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

hogheavenfarm

Quite Involved in Discussions
#31
Re: What are the Reasons for the Decline of ISO 9001 Registrations in North America?

That is true. We have been ISO 'compliant', and in spite of various pressures, have never had to take the step of actually spending money on a certification. We are always audited to the standard by our suppliers, and have never had an issue. Also, as was previously mentioned, various industry standards have arisen, which in the past were considered ISO-reciprocal , or an ISO add-on. Now they are stand alone, and no longer reciprocal either, (IRIS, and AAR M1003). Each of these requires separate certification now. It gets to be alot of financial drain for limited value.
 
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Wes Bucey

Prophet of Profit
#33
Re: What are the Reasons for the Decline of ISO 9001 Registrations in North America?

In my opinion, that is one of the reasons for the decline: ludicrous feedback from CB auditors, in many cases. If I were in the receiving end of an external audit and got this type of "audit result", I would seriously question the value of that relationship.

<SNIP>
if I were in the receiving end of a finding as the one Bev reported, I would be having a serious conversation with a manager at the CB and make them understand that, if this is representative of their auditors performance, they would not be my CB for long.
I can't believe an idiot auditor would cause ANY client company to give up ISO registration. Even idiot managers of those registrars would only instigate a change of registrars, not withdrawal from ISO certification/registration.

If, however, the client company was so unsophisticated about ISO and dealing with registrars that such an event triggered withdrawal versus change of registrar, perhaps their loss from the pool of ISO registered companies is good - they probably didn't NEED registration to satisfy customers and they were obviously not receiving "value added"from their registrar.

As much as I agree, Sidney, with your statements about value-added auditing, your suggestion that the decline in certifications is due, in part, to poor auditing is doesn't quite jive...

Organizations coming new to certification, don't generally know much about the poor auditors, in my experience, and the result of poor auditor performance isn't voluntary withdrawal of certification, it's transfer to another CB. Many companies don't have the opportunity to withdraw from certification, at least in their perception.
Yep. There's that old bugaboo - perception! After so many years, it's amazing to me that ISO registration has made so little penetration into the minds of business leaders/managers. Bottom line for most managers is - "If my customers don't DEMAND it, why should I waste time learning about it?"

Andy, there are many organizations out there that have been through several (3-year) certification cycles and different CB's and auditors, with a dismal perception of the auditing profession. In a deep recession, organizations tend to dissociate themselves from non value adding activities. If I (wrongly or rightly) believe that CB audits don't add value to my operation and my customers' demands for certification are not as clear as they used to be, I might decide to take a risk and drop certification altogether or "transfer" my certification to the guy down the street that only charges me $500 per year and does not mandate those pesky and intrusive audits to issue my certificate. I rely on my customer ignorance not to discern from a reputable certificate from one that really does not mean anything.

<SNIP>

To me, the NUMBER of certificates is secondary to the VALIDITY of certificates as a component of supplier oversight. Confidence in the certification process is much more critical than the growth of certification numbers, in my estimation.

Nevertheless, the decline in certificates must be attributed, IN PART, to the fact that potential users of the certificates don't see tangible benefits. Otherwise, how can you explain that we do not have many more mandates for management system certification?
Yes! Said more elegantly than I would have. I do have a question about those $500 certificates, though. If the transfer to such a registrar from the idiot mentioned by BEV saves money and there is literally no change from the customer's viewpoint, would you agree the client (auditee) made a good choice? How would such a change affect the survey? I presume the "$500 registrars" aren't polled.

As the market began to decline many companies went back to their core suppliers, product, customers, process and other historic activities of success.

As this has occurred we were more concerned with our own system being implemented at our suppliers. So, for example, we had three suppliers for one part number. We reduced that from those three to one small supplier which had been the first to supply us this product. By no longer managing two additional suppliers we were able to focus our SQA and Engineeing activity on the one supplier (thank you Dr. Deming).

In order to meet our demand they moved away from some other product lines of which the customer also required ISO certification.

Now we and two other customers are their customer base. Both us and the other two companies require either a certification to ISO or to the "company" Production System by our Engineering and SQA deparment.

From that small suppliers point of view they could get the same results of having us or their other customers audit their facility for free. So, our efforts to get back to the core or historic success indirectly lead this supplier to no longer be third party certified.

I am not sure how far reaching this is. Off the top of my head I can only think of this one of all of our suppliers which are no longer certified. But, I am a sample size of one and we all that one is not a trend.
For ten years (1990 - 2000), I declared my business "compliant" to ISO and QS 9000. My customers, including automotive, aerospace, and medical (we were FDA registered), never skipped a beat. They sent us self-assessment queries which we answered (we did have an awesome package to send) and simply added us to the supply chain, regardless if they ostensibly demanded "registration" to ISO or QS. In ten years, we had maybe two formal customer audits (Boeing was one.) The copies of letters of acceptance from the customers was added to the package and other customers accepted that in lieu of formal registration. If I were a top manager looking at my supply chain today, I'd probably do the same as those customers did back in the 90's.

Your SUPPLIERS audit you? :confused:
Welcome to the world of typos, Sidney. I seem to be continually correcting typos in MY posts, often going back 5 or 6 years when an old thread gets resurrected and I notice my previous typo as I read through the posts. As I recall,there was a similar typo in one of your posts, regardless whether it was clipped and pasted or transcribed, it was still in YOUR post.
 

hogheavenfarm

Quite Involved in Discussions
#34
Re: What are the Reasons for the Decline of ISO 9001 Registrations in North America?

Sorry Sidney, I meant customers of course, too busy correcting minor spelling errors and missed the bigger picture....:>
 
S

sitapaty

#36
Re: What are the Reasons for the Decline of ISO 9001 Registrations in North America?

According to the abbreviated findings from the 2009 ISO Survey, we had ANOTHER decline in the number of ISO 9001 registrations (certificates) from 2008 to 2009. Around 12%.

Comparing to Europe and Asia, the number of certifications in North America are very small. While there is a degree of uncertainty on the accuracy of the numbers available in the Survey, can we reach any conclusion about the reasons for the (apparent) decline in ISO 9001 growth in North America? With a dwindling automotive supplier base, the number of certified TS 16949 suppliers in North America also shrank in 2009.

On the AS9100 front (not included in the ISO Survey, since it is not an ISO Std.), according to OASIS, North America leads the pack in number of AS certificates.

I would be interested in knowing people's opinion on the reasons for the lack of ISO 9001 certification growth in North America. Lack of confidence? Credibility? Perceived costs? Added (and lack thereof) value?

I believe the IAAR will be doing a similar survey and campaign, soon.
This decline in ISO 9001 certification will probabily spread to other continents as well.The reason for the decline is the low standard of auditing prevailing today.The certifying bodies have froliferated all over the world with no real check on their quality and credibility.IAF,ISO AND THE UNIDO SHOULD ACT QUICKLY TO CONTROL QUALITY OF ACCREDITATION AND CERTIFICATION PROCESSES BEFORE THE COLLAPSE OF THE SYSTEM.
Sitapaty
 

Helmut Jilling

Auditor / Consultant
#37
Re: What are the Reasons for the Decline of ISO 9001 Registrations in North America?

The total certifications continues to rise, so I don't see a decline. The big decline in the US was in 2007. The dip in 2009 could be attributed to companies closing.

I was surprised by the stong continual increase in Europe. Asia grows, but that was expected.

I agree with some of Sidney's concern about the value-added aspect of auditing. I know that is the part my client's appreciate the most. They want to get benefits from these audits, and not just silly parking tickets.

I think part of it is that some auditors are competent in basic auditing techniques, but maybe don't have the degree of competence or proficiency to see the big picture. So they just audit little narrow channels and don't add value. I know I have audited a lot of companies where the first visit, they were pleasantly surprised by the value-added approach.

I think it is also needed for the CB's and AB's to become a little more progressive in their views toward value-added. We don't want to consult, but we have to be able to point out improvements.

Overall, I know we have had some clients close their doors. But, at the same time, I am still doing new registrations to ISO 9001. As far as I know, we have had somewhat of a net increase year over year.

I don't see any signs of ISO "dying." But, I do agree that companies should require their CB's to provide them with value-added services.
 

Bev D

Heretical Statistician
Staff member
Super Moderator
#38
Re: What are the Reasons for the Decline of ISO 9001 Registrations in North America?

I have to say that I am not responsible for our registrar. And what I have learned over the last several years is that there are - internally - many reasons (some good, some not so good) for not going back to your registrar with complaints. Even tho you are paying them. If there is a backlash against ISO 9000 it really belongs with the registrars for not policing themselves. (we see the same 'mis-application' of a standard in the automotive industry, FDA, etc. here at the cove) The standard IS intended to be value add. And I firmly believe that the standard has value. As always with any noble intention it is the execution that matters, not the intent. In the case of ISO - and Six Sigma, Lean, TQM, whatever - it is the execution that matters and that 'kills'. WE - in the quality profession - must always ask ouselves if what we are doing is value add to the organization and we can't fool ourselves with substitutes about 'compliance'.
 

Pancho

wikineer
Super Moderator
#39
Re: What are the Reasons for the Decline of ISO 9001 Registrations in North America?

Sadly, most companies first consider registration because of market pressure. Either a client demands it, or their competitors have it and use it as a marketing tool against them.

If top management never comes to realize that there are benefits beyond the above when the system is actually implemented, then the costs of maintaining registration appear deceptively large in relation to these meager benefits.

In a bad economy, these marginal registrations are the ones that will not be renewed and their corresponding "useless and burocratic" qms binders will be chucked.

Its pure speculation, but seems plausible, don't it?
 
#40
Re: What are the Reasons for the Decline of ISO 9001 Registrations in North America?

I have to say that I am not responsible for our registrar. And what I have learned over the last several years is that there are - internally - many reasons (some good, some not so good) for not going back to your registrar with complaints. Even tho you are paying them. If there is a backlash against ISO 9000 it really belongs with the registrars for not policing themselves. (we see the same 'mis-application' of a standard in the automotive industry, FDA, etc. here at the cove) The standard IS intended to be value add. And I firmly believe that the standard has value. As always with any noble intention it is the execution that matters, not the intent. In the case of ISO - and Six Sigma, Lean, TQM, whatever - it is the execution that matters and that 'kills'. WE - in the quality profession - must always ask ouselves if what we are doing is value add to the organization and we can't fool ourselves with substitutes about 'compliance'.
I'd be very interested in knowing more about why you think a client wouldn't complain to their CB...
Policing ones self is a laudable ethic, but impractical! Show me another group of for profit businesses who have been successful at self-regulation/policing - BTW, that's why we have Accreditation Bodies like ANAB, UKAS etc.

I don't disagree that there is a great deal of room for improvement in the manner CBs conduct themselves, but throwing us all under the bus for the decline in certificates is a bit harsh, isn't it? Sure we read about individual auditors who do (apparently) crazy things (we never hear their side of the story, do we?) but how many threads go on where implementers, consultants and auditors can't agree on things? Like the 1 page quality manual, for example!

How many times do clients 'avoid' kicking back their goofball audit findings because they're 'afraid' of the auditor? We read that here all the time, don't we? "We don't like it, but don't want to do anything about it either", mentality.

The fact is, there's room for improvement all around, isn't there?

I, for one, don't believe the decline in certificate numbers is much more than saturation in the "traditional" markets affected by the original 'wave' - i.e. product design/manufacturing, in general terms.

For example, construction isn't something which has a product shipped off shore - it's built and stays here. Could the supply chain use an improvement in quality, environmental, health and safety? Oh yes, but you don't see too many construction companies being certified to ISO 9001, ISO 14000 or OSHAS 18000...
 
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