Small and large organizations recognize that the implementation of an ISO 9001 quality management system (QMS) in their processes gives them a competitive value. However, the task of implementing and successfully obtaining the certification requires time and money. Therefore, a popular question when deciding to implement is “What is the Cost to Implement ISO 9001?”
2 Costs of Implementing ISO 9001
There are 2 kinds of costs associated with the implementation of ISO 9001
- The costs for the implementation.
- The costs for the certification.
Costs of Implementing ISO 9001
In order to effectively estimate the cost for implementation, an organization will have to go through a gap analysis or assessment.
However, there are 3 main factors that an organization should take into account when estimating cost:
- The size and complexity of the organization. Is it a small single location organization? or is it a large company with processes such as design, manufacture, installation, test, etc.?
- The type of quality system that is currently in use. Does it have a structured and disciplined system in place? Is the system documented, and how well?
- The time that staff and other members of the organization have to devote to the project. Will the organization create everything with its current members? Will it hire someone to guide them? Or, will it hire an ISO consultant to complete the entire process?
The major cost items that every organization needs to consider when implementing ISO 9001 are:
- Training managers to get them to understand the requirements of ISO 9001
- Assessment of current quality control practices and creating additional testing facilities routine if necessary
- Renew the workspace, equipment, machines, public services, supporting facilities, etc, if necessary
- Review and revamping arrangements for the handling and storage of raw materials, semi-finished and finished products, as appropriate necessary and safe
- Review existing procedures / practices and listing of new procedures, checklists and records to be prepared
- Development of QMS related documents
- Conduct outreach activities of everyone who has roles and responsibilities for implementing the QMS
- The various expenses such as word processing, stationery and other supplies necessary for the production of manuals, procedures and the like
Costs of ISO 9001 Certification
Regarding the cost of initial certification and costs associated with maintaining certification the main cost items are:
- Registration and certification fee payable to the certification for a period of three years
- Fees for the two-stage audit visit nominated by the certification body
- Audit Committees regularly monitored by the certification agency nominated
- Travel, accommodation and meals for auditor(s) of certification
The implementation and consequent maintenance of a QMS based on ISO 9001 is an investment of time and money for any organization. The success of the system will rely mainly in the commitment of all its members, especially on how senior management is committed to making ISO 9001 an effective tool to integrate their processes, continuously improve their QMS, and satisfy their customer’s expectations.
To the novice quality manager, ISO jargon can be extremely overwhelming. What is an NCR? What do you mean by OFI? Are we certified or accredited? But before you go and pull out your hair, let’s take a moment to go over some of the most frequently used terms and their definitions with regards to ISO and Management System Certification.