Business organization are aware of how important it is to get ISO accreditation for their company. However, for new business owners the term might be quite confusing. The following are a few fascinating facts regarding ISO accreditation, which would help make things simpler to understand.
- ISO stands for International Organization for Standardization. It’s an organization which is responsible for developing international standards for businesses and services. The standards are designed to give a specific set of ideas for businesses to follow for their good and products. This in turn helps the industries to become more efficient and recognize an international standard for their business.
- There are a total of 178 companies which are the members of ISO
- Around technical bodies are responsible for setting the standard development
- There are almost 20’000 separate ISO standards
- ISO 9001 are standards associated with quality management systems. These provide the necessary information for companies to ensure that their products and services meet the different requirements of their clients and helps ensure improvement in the quality of their products or goods
Sections of ISO 9001
There are around 8 sections of ISO 9001. These eight sections deal with a variety of aspects related to quality management. These include:
Why should companies consider getting certified?
The following are a few reasons why companies seek certification:
- Customers prefer doing business with a company which has an ISO accreditation or certification. It is usually their sole demand when conducting a business with any of the companies they choose to work with.
- Leads to brand equity. This means that businesses suffer fewer losses in terms of product recalls and help ensure that all the products designed by the company are of finest quality thus preventing the business from suffering a major financial loss.
- When businesses are able to avoid products recalls or cost damage to their goods, they are able to profit more in the long run.
- There are also a great many financial benefits which comes with being ISO certified. Such businesses tend to be more competent ten their peers and often average greater on profits as well. Research has proved that such companies are paid 7.5% more than companies which may not be registered.
- The overall perception of the company improves as well. Business owners feel proud of their accomplishment and it helps them gain confidence to allow their business to reach new market potential without the fear of failure.
- There is also a higher demand for the services of a company which is accredited.
- The certification also leads to improved financial performance measured in terms of ROA or return on assets
- The payroll for such companies is higher as well and thus has a improvement on the employ morale as well
There are so many reasons to ensure that your business gets ISO accreditation. However the process doesn’t have to be long and tedious. You may be wondering how to achieve a ISO accreditation. Companies gain the certification by either hiring an in house staff which assesses the complete quality management system or they may hand over the assessment to an outsource company. The individual would then assess the quality management system and make the necessary improvements which would help make the process easier.