Mahalli İdareler Teknoloji Araştırma Geliştirme Derneği

Local Administrations Technology Research And Development Association

 T R      ENG    RUSS    

          YAYIN ŞUBEMİZ

 

  YEREL DÜNYA DERGİSİ

 

 

 

 

 

 

A RESEARCH STUDY ABOUT THE BENEFITS OF

ISO 9001 QUALITY GUARANTY CERTIFICATE ON INSTITUTIONS

 

Asiye Yüksel

MITAGED

 Kocaeli University Hereke-Ö.I.Uzunyol MYO TURKEY

 ABSTRACT

 Today expectations of customers towards the product quality not only have varieties, but also they increase constantly. The fact that the institutions, whose target is to meet these expectations, present high performance and increase this performance constantly has been an inevitable condition for them to exist. Quality is a process that increases the variety, innovation and functionality of products and services and that necessitates the mentioned increase constantly. Some specific conditions and standards are needed in order to be successful during this process. Handling this need within the scope of quality guaranty provides the institutions with some advantages.  Quality guaranty includes all planned and systematic activities towards providing the conditions specified for the quality of product and service.

 ISO 9001 is a quality guaranty model used with the aim of the evaluation of the quality system. This standard model both gives guaranty to the purchasers about the quality guaranty and provides advantages through the issues of decrease in cost, increase in performance, efficiency, decrease in customers’ complaints and market growth.

 That what kind of changes the institutions, endowed with ISO 9001 quality guaranty certificate, have experienced about the issues of cost, performance and efficiency, which are the advantages of having this certificate, have been analyzed and the results acquired have been explicated in the scope of the study to be done.

 

Introduction

 In today’s global world, the first step to reach global standards is to adapt quality understanding, experience the quality and practice sustainable quality. Sustainability of the institutions is also evaluated through their commitment to the concept of total quality management. Institutionalization and sustainable management are based on efforts of total quality management. Total quality management begins with a strategic decision. Simply introduced, this decision constitutes one of the most important elements of sustainable competitiveness through global conditions.

 Quality management system reflects the activities and sources of the institution. It responds the changing needs by developing with the institution. Understanding the quality management system and running it by meeting the customers’ needs is a base for continuation of the institution. Certificate of quality management system has a considerably big effect on the institution. Adaptation of the quality management system should be the institution’s strategic decision. Planning and implementation of the quality management system of the institution are affected by various needs, special objectives, the products presented, processes and size and documents of the institution. (Sale, 2005) Even though quality management system is standard, it reflects the original dynamics of each institution. This potential is one of the most important elements of the institution’s keeping the dynamic changes alive. It is possible to see some of the benefits of this certificate in advance within the companies.  For instance, ISO 9001 Certificate gives way to the international markets. Other benefits are gained by careful planning and stable practice. With the certificate, the institutions shall gain an efficient quality management system, market advantage, security, process excellence, zero error, decrease in cost, increase in motivation and superiority in measuring and assessment. A quality system documented both increases communication and coordination and provides integration of the activities. Furthermore, the problems to be experienced in the institution decrease by preventive control, standardization, conscious of quality, coordination and participation. Quality system increases the coherence of performance and registration of the works.  

Most of the managers believe that a radical change is necessary and they should be evaluated thoroughly again since there is no possibility to work with former methods. Several managers also observe that after the Total Quality System they have a different understanding of management, tend to improve the processes more, produce more qualified goods and decrease the costs of services, satisfy their customers more, become more innovative and get bigger shares in the market day by day (Weaver, 1997).

 The way to compete within global markets is to produce qualified goods and services in accordance with the standards. In recent years, the customers’ awakening about security and values of cost and their reflection this consciousness to the product demanded cause institutions to adapt the Total Quality Management. Several countries try to develop their own quality system standards in parallel with the importance of the topic.

 ISO 9001 Quality Guarantee and Management System both improves the quality in services and products and decreases the cost and assures their customers by illustrating them that they work in a system which puts quality under guarantee with the aim of certificating their standard works (Kavrakoglu, 1993).

  Concept of Quality Guarantee

Quality guarantee is planned and systemically done processes in order to assure that a product or service fulfills defined quality/performance signs completely. SWOT analysis and self-evaluation to be done for institutions and departments, development plans or strategic plans within the scope of this self-evaluation are the principal elements of quality guarantee system. This is based on the certification of standards of all the processes of the product or service and the duties and responsibilities of the employees thoroughly, training of the staff , awakening them about the quality and maintaining the quality by using the least sources within the planned stage. Unless the needs of customers are met completely and in the way specified before, quality guarantee system is not regarded as defined. For this reason, quality guarantee, except the related units of quality control, includes all the stages and processes until a product or service reaches the last user. This prevents unexpected costs when the company presents a product or service suitable for the expectation of the customer. Quality guarantee is evaluated as an objective comprising the whole company today. Therefore, quality policy of a modern company should be established by parent management as it is the same with the finance and staff policy, and instructions and activity plans intended for all the stages of the product or service should be built in order to practice the established quality policy.

 ISO 9001 is a quality management system model used for both composing a quality system and evaluation of the present quality system. Quality guarantee systems are the warranty that the customer shall not buy a defective product. This is only possible with the process control, not the product control. ISO 9001 standards require adaptation of quality not only during the final product or manufacturing process, but also during all the processes from the company’s quality policy to its management systems, and participation of the employees. The models introduced by these standards pledge to give quality guarantee to the customer on one hand, and provide advantage to the institution about cost, efficiency and performance on the other hand. With this aspect, ISO 9001 quality guarantee certificate contributes institutions to establish and develop the most suitable quality management model for them.

 ISO 9001 is feasible in small, middle and large scale companies. ISO 9001 Quality Management System, which gives pace to institutionalization by standardizing the quality of manufacturing and/or service and management style, aims at manufacturing products and services in accordance with the expectations and needs of the customer (Ugur, 2005).

 There are three reasons for companies’ applying for quality guarantee certificate. First one is that some companies became aware of the benefits of constituting quality guarantee system. These companies approve that their works are feasible by applying for certification institutions and they use the document given as a competition vehicle (Ugur, 2005). Institutions adapting ISO 9001 Quality Management System Guarantee decrease their weaknesses with the superiorities they determine and have the chance to take preventive measures by recognizing the opportunities and dangers on time.

Globalization of market conditions today and operating the production factors illimitably have made the concept of quality in a more forefront position than ever. About 20 years ago, quality was related to only the product, but today it has become a part of our lives in all aspects. Quality reminds the values such as quality of product, quality of service, quality of organization, quality of society and quality of life.

 Change and development is a fact that can not be prevented and limited in any way. Fast change in business world puts the concept of quality in a forefront position. Variation of products and services during this fast change process, liberalization of international commerce, disappearing the commercial borders, technological advances and the new competitive conditions together with these advances increase the importance of total quality as well.  The idea “I sell what I produce” has to replace “Produce according to the needs of customers” today. In this situation, the only condition to provide constant excellence in competition is the customer. In order to satisfy the customer, the products and services suitable for the needs and expectations of the customer should be introduced to the market in a low cost and in a qualified and fast way by determining these needs and expectations. Quality, innovation and change should be evaluated all together in order to provide the mentioned conditions.  

ISO 9001 is a vehicle which establishes a preventive control mechanism against lack of quality within all the processes affecting the quality in an institution, and provides all the necessary technical and administrative procedures to be constituted and used for coordination among man, machine and knowledge factors at the most appropriate quality-productivity-cost combination during these processes, in other words which has the feature of conformity with international standards providing quality guarantee.  

Development of the Quality Guarantee System

 ISO 9000 series standards, meeting international quality needs and accepted by several countries in the world, became common in 1987. These standards are the synthesis of the previous years’ system standards and are very similar to them. However, the distinguishing element is that quality guarantee in the past were checked for several times meticulously and that it is a really expensive system.

ISO 9000 is a base model for the evaluation of another organization’s Quality Guarantee System and for development of a Quality Guarantee System suitable for the conditions of the company. Being suitable for this model means that the company has a quality guarantee system in accordance with international standards accepted by several industrialized countries.

 According to the definition of ISO (International Standards Organization), ISO 9000 series consist of the standards below.

 ISO 9000- Quality Management and Guide for Selection and Usage of Quality Guarantee Standards. 

ISO 9001- Quality Systems- Planning/ Quality Guarantee model for development, production, facility and service.

 ISO 9002- Quality Systems, Quality Guarantee Model in Production and Facility.

 ISO 9003- Quality Guarantee Model in the final check and experiments.

 ISO 9004- Quality Management and Elements of Quality Systems-Guide.

 ISO 9004-2- Guide for Services. 

ISO 9005- Quality Dictionary.

9001, 9002 and 9003 have a characteristic of “standard” and the activities they comprise are different. 9004 has an essential characteristic as a “summary” of Quality Guide course book. 9000 is a kind of “guide” explaining how to use these standards.

  

Benefits of Quality Guarantee System

 Instead of seeking for the mistakes made during the classical quality system, Quality Guarantee aims at eliminating the sources of the mistakes. The benefits of this are as follows: 

  • Sustainable quality
  • Improving the management control and total efficiency of the organization
  • A better-designed product
  • Decrease in the complaints of the customer
  • Opportunity of a better rivalry
  • Customer’s confidence
  • High efficiency
  • High motivation of employees
  • Minimum cost
  • Maximum guarantee

 

Certification of Quality System

 Today the companies give importance to the quality guarantee systems in Turkey and in the world and they certificate it with ISO 9000. ISO 9000 certificate plays an efficient role for continuation of quality guarantee and development of the company as well as it has been started to require during commercial operations in all over the world.

 Another important duty of the companies which give importance to quality and reflects this importance to their companies systemically is to certificate these systematical activities. Because the easiest way to convince the customer of the truth of quality is certification of the system. An institution or a company should carry out its quality system works according to ISO 9000 standards.

 

Objective of the Research

 Objective of this research is to study and interpret what kinds of changes the companies with quality guarantee experience related to decrease in cost, increase in performance, efficiency, decrease in customers’ complaints, increase in market share, employee satisfaction, training, which are all the advantages of having this certificate.

 

Scope of the Research

 This research was implemented within 138 industrial and service companies with ISO 9001 Quality Certificate in Istanbul and Kocaeli. The students of Business Management Department in our school, who took Total Quality Management lesson, were told the aim of the study and they were directed to interview and implement the inquiry. Interviewer students asked the views of Quality Authorities of the companies with ISO 9001 Quality Certification.

 Constituting the Criterion of the Inquiry

 Questions were prepared whether the companies with this certificate experience and gain the benefits and transformations resulting from having ISO 9001 Quality Certificate and asked to the quality authorities of the companies with the certificate, tested and some of them were corrected according to the opinions of these authorities and the questions were turned into an inquiry. While the inquiry was being prepared, questions’ being in conformity with the general rules and procedures in respect of planning and implementing and, also, opinions and suggestions of related authorities are taken into consideration. 

Collecting the Data

 In this stage, 144 companies in Kocaeli and Istanbul are interviewed. Of these companies, 6 inquiries weren’t assessed, because they could not answer the questions adequately.

 Assessment of the Inquiries

 

SPSS 11.5 statistical program was used while the data were being assessed. Correlation analysis and t test, which display the relations among the variants including the average and standard deviations of the variants, frequency tables related to general peculiarities of the people interviewed, were carried out. Analysis made is explained as follows:

 

Activity Areas of the Companies in the Inquiry

 

                Table1. Activity Area

 

Period of receiving the certification for the companies in the inquiry

 

Period

Frequency

Percent

1-6 months

49

35,5

6 months 1 year

45

32,6

1-2 years

23

16,7

3 years and more

12

8,7

Total

129

93,5

System

9

6,5

Total

138

100,0

                              

                Table2.  Period of Receiving the Certificate

 

 

The problems of the companies in the inquiry during the period of receiving the certificate

 

 

Problems

Frequency

Percent

No problem

61

44,2

Lack of education

 21

15,2

Problem of conformity

18

13,0

Problem of documents

12

8,7

Lack of employees

7

5,1

Not respecting the certificate

4

2,9

Other

2

1,4

Total

125

90,6

System

13

9,4

Other

138

100

                      

             Table3. The problems during the period of receiving the certificate

 

Sample t Test

 

In the inquiry study, all the signs are above the average value of the scale expressively (p<0,001). In other words, it is obvious that the companies with quality management certification experience an increase in production and market share, employees’ satisfaction level, and the period of training, furthermore, it is observed that customers’ complaints,  work process and cost decrease considerably.

 

 

N

Mean

Std.devi.

Mean dif.

t

Sig.fik.

1

 120

4,5667

,96783

1,5667

17,732

,000

2

133

4,5113

1,00466

1,5113

17,348

,000

3

129

4,7287

,73688

1,7287

26,645

,000

4

126

4,3016

1,24110

1,3016

11,772

,000

5

128

3,9219

1,40084

,9219

7,445

,000

6

116

4,2586

1,32613

1,2586