ISO 9000 as a Cost Center

Marc

Hunkered Down for the Duration
Staff member
Admin
#1
From: ISO Standards Discussion
Date: Thu, 13 Jan 2000 08:35:25 -0600
Subject: Re: Consultant as Management Rep /../Taormina/Leben/Kozenko

From: [email protected]

> The thought of ISO900X as a
> profit center is certainly intriguing and could pump new life, i.e.,
> attention, into our quality system. What shifts need to begin in
> order to advance beyond simple compliance to ownership (and increased
> profitability)?

I'd suggest learning more about the concepts of "Cost of Quality" and you can try that on your next internal audit cycle by "estimating" a cost attributable to a select number on nonconformities. Spread them around so it doesn't look like you're doing anything but trying to elevate the Quality System, and if you can't support the logic behind the cost in terms everyone will understand, don't use it as an example. A typical one that I've seen that "works" is a simple calculation of the cost of a letter responding to a customer complaint, which you might think is cheap until you perform the calc's and discover that it's enough to take the staff to lunch. Once you have some measurable "dollar related" results to show at Management Review, it is hopeful that Management will figure out a way to reward subsequent improvements, which is one way Management can gain "ownership" across the board, top to bottom.

David K
 
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