Contribution of the ISO 9001 internal audit to business performance

What contributes to auditee satisfaction in external ISO 9001 audits?

Purpose

This study aims to explore factors that contribute to auditee satisfaction in external audit fieldwork of ISO 9001, and relationships between these factors.

Design/methodology/approach

The purpose is addressed through a single case study and based upon data collected by a questionnaire. Data were analysed using probabilistic graphical models.

Findings

An auditor's knowledge of operations is shown to be the single most important factor contributing to auditee satisfaction in the study. Furthermore, establishing a co-operative audit atmosphere and focussing on business improvements support the co-creation of value in the interaction between auditor and auditee, while a focus on ISO compliance appears to be more of a hygiene factor.

Research limitations/implications

This paper is based on a study of one company and its interactions with one of the certification bodies for external auditing. Hence, the generalisability of the findings is limited by the case study method.

Practical implications

This paper identifies that an auditor's knowledge of operations and a focus on improvements and co-creation of value can improve auditee satisfaction and appreciation of the audit process.

Originality/value

Previous research has concluded that audit fieldwork is a key attribute associated with auditee satisfaction. This paper adds to this body of knowledge by empirically examining the specific factors within audit fieldwork that contribute to auditee satisfaction and focuses on value-creation in the audit process. By understanding these factors and moving towards a service perspective on audits with value co-creation as focus, it is possible to enhance the value of external audits.

Human Lean Green Method—A New Approach toward Auditing Manufacturing & Service Companies

The article presents the method of assessing the sustainable development of enterprises implemented in the form of an audit, dedicated to manufacturing and service companies. Modern organizations are heading towards the idea of sustainable development. Its essence lies in the belief that the chances of a specific economic entity for survival are possible by harmonizing economic, environmental and social aspects. Emphasizing the essential role of the human factor within the Lean Green concept and the growing popularity of the idea of CSR encouraged the authors to propose a Human Lean Green approach, on which the developed method of assessing the sustainable development of the company is based. The assessment of the company’s sustainable development is carried out by measuring the indicators obtained from the analysis of answers to questions concerning the use of good practices in manufacturing and/or service processes. The study is conducted in three areas: process improvement (Lean), environmental impact (Green) and quality and safety of the workplace (Human). The innovative elements of the method, compared to those proposed so far, are: singling out a Human module, laying emphasis on good practices that guarantee the effectiveness of operations and the possibility of assessing both manufacturing and service companies.

QMS external quality auditors’ education framework: findings from an iterative Delphi study

Purpose

The paper aims to describe the development of an open curriculum framework of external quality auditors (EQAs) education. The study was commissioned by accreditation body JAS-ANZ, with the objective of improving EQA audit performance, resulting in more effective audits that can add value to client organisations.

Design/methodology/approach

The key sets of knowledge, skills and attributes that auditors should possess were identified from the literature and an initial survey, and validated through several rounds of experts' opinion using the Delphi technique. The Delphi panel consisted of: top managers; quality practitioners; academicians; quality auditors, consultants and managers; a financial auditor and other managers. Kendall's coefficient of concordance (Kendall's W) was used to measure the level of agreement of the experts' ranking scores.

Findings

Panelists believed there is a need for EQAs to be more broadly grounded in certain knowledge, skills, and attributes. The knowledge requirements for EQAs were: audit principles, process and methods; quality management principles, system, and standards; risk management; business process and operations management; applicable legal, regulatory and contractual requirements; strategic planning; and performance measurement. EQAs need strong skills in communication, auditing, people relations, critical thinking, report writing, leadership, coaching and coordination. The attributes considered essential are objectivity, integrity, ethics and professionalism; being observant, perceptive, articulate and confident; having good judgement; being flexible, adaptive, diplomatic, fair and open-minded. Based on these outcomes, the curriculum framework of EQAs was developed.

Originality/value

This study highlights the core elements required in a syllabus to prepare EQAs for value-added auditing in the present and future. The educational framework can be adopted by accreditation and certification bodies to evaluate and improve their auditors' audit performance.

Increasing the value of quality management systems

Purpose

Over one million organisations have a quality management system (QMS) certified to the ISO 9001 standard; however, the system requires a lot of resources and its value has been questioned. This critique also leads to a questioning of the strategic relevance of quality management. The purpose of this paper is to explore how different types of uses of QMS correlate with management perceptions of quality management in terms of respect, cost and strategic importance.

Design/methodology/approach

The paper is based on a mixed method data collection strategy, quantitative data being collected from a survey in 8 organisations (n = 108) and qualitative data being collected from 12 interviews with quality managers in 12 different organisations.

Findings

The paper shows that a compliance-oriented QMS usage will more likely lead to a view of quality management as costly and of little respect, than a business or improvement-oriented QMS usage. Moreover, it nuances the view on compliance-oriented usage, showing that it is mainly documentation that negatively influences how management views quality management, whereas standardisation that is part of the compliance-oriented use is perceived as more value-adding.

Originality/value

This paper suggests three types of QMS use, namely, business management, improvement, and compliance-oriented use, and that a wise selection of how to use the QMS will affect the respect, strategic importance and cost that management associates with quality management.

What determinants influence the diffusion of ISO 9001 by countries?

Purpose

This study has the main aim of analyzing the influence of six factors on ISO 9001 implementation: Economic Development, Exporting to Europe, Reputation, Competitiveness, Innovation and Business Sophistication. As a complement, a new factor relating to quality by country has been added: the World Quality Scoreboard.

Design/methodology/approach

Hypotheses are proposed that establish a (positive or negative) linear relationship between the diffusion of ISO 9001 and the indicators of the different factors analyzed in each country. The SPSS program was used to evaluate the hypotheses using data from 2009 to 2018.

Findings

The results indicate strong positive relationship for the country's economic development only when countries with low levels of income are considered. For the rest of the variables, the results indicate that their behavior varies according to the degree of development of the countries. When only developed countries are considered, significant and negative correlations are obtained for reputation, competitiveness, innovation and business sophistication, while considering the group of less developed countries, the results are reversed. The new World Quality Scoreboard has the same behavior whereas regarding exports; we did not obtain conclusive results.

Originality/value

This study adds important information on the studying of ISO 9000 phenomenon diffusion/evolution by analyzing the effect of six variables on the degree of implementation of the ISO 9001 standard in different countries. This information is interesting for companies and certification bodies across the world because it allows a better understanding of the reasons and conditions of implementing a quality management system.

The heterogeneous implementation of ISO 9001 in service-oriented organizations

Purpose

The purpose of this paper is to investigate the heterogeneity in the implementation of the ISO 9001 quality management system in service-oriented organizations, and to identify patterns (i.e. relationships, dependencies and exceptions) among critical implementation factors, possible implementation determinants and desired post-implementation outcomes.

Design/methodology/approach

The paper adopts a qualitative approach, in the form of a multiple case study of five ISO 9001 certified, service-oriented organizations, located in Greece. Using multiple data collection methods including interviews with upper management and employees, desk research and on-site observation allowed for data triangulation.

Findings

The analysis reveals that ISO 9001 implementation can range across different levels of fidelity, from merely superficial to genuinely substantive. Several determinants (i.e. implementation experience, motivation for certification, perception of quality, commitment to change) affect the level of fidelity and, in turn, the post-implementation outcomes. Interestingly, even a superficial ISO 9001 implementation can initiate, at least to a moderate degree, beneficial changes throughout the organizations. The organizations that strictly abide by ISO 9001 requirements still have to address some challenges, most notably to instill a culture of prevention in their management system and to efficiently balance standardization and flexibility.

Originality/value

This study contributes to the ISO 9001 internalization literature, providing an in-depth analysis of possible patterns among ISO 9001 implementation factors, determinants and outcomes. Related findings are also discussed under the prism of the revised ISO 9001:2015.

Customer satisfaction and ISO 9001 improvement requirements in the supply chain

Purpose

The purpose of this paper is to investigate the influence of ISO 9001 quality improvement requirements in ISO 9001:2008, i.e. the corrective and preventive actions and internal audit, on customer satisfaction.

Design/methodology/approach

For the purposes of the study, data were collected via a survey on 200 aerospace and transportation companies that belong to a Canadian multinational company supply chain. The relationships between the corrective and preventive actions and internal auditing, on the one hand, and customer satisfaction, on the other, were examined via the structural equation modeling technique.

Findings

The major contribution of this study is that it has identified internal audit as the most influential continual improvement ISO 9001 requirement prior to the ISO 9001 transition phase, along with the corrective actions, while the preventive actions in the present formulation do not significantly influence customer satisfaction.

Research limitations/implications

This study is based on a cross-sectional survey conducted on the supply chain level in the aerospace and transportation sector; hence, a longitudinal study is possible as a future research avenue. The generalizability of this study’s findings is limited to similar supply chains around a multinational company consisted of companies that have at least ISO 9001 standard, but also fulfill other industry-specific requirements. Also, findings are based mainly on quality managers’ attitudes, so future studies are recommended to examine other positions’ views, too.

Practical implications

This research contributes to the literature and bridges the gap between theory and practice. It could be of value to both the certification bodies and the organizations that are interested in improving customer satisfaction by implementing ISO 9001 in the multinational supply chains context such as the aerospace and transportation sector.

Originality/value

While the influence of the ISO 9001 standard on customer satisfaction has been the subject of prior research, this is the first time that the simultaneous effect of the corrective and preventive actions and internal auditing on customer satisfaction has been studied. The validity of the removal of preventive actions from ISO 9001:2015 has also been analyzed.

Performance measures of ISO 9001 certified and non-certified manufacturing companies

Purpose

– The purpose of this paper is to compare ISO 9001 certified and non-certified manufacturing companies with regard to performance measures, both financial and non-financial.

Design/methodology/approach

– A research study was carried out in 140 Greek manufacturing companies by means of a questionnaire. The questionnaire was sent by e-mail and it was requested that it should be answered by a company representative. Exploratory factor analysis is applied in order to extract the latent factors of performance measures. The differences between the ISO 9001 certified and non-certified manufacturing companies are determined through non-parametric tests such as the χ2-test and the Mann-Whitney U-test.

Findings

– The ISO 9001 certified manufacturing companies significantly outperform the non-certified with regard to product quality, customer satisfaction, operational, market and financial performance. This is evident in a business environment where an economic downturn and financial crisis dominates.

Research limitations/implications

– The sub-samples of the responding ISO 9001 certified and non-certified manufacturing companies are small sized and they are limited to small- and medium-sized enterprises. The subjective character of the data collected through the company representatives involves the risk of receiving biased responses regarding the performance measures. The above limitations suggest future research recommendations.

Practical implications

– The increased performance measures of the ISO 9001 certified manufacturing companies may motivate the non-certified ones to implement the ISO 9001 standard and apply for the certification in order to increase their performance and withstand the current economic downturn and financial crisis. The present study may also stimulate manufacturing companies to adopt traditional and modern benchmarking techniques, in an additional effort to improve their businesses and competitiveness.

Originality/value

– The present study compares performance measures of ISO 9001 certified and non-certified manufacturing companies operating under unprecedented circumstances due to the current economic downturn and financial crisis.

ISO 9000 impact on product quality in a defense procurement environment

Purpose

The purpose of this paper is to provide insights into the relationship between ISO 9001 conformance of suppliers and the quality of products they provide, within a procurement system of a manufacturer operating under contracts with the US Department of Defense.

Design/methodology/approach

Chi‐square tests of independence were performed to compare the receipt acceptance rate of material provided by ISO 9001‐conforming suppliers to that of non‐ISO 9001‐conforming suppliers, for more than 46,000 receipts representing 21 material commodity groups provided by almost 800 suppliers. Acceptance of receipts required conformance to both hardware and paperwork requirements. Tests were also performed on data subsets, to determine the impact of ISO 9001 conformance on product quality for each of the 21 material commodity groups, for manufacturers versus distributors, and for two material control levels.

Findings

For the overall data set, and for the majority of data subsets analyzed, the product quality of non‐ISO 9001‐conforming suppliers was significantly better than that of ISO 9001‐conforming suppliers. When only hardware non‐conformances were considered to cause rejections, the results were similar, but effect sizes were generally smaller.

Research limitations/implications

The quantities of receipts and suppliers included in this investigation were very large; however, care should be exercised in generalizing the results, because of the potential influence of the defense industry‐related requirements imposed upon the material and the suppliers.

Originality/value

This is believed to be the first paper to investigate the impact of ISO 9001 conformance on product quality using a large quantity of actual product data, for both ISO 9001‐conforming and non‐ISO 9001‐conforming suppliers, in contrast to numerous assessments of quality impact performed using interview and survey data.

External and internal quality audits in higher education

Purpose

The purpose of this paper is to analyse the maintenance of the process‐based quality assurance system in a higher education institution.

Design/methodology/approach

The paper introduces the process management as the essential element of quality assurance in higher education and discusses the external quality audit of the quality assurance agency, extends the study to the quality management between the external audits and presents the procedure of internal quality audits. Finally, the results of the study are discussed and summarised. Action research methodology was adopted in this study. The paper shows that the process‐based quality assurance system makes the organisation responsive, agile and enables the achievement of strategic objectives.

Findings

The audit group must first evaluate the necessary improvements in the process. If no improvements are found, the quality deviations must be reported. The audit helps the institution take corrective actions to amend the process descriptions or maintain the processes.

Originality/value

The paper shows that the necessary processes of a higher education institution can be systematically described and audited.