May 20, 2014 / benchmarking, best practices, continuous improvement, customer satisfaction metrics, lean manufacturing, LIT, productivity, quality, ROI, strategic planning, value-added services
As the industrial metal-cutting industry becomes more competitive, a growing number of machine shops are looking for ways to differentiate their operations, whether that means offering value-added services or implementing the latest lean techniques.
One best practice that many of today’s leading shops tout is ISO 9001 certification. The standard, described in detail here, is based on a number of quality management principles, including a strong customer focus, the motivation and implication of top management, and continuous improvement. The basic goal of the standard is to help companies provide customers with consistent, good quality products and services, which, in turn, often brings business benefits like improved financial performance.
Metal Cutting Service, a specialty shop based in City of Industry, CA, has reaped the rewards of ISO certification, including improved productivity and quality. The company, featured in a series of LIT case studies, estimates that quality has improved 20 to 30% since it became ISO certified more than 12 years ago.
However, ISO certification isn’t a quick fix nor should it be taken lightly. Like any company-wide initiative, it requires time, money, and strategic planning. Here are a few points to consider before undergoing ISO certification:
- Understand the purpose. If you haven’t done so already, do your own research on the standard. You can download a basic brochure here. As this Quality Digest article states, many companies go into ISO 9001 certification under the incorrect assumption that the standard itself is supposed to be implemented to ensure quality. However, as the QD author states, this just isn’t true. “ISO 9001 was never intended to be used to design or implement quality management for any organization, but merely to assess quality management,” he says. “Sure, management might glean some details about QMS [quality management system] development from analyzing ISO 9001 requirements, but the requirements are not supposed to establish any QMS. A company must first establish real-time standard operating procedures (SOPs), and then look at how they compare to ISO 9001 requirements.” In other words, as the author quips, make sure you don’t put the cart before the horse.
- Reach out to other shops. Finding out why and how other machine shops approached ISO certification can help you determine if certification is worth the time and financial investment, as well as what you should (and shouldn’t) do in the process. As this Modern Machine Shop article suggests, contact some certified shops—particularly ones about the same size as yours—to get a feel for whether ISO certification is right for your operation. If you find a shop that hasn’t found value in certification, try to find two shops that have had a good ROI and then compare their approaches. However, managers need to realize that no two certification processes are going to be the same. The cost and time of ISO 9001 registration and implementation will vary depending on the size and complexity of your organization and on whether you already have some elements of a quality management system in place.
- Consider getting some support. If you decide to follow through with certification, there are several services and consultants that can help. Although third-party support may initially seem cost-prohibitive, don’t completely write it off. You may find it is worth the investment, especially if you are short-staffed. You can find a list of training and other service providers here on ThomasNet.com, and there are also several software programs available that can help you streamline the process. This is also an area where external insight from other shops can be helpful. Did they utilize any support services? If so, what was the most helpful? If not, do they wish they would have in hindsight?