THE IMPACT OF THE ISO 9001 QUALITY MANAGEMENT SYSTEM ON THE COSTS OF QUALITY IN SOUTH AFRICAN MANUFACTURING ORGANISATIONS
Keywords:ISO 9000, continuous improvement, quality systems, quality costs
Many organisations throughout the world are aggressively adopting the ISO 9001 international quality standard. It heightens improved productivity and efficiency at an operational level. However, the astronomical costs of implementation decrease the benefits in cost savings, leaving executives disgruntled. This study seeks to explore the significance and impact of related variables in implementing the international quality system standard ISO 9001 in South African organisations. The study aims to highlight that, although there are cost implications relating to the prevention, appraisal, and failure costs of product quality, organisations become internationally competitive through the effective maintenance of the ISO quality management systems. The investigation was conducted through a qualitative exploratory research methodology involving unstructured interviews using open-ended and closed-ended questions. A total of 50 organisations from different manufacturing sectors were identified to participate in the study through non-probability snowball sampling. Five manufacturing organisations were identified to start off the snowball methodology. Questionnaires were distributed to these organisations to determine what motivated organisations to implement ISO 9000 systems. The study highlighted that the implementation of ISO standards was fundamental to customers’ requirements of all industries, while well-maintained systems can reduce quality costs and improve organisational effectiveness.
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