What is the total cost of ISO 9001:2000 Registration in terms of $$$?

[global citizen]

I’m talking about a company with about 38 permanent employees and 200 temps. Let’s not count the hours worked by employees on ISO but the external expenses for registration, audits, auditors, standards, etc. etc.

How about in your company? How much did it cost you?

Just curious.

 

[Coury Ferguson]

I’m talking about a company with about 38 permanent employees and 200 temps. Let’s not count the hours worked by employees on ISO but the external expenses for registration, audits, auditors, standards, etc. etc.

How about in your company? How much did it cost you?

Just curious.

There is no finite answer to this. There are variables that come into play. The costs would be associated with the Cost per Auditor per day, travel expenses, and miscellaneous costs.

There are guides into the amount of recommended days it takes based upon number of employees.

These costs might be consider proprietary information, between the Organization and the Registrar.

Fill out the various Registrars quotes on-line and that would give you a general idea.

 

[Boscoeee]

I’m talking about a company with about 38 permanent employees and 200 temps. Let’s not count the hours worked by employees on ISO but the external expenses for registration, audits, auditors, standards, etc. etc.

How about in your company? How much did it cost you?

Just curious.

Ah we all want to know what we are getting into. Well I will give you some general numbers that I have experienced.

Standards - 500.00
Lead Assessor Training - 1600.00 plus expenses for a week
Pre Assessment Audit - 6000.00, plus the assessor expenses for travel and lodging.
Internal Auditor Training - 500.00 plus expenses for two days
First Registration Audit - Three Days 2000.00 plus the auditor expenses for travel and lodging
Semi Annual Surveilance Audits - Yearly 4000.00 plus the auditor expenses for travel and lodging

Just my experience, I am sure that it could cost more or less depending on the Third Party that you use. Also there are all kinds of situations to consider this is just one.

 

[Duke Okes]

It may also be impacted by the cost of installing the QMS, separate from salaries, etc. If there are things the standard requires that you're not doing now (e.g., calibration) you may need to expend funds to acquire items (e.g., calibration standards and/or services). There are also funds for external training for auditors, etc., unless you do this in-house.

The in-house cost (if you include labor hours) is by far more than the cost of the registration audit & certificate, although most is absorbed cost since you're already paying the people who will do the documentation, etc. You may also incur costs for consultants, if you choose to use them.

And although the costs vary widely I would estimate your cost for the initial registration audit would be somewhere around $20k-$25k (review of quality manual, live audit, travel expenses). If you have a pre-assessment it would be additional. Some registrars will also hit you for travel time, for certificate itself, etc.

Then you will have the surveillance audits (typically every 6 months) which will run another $5k-10k.

 

[Helmut Jilling]

Congratulations on beginning your ISO journey.

I think the right way to look at this is the total cost. If you do it well, the true total cost should be $0, becuase the controls and improvements should more than pay for themselves. Just the news that you have 200 temp employees could pay for implementation by itself.

 

[D.Scott]

Quality Digest did a study on the cost of implementing an ISO system back in the late 90's. I am going by memory but I think they stated the average cost was around $125,000

I would think they have an archive or something where that could be verified.

Dave

 

[JaneB]

Quality Digest did a study on the cost of implementing an ISO system back in the late 90's. I am going by memory but I think they stated the average cost was around $125,000

Jeepers! Not in my world. The trouble with 'averages' is they can be so misleading - it's a bit like quoting the 'average cost' of an overseas holiday. But that sounds distinctly on the high side for a company of the size the OP quotes.

 

[D.Scott]

Jeepers! Not in my world. The trouble with 'averages' is they can be so misleading - it's a bit like quoting the 'average cost' of an overseas holiday. But that sounds distinctly on the high side for a company of the size the OP quotes.

Yes, it gave me sticker shock as well. If memory serves, they included not only the CB costs but the internal cost as well. When you add in training hours, salaries, consultant fees, seminars etc., I guess the cost could get up there pretty quickly.

Dave

 

[joshua_sx1]

I prefer to highlight this reasoning when you are trying to convince your management… it makes you focus more on the benefits rather than worrying the cost of getting that benefits…

...I think the right way to look at this is the total cost. If you do it well, the true total cost should be $0, becuase the controls and improvements should more than pay for themselves. Just the news that you have 200 temp employees could pay for implementation by itself.

…and besides, it’s hard to give a precise one (or even a close one) nowadays… since the oil price is keep rising… your quotation last week, could be probably different this week… with a note that price is subject to change without prior notice... he he he…

…by the way, you have more "temporaries" than "permanent"!?! :mg: wow, you could be earning more... just imagine how much you are saving for not giving them benefits plus the privilege of not to giving them the minimum wage!?!… :truce:

 

[JaneB]

Yes, it gave me sticker shock as well. If memory serves, they included not only the CB costs but the internal cost as well. When you add in training hours, salaries, consultant fees, seminars etc., I guess the cost could get up there pretty quickly.

Dave

Yes, I see what you mean - sticker shock - good term

Just possibly I suppose it could... but cost is so widely variable that I'd still query the usefulness of an 'average figure'. It just depends on so many factors & unknowns. I've seen some of my clients achieve it for very low cost - eg, little consulting cost at all (they were already functioning at a level very close to meeting requirements) and other clients who've had to put in a huge amount of effort (because they were so far behind). Now, if some of the 'low cost' clients ascribed EVERY cost to ISO 9001, perhaps they'd end up with a large figure. But if ascribed many of them to things like 'internal systems', 'internal training', 'regulatory compliance' etc, (which I think all businesses need to cost for) then the actual direct 'ISO 9001' cost would be quite low.

If a company has no written procedures at all & does no internal training (& yes, they exist alas), they may see the need to do those things as an 'ISO 9001' cost. I wouldn't.

Without quantifying the assumptions (eg, 'based on X hours of consulting @ $rate + X seminars for X participants @ average cost of $ per participant), I think the figure is relatively meaningless and could even be misleading. OTOH, I can quite see there is a case for it.