Achieving standard of quality, the ISO 9000

By Simon Potter

This is the first of three articles on ISO 9000, the international quality system standard.

JAKARTA (JP): ISO 9000. It's in the headlines, in the news, on every body's lips. It's revolutionizing companies and uniting continents. It's universally recognized in Britain, but is virtually unknown to many Indonesians.

So just what is ISO 9000?

Some companies here have it; government ministers congratulate them on getting it, and newspapers devote whole pages to proclaim their achievement. When questioned about it, some managers nod wisely; others scratch their heads in bewilderment. Some mutter vaguely about quality control and standards, international trade and import regulations, but many people seem genuinely at a loss to say exactly what it is.

The truth about ISO 9000 may in fact be a lot more mundane than many non-business people would expect from all the fuss that is being made about it. Put simply, ISO 9000 is the standard for international quality.

Now that may not excite or even mean much to the average guy in the street, but in the business world, and in today's Indonesia in particular, ISO 9000 seems, for many, the end of the proverbial rainbow.

ISO 9000 is not a standard which measures product quality; rather it is a standard which measures the quality systems of companies which make products or supply services. It applies not to the products or services themselves, but to the systems by which they are produced.

It is so designed to apply to virtually any product or service made by any process anywhere in the world. And ultimately, ISO 9000 is about meeting the needs of customers through a production system which is appropriate, planned, controlled, documented and fully understood by all.

And, while customers may be pleased to learn that there is some sort of quality control going on, the people who are really getting excited are the producers. ISO 9000 registration for an Indonesian factory for example, means that factory's products are comparable - in terms of quality - with the best in the world. And, all other things being equal, this means that its products can compete on equal terms with the best in the world.

ISO registration causes no great commotion in the West. Ads don't go in the New York Times. Nor do cabinet ministers go on TV to congratulate the latest recipients. But here in Indonesia, it's a different ball game. ISO registration should indeed be a genuine source of national pride. ISO 9000 demonstrates that Indonesia is taking its place among the world's industrialized nations; it shows that Indonesia is increasingly becoming a force to be reckoned with in the global economy, and that it no longer deserves to be considered a Third World backwater.

And apart from the prestige that ISO 9000 undoubtedly confers, there are many tangible benefits too for the company which seeks registration.

In general, firms which are ISO 9000 registered are perceived by customers to offer better quality than firms which are not, and consequently they tend to have a competitive edge in the market place over non-registered firms.

ISO 9000 registration can be an important weapon in protecting existing markets from competitors. According to Stephen F. Wityl, Virginia Panel Corp. of Waynesboro, Virginia, sought registration specifically for the purpose of being able to continue doing business in Europe.

ISO 9000 can also be useful in opening up new markets. John Taylor, of Ford Meter Box Co., Wabash, Indiana, says that his company expects to earn additional world market shares from registration.

And -- bad news for auditors -- registration to ISO will probably result in reduced audits. As ISO certification becomes more wide spread and understood, more and more customers will come to accept ISO registration instead of the multitude of audits that many firms are required to undergo.

But for Indonesian firms, perhaps the single most important advantage offered by ISO 9000 registration is access to markets which otherwise would be difficult or even impossible to penetrate. The European Community, for example, requires registration for certain products, such as commercial scales, medical devices, telecommunications terminal equipment and construction products. Without registration, you cannot sell such products in the European Community; with it, Europe is your oyster.

Indeed registration is fast becoming an imperative for firms wishing to do business in Europe, as the European Community moves more and more towards ISO requirements in every sector. But Indonesian firms need not be daunted by this. ISO is a great leveler. Whereas in the past, goods from Asia were regarded in Western markets as being of poor quality, nowadays, with ISO registration, they compete on a level playing field with the best that Germany, the U.S. and all the rest have to offer. And if Asia can deliver the goods cheaper, then this represents a substantial competitive advantage.

Internally too, registration brings a firm many advantages. Although not exclusively limited to firms registered to ISO, those that are tend to exhibit the following attributes: * The notion that prevention is better than cure; * Continuous assessment, review and corrective actions; * Consistent communication within the process, and between the company, its' suppliers and customers; * Thorough record keeping and efficient control of critical documents; * Awareness by all employees of the concept of Total Quality; * A high level of management confidence.

These attributes invariably lead to the following tangible benefits for the company: * Informed, competent management decision making; * Dependable process input (supplier control); * Control of quality costs; * Increased productivity; * Reduced waste; * More satisfied customers.

In short, an ISO registered company typically is lean, sensitive to customer needs, pro-active, highly efficient and positioned at the leading edge of its' industry.

These are all pretty big claims of course. ISO 9000 is not a panacea for all companies. Many firms will find it difficult to achieve registration; many more won't even bother trying. But as Dr W. Edwards Deming, the management guru who is often credited with rebuilding Japan after World War II said, you don't have to do this. Survival is not compulsory.

The writer works at the Indonesian Institute for Productivity, Jakarta.