'A World Standard'
by Larry Aylward, managing editor
Just as an accountant needs state certification for the overall betterment of his practice, meat processors and packers may find that ISO will help them to get a leg up on the competitors-and gain the utmost of respect from their customers.
ISO-International Organization for Standardization-is a European-adopted philosophy that preaches standards for quality business. The United States adopted the ISO Series as the ANSI/ASQC Q90 Series. Both are almost exactly the same.
"Any kind of organization can benefit from ISO because it allows employees to do their jobs better," claims Leslie S. Schnoll, senior lead assessor for KPMG Peat Marwick, a quality registrar.
"ISO has been qualified as a quality management system, but it's also a profitability management system," he adds.
James Marsden, vice president of scientific and technical affairs for AMI, points out that ISO is more than Total Quality Management.
"So often, TQM is just a philosophy," Marsden adds. "Nine times out of 10, TQM will fail because of that. ISO goes far beyond being a philosophy. It's something that's objective, measurable and documented."
Currently, no major processors or packers utilize ISO, according to Schnoll, who expects the standards to soon take the food industry by storm. A spokesperson for Madison, Wis.-based Oscar Mayer Foods Corp. tells MM&T the company is reviewing ISO, but would not comment further on how it would be applied. Camden, N.J.-based Campbell Soup Co. has adopted ISO.
The system consists of five primary international standards, although there are nearly 25 documents in its family. ISO 9000 is a "road map" document and provides definitions and concepts. ISO 9001, 9002 and 9003 cover special aspects of a quality assurance program based on activities performed. ISO 9004 tells how to implement and sustain an internal quality management system.
When a business meets the needs of one of the standards, it is registered by a third party, such as KPMG Peat Marwick.
According to "The TQM Trilogy," a book that identifies and defines concepts pertaining to Total Quality Management, "registration under quality standards will almost certainly be necessary if companies are to compete effectively internationally."
Teepak Co., an industry supplier, implemented ISO 9002 at its Danville, Ill.-based operation nearly a year ago. James Hermesdorf, Teepak's president and CEO, says ISO "instills discipline" within a company.
"ISO is an absolute necessary criteria to do business," he notes.
Schnoll says ISO 9002 would best pertain to processors and packers. "The TQM Trilogy" claims ISO 9002 is less comprehensive and easier to achieve than registration under 9001.
Schnoll adds that the standards defining ISO 9002 are generic in nature. The first requirements are for management responsibility and a quality system as they pertain to the company's strategic direction.
Documentation of procedures also plays a part in ISO, but levels can vary.
"You have to have manuals," Schnoll points out. "If you have an organization consisting solely of nuclear physicists with a lot of training, you don't need as much documentation. If you're dealing with a work force consisting of primarily high school graduates, you'll need more detailed instructions."
Processors and packers that have implemented Hazard Analysis and Critical Control Point programs are on their way to attaining ISO certification.
"With the regulatory environment changing as it is and HACCP coming into play, there's a lot of overlap [between ISO and HACCP], nearly 65 percent," Schnoll says. "There's not a lot of extra work involved."
Marsden says HACCP is "like a subset" to ISO. He expects companies that have implemented HACCP to merge it into ISO.
Hermesdorf claims HACCP is a small but effective part of the total package. "HACCP fits in well to the overall process, but it won't get you what ISO will get you," he insists.
Schnoll points out the benefits processors and packers can attain through certification, including:
-- Objective evidence that a certified company complies with a set of non-biased criteria as assessed by an independent third party. "It's not just a company bragging about its system," Schnoll adds.
-- Evidence of a documented quality system can be presented to customers.
-- A reduction in the number of customer audits, which are costly in time and money.
-- Adequate and appropriate training will provide employees with a better knowledge of their jobs.
-- A greater emphasis to focus on the need of the customer.
-- A registration will enhance an organization's ability to compete in world markets.
-- A company can gain enhanced marketability through the use of a recognized logo.
Is it costly to obtain certification?
"The expense of getting registered depends on the size of the company," Schnoll says. "And the costs are based on the number of audit days, which depends on the number of employees in the company and how many sites the company wants registered. It's hard to give an average cost."
A company striving for ISO certification is audited by a registrar. An audit includes a review of documentation and procedures, as well as checking for appropriately calibrated equipment and interviewing employees."
"At the end of the audit, there's an exit interview," Schnoll adds. "The audit team leader then makes a verbal recommendation either for or against a registration."
Is an ISO certification worth the cost, as it pertains to the bottom line?
"The payback for cost savings and increased profits is there, anywhere from two to five years," Schnoll claims.
Although the food industry, including the meat segment, has been slow to grasp ISO, Schnoll expects the pace to quicken.
"A year to 18 months from now, there will be many-if not most of meat processors and packers in the registration loop," Schnoll insists.
Marsden agrees that ISO will become popular in the industry. "I totally concur that it will happen, but you're looking at a time frame of three to five years," he adds.
It goes without saying that ISO could lead to increased competition in the meat industry.
"The first company to get registered has a competitive advantage," Schnoll claims. "The longer a company waits, it becomes a competitive disadvantage."
Says Marsden: "ISO will become a world standard."