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Reasons for the Decline of ISO 9001 Registrations in North America (circa 2010)

Marc

Hunkered Down for the Duration with a Mask on...
Staff member
Admin
I think the organization was short-sighted in believing a consultant who told them that adopting the elemental procedures was a good idea. Too bad they had such a bad experience--they have and had an excellent quality management system regardless of their certification. It was the awful procedures they adopted--procedures defining their QMS in terrible fashion, that led them to the conclusion that the system (as defined) was snake oil. (They were right.)
In all the years I did implementations, every one was to the standard, as evidenced by my QMS Implementation presentation. An elemental approach. Not one failed first audit registration. Not one had a "bad" experience.

I don't know how old you are, and I don't know how many implementations you have done. My bet is you are young and I also bet you haven't worked with both major corporations and "Mom and Pop shops of < 10 people.

I think if you want to show any credibility you should come up with some facts and figures rather than theories and anecdotal "evidence" for what you assert. You have already been shot down in the "process approach" threads.

My point here is that we're back to beating a dead horse. As I reviewed your posts recently, all I can see is your hyping "the process approach". I see no posts dealing with interpretations or requirements of the standard. It's like a one track mind/one trick pony. From your posts I can not even tell if you actually know and understand ISO 9001 (much less other, more "demanding" standards).

You registered here as "ISO 9001 Guy". So tell us. What was the first implementation you did - What year? What major corporations and companies have you guided through the implementation process? What facts do you have that show that implementation "to the standard" is any less successful than "the process approach" and please define the "process approach" in a manner that approaches my QMS Implementation presentation. Show us something that lends some credibility to your assertions. Show us an example implementation project plan.

My reason for jumping in here is I am really tired of your derailing threads to spout nonsense. The thread title is: "Reasons for the Decline of ISO 9001 Registrations in North America". Other than you there is not one other person who has posted in this thread in which it is posited that the decline of ISO 9001 registrations is in any way linked to a failure of companies to implement ISO 9001 according to a "process approach".

This is not to mention, even implementations "by the elements of the standard" necessarily require a company to evaluate and be able to show evidence of the the interactions of processes and their effectiveness. So - By default, every implementation requires a company to use what I know to be a "process approach", and always has.

The closest I can come to understanding what your "process approach" is, is that there were (and are still) some consultants and companies which implement ISO 9001 using canned procedures without regard to existing company processes. That is, companies and consultants who do not evaluate and show evidence of the the interactions of processes and their effectiveness. I believe this is rare, especially these days.

That said, I'm not at all a fan of ISO 9001. This is not because it is in any way "bad". It is because it is so basic. Over the years I did have many clients who would tell me a couple of years or so afterward that ISO 9001 did not effect any discernible, measurable difference with the sole exception in that because so many companies were requiring suppliers to be ISO 9001 registered (certified if you like) they probably got some business than they might have otherwise because of their certification. Or, that they did not lose business from their current customers due to their not having the certificate on their wall.

Also of note is that in my years of doing implementations I never had a client that could honestly say they were doing it solely to improve their business processes. When digging deeper, the few that did say that did admit that their reason for actually proceeding with the process was because their customer(s) were requiring them to be registered.

I did thoroughly enjoy doing implementations. The reason why had nothing to do with ISO 9001. It had to do with seeing a company take the time and spend the money to thoroughly evaluate their systems/processes, and as they did so they found places where they were failing and/or could significantly improve. Yes - Compliance with the standard was part of each implementation, but the "meat" was in their stepping back, so to speak, and looking at what they were doing, how they were doing it, and identifying their strengths and weaknesses. The important part was the value of their "self assessment" with respect to their processes/systems, and what they did to improve their existing systems.

In fact, about the only thing I consistently found in companies I worked with that ISO 9001 requires was not having an Internal Audit system. They all had some type of document control system, for example. I come back to ISO 9001 being "basics" of a business every time.

One of the things that I remember most was after the registration audit almost every one of them said how easy it was compared to their expectations, and it was always because they were already doing most if not all of what ISO 9001 required before getting involved in ISO 9001. The other comment that always came up was they were glad they did it because they took the time to evaluate their systems/processes and found places they could (and did) improve.

A few comments on my take as a by-stander today: Assuming ISO 9001 registrations are in fact declining, it is because it is becoming more obvious, as the years pass, that ISO 9001 *is* just basic, "good business practices". If a company learns anything from ISO 9001 it is they have to continually monitor their systems and improve and they don't need ISO 9001 registration to do so. ISO 9001 often serves as a "wake up" call, and I associate it with a student taking a class. One takes a course, one learns from it, but one doesn't need to take it again (assuming they learned from it in the first place). This is the problem registrars face in trying to convince companies that third party audits are value added. If a company has a robust (I hate to use that word, but...) internal audit system third party audits become unnecessary.

This is not to say that third party audits can not be very valuable, but in my opinion they are most valuable in companies with what I call "bad" personalities. That is to say if there isn't a third party "watching" they will fall back into old bad habits. In those cases, and there are many, third party audits are value added, but only because of bad management. "Good personality" companies don't need a nanny. Upper management in "good personality" companies is effective.

I also believe that, looking back to the late 1980's, technology has played a significant part in companies being better able to monitor their systems/processes, including internal audits. There is better data and better use of data. Instead of document control being a manual, expensive proposition, we now have computers, specialized software and other aids that have eliminated a lot of the expense and (unfortunately) personnel that was once needed to maintain them. Internal communications have improved in ways that were unimaginable to most people back then.

I don't see ISO 9001 going away, but it's value (in the US, at least) has diminished. If there is anything that shows how basic and "old hat" ISO 9001 is, it is their releasing a revision in 2008 which for all intents and purposes had no changes from ISO 9001:2000. When one reaches a point where, over a period of 8 years, the best they can do is change a few words around it says something, and I think that something is there is only so far one can go in defining basic, "good business practices" for commercial businesses.
 
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R

robfenn

Getting back on topic, it is not surprising to hear some presume the decline in the US is to do with the economy. But is the US the only country to be suffering? I think not. Working for a UK CB, i would say that the majority of organisation's over here have 9001 because it is either mandated or 'encouraged', particularly in any government related work.

If you look at the survey, you'll notice Italy is very high for 9001. Why? Because in some areas ISO 9001 is mandatory. Likewise, scroll down to 27001 and you will find the leaders are Japan, where the standard again is mandatory.

So sadly, whatever people like to believe, businesses become certified because they have to, not because they want to. My prediction is, and correct me if i'm wrong, central and local US Government has little interest in ISO 9001.

For some, maybe they see this is as a good thing, but i suppose the question i have for US based members is, in what other ways is your government promoting quality management? Because, lets face it, whatever your thoughts on 9001, it is beneficial for any business to consider their quality management.
 

Steve Prevette

Deming Disciple
Staff member
Super Moderator
For some, maybe they see this is as a good thing, but i suppose the question i have for US based members is, in what other ways is your government promoting quality management? Because, lets face it, whatever your thoughts on 9001, it is beneficial for any business to consider their quality management.
A few (controversial perhaps) comments:

1. Does the government (US or otherwise) really need to protect us from ourselves? Let those companies that fail on quality go out of business, leaving the successful companies. Of course, this will likely be a significant theme in the US 2012 elections.

2. I will admit, that sometimes the time from initiating events to final outcome is too long, and a lot of innocent people are taken down with the guilty (Bernie Madoch as an extreme example).

3. Many locations purchase their ISO flag(s) and really have no intention of doing what they say they will do. My father dealt with a foreign company exactly like this.

4. Is there REALLY a one-sized fits all management quality plan? Look at the diversity of opinions here on the Cove, which is just a microcosm of the larger world.
 

Sidney Vianna

Post Responsibly
Staff member
Admin
Does the government (US or otherwise) really need to protect us from ourselves?
Isn't that exactly what many regulatory agencies do? Such as the Food and Drug Administration, The Federal Aviation Administration, etc...

Regulations and enforcement schemes exist exactly to protect customers, consumers and the population from unsafe products and unscrupulous organizations. As part of the process, many regulatory bodies impose quality system requirements to the supply chain. And, despite all that, we still have many product recalls, injuries and deaths due to unsafe products in the market place. A very current example is the unsafe breast implants scandal in Europe, where the products were not manufactured with a medical grade silicone. In the USA, the FDA did not approve that product for sale, and by doing so, protected the health of many US citizens.

Having a ROBUST QMS should be a basic requirement for any organization that can place a product in the market which has a safety concern. The basic problem is the enforcement aspect of ensuring that, indeed, a ROBUST QMS is in place. To that effect, I triggered the Should Regulatory Agencies require Accredited Certification in their Respective Areas? thread.
 
B

Brian Hunt

I've not had time to read the rest of this thread but I'm commenting on the situation in the UK.

The latest data I have is from http://www.auditor-training.co.uk/articles/29.pdf which states that, for 2005, in the UK, France and Australia registrations shrank by as much as 10% in the year

I recently worked for four 'well known UK companies' on process improvement projects. These companies have all invested in Six Sigma and then disbanded the teams. They had ISO9001 registration in the past and have also let that lapse. One organisation that I'm working for wants to implement ISO9001 but doesn't really have the culture to sustain it.

Although ISO9001 has been poorly implemented and poorly audited in some cases, the bad reputation that it has is more due to the poor quality of management in those organisations that allow themselves to have a mediocre QMS because they don't provide enough support to the Quality Manager and team, and/or allow themselves to be dictated to by external auditors.

But without ISO9001, the basic controls and framework for process review and organisation are missing. So we go back to 'management know best', 'knowledge is power' etc. What I'm seeing in these organisations is very poor process management (around level 1 of Crosby's CMM). And a recent IBM Webinar, Dancing-with-Elephants-Making-Your-Business-Processes-Agile.html had an online poll which showed that only 5% of respondees considered that their processes were well defined (sorry - don't know the sample size).

Although ISO9001 has it's problems, it's basically a sound model for business process management. Letting processes organise themselves wastes a hell of a lot of time and money. But as so many UK organisations don't make things anymore but just move things around on computer screens, the consequences of poor process management are not as visible as they are when walking through a factory floor and seeing piles of rework/scrap.

ISO9001 is a good tool - it fails when management competence, imagination and understanding aren't sufficient to use it properly,
 
G

gbcqc

Re: What are the Reasons for the Decline of ISO 9001 Registrations in North America?

It seems that, provided the source of this "best practice" was not identified by name, it's not considered a breach of confidentiality but is actually "adding value".

I thought it was industrial espionage but it seems I'm just behind the times. Nevertheless, I won't be inviting one of these "best practitioners" into my factory any time soon. My customers don't seem to care that my company isn't registered so what benefit would I gain from registration? Answer that and you're on the way to answering the initial question of this interesting thread.
I agree with you on this, I like the auditor we had who called me and told me that another local company was having an issue with their registration. They were asking him for help and he told them that would be consulting but knew someone that could help. That was our company. He asked if they could bench mark off of us. Getting permission and calling first, before telling them our name or how, was appreciated. We were not competitors, so there were no issues.
 
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G

gbcqc

If I missed this in all the answers and statements, I am sorry. One reason I was told by two suppliers (not a large amount of data) a few years ago on why the were letting their ISO 9001 lapse was the customers. They said their customers lied to them and the company I went to work for was one of the customers. They jumped on getting the certification because they were imformed by the customers that they would be replace and could not get new business without the certification. Then they did not get the business and when companies not certified got it because of cost. They started discussing droping the cert.

So when I asked purchasing about this I was told cost was the major factor the purchasing department (past life in the late 90's and early 2000s) used to buy product, because they were suppose to get the lowest cost product they could. Certification and other things were minor concern. I was the supplier quality engineer and quality was my issue to take care of. These companies are still in business and has grown without the cert. They do still follow their QMS, but just saving the money of paying a CB.

I have only worked in two industries and I still see this in both industies today.

Do you guys have the same problems?
 
B

Brian Hunt

I do think that the cost of the standard, around ?100 / $160 for twenty pages or so is stupidly expensive. That doesn't help it establish credibility.
 
B

Boingo-boingo

I do think that the cost of the standard, around ?100 / $160 for twenty pages or so is stupidly expensive. That doesn't help it establish credibility.
Do you have any idea of how expensive real estate is in Geneva? And all those high paid contributors, consultants, etc...:sarcasm: And, more, they have 151 employees. Sales of Standards represent only 45% of ISO's revenue stream according to their 2011 figures. I find disturbing how opaque ISO is with their financial numbers. No transparency at all. But, realizing that we are talking about a Swiss organization, a country where banks make billions for sheltering dirty money, transparency is not high in their agenda, I guess...I better stop now; otherwise this thread will have to be moved to the Controversial Discussions Forum...:mad:

ISO's lavish nice new office building:
 
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