ISO 9001 certification pay‐off: myth versus reality

What would QMS implementation really bring to a company?‐ Theoretical review on benefits and disadvantages researched in practice

Purpose

This study aims to provide information on particular combination of benefits or disadvantages with exact timing of their appearance in the company after its first certification, along with the information on the value range each benefit and disadvantage would take, as well as on the duration period of expected values.

Design/methodology/approach

Survey was conducted from October 2015 to January 2019 in 306 certified companies with respondent rate of 58.82%. A questionnaire, structured using literature review to identify all possible benefits and disadvantages of QMS, was used to determine the time of appearance, value range and duration of each identified benefit or disadvantage. Results were used to define indicators for fully applied QMS in each age of its maturity, then the indicators were verified using the records of two ISO certified companies.

Findings

There is a difference in the set of benefits and disadvantages in companies with fully implemented QMS and those that are using QMS only to maintain the certificate. In each age of QMS application a specific set of benefits and disadvantages can be expected as well as the volume range of each of them. These timely sets of benefits and disadvantages can be used as indicators to distinguish well-implemented QMS from those partially implemented.

Research limitations/implications

The sample consists of companies from Balkan area, therefore economy, politics and culture could have influenced results, predominantly regarding the value ranges of some benefits and disadvantages.

Practical implications

Companies which already have implemented or are about to implement QMS may use results of the research to plan its effects in years ahead, concerning costs and profit dynamics, as well as to prepare themselves for upcoming probable issues. Auditors can use results in addition to certification criteria to determine the level of QMS implementation and to forecast whether audited company would keep the certificate in the future.

Social implications

Supply chain management could use research findings in selection of chain members to support and speed up third party audits since the benefits and disadvantages of fully implemented QMS are known for each QMS age. This would further imply better structure of supply chains, which would consequently lead to lower production costs, higher quality and competitive prices at the market, which has beneficial implications on the whole society.

Originality/value

For each age of QMS maturity, starting from the first year of certification, expected combination of benefits and disadvantages along with its expected value range and duration are defined. A set of indicators with their expected values.

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.

ISO 9001 and supply chain quality in the USA

Purpose

The purpose of this paper is to explore the nature of ISO 9001 certification and diffusion in the USA in relation to organizational supply chain position, quality maturity, and supplier quality maturity.

Design/methodology/approach

Data for comparison in this study comes from an e-mail survey questionnaire of supply chain professionals across the USA. A pilot survey was initially e-mailed to 100 supply chain professionals and preliminary data from 27 respondents were used to revise the questionnaire. Respondents to the revised questionnaire returned 565 e-mailed questionnaires out of 2,924 active e-mail addresses.

Findings

The results suggest that companies adopting ISO 9001 are likely doing so as part of an overall quality management program more so than from direct market pressure. It appears that ISO 9001 certification rates differ by organizational position in the supply chain. ISO 9001 certified organizations are more likely to have quality programs of greater maturity and suppliers with greater quality maturity than organizations that are not ISO 9001 certified. Certified organizations are also more likely to use suppliers that are ISO 9001 capable or certified than non-ISO 9001 organizations.

Research limitations/implications

Not all industry groups or supply chain positions were well-represented due to some small sub-group sizes.

Practical implications

The study of ISO 9001 certification in US organizations has been lacking in the literature. Given the weak adoption rate of ISO 9001 in the USA, this study helps characterize ISO 9001 certification from a supply chain perspective and explores possible reasons for low certification rates.

Originality/value

This research extends the knowledge of quality management in the supply chain by studying ISO 9001 certification in relation to supply chain position and differences in quality maturity between certified and non-certified organizations in the USA.

Empirical evidence about ISO 9001 and ISO 9004 in Italian companies

Purpose

The purpose of this paper is to evaluate the experience of International Organization for Standardization (ISO) 9001 certified companies, examining their motivations to introduce the standard and their perceived benefits and barriers. In parallel, the research investigated the knowledge and perception of ISO 9004 guideline, analyzing if it could give an added value to certified companies.

Design/methodology/approach

A questionnaire was proposed by e-mail to 2,581 Italian ISO 9001 certified companies from January 18 to March 31, 2016; 522 companies participated to the survey.

Findings

Companies of different size have been driven by different motivations to certification, reaching different types of benefits, while both large and small ones perceived the greater bureaucratization as an obstacle. The ISO 9004 standard is little known and applied among Italian companies, but the ones which adopted it benefited from it.

Research limitations/implications

A limitation may be derived from the fact that the sample was composed only of Italian companies, although this effect was to understand perceptions and trends of these international standards in the Italian reality.

Practical implications

Analyzing perceived advantages and disadvantages of ISO 9001 and 9004 could be crucial for managers to understand if their joint use is the right strategy to gain competitiveness in the reference markets.

Originality/value

Compared to previous studies in which ISO 9001 was evaluated as a stand-alone standard, the research made a comparative evaluation with ISO 9004, as ISO considers them to be “consistent pair of standards,” covering the literature gap about the effectiveness of the joint use of them.

The impact of total quality management on service company performance: evidence from Spain

Purpose

– The purpose of the paper is to explore the impact of total quality management (TQM) factors on performance dimensions of service companies.

Design/methodology/approach

– A research project was designed in the Spanish services sector. Companies that had already participated in activities with regard to business excellence were randomly selected and approached through a structured questionnaire, yielding a sample of 151 responding companies. By analyzing TQM implementation and company performance through the exploratory factor analysis, specific TQM factors and performance dimensions are extracted. The TQM factors that significantly influence the performance dimensions are determined through multiple linear regression analyses.

Findings

– According to the findings, the factors describing TQM implementation in service companies concern quality practices of top management, employee quality management, process management, employee knowledge and education and customer focus. Similarly, the performance dimensions revealed concern financial performance, operational performance, customer satisfaction and product/service quality performance. The TQM factors concerning customers, employees and top management significantly affect the performance dimensions.

Research limitations/implications

– The subjective data were collected from quality managers of a small-sized sample of companies operating in a European Union country and belonging to different services sub-sectors. Based on these limitations, future research studies are recommended.

Practical implications

– By focussing on specific TQM factors, a service company can improve its performance dimensions. In doing so, it can lay the foundations not only to survive but to be competitive in the current global scenario that is characterized by an economic downturn.

Originality/value

– This paper describes a reliable TQM model that can be implemented in the services sector and a means by which a service company can improve its performance.

Strategies for improving performance in the Italian local government organizations

Purpose

– The purpose of this paper is to understand what are the benefits in terms of improvement of performances that a local government organization (LGO) can achieve embracing ISO 9001 certification as a strategy. This research is aimed at contributing to the answering of this question by exploring the Italian situation, in particular organizations linked to Italian local government which provide services to the citizens.

Design/methodology/approach

– This research is based on mixed methodologies. First, a qualitative interview based on a semi-structured interview guide was administered to ten LGO quality managers. From this first qualitative inquiry 11 hypotheses to be validated have been stated. A survey has been carried out to validate the hypotheses. By means of two distinct questionnaires each hypothesis has been transformed into a specific question. The question is based on the Likert scale which allows using a χ2-test and non-parametric test such as Cramer’s V. The results from the scale were augmented by the interviewees’ annotations, which comprised suggestions and comments, to each question. The questionnaires have been administered over the last five years to 201 LGOs.

Findings

– From the findings it seems that ISO 9001 could improve performances in terms of effectiveness, such as citizens’ satisfaction, reduction of defectiveness and claims, as well as staff awareness of citizens’ needs. Moreover, ISO 9001 seems to have a negative effect on citizens’ participation, internal communication and teamwork as well as cost reduction. Controversial issues related to the bureaucracy of documentation and the external auditing process emerged.

Research limitations/implications

– The findings are linked to Italian LGOs therefore they need further validation in other European countries where LGOs are managed in a similar way.

Practical implications

– The implications of this research are useful for consultants and managers who want to understand what the benefits and limitations of the ISO 9001 certification are in the LGOs. The results are also useful for local government managers and practitioners who are weighing the pros and cons of ISO 9001 certification.

Originality/value

– The paper discusses in a quantitative way the benefits of ISO 9001 certification process on the performances of LGOs opening an interesting debate on the topic.

ISO 9001 overall performance dimensions: an exploratory study

Purpose

– The purpose of this paper is to validate and assess the performance dimensions reflecting ISO 9001 benefits in service companies and to determine their relationships.

Design/methodology/approach

– A research study was carried out in 198 ISO 9001:2008 certified Greek service companies. Data were obtained through a structured questionnaire and have been analyzed with exploratory and confirmatory factor analyses.

Findings

– Four performance dimensions reflecting ISO 9001 benefits are extracted and validated, namely, product/service quality, operational, market and financial performance.

Research limitations/implications

– The research sample is limited to small and medium-sized enterprises operating in a specific European country. Further research may confirm the findings of this study to other countries as well.

Practical implications

– By determining and evaluating the performance dimensions and their inter-relationships, the ISO 9001 certified service companies are assisted to select an appropriate strategy to further improve their performance and competitiveness. The suggested model can be also used as a self-assessment and benchmarking tool for managers and practitioners alike.

Originality/value

– The present study provides a comprehensive model of performance dimensions reflecting ISO 9001 benefits in service companies.

Effect of ISO 9001 non-conformity process on cost of poor quality in capital-intensive sectors

Purpose

– The purpose of this paper is to investigate whether there are differences in terms of the effect of the ISO 9001 non-conformity process on the cost of poor quality in different sectors. In particular, to investigate the effect on six sectors of companies which manufacture their products mainly through machines and plant (i.e. capital-intensive companies). An additional aim is to understand what the reasons for these differences are and why ISO 9001 has limitations in reducing the different categories of costs of poor quality.

Design/methodology/approach

– The paper is based on a questionnaire administered to a sample of 42 companies divided into six different sectors: chemical, pharmaceutical, mechanical, food, ceramic and steel. Respondents were asked to give a percentage score for the contribution the ISO 9001 non-conformity process makes to the reduction in total cost of poor quality and to its categories: scrap, rework, machine stoppage, re-inspections, rejected products and recall cost. A one-way Anova test was applied to the means of the percentage scores to determine whether there are differences between the means of the total cost of poor quality and its categories. Qualitative comments and suggestions from the companies provided information that helped explain the reasons for such differences.

Findings

– The results of the research show that there is no difference within and between the sectors in the means of the total cost of poor quality and scrap cost, whereas there are significant differences in the means of the other costs of poor quality between the six sectors. The ISO 9001 non-conformity process has limitations in reducing the costs of poor quality and suggestions concerning the limitations of ISO 9001 in the Research and Development process emerge.

Research limitations/implications

– The generalizability of the research findings is limited because of the use of just six sectors of capital-intensive companies. Further research about differences in different sectors is needed.

Practical implications

– The implications of this research are useful for consultants and managers who want to understand what the limitations of the ISO 9001 non-conformity process are on the cost of poor quality in the six sectors. The findings clearly show how, together with ISO 9001, they should take into account other improvement processes such as periodic maintenance and revamping.

Originality/value

– The paper discusses in a quantitative way and for the first time the effects of the ISO 9001 non-conformity process on the cost of poor quality.