Archive for May, 2008

Benefits of an ISO 9001Quality Management System

Thursday, May 1st, 2008
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Performance Improvement Solutions for Your Business Needs May 2008
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  • Benefits of an ISO 9001Quality Management System
  • ISO To Develop Standard for Energy Management
  • Writing Checklist for Documents
  • Tax Deduction for ISO 9001
  • Training Courses
  • Greetings!

    Welcome to Sustaining Edge Solutions E- Newsletter

    Our newsletters provide guidance on operational and quality systems ISO 9001, AS9100, ISO/TS 16949, TL 9000, ISO 13485, ISO 14001, and others. This includes process improvement methods Six Sigma, Lean Enterprise, and other topics of interest to our readers.

    If you have any questions about the articles appearing in this issue, or you want to suggest topics for future issues, please let us know.

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    Benefits of an ISO 9001Quality Management System
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    What are the benefits of having an ISO 9001-based quality management system? Lets begin by looking at the benefits to your employees and the organization:

    Employee Benefits

    To successfully implement and maintain a quality management system, employees need to understand its value to them. The better they understand what’s in it for them personally, and how the organization also benefits, the more receptive they will be to the changes and work involved to make it happen.

    Employees benefit from the improved internal communication and top management support. Conformity with ISO 9001 means suitable and well maintained equipment, along with the training needed to perform their jobs. Procedures and instructions, where necessary, will be available to guide them in their activities. Employees will have a better understanding of their role in the system and their contributions to meeting objectives. This sense of order and control will carry over into clean and well-organized work areas.

    Since the organization will want to continually improve the system, employees will be encouraged to report problems and suggest improvements. As a result, they will be more satisfied and committed to the business.

    Organization Benefits

    The result of a conforming quality management system will be better planned and coordinated activities. Any problems affecting product quality are identified and effective solutions are implemented.

    Using the plan- do-check-act approach will lead to more efficient and effective processes and more productive employees. Higher quality products are delivered to more satisfied customers. As a result of your ISO 9001-based system and its well-defined policies, procedures, and information, the organization will be better managed for success. And the story only gets better, because your organization and its quality management system will be continually improved.

    Perceived Disadvantages

    Although we have been discussing the very real benefits of an ISO 9001-based system, you should be prepared to deal with its perceived disadvantages

    1. Difficult to implement; need a consultant

    ISO 9001 is just a collection of good, common-sense business rules. The difficulty factor depends on the state of your current management system.

    2. Organization will resist the changes

    If introduced properly, with clear explanations of how it will directly benefit them, your employees should become big supporters of the new system.

    3. Expensive to implement and maintain

    You can reduce costs by comprehensive planning and avoiding the urge to put more into the system than is required for certification. Improve from that base.

    4. Significant disruption to your business

    Make sure it is supported by top management as a high priority project and integral to the business; not a separate effort by the quality department.

    5. Yields unwieldy, ineffective documents

    Only write the essential documents. You can rely on trained, experienced employees to perform any undocumented processes.

    6. Cumbersome controls and bureaucracy

    Keep it simple. Only implement what the business really needs. It may actually make the organization a better place to work.

    Certification Benefits

    In addition to the previously covered benefits, having the actual certificate in hand provides additional benefits. ISO 9001 is the international language of quality. Certification may help your organization gain expanded access to world markets. Prospective customers may require certification as a prerequisite to bid on contracts. With the certificate in place, your organization will be ready.

    The ISO 9001 certificate may differentiate your organization from others in the marketplace and provide a competitive advantage. The certification mark recognizes a quality accomplishment that you continue to earn through successful surveillance audits. Display it with pride. And, don’t underestimate the value of independent system assessments by well qualified professional auditors.

    Due to its prevention focus, disciplined approach, and better controls, your organization may see an extra benefit of improved housekeeping and fewer accidents. As a result, you may qualify for lower insurance premiums.

    Maintaining Benefits

    Your organization will see some initial gains through the improved organizational focus and internal communications. These improvements, and other benefits, will be solidified by an active internal audit program and strengthened through the management review process.

    Remember, an organization can’t rest on its accomplishments. A quality management system will either improve or become less effective. The system will not stay in a steady state. You must listen to customers, meet objectives, stay conforming, and continually improve.

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    ISO To Develop Standard for Energy Management
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    The International Organization for Standardization recently approved the development of an international standard on energy management. The standard will provide organizations and companies a practical and widely recognized approach to increase energy efficiency, reduce costs, and improve their environmental performance by addressing the technical and management aspects of rational energy use. The standard is intended to be broadly applicable to various sectors of national economies, including utility, manufacturing, commercial building, general commerce, and transportation sectors, and therefore, could have influence on as much as 60 percent of the world’s energy demand.

    Following the examples of the ISO 9000 series on quality management and the ISO 14000 series on environmental management, the project committee ISO/PC 242-“Energy management,” will consider the development of a standard containing relevant terms and definitions, and providing management system requirements together with guidance for use, implementation, measurement, and metrics.

    The standard will be based on the continual improvement and plan-do-check-act approach used in ISO 9001 and ISO 14001 to aid compatibility and integration.

    The future standard is expected to:

    • Provide public and private organizations and companies with a well-recognized framework for integrating energy efficiency into their management practices
    • Assist organizations to better utilize existing energy consuming assets, thus reducing costs and/or expanding capacity
    • Create transparency and facilitate communication on the management of energy and promote energy management best practices, thus reinforcing the value of good energy management behaviors
    • Facilitate the use of energy management as a component of GHG emission reduction projects.

    For more information, visit The International Organization for Standardization.

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    Writing Checklist for Documents
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    When writing a procedure, keep in mind these questions:

    • What is the objective of process? Know its purpose before starting.
    • Which activities are part of scope? Agree on coverage of activities.
    • Who is responsible for these activities? Identify key process players.
    • What are inputs and who are suppliers? Identify inputs and providers.
    • What are outputs and who are customers? Identify outputs and recipients..
    • What is referenced as an information source? Identify related documents.
    • What is the logical series of steps? Organize the steps in a logical sequence.
    • How are the activities performed? Interview users and observe operations.
    • Which departments use the process? Know readers and users of the process.
    • What reports or records are generated? Identify records for the process. li>What forms are used? Don’t overlook forms used to collect information.
    • When and where is the work performed? Identify timing and location of work.
    • What products are covered by the process? Define its applicability.
    • What process documentation already exists? See if documents can be adapted.
    • What are the requirements of the process? Know user and organization needs.
    • What are the quality criteria? Identify the acceptance criteria.
    • What are the related procedures? Ensure compatibility with other processes.
    • Which tasks have or need instructions? Add or refer to needed instructions.
    • How might the process be audited? Be able to demonstrate conformity.

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    Tax Deduction for ISO 9001
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    The Internal Revenue Service issued a ruling in 2000 that allows businesses to take a tax deduction for the costs of implementing and maintaining ISO 9001 registration. Several organizations had petitioned the IRS to permit firms to deduct ISO 9001-related costs in a single year instead of spreading the expenses over several years.

    The IRS ruling stated, “Although ISO 9000 is voluntary, it increasingly is a contractual requirement for doing business with many organizations, both public and private, worldwide.” A prior unofficial IRS position paper had concluded all ISO 9000 costs had to be capitalized over a three year period.

    The costs of ISO 9001 are now viewed as satisfying the conditions for applying section 162 of the Income Tax Regulations: it is an expense, ordinary, necessary, paid or incurred during the tax year, and made to carry out a trade or business. The ruling that ISO 9001 registration is necessary was, in part, responsible for this policy change. “ISO 9000 certification does not itself result in the creation of an asset having a useful life substantially beyond the taxable year,” according to the IRS ruling.

    For more information, see: Internal Revenue Bulletin 2000-4. It states, “Cost incurred by a taxpayer to obtain, maintain, and renew ISO 9000 certification are deductible as ordinary and necessary business expenses under section 162 of the Code, except to the extent they result in the creation or acquisition of an asset having a useful life substantially beyond the taxable year (e.g., a quality manual).”

    In addition, see: Internal Revenue Bulletin 2004- 7. It states in Example 4 for business process certification, “Z corporation, a manufacturer, seeks to obtain a certification that its quality control standards meet a series of international standards known as ISO 9000. Z pays $50,000 to an independent registrar to obtain a certification from the registrar that Z’s quality management system conforms to the ISO 9000 standard. Z’s payment is an amount paid to obtain a certification of Z’s business processes and is not required to be capitalized under this paragraph (d) (4).”

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    Training Courses
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    To see the course description, schedule, and on-line registration click on the course title below. Courses are awarded Continuing Education Units.



    Understanding & Implementing ISO9001:2000

    ISO 9001:2000 Process Based Internal Auditor
    Documenting Your Quality Management System

    Understanding & Implementing AS9100B:2004
    AS9100B: 2004 Process Based Internal Auditor
    Documenting Your Quality Management System

    Understanding and Implementing ISO/TS16949:2002
    ISO/TS16949:2002 Process Based Internal Auditor
    Documenting Your Quality Management System

    Understanding and Implementing ISO14001:2004
    ISO14001:2004 Process Based Internal Auditor

    The Five Pillars of a Lean Workplace Organization
    Continuous Process Improvement
    Lean Six Sigma

    All courses can be delivered at your company. Don’t see a course, location, or date that fits your needs?

    Contact Us

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