01-Effect of ISO 9000 Certification-Dr M Shafiq
01-Effect of ISO 9000 Certification-Dr M Shafiq
01-Effect of ISO 9000 Certification-Dr M Shafiq
ABSTRACT
ISO 9000 is a widely used quality management standard in the world. However,
the review of literature has shown the contradictory findings about its
relationship with the implementation of TQM. The in-depth review of both ISO
9000 and TQM indicates that both systems share many common principles.
However, still many believes that ISO 9000 implementation contradict the
philosophy of TQM whereas others indicate that implementation of ISO 9000
leads the organisations towards the implementation of higher levels of TQM.
Therefore, the relationship of ISO 9000 certification with implementation of
TQM needs to be explored in further details. In this study, the data was collected
by using self-completion questionnaire from the managers of 306 textile
companies located in Pakistan. The findings of this study provides empirical
evidence that certification to ISO 9000 facilitates the companies in their journey
towards the implementation of TQM. However, duration of ISO 9000
certification does not have the significant effect on the implementation of TQM
philosophy.
1) INTRODUCTION
The above studies indicate that the effect of ISO 9000 certification on
implementation of TQM needs to be explored in further details.
Therefore, in this study it is attempted to provide the empirical evidence
to address the above mentioned gaps in the existing literature.
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The other standards of the ISO 9000 family provide information about
other aspects of quality management system like vocabulary,
fundamental concepts and auditing. For example, ISO 9000:2005 provides
the fundamentals concepts of quality management systems and defines
related terms; whereas ISO 9004:2009 gives guidance to organisations to
help support sustained achievements. However, these two standards are
not used for certification, contractual or regulatory use (ISO, 2011).
The eight principles are integrated in the five clauses of the standard. As
ISO 9001:2008 is based on eight clauses. However, the first three clauses
just indicate the scope, normative references and terms and definitions.
Whereas, the Clause 4 describes the requirements of quality management
system. The general and documentation requirements for this standard
are also contained in this clause. Clauses Five to Eight present the
requirements of the standard related to management responsibility
(Clause 5), resource management (Clause 6), product realisation (Clause
7) and measurement, analysis and improvement (Clause 8) (ISO
9001:2008).
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Effect of ISO 9000 Certification on TQM Implementation
Management
Responsibility
Customers
Customers
Resource Measurement,
Management analysis and Satisfaction
improvement
Output
Product
Requirements Realisation Product
This model indicates the process links between Clause Four to Eight of
ISO 9001:2008. From this model it is evident that customer satisfaction is
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given great importance in this standard. The customers play a vital role in
defining the requirements as inputs. At later stages, organisations have to
determine whether they were able to satisfy their customers or not.
Despite thousands of articles in the business and trade press but still total
quality remains a “hazy” and “ambiguous” concept. The founders of this
philosophy like Deming, Juran and Crosby, have no doubt, contributed to
this confusion (Dean and Bowen, 1994). Many authors still consider it to
be another management fad (Rich, 2008; David and Strang, 2006; Miller,
Hartwick and Breton-Miller 2004; and Boaden, 1996). They argue that the
fundamental values of this management philosophy are part of already
existing organisational change initiatives (Boaden, 1996). However, many
studies indicate that the underlying principles, assumptions, values and
theories of TQM are comparatively different from other improvement
initiatives (Sousa and Voss, 2002; Hackman and Wageman, 1995; Dean
and Bowen, 1994; Grant, Shani and Krishnan, 1994). In order to identify
that whether there is anything like TQM exists or not, Hackman and
Wageman (1995) conducted the discriminate and convergent validity
tests. Discriminate validity refers to the degree to which TQM philosophy
and practices can be reliably distinguished from other strategies for
organizational improvement such as participative management,
management by objectives, and so on. Convergent validity reflects the
degree to which the versions of TQM promulgated by its founders and
observed in organizational practices share a common set of assumptions
and prescriptions. They found that TQM passes the discriminate test
because there is sufficient agreement among the movement‟s founders
about the key assumptions and practices of TQM. These assumptions and
practices are clearly different, both conceptually and operationally, from
the other change management programs.
Several attempts have been made to define TQM but the definitions
provided are “vague”. There is a little agreement on what total quality
management really means. The leading authors and gurus have used
different terms while discussing this topic in the existing literature. For an
instance total quality control (Feigenbaum, 1956), total quality
improvement (Lascelles and Dale, 1991), and strategic quality
management (Garvin, 1988). The difference among these terms, if any and
other concepts is often unclear and creates confusion. Spencer (1994,
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Effect of ISO 9000 Certification on TQM Implementation
Tari (2005) argues that although the practices of TQM vary from author to
author, common practices can still be identified. These practices include
top management commitment, customer satisfaction, continuous
improvement, involvement of employees and partnership with suppliers.
Many authors agree that these practices are the core elements of TQM
(Martinez-Costa, Choi and Martinez, 2009; Fotopoulos and Psomas, 2009;
Lopez-Mielgo, Montes-Peon and Vazquez-Ordas 2009; Bou-Llusar et al.,
2009; Zu, 2009; Li et al., 2008; 2006 and Sila and Ebrahimpour, 2003).
Furthermore, many studies empirically validate the above-mentioned
TQM practices (Saraph, Benson and Schroeder, 1989; Flynn, Schroeder
and Sakakibara, 1994; Ahire, Golhar and Waller, 1996; Quazi et al. 1998;
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Rao, Raghunathan and Solis, 1999, Kaynak, 2003; Fotopoulos and Psomas,
2009).
The literature seems inconclusive about the association between ISO 9000
certification and the achievement of higher levels of TQM. Many studies
indicate that certification to ISO 9000 has no effect on the implementation
of TQM or even contradicts the teachings of TQM (Martinez-Lorente and
Martinez-Costa, 2004; Zhu and Scheuermann, 1999).
Whereas, Magd and Curry (2003) assert that TQM and certification to ISO
9000 have a propensity to support each other. Companies can streamline
their work processes using the implementation of ISO 9000 and then TQM
can help to improve the motivation of employees, efficiency of operations,
and overall performance of the organisation. Similarly, Rao, Ragu-Nathan
and Solis (1997) have revealed that ISO 9000 certification can help
organisations to have higher levels of implementation of quality
management practices. They provided empirical evidence that the
companies which were certified to ISO 9000:1994 had higher levels of
quality leadership, human resource development, strategic quality
planning, supplier relationship, quality assurance, and customer
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Effect of ISO 9000 Certification on TQM Implementation
Similarly, Jang and Lin (2008) provide the empirical evidence that the
operational performance of organisations improved after getting the
certification of ISO 9000. Sroufe and Curkovic (2008) also show that
certification to ISO 9000 improves processes and helps to minimise
production losses.
Hafeez et al. (2006) argued that ISO 9000 provide the foundation for
effective implementation of TQM philosophy by fulfilling the
requirements of quality control and quality assurance. Figure 2 explains
in depth how ISO 9000 provide the foundation to implement TQM
elements. Gutierrez et al. (2010) support Hafeez et al. (2006). They also
argue that the implementation of ISO 9000 could be mapped on to the
phases of quality control and quality assurance. They also indicated that
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Effect of ISO 9000 Certification on TQM Implementation
Overall, it is evident that ISO 9001:2008 clauses have much relevance with
the elements of TQM. Russell (2000) has also done similar mapping of ISO
9001:2000 clauses with the EFQM criteria. He identified that there is a
much correspondence between these two models. Leadership is
considered as the driving force behind the both frameworks. Customers‟
satisfaction is given top priority. Continuous improvement and learning,
people development and involvement, process approach and partnership
development are considered important in both frameworks.
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Effect of ISO 9000 Certification on TQM Implementation
Technologies (Tools)
Continuous Improvement
Customer Focus
Benchmarking
ISO 9000 H1a
Certification
H1b
People
Top management
commitment
Employees Involvement
Employees Training and
Development
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RESEARCH METHODOLOGY
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Effect of ISO 9000 Certification on TQM Implementation
it was decided that the managers would be the respondents in this study.
It is also assumed that multiple responses from each organisation will
minimise the bias in the data. It was therefore decided to collect the
responses from the managers of multiple departments of same company.
Therefore, senior managers from multi-departments including Quality,
Operations, Finance, Sales & Marketing and Human Resources were
selected as the respondents for this study. Similar respondents were
selected by Feng et al. (2006), Prajogo and Sohal (2003); Ho, Duffy and
Shih (2001), Ahire and Dreyfus (2000) and Flynn, Schroeder and
Sakakibara (1994). Other research has collected the data from CEOs/
quality directors/quality managers (e.g. Bou-Llusar et al. 2009; Douglas
and Judge, 2001; Rao, Raghunathan and Solis 1999).
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Effect of ISO 9000 Certification on TQM Implementation
1The items in Section II of the questionnaire are represented by “V1, V2 and so on. These items
could be traced from the questionnaire, attached as Appendix A. The notation of “Vr” is used
when the rating for that item is reversed.
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constructs. It is evident from Table 6.1 that all the values of CA are more
than 0.6. Therefore, all the constructs with CA value equivalent or more
than 0.6 are accepted. The CA value of Technologies (Tools)‟,
„Organisation (Systems)‟, „and „People‟ (TOP) varies from .80 to 0.85.
Figure 4 indicates comparative mean score of the TQM constructs for ISO
9000 certified and non-certified organisations. It is evident from the mean
values that the construct have higher mean values for ISO 9000 certified
companies.
4
4 3.94
3.93
3.9
3.8
3.7
3.4
3.3
3.2
Technology Organisation People
However, Figure 5 indicates that the mean score for TOP constructs for
different durations of ISO 9000 certifications do not have much difference.
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Effect of ISO 9000 Certification on TQM Implementation
44 3.99
4
3.95
3.93 3.93
3.95
3.88 Duration of ISO 9000
3.9 Certification Less than 3
3.85 Years
3.78
3.8 Duration of ISO 9000
3.73 Certification From 3-6 Years
3.75
3.7
Duration of ISO 9000
3.65 Certification Above Six
3.6 Years
3.55
Technology Organisation People
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5) DISCUSSION ON RESULTS
From Figure 4 and Table 5 it is evident that all the constructs of the TOP
are related with certification of ISO 9000, Quality Management System.
Table 5 indicates that the ISO 9000 certified companies have higher levels
of TQM implementation. Many studies support these findings. For
example, The findings of Terziovski and Power (2007) confirm the
findings of the current study by providing empirical evidence that
certification to ISO 9001:2000 facilitates the organisations in the
development of a quality culture. Rao, Ragu-Nathan and Solis (1997) also
confirm the findings of the current study.
Some research does not support the findings of the current study. For
example, Sila (2007) states that there was no difference in the performance
and systems of the ISO 9000 certified and non-certified companies. A
detailed investigation of Sila‟s sample shows that the non-certified
companies which were included were already involved in the
implementation of a range of quality improvement initiatives like Kaizen,
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Effect of ISO 9000 Certification on TQM Implementation
The other findings indicate that duration of ISO 9000 certification do not
have significant effect on the implementation of TOP constructs except
„people‟. According to these findings the companies having certification
for less than three years and more than six years do not have significant
difference especially for Organisation and Technologies construct of TOP.
This aspect could be explained in the context of the explanation given by
Baxter and Hirschhauser (2004, p.208). They consider that the
implementation of the majority of performance improvement initiatives
are intended to highlight the company‟s competence to the outside world,
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and the company may never really intend to revolutionize the workplace.
The „pink factories‟ which adopt this approach in their implementation of
TQM can never get success by using this philosophy.
Soltani, Meer and Williams (2005, p. 226) seem agree with this
explanation they assert that, “registration with either the EFQM or one of
its partners, such as the British Quality Foundation (BQF) and Quality
Scotland Foundation (QSF) or MBNQA, does not necessarily make an
organisation a quality-driven one”. In addition, Magd and Curry (2003)
indicate that the majority of companies get ISO 9000 certification because
of customers‟ pressure. They want to show their competence to their
customers and are not really concerned about improving the system by
using the principles of ISO 9000. This could be the reason that in spite of
having ISO 9000 certifications, the majority of companies are unable to
improve continuously.
6) CONCLUSION
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Effect of ISO 9000 Certification on TQM Implementation
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