To ISO, or not to ISO, that is the question.
Large companies in general believe that ISO 9001 certification is a must-have. Not only would they have very good Management Systems in place that assure excellent quality practices, but would also attract customers. Which is true. ISO has become synonymous with good quality service and products. So, all's well that ends well. Or is it?Whereas large corporations could easily absorb the cost of implementing and maintaining an ISO 9001 Quality Management System, smaller companies simply
can’t afford it. Don’t get me wrong, I believe that ISO is great to have in any organization, but large companies have mostly made it a must-have for all, and will not deal with suppliers that are not ISO certified. Where does this leave the smaller operators? They close their doors. In South Africa where unemployment is at 34%, this is a major problem.
Without including the cost of additional time and resources and the cost of implementing further standards, it would cost a large corporation upwards of R200000 to implement ISO 9001. The smaller the company the less the cost, but my estimate is that it would cost no less than R100000 for full implementation in small to medium enterprises.
To let small businesses have a piece of the pie, large companies in South Africa must change their belief that all is well only when suppliers are ISO-certified.
If small companies can produce what is required, the large companies should send quality teams to assess the management systems, or lack thereof, at the potential small supplier. Assist them in implementing a system that will fulfill your company and customer requirements, and audit that system regularly. Thus creating a balance in the relationship between small and large companies and minimizing unnecessary job losses. No ISO certification is then required for small companies and it’s a win-win situation for all the stakeholders.
Any ISO-certified company would have to do Supplier Audits in the course of maintaining their ISO certification, which means no additional cost to the large company.
To the management of these large enterprises, do your bit to stop small businesses from closing their doors. In the process, you will reduce your own production costs and help an economy that is in free fall…
Pros and cons of implementing ISO 9001.
Pros | Cons |
Improved Processes | Cost of Additional Time and Resources |
Increased Customer Satisfaction | Consultant Cost - R70000 |
International Recognition | Training Cost - R40000 |
Competitive Advantage | Certification Cost - R100000 |
| 3-Year Recertification Cost - R100000 |
| The scope of ISO 9001 is limited to Quality Management Systems. This leads to additional costs when implementing ISO 14001, and ISO 45001 |
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