ISO 9001:2000 for

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ISO 90012000 for
Smaller Businesses
Doug Hammer for c4IDEA.com November 11, 2004
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Presentation Outline

• Introduction
• Importance of Quality Processes
• ISO 90012000 Background
• Advantages Disadvantages of ISO 90012000
• Certification Process Costs
• Pitfalls
• Example Documents from Small Companies
• ISO 90012000s Future for Small Businesses

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Introduction

• All organizations have an established way or
  system of doing things

• These systems may be effective, but are often
  informal, inconsistent, not documented

• The purpose of quality management is to identify
  those systems processes that can help an
  organization meet its customers expectations

• ISO 90012000 is helpful because it defines basic
  quality processes that have proven to be
  effective in successful organizations over the
  past 50 years

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Importance of Processes

• Quality processes are key components of strategy

Quality Processes
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Importance of Processes

• Quality processes are key components of strategy

• Well-defined processes provide consistency for
  training personnel

• Consistent processes reduce variation
  Less process variation less cost
  increased profit

• Quality-related problems are resolved by
  understanding, investigating, improving
  processes

• Process audits are more effective with
  well-defined processes

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ISO 90012000 Background

• The term ISO is Greek, meaning consistent or
  the same (examples isosceles triangle,
  isometric exercises)

• The original 3 standards, ISO 90011987, ISO
  90021987, ISO 90031987, were released in 1987

• Original standards were based on BS 5750
  (British) MIL-Q-9858A (US)

• Original standards were edited slightly in 1994
  then revised significantly in 2000

• ISO 90012000 replaced all 3 previous standards
  (as of December 15, 2003)

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Advantages of ISO 90012000

• When implemented properly, ISO 90012000 reduces
  firefighting and increases predictability

• ISO 90012000 processes increase efficiency,
  improve product service quality, reduce
  organizational costs

• Provides a competitive advantage

• Certification provides marketing leverage opens
  up customer opportunities

• ISO 90012000 processes increase customer
  satisfaction

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Disadvantages of ISO 90012000

• When implemented poorly, ISO 90012000 can become
  a parallel system can increase costs to the
  organization

• An intervention such as ISO 90012000 represents
  a significant change a poorly-implemented
  intervention can negatively impact the culture

• With poor guidance, procedures can be developed
  in a manner to make them cumbersome and
  ineffective

• Implementation can be expensive, depending on
  strategy

• Certification can be expensive

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Certification Process Costs

• Develop a quality manual procedures addressing
  ISO 90012000 requirements

• Train personnel and implement processes based on
  the quality manual procedures

• Carry out document internal audits to verify
  that processes are carried out according to
  defined processes

• Contact 2 or 3 registrars for information costs
  about 6 months prior to the certification audit

• The lead auditor will evaluate your quality
  manual procedures about 2 months before the
  certification audit

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Certification Process Costs

• Greatest costs are in the implementation process
  (but there is great value in developing processes)

• Small companies can properly prepare for
  achieve certification within 5-8 months

• The registrars costs for certification include a
  documentation review, travel lodging (if
  necessary), the certification audit, and
  report-writing

• Most small firms can be audited in 1 or 2 days
  two visits per year are required to maintain
  certification

• The cost in Kenya is about 500/day probably
  totaling under 1500 for a certification audit (a
  guess by Doug)

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Common Pitfalls of Implementation

• Top management is not committed involved in the
  development implementation process

• Process stakeholders do not contribute to the
  development of processes and therefore, do not
  feel responsible or accountable for
  implementation

• Focus is on the certificate, not on effectiveness

• Management does not function as a team

• Poor internal or external consulting advice

• Over-documenting processes

• Poor implementation strategy (one-man show)

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Examples from Small Companies
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ISOs Future for Small Businesses

• The trickle-down effect of ISO 90012000
  continues as large firms require ISO
  certification from suppliers

• Quality is increasing in importance as a
  determining factor for customer satisfaction

• Mandates continue from industries Automotive
  ISO/TS 16949, Telecommunications TL 9000,
  Aerospace AS-9100A, and others (e.g., medical
  oil industries)

• The new standard (ISO 90012000) is more
  applicable to service-related organizations
  continues to gain popularity in new industries

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Questions?