Introduction
Why would a company choose to implement ISO 9000 standards versus a quality management concept? This post attempts to answer that question, We start by first describing the ISO 9000 family of standards. Next, ISO-9000 standards will be compared and contrasted with the total quality management (TQM) philosophy. One of the differences between ISO 9000 and TQM is that the former has costs associated with certification, and the costs are (roughly) described. Finally, the question is answered considering this information.
What are the ISO 9000 Standards?
The International Standard Organization (ISO) maintains numerous formalized standards of which ISO 9000 is meant to standardize the approach organizations use to manage and improve processes. Some of these are industry-specific whereas others, like the ISO-9000 family of standards are quality related, but are limited to internal measures of quality. Indeed, “ISO 9000 does not specify a level of quality or performance for any product or service provided by an organization. That is left to the organization to determine with its customers” (Goetsch & Davis, p. 226). This latter part is a good thing, otherwise every single change or improvement in a product or service will have to be evaluated by a committee external to the organization.
ISO 9000 has gone through several versions, with varying amounts of bureaucracy in each version (Goetsch & Davis, p. 235). Besides reducing bureaucracy, the advancing iterations brought ISO 9000 (specifically ISO 9001:2000) standards closer to TQM (Goetsch & Davis, p. 235). Seddon (2000) claims that ISO 9000:2000 represents “an admission of failure – failure of the Standard to make a positive contribution to economic performance” (Seddon, p. vii).
The ISO 9000 series uses seven quality management principles: customer focus, leadership, personnel engagement, process approach, improvement, evidence-based decision making, and relationship management (Goetsch & Davis, p. 227).
The operating principle of the ISO 9000 management system is described as “Plan-Do-Check-Act.” “Plan” involves setting objectives and determining plans to achieve them. “Do” means setting those plans in motion. “Check” means to verify whether the objectives are achieved using those plans. Finally, “Act” (or “Adjust”) means that the organization makes necessary changes to the plans to correct any shortfalls, then wash-rinse-repeat. (p. 227). The text states that repeating these steps results in “continual improvement for products/services, processes, and systems of processes.” (Goetsch & Davis, p. 227). The ongoing improvement of products or services is (supposedly) a byproduct of the Plan-Do-Check-Act cycle.
Part of obtaining ISO 9000 certification involves creating and using a quality management system (QMS). This is not necessarily a software system but it certainly a process designed to maintain quality and customer satisfaction. The certification and annual verification can be thought of as a check that the QMS is used and is well-functioning.
Comparing ISO 9000 with TQM
Both TQM and ISO 9000 aim to enhance the quality of the products and services an organization offers to meet or exceed customer expectations. Both emphasize customer satisfaction by ensuring consistent quality and meeting their requirements.
Both require commitment from management and employees to implement the quality practices, and both encourage ongoing efforts to refine processes and enhance quality over time.
Contrasting ISO 9000 and TQM
TQM is a management philosophy that integrates quality into all processes within an organization. It emphasizes continual improvement and customer satisfaction and requires cultural change. Meanwhile, ISO 9000 is a family of international standards for quality management systems (QMS) that focus on documented processes and certification.
As mentioned above, TQM is concerned with continually improving the quality of an organization’s products or services. ISO 9000 focuses on the quality of internal processes.
One of the differences between ISO 9000 and TQM is that ISO’s process approach involves risk-based thinking, and tools like the Plan-Do-Check-Act cycle are meant to reveal such risks.
TQM is broader than ISO 9000 and it covers all aspects of an organization including culture, employee engagement, and leadership. ISO 9000 focuses on establishing a standard QMS to ensure consistency in processes.
There is no timeframe of implementing TQM in an organization because its mandates are not only process-related but also cultural. There is no fixed endpoint since continual improvement is a never-ending process. In contrast, ISO 9000 has some sort of deadline since the organization is seeking certification.
TQM are informal standards, so the cost of adopting it within an organization usually involves training and process redesign costs, but there are no formal certification expenses. With ISO 9000, there are costs for certification, audits, and recertification. These are discussed in the next section.
Cost of ISO 9000 Certification
A quick review of the ISO 9000 family website (International Standard Organization, n/d) does not list prices for the certification processes. Indeed, ISO charges for much of its documentation.
The phases of ISO 9000 or 9001 certification are as follows: initial certification, annual surveillance audits, and re-certification audits performed every three years. There are numerous ISO consultants or, as one consultant website (BRP Hub, n/d) calls them, “accredited certification bodies” and presumably their prices vary.
For small businesses, BPR Hub quotes prices for certification body fees for small businesses in the range from $3,000 to $6,000. Consultant fees are from $300 to $1,000 per hour. The annual audit costs are at $500 to $1300 per day. For the annual surveillance audit, the price is from $1,000 to $2,500 per year. For the re-certification process that occurs every three years, no prices are given. Another consultant site (9000 Store, n/d) also doesn’t list re-certification costs; that website does have similar quotes broken-down by company size as well as the current state of the organization’s QMS.
Conclusion
TQM and ISO 9000 are not mutually exclusive, and ISO 9000 is a formalization of some parts of TQM standards. TQM is focused on maintaining and improving the quality of products and services a company provides, whereas ISO 9000 is concerned with standardizing internal processes.
They are both bureaucratic layers, and one of the differences between them is that companies seeking ISO certification pay money for their own bureaucratic self-strangulation. It makes sense for a company to achieve ISO 9000 certification if and only if its customers or potential customers (such as government bodies) require that certification. The decision to seek ISO 9000 certification comes down to a cost-benefit analysis, and the annual surveillance audits are a good opportunity to reconsider that decision.
References
9000 Store. (n/d). Cost of ISO 9001 certification. https://the9000store.com/articles/iso-9000-cost/
BRP Hub. (n/d). ISO 9001 certification cost for small businesses. https://www.bprhub.com/blogs/iso-9001-certification-cost-for-small-businesses
Goetsch, D. L. & Davis, S. B. (2021). Quality management for organizational excellence: Introduction to total quality (9th ed.). Pearson.
International Standard Organization. (n/d). ISO 9000 family. https://www.iso.org/standards/popular/iso-9000-family
Seddon, J. (2000). The case against ISO 9000. Oak Tree Press. https://archive.org/details/caseagainstiso900000sedd
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