Monday, October 11, 2010

Why is ISO 9001:2008 Certification Important?

Why is ISO 9001:2008 Certification Important?

First of all it provides a system for managers and organizations to achieve excellence and opens the door for American manufacturers and/or service organizations seeking a larger role in both international trade and with other American organizations. Many organizations require their suppliers to be certified or at a minimum to be working toward certification on ISO 9001:2008 to do business.

Consider the facts (source MORI/SGS-ICS) that with ISO 9001 certification:

  • 83% realized improved management control
  • 82% realized improved customer satisfaction
  • 62% said it improved the ability to win work
  • 61% stated a more motivated workforce
  • 60% realized improved productivity
  • 60% saw reduced waste
  • 52% stated it improved marketing
  • 50% had reduced costs
  • 49% realized increased market share

Why is ISO 9001:2008 Certification Important?

Why is ISO 9001:2008 Certification Important?

First of all it provides a system for managers and organizations to achieve excellence and opens the door for American manufacturers and/or service organizations seeking a larger role in both international trade and with other American organizations. Many organizations require their suppliers to be certified or at a minimum to be working toward certification on ISO 9001:2008 to do business.

Consider the facts (source MORI/SGS-ICS) that with ISO 9001 certification:

  • 83% realized improved management control
  • 82% realized improved customer satisfaction
  • 62% said it improved the ability to win work
  • 61% stated a more motivated workforce
  • 60% realized improved productivity
  • 60% saw reduced waste
  • 52% stated it improved marketing
  • 50% had reduced costs
  • 49% realized increased market share

History of ISO Standards and its New Direction

History of ISO Standards and its New Direction

International standardization began in the electrotechnical field when the International Electrotechnical Commission (IEC) was established in 1906. The International Federation of the National Standardizing Associations (ISA) was then set up in 1926 to create standards in the field of mechanical engineering.
Four years after ISA was dissolved in 1942, delegates from 25 countries decided to create a new international organization, ISO, “to facilitate the international coordination and unification of industrial standards.” Since its creation, ISO has experienced three major turning points. For its first 40 years, ISO followed its initial mission, focusing on technical standards for specific products or technologies such as screws, sizing systems for clothing and shoes, and laser technology. The organization’s first turning point came in the 1980s when ISO delved into the development of “process” standards, specifically theISO 9000 Quality Management System standards. The creation of generic management standards that could cover almost any industry sector was a notable departure from the product/industry/technology-specific nature of previous ISO standards. The ISO 9000 series became ISO’s most widely known and successful (measured by sales) standards ever, with more than half a million organizations adopting them globally.

ISO’s evolution continued with another turning point a decade later. In 1993, with the creation of ISO/TC 207 to develop the ISO14000 Environmental Management standards, ISO took its most notable step into the public policy arena, extending its influence beyond industry and their customers, and into issues of general public interest.

Six decades after its creation, ISO has grown into the world’s largest and most widely recognized standards development organization. ISO’s influence is exercised not solely through its size and popularity, but also because of the status of its outputs as the world’s “trade-legal” standards as recognized by the World Trade Organization (WTO). Once nationalized, these international standards can become market requirements (even for companies without foreign operations), for instance, as part of government procurement criteria, as has happened in the case of the ISO 9000 and ISO 14000 series standards.

There is, therefore, little doubt that any new ISO standards in the social or environmental field can and will have a sizable influence on businesses, governments, and civil society around the world.

Currently, a total of 148 countries participate in the ISO confederation, either as a member body (97 countries, with active participation and voting rights), as a correspondent member (36 countries, without voting rights but full information access), or as a subscriber member (15 countries, with reduced membership fee and limited access to the information).

ISO14001: A Deterrent against Environmental Degradation


ISO14001: A Deterrent against Environmental Degradation
Over the last few years, ISO 14001 has gained considerable support of business communities and governments worldwide. Business communities consider it a catalyst which ensures continued business and provides an opportunity to boost trade with customers overseas. Governments look at it as a useful agent to soften the local industry to comply with environmental legislation.
ISO 14001 is being pushed as an agenda, therefore, which will help in lowering environmental impacts that occur because of the manufacturing sector. On the surface, the picture is quite rosy.
For large manufacturers adopting ISO 14001 is quite practical and makes economic sense. The major assumption while formulating the ISO 14001 was that there is no informal manufacturing sector (because of poor representation and inactive role of the developing countries at TC207). Informal sector in Pakistan is a major component of the manufacturing sector and provides useful support to the formal sector. The informal sector exists within the populated areas, making it extremely hard to regulate. Therefore, the environmental impacts due to this sector are quite significant.
ISO 14001 requires the suppliers of a manufacturer to have an Environmental Management System (EMS) in place as well. For a supplier operating from a small facility in a congested area and meager resources, how can s/he be expected to hire a consultant to develop an EMS? In a country which has a significant informal manufacturing sector, high unemployment due to deteriorating economic condition, high inflation, limited resources, weak monitoring agencies and deteriorating infra-structure, with all these constraints, how is it possible for the manufacturing sector to adopt ISO 14001 in it’s true spirit?
Even if a manufacturer adopts the ISO 14001, what is the guarantee that s/he will get business? What is the incentive for the non-exporting manufacturers to adopt ISO 14001? How can the industry be convinced that ISO 14001 is an opportunity not an obstacle? Considering all these factors, this paper will analyze the current status of ISO 14001 adoption in Pakistan, reasons for adoption, deterrents in adoption, and recommendations on how those deterrents can either be removed or minimized, and it’s overall impact on the environment and economy.