ISO 9000ISO 9000

George Benham George Benham

OISM 470WOISM 470W

ISO 9000ISO 9000

• What is ISO 9000?What is ISO 9000?• How is ISO 9000 Being How is ISO 9000 Being

Implemented Today?Implemented Today?• ISO 9000 in DepthISO 9000 in Depth• What Makes ISO 9000 Work?What Makes ISO 9000 Work?• Real World Example of ISO 9000Real World Example of ISO 9000• SummarySummary

What is ISO 9000?What is ISO 9000?

• ISO 9000 is a standard in which to ISO 9000 is a standard in which to conduct businessconduct business

• It is a set of rules which should be It is a set of rules which should be followed in order to meet the needs followed in order to meet the needs and understand the wants of and understand the wants of customerscustomers

• The standard is genericThe standard is generic

How is ISO 9000 Being How is ISO 9000 Being Implemented Today?Implemented Today?

• ISO 9000 is being used in many ISO 9000 is being used in many organizations with mixed resultsorganizations with mixed results

• If an organization implements ISO If an organization implements ISO 9000 in order to simply remain 9000 in order to simply remain competitive and without mutually competitive and without mutually beneficial goals in mind, it will most beneficial goals in mind, it will most likely fail in the long term likely fail in the long term

ISO ImplementationISO Implementation

• Implementing ISO 9000 in an Implementing ISO 9000 in an organization can be very beneficialorganization can be very beneficial

• The goal of this implementation is The goal of this implementation is to achieve customer satisfaction at to achieve customer satisfaction at its highest levelits highest level

How can ISO 9000 be used How can ISO 9000 be used in a business?in a business?

• ISO 9000 can benefit many industries, such ISO 9000 can benefit many industries, such as:as:

BankingBankingHealth CareHealth CareManufacturing, etc.Manufacturing, etc.

• ISO 9000 is ISO 9000 is genericgeneric, so it can be applied , so it can be applied virtually anywhere!virtually anywhere!

• Remember, ISO 9000 is just one part of an Remember, ISO 9000 is just one part of an entire system needed to create value for entire system needed to create value for customerscustomers

How can ISO 9000 be used How can ISO 9000 be used in business?(cont.)in business?(cont.)

• To begin the process, a To begin the process, a commitment must be madecommitment must be made

• Once a commitment is made, what Once a commitment is made, what should an organization do? How should an organization do? How can the organization benefit from can the organization benefit from implementation of ISO 9000?implementation of ISO 9000?

ISO 9000: In DepthISO 9000: In Depth

• ISO is not an acronymISO is not an acronym• ISO is a name used for the ISO is a name used for the

International Organization for International Organization for StandardizationStandardization

• The ISO was formed in 1947 in The ISO was formed in 1947 in Geneva, SwitzerlandGeneva, Switzerland

ISO 9000:In Depth (cont)ISO 9000:In Depth (cont)

• ISO 9000 is a European StandardISO 9000 is a European Standard• The organization has two stated The organization has two stated

objectives:objectives:1. 1. To promote development of To promote development of

standardization to facilitate standardization to facilitate international exchange of goods and international exchange of goods and services.services.

2. 2. To promote cooperation in To promote cooperation in intellectual, scientific, technological, intellectual, scientific, technological, and economic activity.and economic activity.

What are the parts of ISO What are the parts of ISO 9000?9000?

• ISO 9000 is composed of 5 different, but ISO 9000 is composed of 5 different, but related parts:related parts:

ISO 9000, 9001, 9002, 9003, ISO 9000, 9001, 9002, 9003, and 9004and 9004

• ISO 9000 and 9004 are guidelines, while ISO 9000 and 9004 are guidelines, while ISO 9001, 9002, and 9003 are the ISO 9001, 9002, and 9003 are the categories in which a company may categories in which a company may apply for certificationapply for certification

Part 1: ISO 9000Part 1: ISO 9000

• ISO 9000: ISO 9000: “Quality Management “Quality Management and Quality Assurance Standards – and Quality Assurance Standards – Guidelines for Selection and Use”Guidelines for Selection and Use”

• Written in order to determine which Written in order to determine which category your organization should category your organization should apply forapply for

Part 2: ISO 9001Part 2: ISO 9001

• ISO 9001: ISO 9001: “Quality Systems – Model for “Quality Systems – Model for Quality Assurance in Quality Assurance in Design/Development, Production, Design/Development, Production, Installation, and Servicing”Installation, and Servicing”

• This is the category for companies which This is the category for companies which are involved in manufacturing or the are involved in manufacturing or the creation and delivery of a service.creation and delivery of a service.

Part 3: ISO 9002Part 3: ISO 9002

• ISO 9002: ISO 9002: “Quality Systems – “Quality Systems – Model for Quality Assurance in Model for Quality Assurance in Production and Installation”Production and Installation”

• Companies who perform many Companies who perform many functions, with the exception of functions, with the exception of design and development, may design and development, may apply to this categoryapply to this category

Part 4: ISO 9003Part 4: ISO 9003

• ISO 9003: ISO 9003: “Quality Systems – “Quality Systems – Model for Quality Assurance in Model for Quality Assurance in Final Inspection and Test”Final Inspection and Test”

• This category is useful for outside This category is useful for outside of the manufacturing sector, such of the manufacturing sector, such as in distributorsas in distributors

• ISO 9003 is being used less and ISO 9003 is being used less and may be dropped in the futuremay be dropped in the future

Part 5: ISO 9004Part 5: ISO 9004

• ISO 9004: ISO 9004: “Quality Management “Quality Management and Quality System Elements – and Quality System Elements – Guidelines”Guidelines”

• Used in order to help interpret the Used in order to help interpret the categories included in ISO 9000 categories included in ISO 9000 certificationcertification

ISO 9000 Structure ChartISO 9000 Structure Chart

The costs of implementing The costs of implementing ISO 9000ISO 9000

• Implementing ISO 9000 can be Implementing ISO 9000 can be beneficial, but costly. The cost can be beneficial, but costly. The cost can be affected by:affected by:

Multiple LocationsMultiple Locations

DesignDesign

Non-existence of a Quality Non-existence of a Quality ProgramProgram

Significant Corporate ChangesSignificant Corporate Changes

The cost of registering for The cost of registering for ISO 9000ISO 9000

• Registering for ISO 9000 creates Registering for ISO 9000 creates additional costs which vary based additional costs which vary based upon:upon:

Design ResponsibilityDesign Responsibility

Number of LocationsNumber of Locations

Size of Facility in Terms Size of Facility in Terms of Employmentof Employment

Other ISO ProgramsOther ISO Programs

• ISO 9000:2000ISO 9000:2000ISO 9000 upgraded for 2000ISO 9000 upgraded for 2000

• ISO 14000 ISO 14000 ISO 14000 is environmental ISO 14000 is environmental

certification for an certification for an organizationorganizationNot as prominent, as Not as prominent, as

environmental issues are more environmental issues are more complex than ISO 9000 issuescomplex than ISO 9000 issues

Real World ExamplesReal World Examples

• ““FedEx’s worldwide ISO 9001 FedEx’s worldwide ISO 9001 certification gives us a competitive certification gives us a competitive advantage in the global market-advantage in the global market-place, especially as more countries place, especially as more countries adopt ISO standards”adopt ISO standards”

--FedEx Chairman and CEO FedEx Chairman and CEO Frederick W. SmithFrederick W. Smith

Real World Examples Real World Examples (cont.)(cont.)

• ““At IBM, the ISO 9000 standards have proven to At IBM, the ISO 9000 standards have proven to be a template for the creation of a sound quality be a template for the creation of a sound quality system, regardless of whether the target market system, regardless of whether the target market is located in the United States or overseas. By is located in the United States or overseas. By embarking on the ISO 9000 journey, it is embarking on the ISO 9000 journey, it is reasonable to expect lower costs, improved reasonable to expect lower costs, improved customer satisfaction, greater brand loyalty, and customer satisfaction, greater brand loyalty, and stronger market performance associated with stronger market performance associated with this quality effort. The ISO 9000 quality process this quality effort. The ISO 9000 quality process can be an important step on the road to total can be an important step on the road to total quality management.”quality management.” -- IBM Director of IBM Director of ISO 9000 ISO 9000 Dr. Jack E. Dr. Jack E. SmallSmall

ExerciseExercise

• You are the owner of a small You are the owner of a small manufacturing business and wish manufacturing business and wish to improve customer relations. to improve customer relations. Choosing to use ISO 9000 within Choosing to use ISO 9000 within your business, which category your business, which category would you choose and what costs would you choose and what costs could be associated with this could be associated with this choice?choice?

Summary: ISO 9000Summary: ISO 9000

• ISO 9000 is a standard in which ISO 9000 is a standard in which organizations conduct businessorganizations conduct business

• ISO 9000 has 5 partsISO 9000 has 5 parts• ISO 9000 is a generic standardISO 9000 is a generic standard• There are currently over 70,000 There are currently over 70,000

organizations registered for ISO organizations registered for ISO 9000 certification9000 certification

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The Free Press. New York, NY. 1994.The Free Press. New York, NY. 1994.• Clements, Richard B. Clements, Richard B. Quality Manager’s Complete Guide to ISO Quality Manager’s Complete Guide to ISO

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<http://www.iso.ch/><http://www.iso.ch/>• Kantner, Robert. Kantner, Robert. The ISO 9000 Answer BookThe ISO 9000 Answer Book. .

John Wiley & Sons. Danvers, MA. 2000.John Wiley & Sons. Danvers, MA. 2000.• Rabbitt, John T. and Bergh, Peter A. Rabbitt, John T. and Bergh, Peter A. The ISO 9000 Book: A The ISO 9000 Book: A Global Global

Competitor’s Guide to Compliance & CertificationCompetitor’s Guide to Compliance & Certification. . Quality Quality Resources. White Plains, NY. 1994.Resources. White Plains, NY. 1994.