Hiring an Accredited Administrator Essay

Several registered ISO certified companies are providing services to develop your standards according to the ISO. An ISO certified accredited administrator guides you throughout the entire process of standardization. For instance, in writing company’s policy statement, and sometimes even in complex operating procedures. A firm can hire ISO accredited registrar who has knowledge and background about the firm’s business. Nonetheless, the price of accredited administrator and registrar depend on numerous factors like nature and size of business. Objectives of ISO 9000 Design control, quality system, management responsibility, documentation and data control, process control, order entry, training, inspection of test status, delivery, handling, storing, packing, servicing, measurement and test equipment, statistical techniques, and internal quality audit are some of the main objectives of ISO 9000 Quality Management Systems. Cost of ISO 9000 The cost of implementing ISO 9000 standards in any type of company depends on several factors. Usually, gap analysis is employed when evaluating implementation cost. However, the factors which make an outline about cost focus on the following questions: how long will it take to develop your company’s quality management system working with ISO team? Registrar charges vary from country to country. What is the size of your company? Does it conduct business on international level or domestic level? How many people will be involved in setting up the standards whether you hire a person from outside or not? Normally, in gap analysis, companies calculate two kinds of costs: external and internal. Both include services and consultancy professional charges that include gap analysis, system documentation, system developing, training and awareness, system modifications, internal auditing services and so forth. Registrar fees like, application and registration fees, Product cost includes software and publication. Advantages and Disadvantages of ISO 9000 Advantages. The advantages of ISO 9000 are numerous such as maintenance of quality; opportunity to compete with bigger companies; clarity of customer focus; verification of the company; enhancements in facility performances and superiority as a result of implementing and maintaining the process; and increase in customer confidence and satisfaction. According to Ridley, â€Å"in organizations that are registered to ISO 9000 standards, the impact on control systems is significant. Besides, all your business partners agree that your company is producing product in highly standardized environment, which is not a small benefit. (Ridley, 1997) â€Å"The ISO 9000 registration process requires so much documentation and self-assessment that many businesses that undergo its rigors cite increased understanding of the company’s overall direction and processes as a significant benefit. † Moreover, the ISO 9000 certification process emphasis on self-analysis and operations management issues encourages various internal areas or departments of company to interact with one another in hopes of gaining a more complete understanding of the needs and desires of their internal customers†. (ISO 9000: Encyclopedia of Small Business). In addition, small business owners and large firms’ owners have agreed that ISO 9000 standard certification may be a good tool, which ensures funding from joint venture capital firms. According to another researchers Brewer and Mills, â€Å"ISO provides consistency for the end-customer and traceability for the company itself† (Brewer and Mills, 1994) Disadvantages of ISO 9000 Despite the advantages, there are some disadvantages as well. According to Sadiq, â€Å"senior management’s lack of understanding of the benefits they can derive by effectively implementing the standard also plays a role in creating this negative perception. In many situations top management– not understanding the standard or not having been trained in it-starts to view the standard`s requirements as a non-value– adding burden. † (Sadiq, 2002) Business executives and proprietors who are familiar with the ISO 9000 registration process know that this process may take several months to complete. Moreover, too much time is lost in proper documentation, which sometimes looks a hazardous job. According to Bibby â€Å"it virtually ignores the formulas of modern quality management: there is no mandate to reduce cycle time, cut inventories, speed up deliveries, and increase customer satisfaction†. (Bibby, 1996) Nonetheless, to achieve maximum advantage from this standard, standard languages are required for documenting good procedures. A well-managed system that implements practices can be applied throughout the organization. The documentation procedure should cover all parts of the organization within a certain limit and scope of registration in order to insure that quality objectives are met. A third party may be hired to measures audit models and to verify the certification of organizations. Future of ISO. The ISO 9000 is finally being modified according to the growing needs of the business community all around the world. The family of ISO 9000 and 2000, known as the family of Quality Management System standards, was finalized on 2000. According to Meyer, â€Å"the pressure for companies to become ISO 9000-certified is absolutely increasing and will continue to increase†. (Meyer, 1998) Nowadays, these standards are being distributed to the institute of ISO’s worldwide membership. In this regard, the three final draft international standards, which have been published, are as follows. †¢ â€Å"ISO/FDIS 9000, Quality management systems – Fundamentals and vocabulary †¢ ISO/FDIS 9001, Quality management systems – Requirements ISO/FDIS 9004, Quality management systems – Guidelines for performance improvements†. (What’s the Future of ISO? ISO 9000:2000) â€Å"The ISO Action Plan for Developing Countries defines a number of actions intended to mobilize its members, regional organizations and donor agencies. The actions are aimed at promoting developing country participation in ISO, building capacity through technical assistance programmes and enhancing interactions at regional and international levels. † (What’s the Future of ISO? ISO 9000:2000) ISO has planned some points for the developing countries for the period of 2005-2010, which includes the following: †¢ Intensify awareness among shareholders in developing countries for standardization of economic growth, global trade, and reliable development. †¢ Increase domestic and international cooperation in order to share training, experience, communication, technology, and communication †¢ Expand electronic communication and expertise in information technology tools to take part in global standardization †¢ Enhance participation in technical and governance work of international standard organization to voice priorities. Economic Benefits of ISO As most of the domestic and multinational organizations adopted ISO standards, it increased economic growth and played a fundamental role in globalizing the business world. Certainly, standards create environment for economic success. Equal sets of standards throughout the business world provide business partners an opportunity to trade globally without hesitating about product quality. In this regard, the primary objective behind setting one global standard is to reinforce the global business as a channel of economic activity. The fair market value of small firms registered with ISO 9000 in the year 1994 increased dramatically up to 0. 75 percent. International large firms have experienced more than 0. 80 percent worth of their business. As product quality has improved, public limited companies’ share prices have increased. â€Å"In the UK, the DTI commissioned research revealed the following facts: †¢ Standards make an annual contribution of ? 2. 5 billion to the UK economy; †¢ 13 per cent of the growth in labor productivity is attributed to the role of standards; †¢ Standards are an enabler of innovation and facilitator of technological change; and †¢ The economic return from investment in standards makes sound business sense at both the macro and the micro-economic level†. (TC_211_Newsletter_08. doc) Conclusion In today’s world of economy, the barriers of international trade have been knocked down. Domestic and multinational companies have enhanced their level of performance in order to survive in today’s global world. Today, ISO 9000 standards are globally accepted. They help companies achieve cost effectiveness and quality assurance methods. Many small- and large-scale firms around the world have been adopted ISO standards. According to Ingman, a resercher in this area, â€Å"most organizations will not stop with ISO as their â€Å"only† main quality initiative, but rather will continue to work toward the broader concept of total quality management (TQM)†. (Ingman, 1994) References Brewer Peter C. , Mills Tina Y, (Feb, 1994), Journal Article, ISO 9000 Standards: An Emerging CPA Service Area – International Organization For Standardization. Bibby, Thomas, (Apr 1996), ISO 9000, A Catalyst, Not A Solution, Manufacturing Engineering, EPA – Environmental Management Systems/ISO 14001 http://www. epa. gov/OWM/iso14001/isofaq. htm Accessed, May 12, 2007 How to Pursue ISO Certification http://www. isixsigma. com/library/content/c000917c. asp Accessed, May 12, 2007 ISO 9000 †¦ for better or worse,( Sept 25, 1997) American Metal Market, ISO 9000: Encyclopedia of Small Business http://business. enotes. com/small-business-encyclopedia/iso Accessed, May 12, 2007 ISO – International Organization for Standardization http://www. iso.org/iso/en/iso9000-14000/understand/basics/basics9000/basics9000_2. html Accessed, May 12, 2007 Meyer Harvey R, ( March, 1998 ). Journal Article, Small Firms Flock To Quality System – Intl Organization For Standards’ ISO 9000 Certification – Includes Related Articles, Nation’s Business Not Available www. geog. leeds. ac. uk/staff/m. blake/magis/glossary/esriglos. htm QUALITY MANAGEMENT WITH ISO 9000 http://www. bioingegneria. uniba. it/bollettino/qualita/q_management. html Accessed, May 12, 2007 Ridley Jeffrey , (August, 1997), Jounal Article, Embracing Iso 9000 – Generic, Organizational, Quality-System Standards. Sadiq, Naeem, (Oct 2002), Jounal Article, ISO 9000 Standards: Where’s The Value? Ingman, Lars, Journal Article, (Jan 1994), Life After ISO 9000 TC_211_Newsletter_08. doc http://www. isotc211. org/Outreach/Newsletter/Newsletter_08_2005/TC_211_Newsletter_08. doc Accessed, May 12, 2007 What’s the Future of ISO? ISO 9000:2000 http://www. isixsigma. com/library/content/c000917e. asp Accessed, May 12, 2007 Where ISO 9000 came from and who is behind it http://www. iso. ch/iso/en/iso9000-14000/understand/basics/basics14000/basics14000_1. html Accessed, May 12, 2007.