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ISO 9000 for Small and Medium Scale Enterprises

1. ISO 9000 for Small and Medium Scale Enterprises

2. ISO 9000 related services from GQV Consulting, India.

3. News Flash


ISO 9000 for Small and Medium Scale Enterprises

About ISO

ISO stands for International Organisation for Standardisation. It is based in Geneva, Switzerland and was formed in the year 1947. The organisation consists of representatives from ninety-one countries.  Each country is represented by its standard body.  ISO comprises more than 180 technical committees, covering many industrial sectors and products. These technical committees, as far as possible, try to address the requirements of the member countries while formulating their standards. It aims at harmonization of standards at the international level with a view to minimise trade and technical barriers. ISO publishes both product and system standards.

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ISO9000 Standards

ISO9000 is a series of standards for Quality Management and Quality Assurance. While ISO9001, ISO9002 and ISO9003 are meant for certification purpose, ISO9000 and ISO9004 provide guidelines.

When a company approaches a certifying agency for ISO9000 certification, the certifying agency does on-the-spot assessments of the applicant's Quality Management System. If it is found to comply with ISO9001/ ISO9002/ ISO9003, the certifying agency awards the relevant certificate.

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Who can apply ?

Any legal entity having manufacturing / service operations can apply for ISO9000 certification. Manufacturers, Service Organisations, Trading Houses, Banks, Hospitals, Educational Institutions etc. are eligible for applying.

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Benefits of ISO9000 Certificate

For Small and Medium Scale companies, which normally do not enjoy much of  brand image,  ISO9000 certification helps to build confidence in the minds of customer organisations. This is particularly true in case of  Tenders and other contractual situations involving institutional buyers.

In India, where the Government is a prominent buyer, many of the public sector organisations have already started insisting on ISO9000 registration for vendor enlistment. In private sector also, the situation won't be different in the due course of time.

In case of  global markets, it is widely believed that the WTO is going to include ISO9000 certification as a pre-requisite for exports.

Other benefits of ISO9000 registration are ...

  • Clarity in definition of authorities and responsibilities

  • Enhanced corporate image and market positioning

  • Better records and documentation in case of litigation

  • Use of recognized mark (of certifying agency) on stationary and advertisement

  • Reduction in the need for multiple second party assessments

  • Better traceability to root causes of quality problems

  • Rectification of errors at the earliest stage

  • No repetition of  errors.

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Steps involved in ISO9000 Certification

The steps involved in any ISO9000 certification project are the following:

  • Gap Analysis:  Assessment of  existing quality management practices vis-a-vis ISO9001 requirements

  • Orientation Training:  Top / Senior Management orientation on ISO9000 requirements and action plans.

  • System Documentation: Preparation of quality manuals and design of quality record formats.

  • System Implementation: Implementation of quality system as per the quality manuals.

  • Company wide Training: Training on ISO9000 clauses, Statistical Quality Control Techniques, and Quality Audit.

  • Internal Quality Audits: Periodic assessment of quality system implementation and corrective actions.

  • Pre assessment:  Initial audit by Certifying agency, and, implementation of corrective actions.

  • Final Assessment: Certification audit by the Certifying agency and recommendation for certification.

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Major Cost Elements

There are three major cost elements  in any ISO9000 project. They are :

1. Cost of  purchase/calibration of  measuring instruments.
2. Fees to be paid to external consultants.
3. Fees to be paid to certifying agency.

The above costs depend on the size and complexity of  operations of the applicant company.In Calcutta,  for a small company having a manpower of around 20, with factory and office located in one place, the total cost falls in the range of  Rupees 1.0 Lac to 1.5 Lacs. Yes, it doesn't cost so much as one might think.

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Choosing a Consultant

Before deciding on your ISO9000 consultant, consider the following:

1. Formal Qualifications: As in the case of  medical / financial services, look for formal qualifications. At its minimum level, a graduate engineer with degree/diploma in Quality Assurance and Management may be acceptable. (Today, there are many reputed institutions in India that conduct degree/diploma courses in Quality Management). Apart from knowledge of ISO9000, your consultant should have adequate knowledge of Statistical Techniques (SQC, SPC, Design of Experiments etc.)

2. Relevant Experience:  Your ISO9000 consultant should have at least three year experience in handling two to three ISO9000 projects independently or as the principal consultant. Avoid those with long experience in other fields and little exposure to ISO9000.

3. Willingness to help in documentation :  Your ISO9000 consultant should prepare first draft of at least the Apex Quality Manual and Quality System Procedures. This would help in quick implementation of the system. (99.99% cases of  project dragging is due to incomplete documentation !)

4. Support till certification: Get firm commitment from your consultant that he shall provide support till your company gets certified.

5. Avoid package deals:  Some consulting agencies (also some auditing agencies) offer a total package of consultancy and certification. In such situation, you are very likely to get sub-standard consultancy and less valued certification (these auditing agencies do not command much reputation).

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Choosing a Certifying Agency

This job is also very important. Usually, your ISO9000 consultant suggests a name. But, do not forget to ask your friends in the industry and verify the credibility of certifying agency. As ISO9000 is more relevant in contractual situations, your customer can well be aware of the standard of certifying agencies.

Another point is regarding recognition of certification. In case your buyers are from a different country, it is better to select an auditing agency well recognized in the buyers' country.

Cost is yet another factor. Due to stiff competition, certification fee has come down a lot. However, there can be hidden costs like cost of flying down an auditor from a remote location. In that case, hidden cost can be more than certification fees. So, always go for a credible agency with sufficient number of auditors stationed locally.

BVQI, BIS, DNV, KPMG, RWTUV and STQC are some of  the ISO9000 certifying bodies operating in India.

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Financial Incentives for SSI / Ancillary units in India

There is good news for Small Scale Industry / Ancillary Units operating from India. The Government of India and some of the banks provide assistance to SSIs for acquiring ISO9000 certificate.

1. Re-imbursement of  ISO9000 project cost

The Govt. of India has launched a scheme in 1994 to give incentives to small scale / ancillary units acquiring ISO9000 certificate. According to the present norms, the scheme provides for re-imbursement to the extent of Rs 75,000/= or 75% of the cost (whichever is minimum). The scheme of re-imbursement will remain in operation till the end of 9th Five year plan, i.e., upto 31st March 2002.

The costs that are admissible for re-imbursement are ...

  • Application fee

  • Assessment / Audit fee

  • Annual Fee / License fee

  • Training Expenses

  • Calibration Expenses,  and

  • Technical Consultancy Fees

Note: Hotel and Travel expenses are excluded.

Contact:  The Director, Small Industries Service Institute (SISI) of  your state for details and re-imbursement application forms.

You may also write to:

The Development Commissioner (SSI),
Ministry of Small Scale Industries & Agro and Rural Industries,
Nirman Bhavan, New Delhi, India. PIN Code - 110011.

2. Re-financing (loan) from SIDBI

The Small Industries Development Bank of India (SIDBI) provides direct finance to SSIs in the form of loans (at an interest rate of 13% per annum) if the ISO9000 project cost is more than Rs 10 Lacs.

In case your ISO9000 project cost is less than Rs 10 Lacs, you can approach your bank for a loan, which in turn shall be re-financed by the SIDBI.

For more details and exact procedure, visit the web site of SIDBI at www.sidbi.com

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ISO 9000 related services from GQV Consulting, India.

On-site Services

We offer three types of on-site services.

1. Project Consultancy : Under this package, we provide gap analysis, Top/ Senior/ Junior  management workshops on ISO9000 and SQC, preparation of first draft of quality manuals, guidance during implementation, quality audit services, and, guidance in taking corrective actions on observations made by certification agency during preliminary as well as final assessment. Our experts shall make regular visits to the clients' factory / office  to ensure that the new system is understood and implemented by the client organisation. We stay with the client till it gets certified.

2. Training Programmes: We also conduct in-plant training sessions for management and staff.

3. Quality Audits: On behalf of the clients, we also conduct internal quality audits and provide feedback on implementation status.

We ensure best services of our well qualified consultants at very economic  fees.

Note: On-site services are presently restricted to clients from India, Bangladesh, Nepal and Bhutan.

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Off-site Services

GQV Consulting also offers consultancy support through e-mail. Under this scheme, you can get consultancy support for ISO9000 implementation, Samples of  quality system documents, Executive training  material, Assistance in identification of appropriate statistical methods for Quality Control / Quality Assurance, and, Data Analysis support.

In this scheme, you get world class service at a very competitive fees.

Note: Off-site services are open to all clients across the globe.

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News Flash

BIS invites applications for Rajiv Gandhi National Quality Awards

Applications are invited for Rajiv Gandhi National Quality Awards which is being operated by the Bureau of Indian Standards (BIS) to encourage indian industry to strive for excellence in quality.

ELIGIBILITY : A manufacturing organization or service sector organization is eligible to complete for the award or commendation certificate, if it satisfies the following conditions:

a) Applicant organization is located in India.
b) Applicant organization is situated at one place or a division of an  organization at one location.
c) An applicant organization has not have been convicted by any court for deficiency in product or service and/or found guilty of financial irregularities by any regulatory authority or court. An undertaking to this effect will have to be submitted.
d) Applicant organization is not manufacturing products, like tobacco and liquor etc., which are injurious to health.

Further, if any applicant organization has received an award, it shall not be illegible to apply for an award for a period of three years after being awarded. However, this condition will not apply to those applicant organizations which had received commendation certificate.

FREQUENCY : Annual, based on achievements in a calendar year. For eg. The 1999 award will be considered for results achieved during 1st January 1999 to 31st December 1999.

NUMBER OF AWARDS : Four; one each for large scale and small scale manufacturing organizations, one for service sector organizations, and for BEST OF ALL.

COMMENDATION CERTIFICATES : Thirteen, six each for large scale and small scale manufacturing organizations in industrial sectors, namely, metallurgical, electrical and electronic, chemical, food and drug, textile, engineering and others; in addition, one certificate for service sector organizations.

APPLICATION FORMS : Application forms would be available form the sales counter, Bureau of Indian Standards (BIS), 9, Bahadur Shah Zafar Marg, New Delhi- 110002 either on cash payment of Rs. 200/- or by Demand Draft/Pay Order. The application forms can also be obtained by post on payment of Rs. 250/- by Demand Draft. The envelop containing request for application form should be super scribed as "Rajiv Gandhi National Quality Award - Application Form Request." The Demand Draft should be in favour of 'Bureau of Indian Standards' payable at New Delhi.

For details please contact:
Director (Management and Systems)

Bureau of Indian Standards
Manak Bhavan, 9, B. S. Zafar Marg, New Delhi- 110002.
Phone:011-3231106. Fax: 011-323 9842 or 011-323 9399
E-mail : bis@vsnl.com

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Winners of Rajiv Gandhi National Quality Awards 1998

The following is the list of winners of awards and commendations for the year 1998. (Source: BIS, New Delhi.)

BEST OF ALL AWARD :
Mathura Refinery of Indian Corporation Limited.
, Mathura.

Category Awards Winners:

Large Scale Manufacturing Industry :
Gujarat Refinery of Indian Oil Corporation Limited.
,  Vadodara

Service Sector (Joint Winners) :
Larsen & Toubro Limited, EPC Projects Group
Mumbai  and Cummins Diesel Sales and Service (India) Limited, Pune

Small Scale Manufacturing Industry :
Wings Automobile Products Private Limited
.,  Faridabad

Commendation Certificates:

Large Scale:
Chemical  : Hi-Tech Carbon, Renukoot
Electrical & Electronic : Continental Device India Limited., New Delhi
Engineering and Others : LML Limited., Kanpur
Food & Drug : Mother Dairy, Delhi
Metallurgical : Hindalco Industries Limited., Renukoot
Textile : Maral Overseas Limited., Nimrani

Service Sector : Indian Oil Corporation Limited. - Jaipur Terminal and Laboratory, Jaipur

Small Scale:

Electrical & Electronic : Lipi Data Systems Limited., Udaipur
Electrical & Electronic : Lipi Data Systems Limited., Udaipur
Engineering and Others : Popy Umbrella Mart, Alappuzha
Food & Drug : Leben Laboratories Private Limited., Akola
Metallurgical : Essel Mining and Industries Limited., Vapi

Additional Commendation Certificates:

Highest score in Eastern Region : ITC Limited., Kidderpore
Highest score in Southern Region : Tanfac Industries Limited., Cuddalore

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