Benefits
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.
Past Data
While the current version of ISO 9001 is significantly less stringent than the 1994 version, published studies illustrating the benefits of ISO 9001:1994 implementation and/or registration were 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 products 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 my experience, those types of results are rarely being seen under the current version of ISO 9001 & AS 9100. In order to achieve these types of results, a company would need to move beyond ISO 9001 / AS 9100 and implement Lean Six Sigma.