Benefits of ISO 9001

Why ISO 9000? Any major change in a business' operations will create some additional load on a business, but much like an investment in software the long term results of implementing a Quality Management System (QMS) are well worth the effort. Remember when people only used paper blueprints? Now it seems quaint NOT to have a CAD/CAM system in place. Implementing a QMS (like ISO 9001) is a similar situation - a little work up front, but after a short time you'll see the benefits in your organization.

Here are some additional points:

Blog Post:Let's not Forget the Benefits of ISO 9001...
Article: What can you expect in return for your investment...
Summary: How will ISO reduce costs in my organization?
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The two main reasons given for registration:

Improved Operational Efficiency - Lower production costs due to fewer nonconforming products, less rework, lowered rejection rates, streamlined processes and fewer mistakes. (See summary...)
Access to new markets - Some markets require ISO 9001 Registration, while other markets may only favor companies with ISO 9001 Registration. This was really the main objective in creating ISO 9001. If a company in Germany receives solicitations from companies in Italy and the UK, how can they compare quality without an expensive audit at both locations? A uniformed standard will at least give them a benchmark.

What can you expect in return for your investment in an
ISO 9001 Quality Management System (QMS)?

Feedback from ISO 9001 Registered companies shows what you can expect as the payoff from all of your hard work.

Because of the responsibilities called out in the ISO 9001 Standard, organizations often see an increased involvement of top management with regards to the Quality Management System.

This starts with the setting of the Quality Policy and Quality Goals and Objectives.
It continues with Management Review looking at data from the QMS, and taking actions to make sure that Quality Goals are met
New Goals are set, and continual improvement is achieved.

With the QMS in place and working for you, the organization is focused towards the Quality Goals.

Management is provided with data on a continual basis and able to see progress or lack of progress towards goals and take appropriate action.
The organized, scheduled process of conducting Management Review ensures that this evaluation takes place.
It provides the mechanism of reviewing goals and performance against goals on a scheduled basis, and for taking action based on the evaluation.
Increased productivity results from the initial evaluation and improvement of processes that occurs during the implementation process and from improved training and qualification of employees.
Better documentation or control of processes leads to consistency in performance, and less scrap and rework.
Managers experience fewer late night troubleshooting calls; employees have more information for troubleshooting problems on their own.

Customer satisfaction increases are seen as Goals and Objectives take the customer needs into account.

Customer needs are better understood as customer feedback is sought, received and analyzed.
Goals and objectives are adjusted based on the information and the organization becomes more customer driven.
As goals focus on the customer, the organization spends less time focusing on individual goals of departments and more time working together to meet customer needs.

All of this leads to financial rewards, your reward for your hard work and investment in the Quality Management System. In a study conducted by researchers from UCLA results showed that “U.S. publicly held companies traded on the New York Stock Exchange that receive certification under the ISO 9000 Quality Standard show significant improvement in financial performance compared to those companies that have not pursued the standard.” *

So work with enthusiasm and optimism, knowing that your organization will be significantly improved by this ISO 9001 implementation project. You are contributing to the future success and profitability of your company.

Back to Step 1: What is ISO?

How will ISO 9001 reduce costs in my organization?

Reducing costs

Organizations are recognizing that an effective Quality Management System leads to reduced costs and greater operating margins. A well designed and implemented Quality Management System based on ISO 9001 has been shown to provide organizations with the following benefits:

Reduced costs, obtained through:

Improved product reliability
Better process control and flow
Better documentation of processes,
Greater employee quality awareness
Reductions in product scrap, rewords and rejections

When ISO 9001 is implemented in an organization:

Well defined and documented procedures improve the consistency of output
Quality is constantly measured
Procedures ensure corrective action is taken whenever defects occur
Defect rates decrease
Defects are caught earlier and are corrected at a lower cost
Defining procedures identifies current practices that are obsolete or inefficient
Documented procedures are easier for new employees to follow
Organizations retain or increase market share, increasing sales or revenues

Back to Step 1: What is ISO 9001?	Next...Step 3: Prepare a Plan