Good Business Sense Is the Key to Confronting ISO 9000.

First established in Europe, ISO 9000 quality standards are now used worldwide. There are advantages, costs and limitations to the ISO 9000 certification process. In the end, good business sense is the guide to confronting ISO 9000.

Business is not immune to the fads of American society.

The role of ISO 9000 is becoming clear, and a new phase has begun. More information on the costs and benefits is available, and the limitations are becoming apparent. ISO 9000 should not be adopted as a "cure-all." Using ISO 9000 can wisely be separated from seeking certification. Most companies should be involved with ISO 9000, but good business judgment is needed to determine its proper role for a company.

ISO Background

The last decade saw a remarkable growth in the acceptance of ISO 9000 quality standards. More than 90 countries adopted ISO 9000 or its equivalent. Adherence to the standards is mandatory for companies selling medical devices or telecommunications equipment in Europe, where more than 20,000 companies are registered. In the U.S., suppliers to the electrical, chemical and nuclear industries expect certification to become mandatory. The number of ISO 9000 registrations is doubling every nine to 12 months in the U.S., from 100 in 1990 to 4,000 in 1994 to 8,400 in 1995. It has been called "the most influential single meta-standard so far, a movement toward global business requirements" [12].

As companies gained first-hand knowledge, they learned that ISO certification does not guarantee success in business. The focus is often on paperwork, which may not directly benefit a firm. Registration can be expensive and unfortunately has become a vehicle to increase consulting revenues. Studies show that the majority of certifications derive from customer demands, such as a vendor qualification checklist, instead of internal needs to improve quality. ISO 9000 certification is being re-evaluated, and management has important choices to make.

What Is ISO 9000?

According to the original 1987 bulletin from the International Organization for Standardization (ISO), ISO 9000 is "a series of international standards dealing with quality systems that can be used for external quality assurances purposes." The ISO was founded in 1946 to develop international quality standards to facilitate worldwide trade and help Western countries regain their competitiveness. The organization consists of a coordinating group of members from more than 90 countries. The U.S. representative is the American National Standards Institute.