Examining the Study of ISO 9000 Standards and its Impact

on TQM: A Critical Review

Rashid Jehangiri

(This critical review is a permutation of 55 important articles published between1987 to 2010.

References to articles are mentioned at the end)

Quality means pleasing consumers, not just protecting them from annoyances (Gravin, 1987).
Eight critical dimensions or categories of quality that can serve as a framework for strategic
analysis include performance, features, reliability, conformance, durability, serviceabihty,
aesthetics and perceived quality (Gravin, 1987). Only 50 companies attained worldclass quality
during the 1980s (Andrews, 1994).The ideas that are at the foundation of TQM are deceptively
simple. TQM is not a recipe for achieving quality output, but is a philosophy of the management
of organizations and is thus a guide to travel on a never-ending journey (Bradley, 1994). ISO
9000 certification is merely viewed as a marketing tool (Quazi & Padibjo, 1997). ISO 9000 is
viewed as the basis for quality management since it addresses the issue of setting and
implementing a management system that produces consistent products at a particular level of
quality (Rao & Ragu-Nathan, 1997). ISO 9000 series of standards are useful and much clearer
and simpler than those of TQM, it is hardly surprising that many organizations have started their
quality journeys by seeking certification to the ISO 9000 series of quality management standards
(Wiele, Dale, & Williams, 1997). Diffusion of the ISO 9000 standard follows its own routes in
different countries (Wiele et al., 2009). ISO 9000 has been described by many as one of the
means by which an organization may embrace TQM (Williams, 1997). TQM can be defined as a
holistic management philosophy that seeks continuously to maximize customer satisfaction, and
continually to identify and eliminate non-value adding activities from the organization
(Williams, 1997; Ho S. K., 1999). The key dimensions that constitute TQM includes top
management support, workforce management, employees attitudes, employees behavior,
customer relationship, supplier relationship, product design process and process flow
management (Martinez-Lorente & Martinez-Costa, 2004; Feng, Terziovski, & Samson, 2008).
The ISO 9000 series of standards has formalized systems for evaluating the ability of any firm to
consistently design, produce, and deliver quality products and services (Curkovic & Pagell,
1999).The ISO 9000 series is actually made up of five separate standards i.e. ISO 9000, ISO
9001, ISO 9002, ISO 9003 and ISO 9004 (Curkovic & Pagell, 1999; Gotzamani K. D., 2005).
The new ISO 9000 family of standards has been reduced in size and it has only three principle
members i.e. ISO 9000:2000, ISO 9001:2000 and ISO 9004:2000 (Gotzamani K. D., 2005).

Historically, there were some limitations that TQM and reengineering cam generate a much
improved process for competing in an environment that no longer exists . TQM and
reengineering programs often doesnot address how critical processes interact. TQM and
reengineering efforts typically focus on redesigning business processes and ignore management
processes (TQM, 1995). TQM and reengineering experts are virtually silent on the subject of
how to manage business processes (TQM, 1995). There are several barriers to effective
implementation of TQM, namely, the apparent lack of business experience and knowledge, and
limitation of financial as well as human resources (Quazi & Padibjo, 1997; Chow-Chua, Goh, &
Wan, 2003; Martinez-Lorente & Martinez-Costa, 2004; Sampaio, Saraiva, & Rodrigues, 2009;
Burcher, Lee, & Waddell, 2010).One of the essential differences between the ISO 9000 series of
standards and TQM has to do with process rather than content (Wiele, Dale, & Williams, 1997).
U.S. firms are under the misconception that ISO 9000 registration is the foundation for a TQM
program. Studies which have critically examined ISO 9000 determined that the criteria are really
a subset of the requirements for full implementation of a TQM program (Curkovic & Pagell,
1999).

Comparative studies of some countries shows, judging from the experience of the Japanese
TQM movement, there is a need for a step-by-step approach towards TQM (Ho S. K., 1999).
One reason china lacks brand power is its B2B focus. Building brand recognition is much harder
for B2B firms than for consumer companies (Meyer & Shen, 2010). The leaders of India’s
biggest and fastest-growing companies take an internally focused, long-term view and put
motivating and developing employees higher on the priority list than short-term shareholder
interests (Cappelli, Singh, Singh, & Useem, 2010). The only sure way to increase shareholder
value is to raise expectations about the future performance of the company (Martin, 2010). Firms
must consider how their talent management processes contribute to the problem (Carter & Silva,
2010).
Previous empirical studies shows, ISO 9000 requires everyone in the company to know and
understand the quality policy and his/her contribution towards achieving it (Bradley, 1994). ISO
9000 divides explicitly into three sections i.e. management’s role; operation of major processes;
and control of processes (Bradley, 1994). Quality maturity gap between the level of ISO 9000
series certification and the level of the quality awards. This gap can be bridged by various
activities related to the implementation of self-assessment against a quality award model (Wiele,
Dale, & Williams, 1997). For many organizations the implementation of ISO 9000 does not
necessarily signal the start of the journey towards TQM. For many organizations, it means
simply “Business as usual” (Williams, 1997). The costs and implementation issues, such as time
and lack of regulation, have also been criticisms of ISO 9000 (Curkovic & Pagell, 1999;
Martinez-Lorente & Martinez-Costa, 2004; Casadesus & Karapetrovic, 2005; Gotzamani K. D.,
2005; (Burcher, Lee, & Waddell, 2010). ISO 9000 is never a substitute for TQM. ISO 9000 just
helps companies to build a quality management system, which is far from a total quality
organization (Sun, 1999). A cultural shift is necessary to ensure successful progress from the
1994 version of ISO 9000 that is based on quality assurance concepts to quality management
(Laszlo, 2000). Some of the key pitfalls to avoid after ISO 9000 implementation are the failures
to establish adequate monitoring programs, install strict compliance procedures and systems, and
conduct regular management reviews of the new system (Chow-Chua, Goh, & Wan, 2003;
Gotzamani K. D., 2005). Companies should be aware that implementing ISO 9000 just for
compliance does not constitute a competitive advantage (Martinez-Costa & Martinez-Lorente,
2007). Lack of commitment from employees and managers is the most frequently mentioned
problem faced by Small to Medium Enterprises (SMEs) in implementing ISO certification
( Feng, Terziovski, & Samson, 2008). ISO 9000 had little or no impact on company performance
(Martinez-Costa, Choi, Martinez, & Martinez-Lorente, 2009). The relationship between
certification and firm performance is complex, but the potential benefits from such investments
are substantial ( Masakure, Henson, & Cranfield, 2009).

Critical analysis shows, The ISO 9000 quality system must be extended to include the marketing
and sales processes. The measurement of process performance must be extended and a culture of
continual improvement established. All employees must be encouraged to participate in
improvement through project groups, quality circles, etc. That is they need to work on processes
(Bradley, 1994). ISO 9000 registered companies exhibit higher levels of quality leadership,
information and analysis, strategic quality planning, human resource development, quality
assurance, supplier relationships, customer orientation and quality results (Rao & Ragu-Nathan,
1997). ISO 9000 monitors the effectiveness of the quality policy; standardization of procedures;
defect identification and elimination; systems for corrective and preventive action; management
review of the whole quality management system (Wiele, Dale, & Williams, 1997; Chow-Chua,
Goh, & Wan, 2003; Srivastav, 2010). The ISO 9000 series of quality system management
standards has been described by some as a “stepping stone” for organizations en route to TQM
(Williams, 1997). Despite its widespread international acceptance, ISO 9000 is surrounded by
controversy and criticism (Curkovic & Pagell, 1999).It is customers who have made ISO 9000
certification the world standard it is. The main reason that companies get ISO 9000-certified is
because their customers are demanding it (Curkovic & Pagell, 1999). It is found that
implementing ISO 9000 alone does not contribute much to quality improvement, while the
combination of TQM and ISO 9000 contributes the most (Sun, 1999). ISO 9000 gains in
popularity, especially from increased international trade and the opening of new markets (Sun,
1999). Obstacles to ISO 9000 Certification are top management involvement, implementation
time and System change (Withers & Ebrahimpour, 2000; Chow-Chua, Goh, & Wan, 2003).
Eight internal and eight external benefits from implementing a quality system based on ISO 9000
include: increased operational efficiency, cost savings from less scrap and rework, cost savings
from fewer warranty claims, a competitive edge, perceived higher quality, and increased market
share (Dick G. P., 2000). Development and certification of quality assurance system according to
one of the ISO 9000 standards can offer a good first step towards TQM (Gotzamani & Tsiotras,
2001; Srivastav, 2010). Superior performance of certified firms is due to firms with superior
performance having a greater prospenity to pursue ISO 9000 registration (Heras, Dick, &
Casadesus, 2002). ISO 9000 can be implemented first to create stability and consistency in the
organisation’s work then the implementation of TQM can enhance employee motivation and
operational efficiency and achieve overall organizational success and performance (Magd &
Curry, 2003). Managers misunderstand the role of ISO 9000 certification as they fail to
distinguish between conformance and performance specification (Terziovski & Power, 2007).
ISO 9000 focuses on improvement in an organization’s operating processes as the means to
improve quality and efficiency (Benner & Veloso, 2008). ISO quality management system
standards has proven to be a persistent and growing phenomenon (Dick, Heras, & Casadesus,
2008). Motivation for undertaking ISO 9000 certification is often external reasons such as,
marketing advantages, customer expectation and competitive pressures, instead of internal
reasons such as improving the quality of products and services ( Feng, Terziovski, & Samson,
2008). Standardisation of business management practices through international management
system standards has accelerated tremendously in the last decade (Karapetrovic et al.,
2010).Three main benefits of ISO 9000 implementation relate to customer satisfaction, namely
an increase in customer satisfaction, a decrease in the number of complaints, as well as a
decrease in the number of product nonconformities (Karapetrovic, Fa, & Saizarbitoria, 2010). In
general, ISO 9000 certification had been criticised for its generality, irrelevance to quality, and
complexity, all of which are addressed in the revised ISO 9000:2000 standards (Gotzamani K. ,
2010). Internal auditing to ISO 9000 can be one of the most efficacious tools of continuous
improvement available today (Hernandez, 2010). The new ISO aims to help companies to bridge
the gap between quality assurance and total quality management, which constitutes the highest
level of quality management system (Fotopoulos, Psomas, & Vouzas, 2010).

Theoretically, ISO 9000 certification provides a stepping stone towards TQM practices (Quazi &
Padibjo, 1997). The ISO 9000 series is different from other quality standards existing in the
world today, in that it develops comprehensive quality assurance management systems for
everything from design of a product to the servicing of the customer after the product has been
delivered (Rao & Ragu-Nathan, 1997). ISO 9001, 9002, and 9003 are conformance standards for
quality assurance systems and relate to Supplier-customer relationships. ISO 9000 and 9004 are
guidelines and relate to the development of quality systems within the company (Curkovic &
Pagell, 1999). At companies where strong customer feedback systems take hold, business unit
leaders and frontline employees start to own customer loyalty the same way they own their
targets for revenue, profi ts, and market share (Markey, Reichheld, & Dullweber, 2009).

Practically, Once TQM and reengineering process is improved then there is a wide range of
possible approaches, depending on the nature of the processes, the company culture and
management style, the organization's size and competitive demands (TQM, 1995). The
suggestion is that companies should not be half-hearted in applying quality methods, and that
companies should not be frustrated at the slow contribution of quality methods at their earlier
stage of application. It also suggests the necessity of continuous improvement (Sun, 1999).
Gaining ISO 9000 certification does not guarantee quality of products and services, but rather it
provides an assurance to customers that the organisation has conformed to an international
standard ( Feng, Terziovski, & Samson, 2008). For practicing managers, success of
implementing ISO 9000 quality management systems would be increased (operational and
business performance) if it is well planned and implemented when the philosophical quality
aspects of the organisation are coupled with employee training, periodic audits, corrective action
and commitment at all levels of the organisation ( Feng, Terziovski, & Samson, 2008).

In a conclusion, TQM is not a technique that can be implemented overnight and with little
thought ISO 9000 outcomes are seen in terms of improved communication among employees,
cost savings, reduced paperwork, more organized design and output, greater competitive
advantage, access to global markets, fewer customer audits, improved productivity, a better
trained workforce and increased customer confidence. ISO 9000 is at best a framework for
quality assurance; any progress beyond this point cannot be captured within the printed words of
a standard, but must be foremost on the agenda of the manager. The true commercial value
associated with ISO 9000 can only be achieved when it is made consistent with a company's
strategic direction. This means using the ISO 9000 standards as a foundation for a much broader
system such as TQM. It is found that implementing ISO 9000 alone will not contribute much to
quality improvement, while the combination of ISO 9000 and TQM will contribute the most.
ISO 9000 yielded better quality systems, customer satisfaction, competitive advantage and
reduction of quality problems. ISO 9000 certification can deliver significant business benefits if
it is implemented as part of a continuous improvement strategy. ISO 9000 certification leads to
well-developed system of procedures, more trusting relationship withncustomers and well-
defined responsibilities and obligations in the organization.

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