeks to establish the results an

organization desires to achieve, determines whether these results takeinto account the needs of the customers and the interested parties andthen examines the way processes are managed to achieve theseresults and improve performance.


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Roadmap for Successful Implementation of

ISO Management Standards

Recommendations

CertificationProcess

Pitfalls in ISOImplementations


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Process-Based QMS (ISO 9001)


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Challenges

Building a sustainable QMS Develop QMS

Creation

Change Management

Ensure relevancy of documentations Discipline of Execution

Training

Internal audits, customer audits, third party audits

Ensure Quality closure on audit findings

Recognition and Celebration Review by Management

Reward and Recognize


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ISO 9001 Certified Facilities adopted

by Top-10 Indian Companies

S.No. Company Name ISO 9001 Status

1 Indian Oil Certified

2 Reliance Industries Certified

3 Bharat Petroleum Certified

4 State Bank of India Certified

5 Hindustan Petroleum Certified

6 Tata Motors Certified

7 ONGC Certified

8 Tata Steel Certified

9 Hindalco Industries Certified

10 Coal India Certified


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Proportion of ISO Certified and

Highly Successful Companies


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Quality Management Systems of

Purchasing Organizations


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Reasons for seeking certification


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Conclusion Business success will automatically follow when the

organization

Create value for its customers, via the product and

services it provides

Create value for all other interested parties Balances all interested-party viewpoints.

Facilitates review and improvement in quality

management systems.

Drive towards sustained success.

group a - assignment no. 2

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