Many common people mislead ISO as International Standard Organization. Unfortunately, it is a wrong and misleading perception because ISO is not an abbreviation! ISO derived from isos (Greek language) which means equal.[2] This definition generates a term namely standard (standardization). On the other hand, ISO is also well-known as an international organization dealing with the affair of standardization within a company. It is also usually mentioned as International Organization for Standardization. If an abbreviation is needed, it should be IOS, not ISO. The misinterpretation of ISO needs to be revealed in order to understand the objective and purpose of applying ISO in the beginning of its establishment.

The writer’s empirical experience in industrial world, on the managerial level of some international scaled companies (MNC), reveals that the management of big companies should be handled by people with certain capabilities and competences. In the society, those people are usually well-known as professionals. Thus, big companies are always managed professionally with the determined management standard so it is a common that the company and its employees have various certificates such as ISO, CIA (Certified Internal Auditor), etc. In short, the company’s professionalism and quality level is inseparable from its various certificates.

The more certifications owned by a company, the more professional the company is. It happens because business and industrial world always desire its input, process, and output to have the standardization and to have its product fits the determined specification to satisfy the consumers (end users) as the product users. Instead of dictating the customer’s desire, in reality the business world tags along with the customers’ dynamic. Consequently, the customers’ loyalty is inseparable from the existence of the company’s life, and progress.

Therefore, the equivalence and compatibility of the raw materials need to be well preserved; the processing activity is complied with the measure and standard defined in order to produce the exact and suitable finished goods as expected by the company. The standard needed by the company always changes following the market’s dynamics and demands of the customers, the users of the products.

The Quality Management Standard in Business World

As a profit oriented organization, a company is required to increase the more effective and efficient work performance’s productivity by maintaining the product’s quality (both good and service) produced. Thus, quality standard becomes a necessity in the process and activity in a company, particularly the international and world level company. The adjustment of the company’s management standard becomes the concern of the organizations in the business and industrial world so that they feel the need to form the international organizations, dealing with standardization (ISO).

According to ISO, the definition of standard related to document is mentioned as follows:  A standard is a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purposes. As a document, a standard may be in the form of a written note, figure, or any other forms which can be set specifically, specially, aimed and arranged orderly. It can be used to ensure the raw material (input), activity (work in process), and goods or service based on the specification requirement. The companies which are already qualified and complied with the standard will receive certification as the sign of product, material, process, or service standardization in accordance with the company’s objective as a profit oriented organization. It closely relates to uniformity and accuracy so that the production and service process can be measured in an obvious, specific, and certain way.

The production/manufacturing process needs standard, uniformed, and suitable raw materials in the purpose of having an expected result. For example: A cigarette company needs a kilogram of tobacco blends to produce 850 filter cigarettes. The result is standardized and it can be carried out by fulfilling the defined elements such as standardized machines, measured sauce and filter. An inefficiency and ineffective process may occur if the production does not reach up to 850 cigarettes. It indicates that there is a part or sub-process which is not complied with the standard. That the sauce is too thick, the paper and filter are not standardized and the size of the tobacco particle is too rough may cause problem. As the result, the product is ‘defect and reject’.

In order to prevent a defected product, the production process should be carried out systematically and thoroughly based on the explicated standard. The act of preventing the defected product is called zero defects which becomes the standard of work performance. Standardization in industry is absolute and had already done seriously by some companies which prioritize quality.

Standardization is not only on the materials or input of the company, but also on the process and production or service activities. However, not all companies in the world use quality management system issued by ISO. However, most of popular companies have their own quality management systems which always pay attention to the issues of business and industrial world, such as: perfection, fast delivery, eliminates waste, providing good, usable products, fitness for use, consistency and delighting or pleasing customers’ satisfaction.

By using standardization, the efficiency and effectiveness level of a production process and/or service activity can be found out without depending on the final results. The implementation of quality management standard pays more attention to “the how” more than to “the what” because standardized process creates the expected products. By using standardization, production process will be effective, efficient and it does not depend on the final result.

The standardized production steps must be followed because it is the guidance of production process. So if it does not produce the optimal products, it can be concluded that there is something that does not comply with the standard (defected and rejected products). From this context, the term of “doing it right the first time” (DIRT) is very suitable and appropriate to do in production process. Nevertheless, standardization is only possible when the material, equipment and tool are uniformed, the employees’ performance fulfills the determined criteria and the steps are done orderly. If one of the components is not complete and compatible with the criteria, it is impossible to get the same quality of product. As a consequence, standardization in business can only be done in a well and an accurate ways if the components and elements are in the same condition. Otherwise, there will be much problem in the work in progress (WIP) as well as in the result of finished goods.

By: Aries Musnandar[1]

Lecturer of Post-Graduate School

University of Raden Rahmat (UNIRA) Malang

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