1. ISO 9001:2000 Transition Update & Value of Certification ASQ San Gabriel Section - 0702 July 16 2003 Jim Rivas West Coast Business Development Manager-BVQi For the benefit of business and people

2. 2 1Current Status of Transition 2Value of ISO 3Bea Ng SUMMARY

3. 3 Certification with BVQI United States ISO 9000 Certificates  Currently about 20% of the 38,454 certificates in the US are ISO 9001:2000  QS 9000………………………7,323  AS9100/AS9000…………….. 600  ISO 13485 & 88………………564  TL 9000……………………….150  ISO/TS 16949………………...80  Experts predict an estimated 80% will make deadline

4. 4 Certification with BVQI United States Top Five SIC 1. Fabricated Metals Products 2. Electronics 3. Industrial and Commercial Machinery 4. Rubber and Miscellaneous Plastics Products 5. Wholesale Trade - Durable Goods Breaking new ground for ISO:  Service Organizations (healthcare, school districts, city government, logistics, credit counseling, labs, etc.)  Government Suppliers (Dept.of Energy, military)

5. 5 Certification with BVQI QMS Certification Trends Sector Specific Standards: Required:  Aerospace = AS 9100 = Required to do business with Primes/OEM  Automotive = ISO/TS 16949 and ISO 14001 = Required to do business with OEM  Medical = ISO 13485 CMDCAS= Required to sell into Canada Not required, but gaining momentum:  Telecommunication = TL 9000 = Improve quality and reliability among the industry  Service & Government = ISO 9001:2000 = Competitive edge, internal benefits (sustainable development of other business tools: Malcom Baldrige, Six Sigma, etc.)  Importers & Logistics = SFR2000 & C-TPAT = Security Risk management to minimize theft and terrorism  Environment = Green House Gases Verification = Environmental Responsibility

6. 6 > What is the value to your organisation 4 4

7. 7 Certification with BVQI Value to the customer – Independent academic research  US Study of Effectiveness Study of 7500 organisations in USA in 2002 found that organisations who were certified to ISO 9001 managed to hold their performance while competitors who were not certified fell into decline (ISO Bulletin July 2002)  Academic research Organisations who seek ISO certification to truly improve the organisation (rather than badge hunters) do improve; performance, quality, output, image and reduce costs. “Does ISO Certification affect competitive advantage” European Management Journal Aug 2000 B. Withers ISO certification was proven to have a significant impact on the organisation (performance, morale, customer satisfaction, productivity, cash flow, market share, sales, exports, innovation etc.) when used as part of an overall TQM program. “The effect of TQM on strategy” TQM Magazine 2000 M.Samson Companies who strive towards world class status find that ISO 9001 certification is the first and vital step “Impact of ISO 9000 on best practice performance” TQM Magazine 2000 Prabhu, Appleby, Mitchell, Yarrow  American Standards Association Claims ISO certification gives; increased efficiency, cost savings, competitive edge, higher quality, market share gain, reduced scrap/rework/warranty claims. Value to the user 4

8. 8 Certification with BVQI Value to the customer – of third party certification  Certification by an independent third party is the tool by which organisations can prove and demonstrate their achievement. A Third party is an independent organisation (not your organisation, a supplier, a customer or any other stakeholder  Use a certification body that is accredited to certify against the standard Certification bodies “certificate” organisations to ISO standards Accreditation bodies “accredit” the certification bodies to do this Certification bodies work to strict standards in order to guarantee; integrity, impartiality and confidence in certification. Value to the user 4 ISO Accreditation Bodies e.g UKAS, RAB, RvA Certification Bodies e.g. BVQI ISO certified Organisations

9. 9 Certification with BVQI Value to the customer – of third party certification  This system provides: Consistent quality between accredited certification bodies Integrity, impartiality and confidence in the certification process »Strict rules over giving consultancy and certification from the same person (conflict of interest) Improved and consistent auditor oversight and training Strict requirements to be an “approved” ISO 9001 auditor »Lead auditor training and IRCA registration »Industry experience and Continual improvement of their knowledge  Global acceptance of one certification Many clients who demand proof that a potential supplier is a “quality” supplier, will accept an ISO 9001 certificate as proof. This reduces costs relative to adopting other approaches that may not have the same level of recognition or acceptance Value to the user 4

10. 10 Certification with BVQI Value to the customer – Integration with other systems  Good management systems are shaped around, and can be flexible to – Business Objectives.  ISO 9001 is designed to be integrated with other management system standards in order to optimise the use of documentation and processes.  Key Systems that can be integrated are: ISO 14001 – Environmental Management Systems OHSAS 18001 – Health & Safety Management Systems SA8000 – Social Accountability BS7799 – Information security Value to the user 4

11. 11 Certification with BVQI Value to the customer – Continuous Improvement  A good management system opens opportunities to further improvement  ISO 9001:2000 is linked with a “sister” standard ISO 9004 which indicates areas for focus for continual improvement Value to the user 4