Benefits of Implementing ISO 9001
Introduction to ISO 9001
Before jumping right into Benefits Of Implementing ISO 9001 and ISO 9001 certification Quality Management System QMS. At first one need to understand what a management system is. In a layman term a management system is a way of defining an organization’s operations that will help to meet its objectives. Again, this definition is loosely defined and doesn’t specify any operation and procedure, which is intended because it is the responsibility of an organization to determine what its objectives are and how the organization has planned to achieve them. However, the bigger question here is how an organization can determine the effectiveness of its management system?
Measuring Efficiency of management
Definitely, one can apply trial and error method to determine which will be the best suitable management system as per the nature of the organization, but is this only the best option? Probably not, because the cost and time associated will be too high. The another available option is to just follow the entire system which similar type of existing organization is adopting, so again this may not be appropriate option since the scope and context of business may largely vary from organization to organization even though the nature of the business is same, as a result this may not be more competitive.
Therefore, one can conclude that the best possible alternative is to implement the system which is internationally recognized, has a proven record of its effectiveness, and which can also be modified as per the nature of the business. Such system will not only help the organization to achieve its goals but also facilitate in setting targets, measuring its effectiveness, and eventually fostering the sustainable growth of the organization.
ISO 9001 :2014 Quality Management system
ISO 9001:2015 ,Quality Management System(QMS) is exactly that, with “customer satisfaction” and “continual improvement” at its core, it is a generic standards, means it is designed to be flexible enough for use by many different types of organization, so does not specify what the objectives relating to “quality” or “meeting customer needs” should be. Instead, it requires organizations to define these objectives themselves and continually improve their processes in order to reach them.
It is the World’s most popular management system standard. Over one million organizations use it throughout the World. It helps them to operate more efficiently and profitably by providing a framework for consistent performance, reliable service and long-term continuous improvement. The standard itself gets revision in almost every seven years to address the continually changing business environment and to solve the problems that business faces.
Benefits of ISO 9001:2015
Now, a big question is, how will the organization be benefited by implementing QMS? Since every organization requires a certain system to operate its daily activities, QMS is one of the system. Again, how will QMS be more effective than other system? The answer lies on the principle on which QMS i.e. ISO 9001:2015 standard is created, which are:
- Engagement of people
- Process approach
- Evidence-based decision-making
- Relationship management
ISO 9001 aims to provide a practical and workable Quality Management System for improving and monitoring all areas of a business. Implementing an effective and robust ISO 9001 Quality Management System (QMS) will assist to focus on the important areas of the business and improve its efficiency. The management processes that establish throughout the business provides a sound foundation. This leads to increase in productivity and profit. This in turn will improve customer acquisition and retention.
As customers are becoming more sophisticated, better informed and their expectations are growing, any business that wants to sustain has to keep up by offering quality products and services as well as providing assurance of such commitment. Organizations can demonstrate these features by obtaining ISO 9001 Quality Management System (QMS) certification.
The tangible benefits of implementing QMS are briefly noted below:
- Helps to determine all the internal and external factors in connection with organization and who affect the organization.
- Put greater emphasis on customers’ satisfaction, making sure to consistently meet the needs and enhance their satisfaction which lead to repeat customers, achieve new clients and increase business revenue.
- A valid ISO 9001 certificate will be a prerequisite for some customers and a “nice to have” for others, when they are considering suppliers.
- The ISO 9001:2015 certification acts as an evidence that the organization emphasize on its quality products/services and
also that they are regularly verified by an independent party that will ultimately enhances trust and confidence on the organization.
- Increases operating efficiency: Organizations who consider quality management system to be an integral part of their business operations usually achieve a higher operating efficiency than those that do not.
Greater quality awareness amongst employees and reduced defects, scraps, rework, failures and service recovery.
- The documentation process provides greater transparency and consistency in its output.
- Overall reduction in customer complaints, retention of customers and an increase in its ability to penetrate new markets and increase its market share.
- Helps to identify risks at early stage and initiate preventive methods to mitigate risk.
- Identifies new business opportunity and action to maximize business.
- It also provides a framework for implementing other management standards, such as ISO 14001 for environmental management and ISO 270001 for IT security.
- A certified ISO 9001 quality management system gives international recognition, positive company image, finally increases the competitive advantage of the organization.
- Many multinational companies and even the government prefer the ISO 9001:2015. They certified organization for business and government tenders along with project works.
Why ISO 9001?
Even though the ISO model covers supporting as well as regular operations of business. It is common to find that some of these processes in the system are not as disciplined as they ought to be. However, ISO provides the opportunity to review them, ensure appropriate value driven controls and to squeeze every bit of value out of these processes through internal and surveillance audits. Also, these processes do not directly drive value. It is possible that improvements can assist with enhancement in the management system.
For instance, better document control may simplify and streamline a production process. But, a problem in a support process can completely cripple. Production process as the wrong documentation can cause waste in production time and resources. The preventive nature of better support process will balance the associated risks subsequently generates tangible benefits.
In general, implementing QMS will develop a sound and a better organized system within the organization. Documentation and records will be located in the right place and up to date. When audit and evaluation work carry out, the system will show an increase in performance. Consequently ensuring that organizational system is working more reliably. Hence, the organization’s ability to adapt on changing business environment increases through the better understanding of risks and opportunities. Similarly, customers get assurance of quality products/services too. This should lead to better performance, reduced errors, on time delivery of products/services and more customer focused organization. Technically, this equates to increase profits and growth.
But the organization should be cautious in thinking that implementing QMS will bring the success overnight. Also, It is a continuous process and completely depends upon the organization’s commitment towards quality. Implementation and the ISO 9001:2015 certification is not about establishing a set of procedures complicated and difficult to manage. The aim is to provide a workable management system that is suitable for the organization. In conclusion, ISO 9001:2015 lays a strong foundation for organizational sustainability and growth.