1 Moody Training Malaysia PROs & CONs OF HAVING MULTIPLE ACCREDITATION MARKS…… FORUM STANDARDS MALAYSIA WITH CAB Putrajaya, 26 July 2010 By: Chin Miew Lim Moody International Certification (Malaysia) Sdn Bhd MOODY MOODY Since 1911

2 Objectives Investigate the "Pros" and “Cons” of Multiple Accredited Certification In Enhancing Business Competitiveness and Profitability The primary positive aspects The primary negative aspects Moody Training Malaysia

3 Historical Background ISO President Mario Cortopassi ‘s "1-1-1 dream“ "one audit, one certificate - accepted everywhere“ QSAR Proposal by ISO CASCO in 1995 ISO & IAF Joint Worldwide Survey – QSAR ~ 1995 IAF MLA for QMS first signed in Guangzhou on 22 January Malaysia ascended to the MLA on 29 Sep 1999 (QMS); 9 Feb 2006 (EMS) and 9 July 2009 (PC) Moody Training Malaysia

4 The Benefits of Accreditation For Government Impt. mechanism in ensuring public confidence in the reliability of activities that impact on quality, environment, health, welfare and security identifies competent CAB for supporting the implementation of government policies and regulations Moody Training Malaysia

5 Benefits of Accreditation For Industry Essential tool for risk management & decision making Saves time and money in choosing an competent certified supplier. provides a competitive advantage and facilitates access to export markets with the aim of 1-1-1, accepted everywhere Moody Training Malaysia

6 Benefits of Accreditation For Consumers Gives consumers confidence by ensuring consistent quality of products or services they purchase For CABs Objective proof that CABs comply Int’l Best Practice an Int’l recognized system that could be used to sustain high standards of performance of CABs Moody Training Malaysia

7 IAF – Certified once, accepted everywhere For CABs Accredited Certificates issued by CABs accredited by members of the IAF MLA as the MLA assures customers that the certificate is credible. IAF, ISO and UNIDO currently making effort to perform QC/QA checks for Non-conforming CABs Moody Training Malaysia

8 The More Marks, the Better COMMON PERCEPTION & SCENARIO In Business, Perception Is Reality & Make no mistake about it In business, we listen, digest and respond to feedback from clients and voices of the market Moody Training Malaysia

9 IAF / User Advisory Committee User Advisory Committee Doc. UAC 018, March 2010 One of the General Expectations: to discourage multiple accreditation Besides, UAC role is to strategize to ensure accredited certification fulfilling end-user expectations Moody Training Malaysia

10 THE “PRO” 1- 3 Competitiveness thro’ Visibility Impress potential customers thro’ publicity of achievement with more marks and logos Project an enhanced and better recognition even with the use of local auditor resource and a local AB Addressed current specified requirement of the Principal or the parent company HQ overseas or a possible future demand from targeted overseas market Moody Training Malaysia

11 THE “PRO” 4- 8 For the Certificated Suppliers and their clients Perception of multiple recognition by many countries – good for global business expansion Perception of having met multiple compliances of “different” QMS to meet international client needs Enhanced acceptance by customers against competitors in a scenario where all being equal Serves as means to attract new business and new market prospects Moody Training Malaysia

12 THE “PRO” For the Certificated Suppliers and their clients Project good image that exhibit capability & professionalism that gained overseas recognition May facilitate breakthrough of Malaysian entrepreneurs in international market Impressed customers and potential customers and their subsequent loyalty provided that cost of product / service remains competitive and attractive Moody Training Malaysia

13 THE “PRO” For the Certificated Suppliers and their clients For developing economies, it supports, enhances and facilitating export Put in place to meet regulatory requirement, should regulations in the importing country specified a particular AB mark or certificate Put in place a forward plan for business to business arrangement / preference for a particular AB mark Moody Training Malaysia

14 THE “CON” 1- 3 For the Certificated Suppliers with multiple marks Higher cost as compared to one with a single AB mark In isolated cases, overseas auditors may have to be “imported” – further escalate the cost Cost associated with printing of multiple marks and changes, if any Moody Training Malaysia

15 General Conclusion From the above, it would seem that more “Pros” than “Cons” would likely point to more competitive and profitable in the case of multiple marks Business environment and factors affecting profitability varies from industry to industry and differs in different times of the world economy Research Papers on this subject if conducted by different Groups would not provide the same conclusion either. Moody Training Malaysia

16 My Conclusion My personal view is that : It is left to the gut feeling of the businessmen themselves to decide whether or not his business would need one or more Accreditation mark to propel and to maintain their particular type of businesses In Business, perception could be the REALTY and make no mistake about it. Moody Training Malaysia

17 Thank You