This paper is about the ISO standard series. This series encompasses both the ISO 14000 and the ISO 9000. The ISO 9000 deals more with management. The ISO 14000 deals with environmental concerns. Both have critics, but have also allow companies to increase their profits and public profile. There are many benefits to going through the process of these series of standards.
ISO Standardized Quality Systems
In terms of creating and setting standards, ISO does not decide when to develop a new standard. The process for the development of a new standard instead comes from the need from industry or other stakeholders. This may include different consumer groups which help to determine the standards. On average, an industry sector or group announces or communicates the need for a standard and then relates the information to its national member. This international member then contacts ISO. Developing ISO standards is a consensus-based approach and opinion and input from stakeholders are always taken into account.
ISO uses groups of experts based in various parts of the world to develop their standards. These groups are part of larger groups and they're called technical committees. The experts are the ones in charge of negotiating all aspects of the standard. This includes its scope, key definitions, as well as content. The general makeup of these technical committees consist of experts from the relevant industry, as well as consumer associations, academia, NGOs and government.
B. Theoretical basis behind ISO as a standardized TQM system
The ISO 9000 series standard was designed in order to "provide general guidance on the development of a successful quality system that will deliver quality services and products. Every company is different and the standard is applicable to every one from service organizations and trucking companies to design houses and manufacturers. Therefore, the guidelines must be flexible so they can be applied in a variety of business models." (ISO 9000 Resources, 2013, p. 1) Theoretically, what the standard wishes to achieve is improvements not only in quality, but also in customer satisfaction. Consistent improvement is the basis of this series of standard allowing for high quality results.
C. The perceived need for a standardized TQM system for environmental stewardship
The ISO 14000 series, which deals more with the broader aspects of environmental concerns is an international standard used by the International Organization for Standardization. The ISO 14000 family of standards has numerous documents in relation to environmental concerns. They're numbered and labled as ISO 140XX. To begin the process of registration one has to follow the ISO 14001, Environmental Management Systems -- Requirements with Guidance for Use, allowing it to be the most widely recognized standard.
Because ISO 14001 is not a standard based on need for quality performance, companies do not have to fufill requirements of a specific environmental target identified within the standard in order to register. The real requisite is based on the ability to show they've identified their significant environmental aspects --which may include RoHS --and have a plan in place to meet continuous-improvement goals set forth by the company. Also, they must show their progress in achieving these goals. The perceived need for standardized TQM in reality falls short in relation to environmental stewardship. A management standard, however, like the one in the ISO 9000 series allows for organizations to register to the standard from varying progress and maturity levels enabling better performance in relation to top quality management.
II. TQM
A. Theoretical basis
Total Quality Management (TQM) as defined by several sources, is "a way of managing people and business processes to ensure complete customer satisfaction at every stage, internally and externally" (Mis-ra, 2009, p. 116) TQM is meant to allow production of quality goods or delivering satisfactory services the first time around instead of wasting energy on correcting errors. For TQM to be enforced or implemented, people, systems of an organization, and processes must be altered. These changes encompass commitment to quality among not just leaders, but also employees, communication of the need for quality, and generating a culture of TQM in a company.
Quality is defined as: "comprising performance, appearance, availability, delivery, reliability, maintainability, cost effectiveness and price" (Dept of Trade and Industry, 2007, p. 2) the need for quality is emphasized. Some may even suggest that TQM is based on the principles of process focus. This includes process definition, process management, and process improvement as well as a concern for everyone who works in the company/organization.
B. Formalized system for business
A formalized system of business comprises of many things. The meaning behind the process as discussed by Doganata, & Curbera is "A formal system for business contract representation with reasoning about violations of obligations in the contacts. Various aspects of Business Contract Language (BCL) are evaluated by using a logic-based formalism called Formal Contract Language (FCL), the need to ensure compatibility between business processes and business contracts is addressed." (Doganata, & Curbera, n.d., p. 3) a formalized system entails identifying and setting standards everyone must adhere to especially in relation to methods of communication. Workers within the company must follow a specific protocol in order to discuss matters with management who then discuss issues with the leaders of the company. This allows for personal matters to be dealt with in a professional matter as well as limit waste in regards to time management.
Top quality management needs the company to follow guidelines in order to maximize perforance. Without adherence to these guidelines, results will not be optimal. As discussed previously, focus on quality allows for better focus overall in respect to performance. If things are structured in a way that allow better performance, the outcome will be favorable.
C. Contemporary use in a global society
Total quality management can be summarized as a management system with a focus on the organization's duty to the customer/consumer. It also demands continual improvement. It uses strategy, data, and effective communications to integrate the quality discipline into the culture and activities of the organization. As it applies to contemporary use in a global society, there are benefits in using this methodolgy. Today's market is based on consumer demand. The ISO standards are developed with consmer opinion in mind. For companies and organizations to allow the use of TQM within their set structure, they must understand the need for employee involvement consumer-focused thinking, process thinking, and applying and having an integrated system. Without this companies fail to meet the demands of the consumer. This in turn, causes loss in profit.
A. Historical background
During its creation, the developers of the ISO 9000 series wanted to encourage organizations to implement and institute quality assurance management programs. ISO 9000 deals specifically with the management of an organization/company. Back then there were no implications for the ISO 9000 to deal with the management of the environmental effects brought on by an organization. It is, like its next series, the ISO 14000, concerned with processes. Interesting fact, the ISO 9000 standard was published a year after the Uruguay GATT negotiations.
Some critics point out the standards instituted by ISO 9000 do not always result in quality products. Although this opinion might be shared with others familiar or within the industry, it still does not take away from ISO 9000's ability to effectively promote good management. ISO 9000 is meant to provide an outline for what organizations/companies should do to lead and manage their employees. Also, it shows how important communication and integration is.
B. Contemporary uses in industry
The ISO 9000 and it's evolving family of updated series, addresses several aspects of quality management. It also is apart of and contains some of ISO's best known standards. These standards provide the tools and guidance for companies and organizations in need of identifying regularly if they meet customer's requirements. Overall ISO 9000 helps companies/organizations improve their quality and promote consistency of higher standards.
In modern times, the standards have become necessary as industry are built based on consumer demand. In relation to contemporary uses, ISO 9000 allows for companies to base their standards on a number of quality management principles with an emphasis on customer focus. As modern times demand quality top management in order to carry out and run an effective company, the ISO 9000 series promotes the process and approach for continual improvement. This helps ensure customers get consistent, good quality products and services allowing for more benefits to the company/organization.
C. Benefits for use with environmental stewardship
The ISO 9000 does not have its main focus on environmental issues, but rather effective management. but, its standard allows for minimization of waste and allows for creation of a more efficient, effective operation. In regards to environmental stewardship, this promotes efficiency as it pertain to carrying out communication of updates and reviews. Another benefit is the reduction of audits. Many companies face continual audits in order to review spending and efficacy. ISO 9000 standards help offset the need for multiple audits.
The standard also promotes international trade as well as increase in profits. This allows for more implementation by the company in relation to environmental stewardship. It also allows for the ability of companies to acquire better tools and skilled employees to handle the responsibilities entailed through this process. Finally the standard promotes increase in customer satisfaction allowing the company/ies to develop a better public image.
D. Limitations for use with environmental stewardship
The ISO 9000 is mainly for management improvements. So, there would be lesser availability of resources to help with environmental stewardship. Not only that, but there is no clear process in order to determine what to do as it pertains to this subject. Although the bulk of the standard allows for efficient communication and understanding with the company/organization, it has little clear instructions or details as it pertains to environmental stewardship, therefore limiting its use.
IV. ISO 14000
A. Historical background
The ISO 14000 series of environmental management standards is meant to aide organizations in management of the environmental effect of their business practices. The ISO 14000 series and ISO 9000 series are very similar with the ISO 9000 series being published in 1987. ISO or International Organization for Standardization was in charge of their publication and intended for ISO to encourage and become a viable platform for international trade and cooperation in various areas such as: commercial, intellectual, scientific and economic endeavors. They achieve this through the development of international standards.
ISO's original purpose was to focus on industrial and mechanical engineering standards. One of the reasons ISO 14000 was initially developed was due in part to a response to the increasing concern over the preservation and condition of the enviornment as well as the GATT negotiations. An example of this would be the 1992 Rio Conference on the environment. Presently it's main focus is developing and maintaining standards for an organization's policies, processes and practices.
Some critics comment the lack of efficacy of ISO 14000 in preventing organizations from damaging the environment. The reason being the need for third-party certification. The certification process, viewed by some, appears to be unfair, needing a substantial amount of documentation and require the need for organizations to dedicate a lot of time and personnel. The proponents argue the practice of these standards yields economic benefits such as the opening of new markets and development of streamlined procedures, leading to profit gain.
B. Benefits for use with environmental stewardship
Costs acquired by a company attributed to going through the ISO processes vary. It all depends on the scope of the Environmental Management System (EMS). An instance of this is the companies limits and availability. It could be international, national, or pertaining to individual plants operated by a certain company. So environmental audits might end up being costly or not. It may prove to be costy if the company is on a national or international level.
When discusing the benefits for use with environmental stewardship, companies may notice cost savings they never realized of beforehand. An example of this would be an insurance company giving "reduced rates on insurance to cover accidental pollution releases to a company that has a proven environmental management system in place." (Stenzel, 2003, p. 1) When referring to the internal structure and organization of the company, cost savings may be applied as a result of was reduction and recycling.
As some might also state, like developing countries, they suggest environmental standards generated by ISO 14000 may "constitute non-tariff barriers to trade in that costs of ISO 14000 registration may be prohibitively high for small- to medium-size companies." (Stenzel, 2003, p. 1) ISO 1400 also has the potential of becoming a benchmark with that encompasses good environmental stewardship by a company. To have association with this bodes well for any company.
C. Limitations for use with environmental stewardship
Environmental steward presents various concerns with adminstrating and handlng issues related to legalities and regulations. Limitations for use with environmental stewardship include various tasks. One aspect of ensuring environmental stewardship involves the continual maintenance of an organizational awareness in regards to legal concerns as well as other requirements. Regulations are subject to change almost all the time and it is the task of the company to keep up with the demands of these changes.
Regulatory agencies enforce new regulations often. A company especially in connection with environmental stewardship, must stay current when it comes to compliance requirements. Another ever-evolving aspect is facility operations and their continual need to be periodically reviewed. This ensures that operations subject to regulation are handled and assessed in compliance with any pertaining regulations. Identifying and maintaining awareness of these requirements is crucial, but also tedious and can be at times costly.
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