HomeIndustriesManufacturingISO: Definition, Types, and Benefits in Your Business

ISO: Definition, Types, and Benefits in Your Business

Product quality standards are obviously crucial in a business. The quality of the product will lead your business to success. Currently, business competition is unlimited. A business actor not only competes with people in his/her country but also with people around the world. In addition, to improving the quality of products, you also need to do other strategies to win this global competition, one of which is with ISO.

In international business, ISO is nothing new. ISO also serves to strengthen your company’s internal strategy in the face of competition. In addition, this standard can also be a reference or standard for companies in measuring and improving product quality. So, you must make sure that all products are of quality and function perfectly.

What is ISO?

ISO stands for The International Standard of Organization. ISO is an organization that stands to be responsible for developing quality standards for every company that produces goods and services. Not all companies are required to follow the standards of this ISO. However, if you use a supplier that follows the standard and has ISO certification, then you can make sure that the product has guarantees for its quality and safety.

Benefits of ISO in a Business

1. Increase the credibility value of the company

This type is the most popular ISO standard. The main purpose of making this standard is to improve the quality of effectiveness management by approaching the process of identification, application, management, and continuous improvement. In addition, the goal is to assist the company in resolving quality issues as well as other cost issues related to the business and help the company to find ways to fit the customer’s terms.

2. Employee performance becomes more optimal

A company has a vision and a mission. In addition, some provisions will guarantee the quality of performance of the company’s employees. The provision will require employees to work optimally and efficiently.

3. Improve the company’s image

The ISO certificate that the company gets will bring the company to the point where the company will look to have a positive image. With a positive image, your company has a great opportunity to cooperate with many partners.

4. Can save costs

By using ISO, you will easily solve your company’s problems. This is because ISO already has a ‘standard’ that will help you anticipate problems that arise, both within the company and with customers.

Read: Production Process in Business: Definition, Types, and Characteristics

What is ISO?
Sumber: wikipedia.org

Types of ISO

The standards in ISO that companies can use to deal with the competition are very diverse. You must know the type of this standard before registering a product to have this international standard. Here are the types of ISO that are widely used by companies:

1. ISO 9001

This type is the most popular ISO standard. The main purpose of making this standard is to improve the quality of effectiveness management by approaching the process of identification, application, management, and continuous improvement. In addition, the goal is to assist the company in resolving quality issues as well as other cost issues related to the business and help the company to find ways to fit the customer’s terms.

The standards that help meet customer needs are the following:

  • Product safety standards
  • Environmentally friendly manufacturing products
  • Level of production efficiency
  • Specifications, both in dimension and functional

2. ISO/IEC 17025

This standard is widely used by companies that require it to have standards from testing agencies, such as laboratories. With these standards, laboratories can prove that they operate to valid standards about trade, production, health, and customer protection.

Another function of this standard is to facilitate a form of partnership between laboratories and other agencies and result in wider acceptance of the country. Another advantage is that test reports you can use around the world without the need to retest.

3. ISO 28000

This standard is a safety standard in the supply chain. Typically companies that use the ISO 28000 standard are companies that have a high-risk threat to their property. For example, manufacturing companies with heavy equipment, such as mining.

4. ISO 50001

This standard is the standard used by energy management systems. The function of this standard is to assist institutions in building an energy utilization system. The ISO 50001 standard has also gone through a design process suitable for standards integrated with other standards. Therefore, the company can apply it in various business fields.

Companies need a framework that sets measurements, documents, and reports, that can oversee the progress of processes and employees. So, there usually needs to be an efficient use of energy to achieve a sustainable improvement in energy management.

5. ISO 14001

This standard focuses on companies that want to improve environmental management efficiently. Companies are required to be able to understand aspects that will arise and have an impact on the environment due to operational activities. Companies need to know the factors when using the ISO 14001 standard, such as waste management, and efforts to streamline energy and fuel.

6. ISO 22000

This international standard was established in 2005 and it sets its requirements for a food safety management system. The function of the ISO 22000 standard is to ensure the quality and safety of food outlined ranging from food supply chains, producers to consumers, helping companies to reduce food hazards, and controlling the risk of contamination.

Therefore, the company is obliged to increase internal control in the field of production. 

7. ISO/IEC 27001

This standard is a standard that establishes an information security management system. This system is also known as the Information Security Management System (ISMS). 

The primary function of this standard is to help organizations manage information security by handling the people, processes, and technologies within it. Credentials in this standard have been recognized worldwide which signifies that the information security management system in your company has proven to be the best.

Another part of this ISO standard is to have a framework that will build organizations, implement, run, monitor, review, maintain, and improve information security systems.

8. ISO TS 16949

ISOTS 16949 sets the standard for quality management systems in the automotive industry. The concepts include continuous improvement, supply chain control, and remedial and preventive measures.

In addition, ISO TS 16949 is a common quality that stands together with the automotive industries of the United States, Germany, France, and Italy with the aim of improving quality and ensuring the supply that enters the industry.

Read: 5 Common Mistakes in Quality Control that Companies Often Make

Conclusions

By using ISO as a business quality standard, your company has a great chance of being able to successfully lead the global competition. Of course, in addition to getting a big profit in business, you also get the trust of customers. However, you need to know that ISO is not the thing that will give you the guarantee of a successful business. You alone will determine that success and the ISO that guides it.

By using HashMicro’s Online Manufacturing System, you can manage production easily. This software will provide you with the best experience with features that can track employee work progress, production plans, expenses, etc. So that you can guarantee the quality of each product you provide. Immediately schedule a demo with us to get a feel for the best features of ERP.

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