Just before we get too lost in the concepts and theories, could i just throw in some experience on this subject.
It is very often said that if you produce crap without ISO with ISO you will produce consistent crap.
My experience is that a ISO system can be implemented that results in very little year on year immprovement. I suppose none of us like to admit that such systems exist, but i suspect these are in the majority.
However this all ignores that there is usually a step improvement when ISo is implemented and many depts make an effort to tidy up long existent loose ends.
Incidentally my brief reading of the new ISO 9000/2000 makes me think that they are getting more serious and insisting on more Continuous Improvement.
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Andy B