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[edit] Debate on the effectiveness of ISO 9000
The debate on the effectiveness of ISO 9000 commonly centres on the following questions:Are the quality principles in ISO 9000:2000 of value? (Note that the version date is important: in the 2000 version ISO attempted to address many concerns and criticisms of ISO 9000:1994.)
Does it help to implement an ISO 9001:2000 compliant quality management system?
Does it help to obtain ISO 9001:2000 certification?
[edit] Advantages
It is widely acknowledged that proper quality management improves business, often having a positive effect on investment, market share, sales growth, sales margins, competitive advantage, and avoidance of litigation.[4][5] The quality principles in ISO 9000:2000 are also sound, according to Wade,[6] and Barnes, [5] who says "ISO 9000 guidelines provide a comprehensive model for quality management systems that can make any company competitive." Barnes also cites a survey by Lloyd's Register Quality Assurance which indicated that ISO 9000 increased net profit, and another by Deloitte-Touche which reported that the costs of registration were recovered in three years. According to the Providence Business News [7], implementing ISO often gives the following advantages:Create a more efficient, effective operation
Increase customer satisfaction and retention
Reduce audits
Enhance marketing
Improve employee motivation, awareness, and morale
Promote international trade
Increases profit
Reduce waste and increases productivity However, a broad statistical study of 800 Spanish companies [8] found that ISO registration in itself creates little improvement because companies interested in ISO have usually already made some type of commitment to quality and were performing just as well before registration.[4]
In today's service sector driven economy, more and more companies are using ISO 9000 as a business tool. Through the use of properly stated quality objectives, customer satisfaction surveys and a well-defined continual improvement program companies are using ISO 9000 processes to increase their efficiency and profitability.
[edit] Problems
A common criticism of ISO 9001 is the amount of money, time and paperwork required for registration.[9] According to Barnes, "Opponents claim that it is only for documentation. Proponents believe that if a company has documented its quality systems, then most of the paperwork has already been completed."[5]
According to Seddon, ISO 9001 promotes specification, control, and procedures rather than understanding and improvement. [2] [3] Wade argues that ISO 9000 is effective as a guideline, but that promoting it as a standard "helps to mislead companies into thinking that certification means better quality, ... [undermining] the need for an organization to set its own quality standards." [6] Paraphrased, Wade's argument is that total, blind reliance on the specifications of ISO 9001 does not guarantee a successful quality system.
The standard is seen as especially prone to failure when a company is interested in certification before quality.[2] Certifications are in fact often based on customer contractual requirements rather than a desire to actually improve quality.[5][10] "If you just want the certificate on the wall, chances are, you will create a paper system that doesn't have much to do with the way you actually run your business," said ISO's Roger Frost.[10] Certification by an independent auditor is often seen as the problem area, and according to Barnes, "has become a vehicle to increase consulting services." [5] In fact, ISO itself advises that ISO 9001 can be implemented without certification, simply for the quality benefits that can be achieved. [11]
Another problem reported is the competition among the numerous certifying bodies, leading to a softer approach to the defects noticed in the operation of the Quality System of a firm.
[edit] Summary
A good overview for effective use of ISO 9000 is provided by Barnes: [5]
"Good business judgment is needed to determine its proper role for a company... Is certification itself important to the marketing plans of the company? If not, do not rush to certification... Even without certification, companies should utilize the ISO 9000 model as a benchmark to assess the adequacy of its quality programs."
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