Increasing numbers of U.S. businesses have been seeking to comply with the ISO 9000 standards simply because
Question:
Increasing numbers of U.S. businesses have been seeking to comply with the ISO 9000 standards simply because of real or perceived market forces. Some of the most commonly given reasons for seeking ISO 9000 registration or compliance are:
* “Our customers are demanding it., often by putting ISO 9000 into contracts.”
* “Our customers say they will treat ISO 9000-registered suppliers preferentially.”
■ “Our competitors are achieving registration, so we must also.”
■ “We need to improve quality; ISO 9000 seems like a practical, no-nonsense, and internation¬ ally accepted approach. ”
m “Our customers demand quality; ISO 9000 registration makes a statement about our com¬ mitment to quality.”
* “Our European divisions already have ISO 9000 registration, and they are putting pressure on us to conform. ”
m “Our industry seems to be moving toward ISO 9000.”
The rapid growth of ISO 9000 implementation shows that the forces of the marketplace (whether the direct forces at work in regulated industries or the indirect ones that govern the free markets) are an effective influence in getting companies to adopt standards and, more importantly, to use them to improve their processes.
[SOURCE: Stanley A. Marash and Donald W. Marquardt, “Quality Standards and Free Trade,” Quality Progress (May 1994), p. 29.]
a. Why do you think customers are insisting that suppliers meet ISO 9000 standards?
b. Does meeting ISO 9000 standards mean that a supplier’s products or services are superior to those of competitors? Elaborate on what such conformance does mean.
c. Why would the fact that a supplier’s industry is moving toward ISO 9000 motivate the supplier to seek registration?
d. How would complying with ISO 9000 help a company improve quality?
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Cost Accounting Traditions And Innovations
ISBN: 9780538880473
3rd Edition
Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney