Friday, 26 April 2013

Critical Success Factor of ISO9001 QMS implementation - Literature Review

In the study of Feng et al. (2008), three basic components of implementing the standard were examined: planning for ISO 9001 certification, organizational commitment, and implementing procedures. Organizational performance was measured in two dimensions, namely operational performance (related to organization’s internal operation, such as productivity, product quality, and internal customer satisfaction) and business performance (related to financial and marketing such as sales growth, profitability, and market share). The results showed a positive and significant relationship between the certification practices (implementation, organizational commitment, and planning) and operational performance. However, the relationship between these practices and business performance was found to be positive but not significant. Organizational commitment to certification was found to be most strongly related to operational and business performance.

The findings from the study of Lin and Jang (2008) revealed a comprehensive ISO 9001 model that was supported by four key constructs namely top management support, quality planning, employee involvement, and continuous improvement. These constructs created a series of chain which had a direct positive impact on business performance. It must be noted that these constructs are interdependent, rather than parallel components. Jang and Lin (2008) found that a positive relationship exists between the extent to which companies implement ISO 9001 and their performance.

Amongst the major findings of the study of Terziovski and Power (2007) is that organizations that seek ISO 9001 certification with a proactive approach driven by a continuous improvement strategy are more likely to derive significant business benefits as a result.

According to the findings of Park et al. (2007), the ISO 9001:2000 certified companies driven by internal motives tended to comply with the major requirements better than those driven by customers demand. More specifically, the certified companies motivated by internal reasons actively accomplished documentation requirements, improvement, customer-related processes, provision of resources and responsibility, authority and communication. Even though companies were certified for internal reasons, they were negligent in thoroughly complying with requirements regarding quality policy, management review, control of nonconforming products, and analysis of data. The results of Park et al. (2007) also showed that a company’s size did not significantly affect the major requirements’ conformity, except for monitoring and measurement, with which the large-sized companies achieved compliance better than the small-sized ones. The results also showed that the companies certified for longer operating years easily managed processes with respect to purchasing, infrastructure, customer, work environment and control of monitoring and measuring devices. However, the certified companies established for a longer time seemed to be careless about complying with planning, customer focus, quality policy, management commitment, and analysis of data.

Poksinska et al. (2006) found that the ISO 9001:2000 standard was implemented by standardising the practice (change only the presentation of organizational processes, not the practice) and not by practising the standard (the practice is changed). The requirements were interpreted by the studied organizations in such a way that it was possible to describe the existing practice in the language of the standard. The organizations stated that standardising the practice was the starting point of the work with ISO 9001 and in the future they also want to practise the standard, but the lack of internal motivation stopped the process or made it very stagnant. As a consequence of this approach, many opportunities for improvement were lost. The ISO 9001:2000 was not perceived as a tool for managing organizational processes, but as a tool for keeping and updating documentation. Consequently, this was reflected in the benefits achieved. Despite the external benefits like improved customer relations, the internal benefits most often mentioned were more structure and order in the work and standardisation of organizational processes. One should notice that those benefits resulted from standardising the practice. ISO 9001:2000 as a first step towards TQM. It is generally accepted that the ISO 9001:2000 standard is much more in line with TQM than the previous versions. However, the gap between ISO 9001:2000 and TQM and the way to effectively reach business excellence in a specific business environment are still under question.

The findings from the study of Magd (2006) seem to confirm the assertion that the ISO 9001 certification constitutes a base for, or is at least complementary to TQM. This can be said due to the fact that the researched companies were hoping to implement TQM in the near future, as they wanted to go further than simply maintaining ISO 9001 in order to achieve long-term success. The results from the study of Tari (2005) showed that the certified companies must improve their people orientation and use quality improvement techniques and tools to a higher extent in order to progress towards TQM. He concluded that if the final company’s objective is to maintain the ISO 9001 certificate, it will stay at a basic TQM level and will show no interest towards a wider development of quality management components. However, if the company wishes to go beyond ISO 9001, it must improve all TQM aspects in order to improve its
competitiveness. In practice, the next step could be the use of the EFQM model to define improvement activities.

The basic conclusion drawn from the study of Gotzamani et al. (2007) was that the ISO 9001 certification indicated an improved EFQM enablers’ performance, especially in the category of process management. Even more, it was indicated that the certification motives are particularly significant for the contribution of certification in excellence performance. The contribution of the standard was indicated to be higher for organizations that implement it focusing mainly on true quality improvement of their internal operation and their final products and services. The results also revealed that the efforts after certification should focus on the “soft” elements of TQM (leadership, employee participation and empowerment and customer relations), since these were the ones with the least improvement from certification.

Terziovski and Power (2007) found that the promotion and facilitation of a quality culture can be achieved through ISO 9001 implementation and the quality auditor is an important player in the process. The relationship between quality culture – ISO 9001 certification and improved business performance was moderately strong, especially in SMEs
certified for longer periods. Finally, it was found a weak relationship between
management responsibility and value derived from ISO 9001 certification, especially in SME certified for less than five years.

Adopted from

Evangelos L. Psomas and Christos V. Fotopoulos” A meta analysis of ISO 9001:2000 research – findings and future research proposals” IJQSS pg 128-144

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