ISO 29000 defines the great management system requirements for the layout, development, production, installation, and provider of products for the petroleum, petrochemical, and natural gas industries.
Developed as a direct result of a partnership between ISO and the international oil and gas industry (led by the American Petroleum Institute – API), ISO 29000 specifically focuses on the oil and gas supply chain.
The ISO 29000 general is based totally on ISO 9001 and carries supplementary necessities emphasizing defect prevention and the reduction of variants and waste from service vendors.
An internal benefit comes from within the company and relates to the day-to-day operations of the organization. An external benefit, on the other hand, comes from outside the company and relates to other entities and factors such as customers and markets. Internal benefits can be realized by any company that uses the ISO 9000 series standards. However, external benefits are limited to those companies that are certified by a second or third-party entity. This occurs because customers may not be willing to accept a company’s word that it complies with ISO 9000 series and may require second or third-party certification.
Whether certification is required or not, ISO 9000 series certification provides a variety of internal benefits.
- First, ISO 9000 certification leads to better documentation of company processes. This, in turn, leads to more efficient production processes and less waste. Both save money for a company.
- Second, managers and other employees become more aware of quality. They begin to view operations through a “quality of management” lens. This leads to a more efficient company that can be more competitive in the marketplace.
- Third, employee morale improves. When employees feel that they are part of the process, they accept responsibility for quality. This creates an incentive for workers to do a better job and makes the company more efficient.
- Fourth, cooperation and communication are improved. Documenting procedures facilitate communication and promote cooperation.
- Fifth, production processes can be made more efficient. When there is better coordination of processes, there is less “down time,” and resources are shared among departments more efficiently.
- Sixth, fewer defective products are produced. Better quality results in fewer defects, less scrap, and, therefore, lower production costs. Finally, documentation of safety standards results in fewer accidents. In turn, there is less downtime for employees. The ultimate results are more efficient workers and lower costs of production.
Similarly, there are many potential external benefits.
- The first is that company prestige increases. Companies following ISO 9000 series standards are perceived as “good corporate citizens” that produce higher quality products. Thus, they gain the prestige that can help retain old customers and attract new ones.
- Second, it improves customer satisfaction. Higher quality means higher customer satisfaction. Further, the manufacturer of a product is certified, a customer may feel better about the product even if it is, in fact, of no higher quality than that of a non-certified manufacturer.
- Third, it creates a higher level of trust. Customers perceive a certified company as being more trustworthy than a non-certified company.
- Fourth, it reduces the need for customer audits. With certification, a company has already been audited. Therefore, customers will not feel a need to audit every time they want to do business with a company. This can result in major savings. For example, it is reported that in some industry segments in the United States, a facility may be subject to dozens of audits per year; in some cases, it may be as many as 30 per month.
- Fifth, it can help a company increase its market share. Certified companies gain access to markets that require ISO certification, and they can deepen penetration of existing markets. Finally, the company can respond more quickly to market needs. With better quality procedures, it is easier to develop and market new product lines. Being the first to reach a market result in higher profits for the company.