Benefits

Public Domain image. Obtained from http://www.clker.com/clipart-24937.html Published studies illustrating the benefits of ISO 9000 implementation and/or registration are common. One such study, conducted as a joint survey by the AIAG (Automotive Industry Action Group) and the American Society for Quality - Automotive Division — and based upon over 600 responses—was presented at the American Society for Quality 1997 Quality Conference. This study, consistent with most, indicated the following average improvements:

Metric: Average Change % Improvement:
PPM defects 3345 to 1698 Down 49%
Product Returns 749 to 346 Down 54%
Warranty Costs $700k to $667k Down 5%
Scrap % 4.3% to 3.7% Down 14%
Rework % 19.1% to 24% Up 26% *
Total Cost $94.2k to $44k Down 53%

* Many companies will experience increased rework when the Quality Management System (QMS) is first formalized and improvements begin. This indicator reflects defective product that previously would have been passed on to the customer. As improvements are implemented and system refinements take place, this number will decrease as well.

In addition, Dun and Bradstreet reports:

  • 85% of ISO 9001 registered firms report external benefits
    • Higher perceived quality
    • Greater customer demand
  • 95% report internal benefits
    • Greater employee awareness
    • Increased operational efficiency
    • Reduced scrap expense

And an Irwin Professional Publishing survey revealed:

  • 30% of registered companies experience increased customer demand.
  • 50% of registered companies have decreased number of customer audits.
  • 69% of registered companies have a competitive advantage in their market.
  • 83% of registered companies products have higher perceived quality in the marketplace.