ISO Implementation

ISO Implementation

ISO 9000 was first published in 1987 by ISO (International Organisation for Standardization).[11] It was based on the BS 5750 series of standards from BSI that were proposed to ISO in 1979.[12] However, its history can be traced back some twenty years before that, to the publication of government procurement standards, such as the United States Department of Defense MIL-Q-9858 standard in 1959, and the UK’s Def Stan 05-21 and 05-24. Large organizations which supplied government procurement agencies often had to comply with a variety of quality assurance requirements for each contract awarded which led the defence industry to adopt mutual recognition of NATO AQAP, MIL-Q and Def Stan standards. Eventually, ISO 9000 was adopted as a suitable option, instead of forcing contractors to adopt multiple – and often similar – requirements.[13]

In addition to many stakeholders’ benefits, a number of studies have identified significant financial benefits for organizations certified to ISO 9001, with a 2011 survey from the British Assessment Bureau showing 44% of their certified clients had won new business.[14] Corbett et al. showed that certified organizations achieved superior return on assets[15]compared to otherwise similar organizations without certification.[16] Heras et al. found similarly superior performance[16] and demonstrated that this was statistically significant and not a function of organization size.[17] Naveha and Marcus claimed that implementing ISO 9001 led to superior operational performance in the U.S. automotive industry.[18] Sharma identified similar improvements in operating performance and linked this to superior financial performance.[19] Chow-Chua et al. showed better overall financial performance was achieved for companies in Denmark.[20] Rajan and Tamimi (2003) showed that ISO 9001 certification resulted in superior stock market performance and suggested that shareholders were richly rewarded for the investment in an ISO 9001 system.[21]

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