Cost of Implementing ISO 9001:2000 - Difficult time finding hard numbers

[mrs]

I have had a difficult time finding hard numbers on whether or not a company is better financially after implementing ISO 9000. I need to show the following is true:

the bottom line benefits > the cost of implementation


I need to avoid soft numbers (although I don't believe they are soft) such as improved understanding of job duties, improved "efficiency" (unless the efficiency is measurable).

Where is the hands down best places to get numbers to support a strategic decision to implement the standard at a manufacturing organization?

Also, the best resource for a comparison of the benefits of ISO 9001:2000 to the 1994 standard.

We are not currently registered in either, and we do not have a "formal" QMS, but we do work statistical principles and data analysis to support process and management decisions.


mrs

 

[Randy]

There are no hard fast formulae out the. The cost of implementation v benefit has yet to be adequatley addressed because of the multitude of variables involved.

You can get some numbers on registration costs from asking Registrars for quotes, but the greatest costs will be the hidden ones (internal).

You can find out about training costs, costs of consultants, and some others by asking around.

I've seen numbers ranging from under $20K to the $100'sK+ depending on organization size, structure, problems, and a bunch of other issues.

Best guess....ask some folks and the SWAG it.

 

[D.Scott]

Unfortunately I can't remember which one, but one of the quality magazines (Quality Progress - Quality Digest) did a survey and published quite an extensive article on the results. Seems to me this was done about 3 or 4 years ago and leaned toward accreditation.

I didn't add it to my data files so I don't have quick access to the article. I will try to find it by searching their sites but I will be out of town for a while and will have to put it off till I get back. If anyone else remembers the article, maybe you can help.

Dave

 

[gpainter]

You see a lot of different figures. Most companies can get a close figure on implementation but not much on payback. Of course, all these figures will depend on the intent of the implementation. One figure that I have seen commonly is a payback of three years. I may have some info on the 94 and some on the 00, if found I will post.

 

[noboxwine]

Leave it to me to come in from another angle

The payback of any system is directly proportional to the degree of ONGOING management committment. ISO / QS / TS / AS /

BS

Slapping a certification on top of an already limp committment only starts you off $ 50-100 K in the red on the bumby road to business improvement. Show me committment and I will show you satisfaction across the board...........period.

Am I mad ?

 

[Roger Eastin]

There are threads in the archive that you can look at, so do a search. Also, remember at least in the US, your costs for implementing a quality system are tax deductible. Since these costs are significant, I imagine that the tax benefit is significant too.

 

[Claes Gefvenberg]

Re: Cost of Implementing ISO 9001:2000

mrs said:

I have had a difficult time finding hard numbers on whether or not a company is better financially after implementing ISO 9000. I need to show the following is true:

the bottom line benefits > the cost of implementation

mrs

Hi mrs, and welcome to the cove.

I'm quite unable to come up with any hard figures of course, but I'd like to look at this question from another perspective:

What costs can be avoided by (really) implementing a QMS? After all, we hardly ever get a bill for the things you *don't* do, even though they can be hideously expensive.

/Claes

 

[qualitymanager]

I think the articel D. Scott cited is from Quality Progress in 1997. if I get time over the weekend, I'll search home & see if I find it.

qualitymanager

 

[rrramirez]

Re: Cost of Implementing ISO 9001:2000


IMO you could structure the implementation cost this way:
1) Hiring a consultant as Team Leader
2) Training the implementation team
3) Internal employees % of dedicated time
4) Gap Analysis
5) Corrective Action Plan on 4)
6) Documentation efforts
7) Implementation plan
8) Pre-Certification Audit
9) Corrective Action Program on 8)
1) to 9) are internal activities. The amount of each item will depend upon the country, city or county where your organization is located.
The critical cost are in 1) 2) and 3)

 

[Andrej]

Benefit of implementing ISO 9001 can be found in the article:
ISO Quality Standard Provides Corporations With Substantial Financial Rewards
at
http://www.manufacturingnews.com/news/02/0830/art1.html

For more information on the as yet to be published paper, contact the study's authors, David Kirsch, of the U. of Maryland, or Charles Corbett of the Anderson School at UCLA

NOTE: E-mail addresses edited out for protection against spam bots.