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The Usefulness of ISO 9000

By Philip B Crosby

Chairman, Philip Crosby Associates II

 I would like to begin by complimenting those who put 9001:2000 together. It contains a great deal of useful information and is assembled in a direct way. The approach has been thoughtful and has obviously taken advantage of what has been learned from previous issues. I didn’t see anything about a "purpose" or what it is designed to achieve, but it obviously is planned to help organizations do a better job of quality management.

The problem of not having an agreed "purpose" is that people then use it anyway they wish. Those who promote it can assign all kinds of curative powers to it in the search of profit. I would be much happier if the document were treated as a book on quality assurance. Its purpose would be to "provide quality assurance professionals with a guide of requirements and procedures to assist them in establishing programs in their organization".

There is a precedent for the proper use of all the various ISO 9000 versions and additions that have been produced. The Accountants have what they call the Generally Accepted Accounting Principles (GAAP). Companies adopt these procedures and polices as the way they handle accounting. The purpose here is to have a standard way of measuring, controlling, and reporting about financial status. However they do not confuse this with Financial Management. That has to do with the strategy and decisions about investment, compensation and other factors of finance. Also the Accountants do not represent GAAP as being a factor in producing profitability for the organisation.

The way ISO is presented should be more in line with GAAP. We can call it Generally Accepted Quality Assurance Principles (GAQAP). This is my major quarrel with ISO 9000 and its brethren. But this article is about ISO 9001:2000. I have a few problems with the document and will suggest ways to overcome them later in the article. My concerns are:

       

    1. The key ingredient is requiring that organizations install and maintain a quality management system. But such a system is not defined or described. This is like telling someone they need to eat a "proper diet" and then requiring that they figure out just what that is.
    2.  

    3. There are many platitudes that are not doable or measurable, such as:
    4. - "The documentation of an organization’s quality management system should be defined in a manner that is appropriate to its unique activities".

      - "Top management shall demonstrate its commitment to creating and maintaining awareness of the importance to fulfil customers’ requirements"

      - "The organization shall determine and provide in a timely manner, the resources needed to establish and maintain the quality management system".

       

    5. There are many cliches, like "customer requirements". Organizations make their own requirements based on what it takes to run the company and what they see as the customer’s needs. Only Defense Departments send along a list of requirements.
    6.  

    7. The document is about two thirds too long if the intention is for senior management to read it. It is probably OK for the professionals but most of it reads like the by-laws for a home-owners association.
    8.  

    9. There is no requirement to calculate the price of nonconformance. This is the most important aspect of quality management in the eyes of the leadership.

Regardless, the specification does have an air of authority about it, which a diligent Quality Manager can use to build an operation. However it will be hard to get management to take it seriously unless they are first educated to understand how it fits into their operational process. Nothing can be laid on people successfully unless they have been prepared to receive and understand it. That is why the military insists on training people before they are assigned to duty; that is why physicians have to go to graduate school before they can treat patients; that is why employees have an orientation process before they can do any work. They are not going to understand or utilize this specification unless it is placed in the context of an overall management philosophy. Everyone I ask: "Why are you doing ISO?" replies that the customers require it. I don’t hear much about doing it in order to improve the organization’s integrity. Either they do not really understand it or the whole idea of having Generally Accepted Quality Assurance Practices (GAQAP) is misplaced.

Let me explain why I think this way and what I feel can be done to obtain the maximum value from ISO 2001:2000. It could be the foundation of a new level of achievement in quality management. It could also amount to nothing if management does not take it seriously.

I am writing from the real-world view of one who was an on-line quality professional beginning in 1953 as an assembly line inspector/tester. I served as a quality engineer; reliability engineer; group engineer; quality manager; and then as corporate vice-president of ITT. I joined this $20 billion dollar revenue company with 500 manufacturing and service units in 46 countries in 1965. Since 1979 I have been the founder and Chief Executive of an organization teaching quality management philosophy and practice to thousands of companies worldwide. What we teach is what I created and wrote about through those years of experience where I was required to create a corporate culture in which the integrity of the products and services would be a routine achievement.

During my practitioner years the biggest problem always was the feeling of management, supported by conventional quality wisdom, that quality could be achieved by a systematic approach. It was thought that if only the Quality Department could put one together from all the published material, then quality would come about. This false hope led to the development, by the U.S. Department of Defense of Mil Q 5923 ("The control of nonconforming material"), and Mil Q 9858 which was a Quality Assurance specification. These were embellished by system specification created by large corporations, which they then imposed on their suppliers. All of these were carefully audited and certified by the resident Quality practitioners. I always found them to require activity well below what we were doing anyway so there was no problem in meeting the auditing sessions.

 

The problems with these information packages were two: first it was assumed that the Quality Department was responsible for making all those things happen; and second there was nothing that said work had to be done correctly. The world of Acceptable Quality Levels was built into them. The result of all this was that product and service quality in the companies who lived to these documents was unreliable. These systems were only tolerable where there was little competition and where the customers were compliant. All this led to the US and Europe having large problems with Quality in the 1970s. The US lost its home electronics industry and a third of the automobile business before they got the right message.

In my 14 years at ITT (1965-1979) I had the opportunity to install a quality education capability that helped management of all levels worldwide have a clear understanding of quality. They understood their personal role in bringing it about. Quality professionals world wide inside ITT were provided with the materials and instruction to get the educational information installed in everyone’s minds. They were taught how to lead their Unit into defect prevention. It became the corporate philosophy, understood and practiced by management and employees at all levels. The corporate Quality Policy stated:

"WE WILL DELIVER DEFECT FREE PRODUCTS

AND SERVICES TO OUR CUSTOMERS AND CO-WORKERS, ON TIME".

We had the philosophical base identified as what I called "The Absolutes of Quality Management". This later formed the base of the Quality College.

       

    1. Quality is defined as conformance to requirements. (I was pleased that ISO 9000 used this).
    2.  

    3. Quality comes from prevention. (This is contained in 9001:2000).
    4.  

    5. Quality has a performance standard of Zero Defects.
    6.  

    7. Quality is measured by the Price of Non-conformance (PONC).

(PONC in ITT was 22% of revenue when we began and it reduced to 6% in a few years. We expected each of our units to be the recognized quality leaders in their business).

In 1979 when I wrote "Quality Is Free: The Art of Making Quality Certain" (McGraw-Hill), I left ITT to form Philip Crosby Associates, Inc. a quality management education firm. Our early clients were IBM, Motorola, Xerox, Honeywell, 3-M, Milliken, Chrysler, General Motors, ICI, and several hundred others worldwide. They were joined as we went along by service, government, and administrative organizations in Insurance, Healthcare, and Agriculture. All of these companies came to us on their own. We had no sales people. We insisted that senior management come to classes first or we would not accept them as clients.

We learned that most of our clients had quality systems based on the conventional Quality Assurance wisdom of the day. However they were not effective since they had little influence on how the organization was managed. As a result the quality professionals spent most of their time doing corrective action and customer service. AQLs were standard. They expected to deal with defects before and after the sale. We taught them about doing the right things right the first time.

All of the companies who implemented this quality management approach (based on the Absolutes) had significant and immediate improvement. We put many courses on videos, with supporting workbooks, and taught client personnel to facilitate the courses inside their company. All this is done in many languages, and it is always effective. One of the reasons is that the companies decide to do this on their own as I mentioned. This means that they expected to do the work themselves, not to have some system or consulting group do it for them. We actually did not physically visit most of our clients on site. The management came to our classes and we taught them to facilitate the specially prepared courses inside their company.

This last point brings me to my original problem with ISO 9000. It was put forth to executives as something that would solve their problems with quality and provide them the security of conforming products and services in the future. A whole system of "certification" endorsed this concept. This is the same way Mil Q 9858 was brought out in the 1950s. Everyone who does business with the U.S. Department of Defense is certified to it, or a lower level version. DOD hardly ever receives any products or services that conform to the purchase order. This costs them billions of dollars every year, but they keep on with this approach.

So my basic problem with ISO 9000 is the way it is used and what it promises. Many companies all over the globe are disappointed in what they have received from their investment in time and money. It is not really Quality Management; it is Quality Assurance and should be used as such. Quality Management is how we drive the car, QA is about the vehicle’s owner’s manual and other instructions for operations. Understanding or owning the manual does not guarantee good driving. All of those folks who drive poorly have the same driver’s license as those who drive well. "Certification" is not enough.

ISO 9001:2000 has the opportunity to become very useful as long as those who utilize it are properly prepared and then led through it. The world of business has a desperate need to become more reliable. Every where I go executives speak of how they desire this reputation for their company. This specification can be a big help, but it needs to be positioned properly and it needs to be wrapped in education. It has to be part of an overall approach to help organizations become reliable. ISO 9001:2000 cannot stand on its own.

A reliable organization is one where all the transactions are completed correctly each time, and relationships with employees, suppliers, and customers are successful. This is the goal that senior management appreciates and supports actively: Here is what has to happen to produce a reliable organization.

       

    1. Policy – the management must state that they want "all transactions completed correctly every time, and all relationships to be successful".
    2.  

    3. Education – everyone in the organization needs to be taught a common language of quality management, based on the "Absolutes".
    4.  

    5. Requirements – ISO 9001:2000 serves as a foundation for building clear and complete requirements and transactions.
    6.  

    7. Insistence – management, through personal example, insists that all this be done.

A marriage of Quality Management Education, based on the Absolutes, and the Quality Assurance requirements of ISO 9001:2000 would produce the opportunity for Reliable Organizations. They could compete properly in the world economy.

The result of this combination would be companies who actually improve their product and service conformance; have clear requirements that are routinely accomplished; and in real money measurements reduce their costs while significantly raising profit levels.

Having a wonderful gathering of information is not enough to cause permanent improvement or achievement. We also have to know what we are doing. Management looks to us as Quality Professionals to help them become reliable. Their future depends on this happening; our future depends on them being successful in that quest. There is competition all over the world. The company that succeeds is known by reputation and performance as being "useful and reliable". The reliable part of that requirement is ours to give. All we have to do is be serious about it.

Written for ISO News Magazine – Oct-Nov 1999 edition

 © Philip B. Crosby 1999  

 

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