ISO 9000

Assignment 3

Gunjita

Harshita

Shweta

ISO 9000
DEFINITION
The ISO 9000 family of quality management systems standards is designed to help
organizations ensure that they meet the needs of customers and other stakeholders while meeting
statutory and regulatory requirements related to a product or program. [1] ISO 9000 deals with the
fundamentals of quality management systems, [2] including the eight management principles
upon which the family of standards is based. [2] [3] [4]

ISO 9000 describes fundamentals of

quality management systems and
specifies the terminology for quality
management systems

ISO 9001 specifies requirements for a

quality management system where an
organization needs to demonstrate its
ability to provide products that fulfil
customer and applicable regulatory
requirements and aims to enhance
customer satisfaction.

ISO 9004 provides guidelines that

consider both the effectiveness and
efficiency of the quality management
system

ISO 19011 provides guidance on

auditing quality and environmental
management systems

[1] - Poksinska, Bozena; Dahlgaard, Jens Jrn; Antoni, Marc (2002). "The state of ISO 9000 certification: A study of Swedish
organizations". The TQM Magazine
[2] - Tsim, Y.C.; Yeung, V.W.S.; Leung, Edgar T.C. (2002). "An adaptation to ISO 9001:2000 for certified organisations".
Managerial Auditing Journal.
[3] - (PDF) http://www.iso.org/iso/qmp_2012.pdf
[4] - Beattie, Ken R. (1999). "Implementing ISO 9000: A study of its benefits among Australian organizations". Total Quality
Management.

EIGHT QUALITY MANAGEMENT PRINCIPLES [3]

Eight quality management principles have been identified that can be used by top management
in order to lead the organization towards improved performance. These ISO 9000 principles
include:
1. Customer Focus - Organizations depend on their customers and therefore should
understand current and future customer needs, should meet customer requirements and
strive to exceed customer expectations.
2. Good Leadership - Leaders establish unity of purpose and direction of the organization.
They should create and maintain the internal environment in which people can become
fully involved in achieving the organization's objectives
3. Involvement of People - People at all levels are the essence of an organization and their
full involvement enables their abilities to be used for the organization's benefit.
4. Process Approach to Quality Management - A desired result is achieved more
efficiently when activities and related resources are managed as a process
5. Management System Approach - Identifying, understanding and managing interrelated
processes as a system contributes to the organization's effectiveness and efficiency in
achieving its objectives.
6. Continual Improvement - Continual improvement of the organization's overall
performance should be a permanent objective of the organization.
7. Factual Approach to Decision Making - Effective decisions are based on the analysis
of data and information.
8. Supplier relationships - An organization and its suppliers are interdependent and a
mutually beneficial relationship enhances the ability of both to create value.
[3] (PDF) http://www.iso.org/iso/qmp_2012.pdf

EVOLUTION [5]
The ISO 9000 standards have evolved over the years and thus have several versions like:

1987 VERSION
ISO 9000:1987 had the same structure as the UK Standard BS 5750, with three "models" for
quality management systems, the selection of which was based on the scope of activities of the
organization:

ISO 9001:1987 Model for quality assurance in design, development, production,

installation, and servicing for companies and organizations whose activities included
creation of new products.

[5]- https://en.wikipedia.org/wiki/ISO_9000

ISO 9002:1987 Model for quality assurance in production, installation, and

servicing had basically the same material as ISO 9001 but without covering the creation
of new products.

ISO 9003:1987 Model for quality assurance in final inspection and test covered only the
final inspection of finished product, with no concern for how the product was produced.

1994 VERSION
ISO 9000:1994 emphasized quality assurance via preventive actions, and continued to require
evidence of compliance with documented procedures. In some companies, adapting and
improving processes could actually be impeded by the quality system.

2000 VERSION
ISO 9001:2000 replaced all former standards of 1994 issue, ISO 9001, ISO 9002 and ISO 9003.
The changes made include:

Placing the concept of process management (the monitoring and optimization of a

company's tasks and activities, instead of just inspection of the final product) at the center
and front.
Demanding involvement by upper executives in order to integrate quality into the
business system
Avoiding delegation of quality functions to junior administrators
Improving effectiveness via process performance metrics: numerical measurement of the
effectiveness of tasks and activities
Expectations of continual process improvement and tracking customer satisfaction were
made explicit

2008 VERSION
ISO 9001:2008 only introduced clarifications to the existing requirements of ISO 9001:2000 and
some changes intended to improve consistency with ISO 14001:2004. There were no new
requirements.

2015 VERSION
In 2012, ISO TC 176 - responsible for ISO 9001 development - and concluded that it is
necessary to create a new QMS model for the next 25 years. This was achieved by combining the
process approach with risk-based thinking, and employing the Plan-Do-Check-Act cycle at all
levels in the organization.
Some of the key changes include:

Greater emphasis on building a management system suited to each organization's

particular needs.

A requirement that those at the top of an organization be involved and accountable,

aligning quality with wider business strategy.

Risk-based thinking throughout the standard makes the whole management system a
preventive tool and encourages continuous improvement.

Less prescriptive requirements for documentation.

Alignment with other key management system standards through the use of a common
structure and core text [6]

BACKGROUND

ISO 9000 was first published in 1987. [7]

It was based on the BS 5750 series of standards from BSI that were proposed to ISO in
1979. [8]
Its history can be traced back to the publication of the United States Department of
Defense MIL-Q-9858 standard in 1959. MIL-Q-9858 was revised into the NATO AQAP
series of standards in 1969, which in turn were revised into the BS 5179 series of
guidance standards published in 1974, and finally revised into the BS 5750 series of
requirements standards in 1979 before being submitted to ISO.

STEPS OF IMPLEMENTATION [9]

The 14 essential steps, briefly described below, are to be followed through in order to implement
ISO 9000 quality management system successfully, namely:
Step 1: Top Management Commitment
Step 2: Establish Implementation Team
Step 3: Start ISO 9000 Awareness Programs
Step 4: Provide Training
Step 5: Conduct Initial Status Survey
Step 6: Create a Documented Implementation Plan
Step 7: Develop Quality Management System Documentation
Step 8: Document Control
Step 9: Implementation
Step 10: Internal Quality Audit
Step 11: Management Review
Step 12: Pre-assessment Audit
Step 13: Certification and Registration
Step 14: Continual Improvement
[6] -"BSI obtains first global accreditation from ANAB to certify organizations to the new Quality Management standard ISO
9001:2015". BSI. Retrieved 4 September 2015.
[7] - History of the BSI Group .http://www.bsigroup.com/en-GB/standards/british-standards-online-database/bsol-academic/
[8] - Fast Facts About BSI Group. http://www.bsigroup.com/en-GB/
[9] - (PDF) http://www.aston-global.com/ISO9001_14_Steps_to_Implementation.pdf

Step 1: Top Management Commitment

The top management should provide evidence of its commitment to the development and
implementation of the quality management system and continually improve its effectiveness by:
Communicating to the
organization the
importance of meeting
customer as well as
statutory and regulatory
requirements

Defining the organization's

quality policy to every
employee

Ensuring the availability of

resources required for the
development and
implementation of the
quality management
system

Ensuring that quality

objectives are established
at all levels and functions

Appointing a management
representative to
coordinate quality
management system
activities

Step 2. Establish Implementation Team

The next step is to establish implementation team and appoint a Management Representative
(MR) as its coordinator to plan and oversee implementation. Its members should include
representatives of all functions of the organization - Marketing, Design and development,
Planning, Production, Quality control, etc.
The MR must be a person with:

Total backing from the CEO

Genuine and passionate

commitment to quality in
general and the ISO 9000
quality management system in
particular

Detailed knowledge of
quality methods in general
and ISO 9000 in particular

The dignity - resulting from

rank, seniority, or both - to
influence managers and
others of all levels and
functions

The members of the

implementation team should also be
trained on ISO 9000 quality
management systems by a
professional training organization

Step 3. Start ISO 9000 Awareness Programs

ISO 9000 awareness programs should be conducted to communicate to the employees the aim of
the ISO 9000 quality management system; the advantage it offers to employees, customers and
the organization; how it will work; and their roles and responsibilities within the system.
Suppliers of materials and components should also participate in these programs

Step 4. Provide Training

The ISO 9000 implementation
plan should make provision for
this training for different
categories of employees - senior
managers, middle-level
managers, supervisors and
workers

The training should cover the

basic concepts of quality
management systems and the
standard and their overall impact
on the strategic goals of the
organization, the changed
processes, and the likely work
culture implications of the system

Initial training may also be

necessary on writing quality
manuals, procedures and work
instruction; auditing principles;
techniques of laboratory
management; calibration; testing
procedures, etc

When in-house capacity to carry

out such training is not available,
it may be necessary to participate
in external training courses run by
professional training
organizations

Step 5. Conduct Initial Status Survey

An organization flow chart showing how information actually flows
from order placement by the customer to delivery to this customer
should be drawn up

A flow chart of activities in each department should be prepared

A record of existing quality management system should be
established. Documents requiring modification or elaboration
should be identified and listed (Gap Analysis)
This process has to be adapted, supplemented and implemented
which requires organizational arrangements, the drawing up of
additional documents and possible removal of existing
documentation and records

Step 6. Create a Documented Implementation Plan

The plan calls for identifying and describing processes to make the organizations quality
management system fully in compliance with the standard. The implementation plan should be
thorough and specific, detailing:

Quality
documentation
to be developed

Objective of the
system

Pertinent ISO
9001:2000
section

Person or team
responsible

Approval
required

Training required

Resources
required

Estimated
completion date

Once approved, the Management Representative should control, review and update the plan as
the implementation process proceeds.

Step 7. Develop Quality Management System Documentation

Documentation of the quality management system should include:

Documented statements of a quality policy and quality objectives

A quality manual
Documented procedures and records required by the standard ISO 9001:2000
Documents needed by the organization to ensure the effective planning, operation and
control of its processes.

It is generally prepared in the three levels:

Level A: Quality manual

Level B: Quality management system procedures
Level C: Quality documents (forms, reports, work instructions, etc.)

Step 8: Document Control

Document control should include:

Approval for
adequacy by
authorized person (s)
before issue

Review, updating and

re-approval of
documents by
authorized person (s)

Identification of
changes and of the
revision status of
documents

Availability of relevant
versions of
documents at points
of use

Identification and
control of documents
of external origin

Assurance of legibility
and identifability of
documents

Prevention of
unintended use of
obsolete documents
.

Step 9. Implementation
It is good practice to implement the quality management system being documented as the
documentation is developed, although this may be more effective in larger firms. Where phased
implementation takes place, the effectiveness of the system in selected areas can be evaluated.
The implementation progress should be monitored to ensure that the quality management system
is effective and conforms to the standard. These activities include internal quality audit, formal
corrective action and management review.

Step 10. Internal Quality Audit

Internal quality audits are conducted to verify that the installed quality management system:

Conform to the planned arrangements, to the requirements of the standard (ISO

9001:2000) and to the quality management system requirements established by your
organization
Is effectively implemented and maintained.

Step 11. Management Review

When the installed quality management system has been operating for three to six months, an
internal audit and management review should be conducted and corrective actions implemented.

Results of audits

Customer feed-back

Process
performance and
product conformity

Status of preventive
and corrective
actions

Follow-up actions
from previous
management
reviews

Changes that could

affect the quality
management system

Recommendations
for improvements

The input to management review should include information on:

Step 12. Pre-assessment Audit

When system deficiencies are no longer visible, it is normally time to apply for certification.
However, before doing so, a pre-assessment audit should be arranged with an independent and
qualified auditor. Sometimes certification bodies provide this service for a nominal charge. The
pre-assessment audit would provide a degree of confidence for formally going ahead with an
application for certification.

Step 13. Certification and Registration

Once the quality management system has been in operation for a few months and has stabilized,
a formal application for certification could be made to a selected certification agency. The
certification agency first carries out an audit of the documents (referred to as an "adequacy
audit"). If the documents conform to the requirements of the quality standard, then on-site audit
is carried out. If the certification body finds the system to be working satisfactorily, it awards
the organization a certificate, generally for a period of three years. During this three-year period,
it will carry out periodic surveillance audits to ensure that the system is continuing to operate
satisfactorily.

Step 14: Continual Improvement

Certification to ISO 9000 should not be an end. You should continually seek to improve the
effectiveness and suitability of the quality management system through the use of:

Quality policy

Quality
objectives

Audit results

Analysis of
data

Corrective and
preventive
actions

Management
review

ISO 9004:2000 provides a methodology for continual improvement.

CERTIFICATION [5]

ISO does not certify organizations itself, certification bodies which audit organizations
issue ISO 9001 compliance certificates. Although commonly referred to as "ISO 9000"
certification, the actual standard to which an organization's quality management system
can be certified is ISO 9001:2015 (ISO 9001:2008 will expire by around September
2018). Many countries have formed accreditation bodies to authorize ("accredit") the
certification bodies.
An organization applying for ISO 9001 certification is audited based on an extensive
sample of its sites, functions, products, services and processes. The auditor presents a list
of problems (defined as "nonconformities", "observations", or "opportunities for
improvement") to management. If there are no major nonconformities, the certification
body will issue a certificate. Where major nonconformities are identified, the
organization will present an improvement plan to the certification body (e.g., corrective
action reports showing how the problems will be resolved); once the certification body is
satisfied that the organization has carried out sufficient corrective action, it will issue a
certificate. The certificate is limited by a certain scope (e.g., production of golf balls) and
will display the addresses to which the certificate refers.
An ISO 9001 certificate is not a once-and-for-all award, but must be renewed at regular
intervals recommended by the certification body, usually once every three years. There
are no grades of competence within ISO 9001: either a company is certified (meaning
that it is committed to the method and model of quality management described in the
standard) or it is not.

[5]- https://en.wikipedia.org/wiki/ISO_9000

ADVANTAGES [10] [11] [12]

Both business analysts and investors can benefit by implementation of ISO 9000 system.
Increased marketability: Companies with ISO 9000 systems provide evidence that
company is capable of providing quality product to its customers. The benefit results in
enhanced sale and retention of existing customers.
Better management control: 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
be
Increased customer satisfaction: Since the ISO 9000 certification process almost
inevitably uncovers areas in which final product quality can be improved, such efforts
often bring about higher levels of customer satisfaction.
Improved internal communication: The ISO 9000 certification process's emphasis on
self-analysis and operations management issues encourages various internal areas or
departments of companies to interact with one another in hopes of gaining a more
complete understanding of the needs and desires of their internal customers.
Improved customer service: The process of securing ISO 9000 registration often serves
to refocus company priorities on pleasing their customers in all respects, including
customer service areas. It also helps heighten awareness of quality issues among
employees.
Reduction of product-liability risks: Many business experts contend that companies that
achieve ISO 9000 certification are less likely to be hit with product liability lawsuits, etc.,
because of the quality of their processes.
Attractiveness to investors: Business consultants and small business owners alike agree
that ISO-9000 certification can be a potent tool in securing funding from venture capital
firms.
Saving in both money and timing: by saving on the wastage of scrap, return, rework and
staff timing to reproduce the product.

DISADVANTAGES [10] [11] [12]

Funding for establishing the quality system is inadequate: Critics of ISO 9000
contend that achieving certification can be a very costly process, especially for smaller
firms.
Heavy emphasis on documentation: The ISO 9000 certification process relies heavily
on documentation of internal operating procedures.
Length of the process: Business executives and owners familiar with the ISO 9000
registration process warn that it is a process that takes many months to complete. It took
businesses an average of 15 months to move from the early stages of the process to
passage of the final audit, and that processes of 18-20 months or even longer were not
that uncommon.
The implementation of standard removes the creative element of the program
Standards force people to change their methods

Standards reduce productivity by forcing unnecessary actions

Standards do not prevent bugs.

IMPEDIMENTS FOR IMPLEMENTATION OF ISO9000 [13]

Even though ISO 9000 aims at setting up an effective quality system in an organization, it suffers
from several shortcomings like:
ISO 9000 requires a software production process to be adhered to but does not guarantee
the process to be of high quality. It also does not give any guideline for defining an
appropriate process.
ISO 9000 certification process is not fool-proof and no international accreditation agency
exists. Therefore it is likely that variations in the norms of awarding certificates can exist
among the different accreditation agencies and also among the registrars.
Organizations getting ISO 9000 certification often tend to downplay domain expertise.
These organizations start to believe that since a good process is in place, any engineer is
as effective as any other engineer in doing any particular activity relating to software
development.
ISO 9000 does not automatically lead to continuous process improvement, i.e. does not
automatically lead to TQM.
[10] http://www.referenceforbusiness.com/small/Inc-Mail/ISO-9000.html
[11] https://www.ukessays.com/essays/information-technology/advantages-and-disadvantages-of-iso-9000-informationtechnology-essay.php
[12] https://chipkidz.wordpress.com/2009/08/10/benifits-advantages-and-disadvantages-of-standards/
[13] https://www.scribd.com/document/130671962/m13L34

ISO 14000[14] [15]

ISO 14000 is a family of standards related to environmental management
that exists to help organizations:
minimize how their operations (processes etc.) negatively affect the
environment (i.e. cause adverse changes to air, water, or land)
comply with applicable laws, regulations, and other environmentally
oriented requirements
continually improve in the above.
Environmental Management System
An Environmental Management System (EMS) is a framework that helps a
company achieve its environmental goals through consistent control of its
operations. The assumption is that this increased control will improve the
environmental performance of the company.

Standards Under ISO 14000 Series

ISO 14001 is an EMS standard.
ISO 14010 series of standards are about auditing.
ISO 14020 is about environmental labeling.
ISO 14030 is a standard on environmental performance evaluation.
ISO 14040 series are on environmental life cycle assessment(LAC).
Basic Principles And Methodology

Plan

Do

Act

Check

Benefits
It can be applied to any type of organization.
It help in maintaining an efficient quality system in an organization.
It creates confidence in customer on the quality of product supplied.
It act as competitive barrier.

[14]
[15]

https://en.wikipedia.org/wiki/ISO_14000
http://www.slideshare.net/Viishjoshi/iso-14000-28513664

Case StudyImplementation of ISO 9000 in A British

Textile Mill
ABSTRACT
ISO 9000 quality systems have been developed to provide necessary conceptual and structural
input for fulfilling customer consistent and desired product quality. British textile businessmen
now realize that ISO 9000 is very effective tool to maintain competitiveness in the global market
for their export. Many textile companies apply for quality management system certification
based on these standards.

AN OUTLINE OF THE COMPANY

Parkland Manufacturing undertakes to deliver products conforming to our customers agreed
requirements, on time, every time. We believe in the philosophy of fault prevention to create a
right first time environment. To achieve this, every person in the organization was committed to
the policy of continuous quality improvement. B.E.Lodder, Chief Executive Officer. Company
profile
Established: 1908
Turnover 30 million
Employees: 350
Main products: Worsted fabrics y Main markets: UK. Germany, Middle East, and Far East

REASONS FOR SEEKING CERTIFICATION

Quality was recognized by Parkland as a fundamental requirement for long-term survival and for
entering competitive markets. The main motivation for certification seemed to be the need for
developing an effective quality system. Parkland believed that certification to ISO 9000
demonstrates an effective system which can improve product quality, cost control and business
performance.

THE QUALITY SYSTEM

The quality system before ISO 9000 Quality was defined as meeting, specifications and
tolerances, testing, inspection and re-work. Parklands quality system emphasised a problemsolving approach that was unstructured, individualistic and function oriented. At the mill, the
formal operational procedures and working instructions were inadequate and the quality element
of document control was incomplete. Some were outdated and they were not reviewed

regularly. The process was a gradual improvement over many years, which therefore involved
different managers and which catered for the changing requirements of ISO 9000. However,
some procedures were in place in certain areas such as the laboratory for scouring and dyeing
The quality system after ISO 9000 Implementation of ISO 9000 in A British Textile Mill 375
After ISO 9000 implementation, they had achieved a cultural change: everybody was responsible
for quality and responsibility was delegated to the lowest organizational level possible. In a
quality management program, quality was defined as meeting users needs and wishes and was
built in as a result of total commitment. The problem-solving approach was structured,
participatory, and process-oriented (cross-functional). The company established a quality
assurance department which was in charge of the following work:
incoming material inspection-in sampling;
outgoing product inspection-100%;
ISO 9000 implementation
customer complaints The site director was in charge of production control and process
control.

METHODS OF PREPARATION
Since the company had an experienced quality department, which had a good command of the
full range of integrated management tools, and since the quality assurance team were
enthusiastic, it was possible to achieve and maintain certification without the help of an external
consultant. The company established a seven-stage programme to achieve certification as
follows:
Stage 1: Chief executive decision and commitment
Stage 2: Education and training
Stage 3: Preparation of quality manuals, operations procedures and working instructions
Stage 4: Implementation
Stage 5: Internal audits and corrective actions continue
Stage 6: Pre-assessment by BSI
Stage 7: Registration

Education and training

In 1988, the directors of Parkland were impressed by the quality doctrine presented by Philip
Crosby, during a course on quality education for top management at Crosbys Florida Quality
College. Crosby emphasised the need for management commitment towards quality, led by top
management; for management by objectives; and for continuous improvement. Subsequently,
Parkland launched their A heritage for excellence initiative. This was a commitment to the
principle of quality management that subsequently permeated the company at all levels.
Parkland found it necessary to develop its own training program, based on the Crosby material;
to embed the principle and practices of the Parkland quality philosophy throughout its operation.

First of all, Parkland held some quality courses within the company using those directors who
had graduated from the Philip Crosby Quality College as lecturers.
In the second stage of preparation, the quality assurance manager was sent to an ISO 9000
seminar, attended and passed a five day lead assessors course. An internal auditing course was
developed by the quality assurance manager for quality control personnel within the company.
This consisted of sixteen hours in-house training designed to develop the knowledge necessary to
become an internal auditor and to guide delegates to a better understanding of how to prepare,
conduct and report on audits. Furthermore, the company was convinced that everyone on the
shop floor must be responsible for quality. Therefore, a booklet about BS 5750 was distributed to
each operative for their self-study.
Preparing a quality manual, procedure and working instruction
First of all, they interpreted the ISO 9000 standards to their own needs. All divisional quality
manuals such as design and marking, quality and technical, weaving, dyeing and finishing, and
sales, were structured in an identical manner. When the manual was written, the following
existing procedures and working instructions were simultaneously amended to give a more
detailed description of the jobs within the quality system.
Procedures:
1. General procedure
2. Purchasing and production
3. Yarn testing
4. Fabric production
5. Design and development
6. Customer complaints
Working instructions:
1. Goods in and sort
2. Batching
3. Milling and wash off
4. Bleaching and dyeing
5. Burling
6. Decate
7. Shrink and relax
8. Warehouse
For the preparation of procedures and instructions which did not already exist, individual
managers and supervisors wrote the draft, which was then edited by the quality assurance
manager. Since Parkland was a medium sized enterprise, their quality system was simple and
clearly established. They merely prepared appropriate written procedures and instructions for
what they needed.

Document control
All quality manual documents were prepared in the way prescribed in ISO 9000.
All procedures and related documents were issued to a registered list of recipients

Only registered holders of procedures received new issues and updates. Controlled and
uncontrolled procedures were clearly identified by signature, and obsolete copies were
retained for reference.
The master procedures manuals were held in the quality assurance department and the
department procedures control sheets identified changes, approvals and issue dates of all
procedures and changes.

Conducting internal audits

In order to ensure the effective operation of the quality system, continuous internal audits were
carried out.
Auditing was treated as an important tool, and it was used to determine both compliance and
effectiveness, Many sources of information existed, which provided indicators of the
effectiveness, efficiency and economy of the companys operation. Audits gathered facts. The
main sources among these included:

system audit report

in-house production audit report
customer complaints
non-conformance reports
registered quality problems

DIFFICULTIES EXPERIENCED
Increased paper work
According to Miss Strachan, quality assurance manager of Parkland, the assessors pressed for the
paperwork system to be further developed. Therefore, a large amount of paperwork was required
and a considerable amount of time was required in the preparation of additional documentation.
Lack of commitment
Some managers did not recognize the need for their own contribution to quality management.
When an internal audit was carried out, several non-compliances were found and corrective
actions required, However, corrective actions were not completely implemented. Irrespective of
how busy they may be, the omission of quality management activities by production personnel
was never condoned by senior management. Some managers also often misinterpreted their
quality management obligation as an extra burden unrelated to their real job.
LESSONS LEARNED
1. Every company should implement ISO 9000 to suit their individual needs. Miss Strachan,
quality assurance manager, stressed the need to adopt a quality system appropriate to a

companys needs. She believed that her efforts to achieve this were largely responsible for the
success of the current system.
2. ISO 9000 provided a basis for continuous improvement. At Parkland Manufacturing,
continuous improvement was identified as a priority for the ISO 9000 program initiated in 1989.
ISO 9000 not only satisfied the requirements of contract, at a point in time, but also provided a
basis for continuous improvement. For instance, delivery time of dyed cloth was reduced from
six to eight weeks to three weeks and delivery time of color woven type fabrics was also reduced
from ten to twelve weeks to six weeks. According to Parkland, it was emphasised that when the
ISO 9002 quality manual was implemented as a total system, the attainment of continuous
improvement on a well-managed basis was very evident.
IMPACT OF ISO 9000 ON THE COMPANY
In conclusion, according to Miss Strachan, Our companys experience with quality management
systems based on ISO 9000 has been a positive one,
The benefits included:

reduced delivery time;

a more efficient system;
more motivated personnel with a desire to pursue continuous improvement; z improved
customer satisfaction and loyalty.

Parkland director, Mr. Malcolm Campbell, said A year ago we were quoting six to eight weeks
for dyed cloth and now, on a planned contract basis, we can do it in three weeks. On color
woven types fabrics, we are now doing it in six weeks. He added, we have taken a lot of
business away from our competitors because they have not been making the necessary changes
to achieve quick response to customers requirements.
PLANS FOR THE FUTURE
Parkland realized that ISO 9000 certification was not the end of journey. Instead, it established
the base upon which the quality superstructure should be built, not only as a means to gain
publicity and marketability but also to achieve continuous quality improvement
They emphasised that the quality system installed in compliance with ISO 9000 must be
designed to increase efficiency, productivity and to achieve continuous improvement in quality.
Furthermore, at Parkland Manufacturing, there were four plants located at Huddersfield,
Bradford, Oldham and Halifax. The Huddersfield, Bradford, and Oldham plants had already
received their ISO 9000 certification. Parkland was so confident of this new approach toward
quality management that the Halifax plant was going to prepare for its certification in the future.

The Implementation Of ISO9000

In Vietnam: Case Study From The Footwear
Industry
INTRODUCTION
ISO 9000 Implementation At The Ngoc-Tuan Shoe Company
The Ngoc-Tuan Shoe Company has a history of nearly a century. It was first established in 1912
as a private French company and, until 1954, its main customer was the French army in
Indochina. Equipment and materials were fully imported from France.
After the defeat of the French by the Viet Minh in 1954, the company was set up as a joint
venture company with the newly formed government of North Vietnam. With the nationalization
of all industry in 1960, the company became a State Owned Enterprise under the management of
the Hanoi Department of Industry and until the 1990s was Vietnams leading shoe producer with
output meeting or exceeding planned levels every year.
Over the past decade, the restructuring of State-Owned Enterprises has been at the centre of
Vietnam's overall economic reform and various measures has been taken up to restructure and
improve the efficiency of the SOE sector. Permanently loss-making and inefficient SOEs were
merged and a small number of SOE were allowed to go bankrupt. The equitization
(privatization) process has continued, albeit at a slow pace, with the vast majority of SOEs being
restructured and granted autonomy in production and management3. The Ngoc-Tuan Shoe
Company now has an independent accounting system under the management of the Ministry of
Industry.
2. See Fairbairn, ISO 9000 and Organisational Culture
3. The Vietnamese government prefers the term equitization rather than privatization.

Objectives of Applying ISO 9000

The objectives of the Ngoc-Tuan Shoe Company in applying ISO 9000 were to:
Create an environment that encouraged people to practice quality management
Improve production processes to reduce the number of defective products
Improve shoe quality to make its products competitive in the market
Qualify for tender
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Since the Ngoc-Tuan Shoe Company was a pioneer in applying ISO 9000 in the shoe industry, it
received financial support of VND100 million (about US$7000) from the Ministry of Industry to
carry out the application process. Moreover, based on a request from the company, the Ministry

of Industry appointed a quality management specialist to be Vice Director in charge in quality

management. This individual was the former head of the quality
department of the Vietnam General Shoe Corporation and one of the earliest Vietnamese to be
trained, both domestically and abroad, in ISO. In addition, the Vice Director was considered to
have substantial influence with both workers and management due to his educational background
and political connections.

Important Steps in the ISO 9000 Implementation Process

Step 1 - Formation of Project Team
A project team, headed by the Vice Director, was formed and the heads of each department were
recruited to ensure the projects received the support of all employees.
Step 2 - Communication to Staff
On the advice of top management, a large campaign was undertaken to communicate to all staff
of the company the purpose of the project so they would be willing to intensively take part in the
project. Training courses on ISO 9000 by visiting consultants were implemented. Since the team
leader (Vice Director) was an ISO 9000 specialist, this individual developed the implementation
plan. Since the companys employees were young and educated the company was perceived as
successful in convincing the workers that implementing a new quality strategy was vital and
would bring better opportunities. The management also encouraged workers to think of quality
improvement objectives for their own jobs.
Step 3 - Development of Manual, Training and Conducting an Internal Audit
The Vice Director took the lead in developing the procedures, regulations and operations
applicable to all departments to ensure compliance with ISO 9000 standards. The project team
carried out training to educate employees in the procedures detailed in the manual. Feedback was
encouraged though the department heads to ensure continuous improvement. The entire process
of developing the manual, training employees and conducting an internal audit took one year.
Step 4 - Application and Granting of Certification
The Ngoc-Tuan Shoe Company chose SGS as its certification body. The project team indicated
this certification body was chosen due to its high standards and the objectives were not only
certification, but also the development of a high quality management system that would bring
about real change in the company operation.
The certificate of ISO 9001-1994 was granted in early 2001, three months after the first internal
audit. At that time, the Company Director stated: We have taken a long time to struggle for
quality improvement and a quality assurance system. ISO 9000 is really the tool that we are
looking for. We are looking at it as a tool for continuous improvement as well.
From the Vice Director who was the team leader: We were successful in applying ISO 9000
because the management board made full commitment and gave me full support. Another reason
it that we have been successful in driving staffs attitude in a positive direction.

Observations
Since the granting of ISO 9000 certification over three years ago profound changes have
occurred at the Ngoc-Tuan Shoe Company. This is immediately evident upon entering the
facilities. Contrary to pre-certification, the physical plant is now well maintained and orderly.

There is new motorcycle and car park and all facilities have a clearly marked signboard. The
atmosphere in the company is now one of friendliness and professionalism.
In a follow-up meeting with some workers and administration officers who were interviewed in
2000 and 2001, it was clearly evident they are very proud of the changes in the company, and
attribute the positive factors to the new quality management system. Comments from employees
were:
Now we are sure that we can make a good quality product
ISO 9000 is necessary to us
We have more convenient summer holiday provided by the company thanks to less
waste due to defective products. ISO 9000 has made this possible
The better implementation of ISO 9000, the more benefits we get.
Although data on the financial situation of State Owned Enterprises are not available, it can be
concluded that financial capital to undertake investment and upgrade facilities has come from
profits generated by the firm.4 Workers also seem to have benefited from the improvement in
firms financial health as salary levels in 2004 were 50 percent higher than in 2001; increasing
from between VND450,000 and 650,000 (around US$30-40) to between VND700,000 and
900,000 (around US$45-60) per month. This rate of increase also applied to top management and
heads of department.5
Additional changes included offering days off on major holidays, allowance every month of
around VND100,000

4.In SOEs in Vietnam, the board of directors usually try to transfer profits to reinvestment capital so the company does not have to contribute full
profits to the government budgets.
5. The actual figures are not available, but top management salaries are estimated to have increased from between VND1,500,000 and 2,000,000
(around US$100-125) to between 3,000,000 and 5,000,000 (around US$200-310) per month. In addition, a one-month bonus is generally paid at
the end of the year.