The benefits of ISO certifications
"Interviewing Innovators" is R3NDER's newest project - A series in which we are going to interview experts from different industries to share brilliant ideas and services that can accelerate and enhance the product development journey.
Our first interviewee is Ken Neill, Area Manager at IMSM, a leading organisation on ISO standards.
You probably have heard about ISO certifications and standards. They're an important tool to boost credibility and demonstrate that your product or service meets your customers' expectations.
In this interview, Ken answered questions about different types of ISO, benefits and how businesses can have an ROI by investing in them.
R3NDER - What are ISO standards, and what's the difference between ISO management system standards and products standards?
Ken Neill - First of all, the ISO Standards organisation is based in Switzerland. It was formed in 1947 with a mission to ensure that products and services worldwide are safe, reliable, and of good quality.
Their technical committees have now developed over 23,000 standards. There is a standard for almost everything you can think of. Some of those are Management System Standards, which is the area I work in. These standards require certification by an independent third-party certification body.
The most widely used and, probably, best-known standard is ISO 9001, the basic quality management standard. It looks at the context of a business and the needs of all interested parties to that company. It considers risks and opportunities, sets objectives and puts in place a set of policies, processes and procedures to make sure it can deliver consistent and high-quality products or services. The standard is based on a “Plan – Do – Check - Act” cycle for continuous improvement.
Product standards are more about the design specification for products. One example is ISO 7810, the standard for bank cards. It defines the dimensions and other physical properties of the cards.
R3NDER - What's the importance of quality management standards?
Ken Neill - It’s important for a business to have standards because they demonstrate to prospective clients that you have certified management systems in place, which are audited annually by an independent body. It reassures them that you can meet their requirements and expectations.
R3NDER - How can product-related businesses benefit from ISO management system standards?
Ken Neill - All businesses can use ISO Management Standards, but there are some specific standards for certain industries. Medical devices, aerospace and automotive industries are some of them. There are specific standards for those activities, and in some sectors, it's an essential requirement that you have the standard for that industry.
For instance, a manufacturer couldn't put medical devices into the marketplace unless the company has ISO 13485 certification. Similar for aerospace and automotive industries, there are specific standards for those.
For any other manufacturing sectors, ISO 9001 can be used and delivers higher efficiency across the operation.
There are also environmental standards. They can reduce a company's carbon footprint and prove their green credentials to potential clients.
ISO 45001, for example, promotes a Health & Safety culture throughout a business.
Any standard can apply to any business, and any non-conformances within the operation trigger a root cause analysis with actions taken to prevent recurrences, so processes are being continually improved.
R3NDER - Do businesses have an ROI by investing in ISO management system standards? How do you measure that?
Ken Neill - Yes, let's go back to the basic quality standard ISO 9001 (and most of the standards are based on the same structure as that one). Clause 9 of that standard is about performance evaluation, so procedures are put in place to monitor and measure performance.
A manufacturing company might set targets for increased production levels, fewer rejects at the end of the production line, and maybe a reduction in warranty claims. With the environmental standard, the target could be to reduce energy costs and reduction in waste.
Health & Safety could measure absenteeism and also aim to reduce insurance premiums.
Businesses can also benefit from higher levels of customer retention through having the standards.
Maybe of greater value but harder to quantify are the time savings that could be achieved through streamlining the processes. The whole business runs much more smoothly. Managers spend less time firefighting and have more time to drive the business forward.
Businesses shouldn't look at standards as a cost but as an investment that really will provide increased benefits year on year.
Watch the interview:
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