ISO is Organization! Making order of out of Chaos Part IV of V.

August 23rd, 2012

What is ISO 9001 certification?

This post is written by Heather Powell Account Manager for SafeSourcing

Scott Sherrill ,“What is ISO 9001 certification? We just got a big customer and they require it, but no one else does. We are getting big enough that we’re getting into standards territory, which I know we should embrace, but there’s so much work involved. Is this an important one?”  

Andrea Herran, “ISO is important if it’s important for your clients (now and future). You can make ISO as simple or complicated as you want. I have seen two companies go through the process – one was a job shop so it was more complicated and the other made its own products so once it was set up, it was just a matter of maintenance. Don’t just look at this for today but what it means to your business in the future.”

Yesterday we explained the importance of ISO 9000, and today we want to give you the 8 principals that will benefit your company.

1. A Customer Focus

The customer is the primary focus of a business. By understanding and responding to the needs of customers, an organization can correctly targeting key demographics and therefore increase revenue by delivering the products and services that the customer is looking for. With knowledge of customer needs, resources can be allocated appropriately and efficiently. Most importantly, a business’s dedication will be recognized by the customer, creating customer loyalty. And customer loyalty is return business.

2. Good Leadership

A team of good leaders will establish unity and direction quickly in a business environment. Their goal is to motivate everyone working on the project, and successful leaders will minimize miscommunication within and between departments. Their role is intimately intertwined with the next ISO 9000 principle.

3. Involvement of people

Including everyone on a business team is critical to its success. Involvement of substance will lead to a personal investment in a project and in turn create motivated, committed workers. These people will tend towards innovation and creativity, and utilize their full abilities to complete a project. If people have a vested interest in performance, they will be eager to participate in the continual improvement that ISO 9000 facilitates.

4. Process approach to quality management

The best results are achieved when activities and resources are managed together. This process approach to quality management can lower costs through the effective use of resources, personnel, and time. If a process is controlled as a whole, management can focus on goals that are important to the big picture, and prioritize objectives to maximize effectiveness.

5. Management system approach

Combining management groups may seem like a dangerous clash of titans, but if done correctly can result in an efficient and effective management system. If leaders are dedicated to the goals of an organization, they will aid each other to achieve improved productivity. Some results include integration and alignment of key processes. Additionally, interested parties will recognize the consistency, effectiveness, and efficiency that come with a management system. Both suppliers and customers will gain confidence in a business’s abilities.

6. Continual Improvement

The importance of this principle is paramount, and should a permanent objective of every organization. Through increased performance, a company can increase profits and gain an advantage over competitors. If a whole business is dedicated to continual improvement, improvement activities will be aligned, leading to faster and more efficient development.

Ready for improvement and change, businesses will have the flexibility to react quickly to new opportunities.

7. Factual approach to decision making

Effective decisions are based on the analysis and interpretation of information and data. By making informed decisions, an organization will be more likely to make the right decision. As companies make this a habit, they will be able to demonstrate the effectiveness of past decisions. This will put confidence in current and future decisions.

8. Supplier relationships

It is important to establish a mutually beneficial supplier relationship; such a relationship creates value for both parties. A supplier that recognizes a mutually beneficial relationship will be quick to react when a business needs to respond to customer needs or market changes. Through close contact and interaction with a supplier, both organizations will be able to optimize resources and costs.
Tomorrow we will discuss what ISO 9000 will mean to you and your company.

If you’d like to learn more about the process required to improve your procurement departments procure to pay process, please contact a SafeSourcing customer services representative.

We look forward to and appreciate your comments.

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