Small Businesses should prepare; ISO 9000 is on the way.
                         by Richard L. Taylor
                                   
          [From the Federal Acquisition Report, January 1994]
                                    
     ISO 9000 is a series of standards developed by the
  International Organization of Standardization in Geneva,
  Switzerland that document, structure, account for, and trace
  products and services produced by an organization.  As of
  July 1993, it has been adopted by 93 nations and about
  40,000 organizations worldwide.  In the United States, more
  than 1,500 organizations have ISO registration.  This
  includes the General Services Administration, which has
  determined that contractor inspection systems that meet ISO
  standards for quality management are acceptable alternatives
  to current federal standard 368.
     What does this mean to small and small disadvantaged
  business owners?  Simply put, many corporations may not give
  small businesses the opportunity to bid unless a potential
  supplier has been registered for or begun to implement ISO
  9000 standards.
  
  What is ISO 9000?
     ISO 9000 gives an overview, defines terminology, and
  provides guidance for selecting the other standards in the
  series (ISO 9001, ISO 9002, ISO 9003, and ISO 9004).  ISO
  9001 is the most comprehensive standard, ensuring quality
  assurance in design, production, installation, and servicing
  for manufacturing organizations that design and produce
  their own products.  ISO 9002 is used in contractual
  arrangements when specified requirements are stated in terms
  of established design or specifications.
     ISO 9003 requires a supplier to demonstrate its ability
  to detect and control the disposition of any product
  nonconformity during final inspection and testing.  ISO 9004
  sets a standard for an organization's internal quality
  management.  The ISO 9000 standards register production
  processes rather than specific company products.
     Most companies spend from $9,000 to $40,000 to become
  certified, and the registration process takes 12 to 18
  months, depending on which standard is registered. 
  Currently, there is a six to eight month backlog of
  companies waiting to be registered.
     Nevertheless, it seem to be worth it.  In a survey of
  registered companies, 89 percent noted "greater operational
  efficiency" and 48 percent stated they were "more profitable
  after their registration."
  
  How to register
     First, to register a company must identify and document
  all the processes that affect the quality or service it
  provides to its customers.  An organization should develop a
  detailed flow chart that includes responsibility, authority,
  variable controls, and the various documents generated from
  each step.
     Second, the company must develop a quality control
  manual and quality assurance system.  A management
  representative should be designated and is responsible for
  coordinating the internal functions necessary to accomplish
  quality milestones.  
     Third, the company must train employees, guide and
  monitor implementation, review and edit documentation, and
  conduct preassessment audits.
     Fourth, a company must select a registrar that is a
  third-party auditor that can evaluate quality system
  conformity to ISO 9001, 9002, and 9003.  Currently, there
  are more than 30 accredited registrars in the United States,
  such as the American Bureau of Shipping, Underwriters
  Laboratory, the British Standards Institute, and Lloyds of
  London.
     After the application and manual are submitted to the
  registrar, a preassessment is conducted, corrections are
  made to the quality manual, and an audit is conducted for
  the registration.  Upon successful completion of these
  steps, the applicant becomes ISO registered.  A surveillance
  audit is conducted by the registrar six months after the
  certification to ensure that all of the quality systems in
  the organization are working effectively.  Once implemented,
  ISO 9000 gives small businesses not only an opportunity to
  save money, but also the opportunity to bid for more work.
  
  
  
  Richard L. Taylor is the owner of T.P. Associates, a
  consulting firm to minority small business in Naples,
  Florida.