The Real Values of Effective ISO 9001 : 2000 Management System

Writer : Ooi Soo Kang, Director/Country Manager, CI Certification Malaysia Sdn Bhd; Rev.#:1 ; 12/12/2004

ISO 9001 : 2000 is a prestigious certification. However many organizations today that achieve
ISO 9001 : 2000 seems to be not reaping the values of ISO 9001 : 2000, instead the system has
became a burden to these organization for simple reason because the management system which
are implemented in these organizations are not effective and do not fully comply with the
requirements of ISO 9001: 2000. It is not surprised that these organizations can achieve the ISO
9001 : 2000 certification despite do not fully comply with the requirements of the standard
because some registrars engaged by these organizations are equally ineffective in conducting
assessment prior to the award of ISO 9001 : 2000.

In actual fact, ISO 9001 : 2000 management system is a very beautiful and useful system that
will add tremendous values to an organization, disregard the nature of business and number of
employee, provided that the management team and overall employees are working together with
sincere heart and high commitment in implementing ISO 9001 : 2000 in their organization.

An organization that is fully complies with the requirements of ISO 9001 : 2000 and effectively
implements and maintains the management system will be able to see the real values of the ISO
9001 : 2000 after 2-3 years of implementing the system:

Value #1: Monitor and measure organization and project performances.

Management will be able to monitor the overall organization and project performances from the
analysis of various appropriate data as required by ISO 9001 : 2000. Analysis of data from the
records generated in the business will serves as a basis for management decision making based
on facts in order to initiate preventive actions for potential non-conformities that may occur or to
embark on continual improvement of any weak areas in the organization.

Value #2: Measure and control performances of various functions in the organization.
ISO 9001 : 2000 requires establishing measurable quality objectives at relevant functions and
levels such as at relevant divisions, departments, sections, units and even at individual level with
the purpose that the performances of these functions and levels within the organization can be
monitored and controlled. Consistent achievement of measurable quality objectives within the
relevant functions denotes the implementation of management system within that functions are
effective.

Value #3: Increased consistency of product or service quality to customers.

By adhering to a set of standardized procedures, guidelines, criteria and methods which are
authorized by organization authorized personnel, employees within the functions will be
consistent in their practices and ways of doing things therefore eliminate or minimize
inconsistency among the employees which will in turn lead to consistent service or product
generated and delivered to the customers, and this will reduces the likelihood of customer
complaint.

Value #4: Minimize non-conformity costs, increased profit in the long run.
Consistency in the processes control will significantly minimize the non-conformities, rejects
and wastages in the organization operational activities. Reducing the non-conformities in the
organization will therefore minimizing the non-conformity costs which will in turn leverage the
profitability of the business, as 'profit' in simple calculation is equals to revenues minus operating
costs. For examples, if a production process is in control i.e. consistent in practicing effective
procedures and work instructions, wastages or rejects from production will be reduced, and the
likelihood of rejected or return cargoes from customer will be low, therefore eliminating
additional workers that are required to do reworks as well as logistic workers to transfer returned
cargoes from customers. Reducing the costs involved in hiring workers to do reworks and
transferring returned cargoes as well as reduced supervisory and executive times spent for such
arrangements will lead to a significant increase in the business profit.

Value #5: Increased morale among employees.

A higher morale among employees in an effective ISO 9001: 2000 organization because there is
a sense of proper system with harmonized documented procedures and responsibilities and
authorities among employees are clearly defined and communicated.

Value #6: Enhance retrieve-ability of records.

Effective management system based on ISO 9001: 2000 will enhances retrieve-ability of work or
project records in the organization. Proper completion, indexing and filing of records as required
by the standard enable fast and timely retrieval of records whenever required.

Value #7: Increased customer confidence and assurance.

Customers that deal with an ISO 9001: 2000 certified organization will feel more confident and
assured with the services or products they are receiving from these organizations as the
organizations are practicing a set of standardized documented procedures, guidelines, criteria and
methods that enhance the consistency of the product or service quality.

Value #8: Increased link and communication among employees.

In an effective ISO 9001 : 2000 organization, interaction between processes are clearly defined
and documented, and the employees are highly aware of the links to interact and communicate
with the relevant personnel and parties within as well as cross-functionally. The standard
mandates establishment of internal communication processes that will minimize the common
communication breakdown among employees.
Value #9: System will run by itself, increased management comfort.
Despite it is a pain at the time when ISO 9001: 2000 system is being set-up in an organization,
and some organizations are even seeing old workers leaving the organizations as could not cope
with the change in the culture. However, after the transition change period is over, the
organizations staff will experience increased operation efficiency and less trouble and problems
in the business, and working live among management will turn to be more comfortable compared
with before having such system.

It is a proven fact that many organizations that are effective in implementing ISO 9001: 2000
management system, take the example of SMI industries which are normally run by a Factory
Manager or General Manager, many of them have said that the system have ran and work well
for them after a period of implementing the ISO 9001 : 2000 system, and they can now
concentrate and spend more time in sales and marketing activities to duplicate or develop further
their businesses.

Value #10: Less friction among employee as works done are clearly evidenced by records.
As ISO 9001:2000 emphasizes that work done especially those review and verification or
inspection activities shall be evidenced with records to demonstrate conformance to product,
process and system, this has helped to reduce the friction among the employee as any possible
disputes that surface can now be minimized by tracing to the available records which will serve
as evidences whether works have been completed and verified as required.

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