Achieving standard of quality, the ISO 9000

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.