EC Product and Service Standards

The formation of the European Community (EC) from the Common Market Countries has created a free trade zone through the elimination of trade barriers. Products that can be sold in any country can be sold in all countries if the manufacturer has attained certification as a producer to International Standards Organization (ISO) 9000 guidelines. Fifty nations, including those in the EC, plus the United States Department of Defense, have adopted these standards. As a result, every manufacturer who is engaged in international trade will be forced to obtain ISO 9000 certification. This article explains what ISO 9000 is, what registration means, the process required to obtain registration, the benefits of obtaining certification, and the costs that will be incurred in obtaining and maintaining this certification. What Is ISO 9000? The International Standards Organization, located in Geneva, Switzerland, is comprised of representatives from 89 nations. It was created to promote the development of a series of product and service standards which would be recognized by each member nation. Products and services would no longer be subjected to individual standards that tend to restrict their free flow across national boundaries. ISO 9000 standards were adopted in 1987. These standards provide an internationally accepted system of rating quality management and quality assurance that is divided into six parts: ISO 9000: A set of guidelines to aid in the selection and use of the appropriate standards. ISO 9001: The most comprehensive of the standards. It is a model for quality assurance for companies involved in the design and development, production, installation, and servicing of a product or service. ISO 9002: A model for quality assurance for companies involved in the production and installation of a product or service. ISO 9003: A model for quality assurance for companies involved in final inspection and testing. ISO 9004: A guide for the application of the various elements of a quality management system. ISO 9004-2: A guideline for service industries that is used in combination with registration purposes. The ISO 9000 Series was created to provide a structure to insure that the principles of quality management and quality assurance are identified and enforced. It allows for variations within manufacturing environments while providing the information needed to prove to a buyer that the quality system is adequate and the product conforms to the design parameters. What ISO 9000 Certification Means The general manager of a manufacturing firm located in the United States stated, "ISO registration is a prerequisite for competing successfully in today's global marketplace" (Burk 1993). Registration must be achieved if a U.S. company seeks to export its products and services to Europe or any of the other countries which have adopted ISO 9000 as their standards. In general, an ISO 9000 certificate indicates that a company has documented how workers perform every function that affects product and/or service quality and installed mechanisms, systems and procedures in 18 different areas including design, process control, purchasing, service, and inspection and testing. The unwritten rule concerning an ISO 9000 audit is this: if all personnel were suddenly replaced, the new people, properly trained, could use the documentation to continue making the product or providing the service as before (Marquart 1992). To maintain its registration, a company must undergo at least one compliance audit per year and demonstrate ongoing compliance with the ISO standards to which it is registered (Rothery 1993). The Benefits of Obtaining Certification The obvious benefit of obtaining ISO 9000 certification is the reduction or elimination of trade barriers so that a company's products can compete in the international marketplace. Several companies have reported that the number of customer audits of their production process has decreased or stopped entirely once certification was obtained. …