Report on Benefits and limitations of ISO 9000
The aim of this report is to discuss the strengths and weakness of the international quality standard ISO 9000. Generally speaking, companies can benefit from establishing and maintaining ISO 9000 quality standard; and the standard has aroused great interest among managers who see it as the key to improving quality. However, ISO 9000 is not a magical cure for all the quality problems of a business and has been criticised on several grounds by practicing managers and quality experts. Benefits of ISO 9000 Customer satisfaction A satisfied customer is the best and the least expensive way to generate revenue and profit. ... ISO 9000 gives guidelines to understand the customer requirements well and satisfy them. ... To enhance international trade, to increase market share and demand better price and to get better public image of the organisation in the society and country, ISO 9000 is a key. ... The ISO 9000 standard provides guidelines to achieve this control by documenting what company plans and works for it, it helps the organisation to become system oriented rather than being individual oriented organisation. ... my) Competitive Edge The ISO 9000 is the standard of quality accepted by the European community. ... So it becomes quite important to have ISO 9000 registration for an organisation. Reduction In Cost During the ISO implementation phase, a critical review of company procedures should be undertaken, prior to documenting the processes. ... ISO can bring increased efficiency and economic benefits. Potential new customers may now regard the ISO register company as their supplier and is may increase existing customer loyalty. ... The companies who have implemented ISO 9000 standard have shown savings averaging up to15% per annum (www. ... Survey Of Positive Effect A survey carried out by PERA International and Salford University Business Services Limited (1992) of 2,317 firms who had completed a Quality Consultancy Project under the DTI Enterprise Initiative prior to 31 December 1990 found these benefits: “Overall, 89% of all clients surveyed believed that the introduction of quality management systems had a positive effect on their internal operating efficiency. ... D 1999 P271) Weaknesses of ISO 9000 However ISO 9000 is not perfect, a number of important hurdles and problem in relation to ISO 9000 have been identified. Discouraging Managers To Think Differently In ISO 9000 system, bureaucracy involved in documentation and accreditation and the lack of mutual recognition of certificated bodies between countries (Barrie G. D 1999 P271) and ISO 9000 has taught managers little or nothing about the most important subject on the management curriculum - quality - and it has probably made many of them averse to the subject.