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ISO 9001 – what is it?

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Why do you need an ISO 9001 certificate? This question is one of the most popular among representatives of companies in the UK, since in our state certification according to ISO 9000 is not a prerequisite for carrying out activities. The law does not specify a mandatory condition for an organization to have ISO certificates to provide services on the market, but most UK companies have already managed to pass this international standard. What is the point of ISO certification? Let’s try to answer this question.

What is an ISO 9001 certificate?

A short excursion will help you understand this system. The standardization system began in 1946 when the first agreement was signed to coordinate the efforts of companies to develop quality standards. Today, twenty-one thousand international standards have been developed in the world, which make it possible to improve the quality of services in various business sectors.

The International Organization for Standardization implements the ISO standard. This partnership makes it possible to simplify international trade turnover, make the process of providing services more open and transparent, and also cooperate with the efforts of states in the economic sphere of activity.

Today, among all standards, the ISO 9001 certificate is recognized as the most famous and popular. This quality management standard has allowed companies to reach a consensus on the organization of the management process in production, which ensures high-quality products, goods, and services.

ISO 9001 certification was first carried out in 1984. The standard was subsequently adjusted 4 times, as this was required by the modern realities of the international market. The latest changes to the standard were made in 2015. The national standard ISO 9001 is in force in the UK, recognized as the full equivalent of the international standard as amended in 2011 and 2015.

Benefits of ISO 9001 certification

In the UK, as written above, introducing the national standard ISO 9001 series into the management process of a company is a voluntary expression of the will of the enterprise management. But despite this, this quality management system (QMS) has been in enormous demand for the past 20 years. This popularity of the certificate is due to the benefits that a company receives after undergoing the certification procedure for compliance with the requirements of the international standard. The following are the benefits of setting up a QMS:

  • efficient use of enterprise resources – money and time;
  • maximum satisfaction of customer needs;
  • the ability to quickly make decisions to eliminate errors in production;
  • introduction of motivation within production, which allows for increasing the working capacity of the workforce by improving internal management processes;
  • the opportunity to obtain favorable loans from banks;
  • providing the market with high-quality goods and products, which directly affects the company’s reputation among potential and existing customers;
  • Increasing loyalty from government agencies, investors, and partners.

Thus, the ISO 9001 certificate is a new prospect for any company that is focused on both the UK and international markets.

The economic effect of introducing the QMS 9001 series in production

In addition to the above benefits of ISO 9001 certification, many companies are pushing for the implementation of a quality management system with 2 additional prerequisites:

  • Having a 9000 series certificate is an opportunity for an organization to enter the international market. This is because companies can offer their goods and services outside of the UK only if they have passed the certification procedure for compliance with the requirements of the international ISO standard.
  • Obtaining an ISO 9001 certificate is also necessary for those companies that plan to work in the public sector, which is under the direct control of the Government of the UK Federation.

What will this give the company? When will monetization happen and investments in certification according to international or national quality standards will pay off? In 2001, economists from Spain conducted an expert analysis of the work of 400 companies that were certified and implemented QMS in production, and 400 organizations that did not give preference to the international standard 9000 series.

The conclusions reached by experts from Spain allow us to talk about the benefits of companies’ investments in obtaining an ISO 9001 certificate. All benefits that a company receives are divided into two types: internal and external (financial). According to a survey of company executives, internal benefits increased in the following order:

  • workflow optimization improved by 33%;
  • personal responsibility of employees increased by 19%;
  • trust in the company’s management among the workforce increased by 11%;
  • employee involvement in the production process increased by 11%;
  • Management within the organization improved by 7%.

What does ISO 9001 certification ultimately achieve by improving the indicators mentioned above? To the growth of the financial performance of a company that has decided to invest in the implementation of a quality management system in production and obtain a national or international ISO certificate. Studies have shown that companies that have issued an ISO 9001 series certificate and implemented a QMS in their production have achieved financial growth of 5–10% compared to organizations that did not go through the standardization procedure.

 

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