ISO 9001:2015 Certification is one of the most in-demand certification standards across the world. It is a global standard for a quality benchmark of products and services. ISO 9001:2015 Certification process in UAE is in high demand from companies in the region.
The cost of ISO 9001:2015 Certification is a very important aspect for organizations when it comes to getting certified with the Quality Management Standard.
However, the business benefits and profitability from the ISO Certification to the organization are undeniable. ISO 9001:2015 can help organizations save Significant money if done right.
ISO 9001:2015 Certification in UAE – Financial Benefits
The companies in UAE are aiming to get ISO 9001:2015 Certification in UAE to improve their financial returns from the production and service delivery.
To ensure whether the ISO 9001:2015 Certification is a success in financial terms, compare the company’s relative financial performance before and after the implementation of the ISO certification. Notably, check for the Return on Sales (RoS) and return on assets (RoA).
The return on sales is the net profit (after interest but before tax and dividend payments) divided by Revenue. Return on Assets is the Net profit (after interest but before tax and dividend payments) divided by the total assets. These are shown in percentage and measured over a full year.
If all other factors affecting the financial performance of the company remain unchanged and the organization complies with ISO 9001 standard; the Quality Management Standard helps in increasing the financial performance.
How does ISO 9001:2015 Certification Help Increase Revenue in an Organization?
ISO 9001:2015 Certification helps in reducing the cost of the operation and increase revenues. It helps organizations to optimize the business operations by:
- Reducing the number of Defects
- Reducing the wastage in raw materials usage
- Lowering warranty costs and reduce returns
- Enhance employee productivity
- Reduce incidents by taking preventive actions,
- Taking corrective actions and solving problems more efficiently
ISO 9001:2015 Standard helps organizations in increasing revenue by:
- Opening new markets
- Winning more customers
- Increasing customer satisfaction
- Understanding customer preferences
- Developing new products and services to meet customer needs
- Reducing complaints and enhancing the overall quality of products and services delivered
Research indicates almost 62% claim that their organizations had significant cost savings after implementing an ISO 9001:2015 Certification Standard.
Most of the companies have maintained their Quality Management Systems for more than 5 years and have received significant gains in terms of business profits and business productivity
The main aim of increasing product quality and enhancing customer satisfaction is achieved through ISO 9001:2015 Certification.
Calculating the Benefit and Cost of ISO 9001:2015 Implementation
It is the quality managers in organizations who audit the operational performance. Many quality indicators are not expressed in common financial terms. However, measuring these metrics will help in arriving at the financial implications of the ISO 9001:2015 Standard.
Measuring Quality in an Organization?
The quality is determined in an organizational environment in two ways:
- Measuring the financial improvements from the ISO Certification (in USD preferably)
- Impact of ISO Certification on financial results
There are many quality measurement frameworks that quality managers adopt to measure the effectiveness of the ISO 9001:2015 Standard implementation.
The most important quality measurement parameters are the people (employees), machines (maintenance & performance), Materials (Raw Material Usage), Methods (Business Operations)
The cost, time taken and results generated across all the above-listed parameters determine the success of the ISO 9001:2015 Standard.
Benefits of a Quality Management System in an Organization
Quality Management System implementation aims at transforming the business operations, enhance customer satisfaction and achieve financial gains for the organizations.
The successful implementation of the QMS System enables organizations to:
- Reduce manual repetitive and redundant operations and automate the same.
- It helps in reducing human error and enhance employee productivity
- Improving business processes and enhancing production efficiency and importance to the quality first manufacturing
- Consistent quality control, reduce customer complaints, product returns & recalls, and increase product quality
- Compliance with the QMS Standard helps organizations to be more customer-friendly and gain new sales and business opportunities.
ISO 9001:2015 Standard has specific modules for customer service and customer satisfaction best practices. Implementing quality practices in the organization directly has an impact on the financial returns from production.
How to Gain Maximum from ISO 9001:2015 Certification Implementation?
The Quality Management System helps in streamlining the business operations through various optimization methods all compliant with the ISO 9001:2015 Certification Standard.
Also, reducing raw material usage and monitoring the overall wastage and consumption of raw materials is the top priority of the QMS System.
By adopting quality first business operations the organizations can attract new customers and encourage repeat business.
What are the determiners of ISO Certification cost?
The cost of ISO Certification is determined by various factors such as the size of the business, no. of employees, the complexity of business, business sector, the operational structure, scope of the Certification Project, and many more.
To know more read: Cost of ISO Certification in UAE
The ISO 9001:2015 Standard implementation does not end with the implementation phase.
It is a continuous improvement process and will require the organization to maintain compliance by managing the policy documents, and other resources for achieving business productivity and growth.
Hence, in a nutshell, ISO 9001:2015 Certification in an organization is expected to gain significant financial returns to the organization by optimizing the business operations, motivating the employees, and enhancing customer satisfaction.
ISO 9001:2015 Standard is a much essential Certification Standard for organizations to stay competitive and be distinct from other brands and deliver quality first products and services.
To know more about ISO 9001:2015 Certification in UAE, talk to our expert ISO Consultants right away!
Contact Us: Aurion ISO Consultants