1

University of San Carlos

P. del Rosario St, Cebu City


Report
In
AC 512
(Cost Accounting Part II)

International Quality Standards




Submitted by:

BARRIT, Gian Angelo
CAPAROSO, Noellie Klarscheene
GALACIO, Merck Elton
ONGLUICO, Nino Paolo
POLIGRATES, Connie
MWF 7:30-8:30 PM



Submitted to:

Mr. Oscar Villaflor, CPA
AC 512 teacher


2

International Quality Standards


International Organization for Standardizations(ISO)

ISO (International Organization for Standardization) is the world's largest developer and
publisher of International Standards. ISO is a network of the national standards institutes of 162
countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that
coordinates the system. ISO is a non-governmental organization that forms a bridge between
the public and private sectors. On the one hand, many of its member institutes are part of the
governmental structure of their countries, or are mandated by their government. On the other
hand, other members have their roots uniquely in the private sector, having been set up by
national partnerships of industry associations.

Therefore, ISO enables a consensus to be reached on solutions that meet both the
requirements of business and the broader needs of society.


ISO Member (Philippines)

Bureau of Product Standards
Department of Trade and Industry
3rd Floor Trade and Industry Building
361 Sen. Gil J. Puyat Avenue
PH-Metro Manila 1200

The Philippines took a formal approach to standardization in 1947, when the Division of
Standards was created under the Bureau of Commerce, Department of Commerce and
Industry. In June 1964, after realizing the need for standardization in line with the industrial and
economic development of the nation, the Philippines Congress enacted Republic Act 4109,
converting the Division of Standards into the Bureau of Standards.

The organization underwent several adjustments over the years to respond to the
growing range of services to industry, exporters and consumers, while raising organizational
efficiency, effectiveness and productivity. The Bureau of Product Standards (BPS) was conferred
its present mandate under various laws, principally Republic Act 4109, Executive Order 133 of
1987 and the Consumer Act of the Philippines, Republic Act 7394 of 1992.

The Bureau of Product Standards operates as a staff Bureau under the Department of Trade
and Industry with 95 personnel.



3

ISO 9000 SERIES

A set of generic standards that provide quality management guidance and identify
generic quality system elements necessary to achieve quality assurance. ItIdentifies basic
disciplines of a quality management system that is useful to manufacturers, suppliers and
distributors. Used by customers as a basis for assessing a manufacturers QMS and to see that a
supplier or service industry has the ability to provide satisfactory goods or services

Advantages of ISO 9000 series:
1. Improved the organizations quality management
2. Enhanced the reputation of the organization for quality

ISO 9000 SERIES is applicable to all situations, especially for:
CONTRACTUAL SITUATIONS
NON-CONTRACTUAL SITUATIONS

USES OF THE STANDARDS:
1. Guidance for Quality Management
2. Contractual Agreements
3. Second-party approval or registration
4. Third-party approval or registration


STANDARDS IN ISO 9000 SERIES

ISO 9001- Model for Quality Assurance in Design/Development, Production, Installation
and Servicing

ISO 9002- Model for Quality Assurance in Production, Installation and Servicing

ISO 9003- Model for Quality Assurance in Final Inspection and Test

ISO 9000-1- Guidelines for Selection and Use

ISO 9000-4




4


ISO 14000
Refers to a family of voluntary standards developed by the International Organization
for Standardization (ISO). It provides a framework for a strategic approach to an organizations
environmental policies, plans and actions. By using the framework, a company develops an
environmental management system or EMS. The EMS is evaluated by a certification body to
determine whether the EMS conforms to 14000. If so, the organization is said to have ISO
14000 certification. The focus is on processes, not products.

The ISO 14000 family consists of standards and guidelines relating to environmental
management systems and supporting standards on terminology and specific tools, such as
auditing. The standards are concerned with what an organization does to minimize harmful
effects on the environment caused by its activities: either during production or disposal, either
by pollution or by depleting natural resources.

What is an ISO 14000 EMS?

An environmental management system (EMS) based on the ISO 14000 standards is a
management tool enabling an organization of any size or type to control the impact of its
activities, products or services on the environment.

It defines a structured approach for:
1. setting environmental objectives and targets,
2. achieving these goals, and
3. demonstrating that they have been achieved.


Benefits
1. Reduced cost of waste management,
2. Savings in consumption of energy and materials,
3. Lower distribution costs,
4. Improved corporate image among regulators, customers and the public, and a
5. Framework for continuous improvement of environmental performance.

Reasons/ Advantages for ISO Certification
There are many reasons why a company would want to be ISO certified. Each has its
own advantage and disadvantage. We will look into some major aspects about these through
this presentation.
1. Increased Efficiency
Companies that go through the ISO 9001:2000 Quality Management Standards
certification process have given a lot of thought to their processes and how to maximize
quality and efficiency. Once certified for QMS, the processes are established and

5

guidelines in place for anyone to follow easily, making training, transitions, and trouble-
shooting easier.
2. Increased Revenue
Studies have shown that ISO QMS certified companies experience increased productivity
and improved financial performance, compared to uncertified companies.
3. Employee Morale
Defined roles and responsibilities, accountability of management, established training
systems and a clear picture of how their roles affect quality and the overall success of
the company, all contribute to more satisfied and motivated staff.
4. International Recognition
The International Organization for Standardization (ISO) is recognized worldwide as the
authority on quality management.
5. Factual Approach to Decision Making
The ISO 9001:2000 QMS standard sets out clear instructions for audits and process
reviews that facilitate information gathering and decision making based on the data.
6. Supplier Relationships
Mutually beneficial supplier relationships are one of the key attractions to ISO
certification. Following the processes for documentation and testing ensure quality raw
materials go into your production system. The process also requires thorough
evaluation of new suppliers before a change is made and/or consistency with respect to
how and where orders are placed.
7. Documentation
The ISO QMS standard requires documentation of all processes and any changes, errors
and discrepancies. This ensures consistency throughout production and accountability
of all staff. This also guarantees traceable records are available in case of non-compliant
products or raw materials.
8. Consistency
One of the foundations of ISO; All processes from research and development, to
production, to shipping, are defined, outlined and documented, minimizing room for
error. Even the process of making changes to a process is documented, ensuring that
changes are well planned and implemented in the best possible way to maximize
efficiency. Recommendations in the biotech industry to use XML authoring or similar
software formatting for data collection, reports, and product labelling, minimizes the
risk of obsolete documents/labels being mistakenly used.

6

9. Customer Satisfaction
Client confidence is gained because of the universal acceptance of the ISO standards.
Customer satisfaction is ensured because of the benefits of ISO 9001:2000 QMS to
company efficiency, consistency and dedication to quality service.
10. Improvement Processes
The ISO 9001:2000 QMS outlines audit processes, management review and
improvement processes based on collected data. Improvements are carefully planned
and implemented based on facts, using a system of documentation and analysis, to
ensure the best decisions are made for your company.

Disadvantages

1. Does not guarantee better quality

ISO certification definitely does not automatically lead to better quality product. While it
does encourage operations to think in terms of systems, it does not require them to be
good. This is definitely a problem with newer certified companies and those with
purchased quality systems.

2. Focus on certification
For anyone that has worked with ISO certified companies, this is definitely a truth. ISO
certification becomes a target, an end point, a stop on the road to quality. In reality,
continuously improving the systems would lead to better quality, but for ISO certified
companies, all too often the focus is on the next audit.

3. Frequent audits
Full system audits every three years with annual surveillance audits is just too much. It
seems that an audit is always around the corner. People can spend one month preparing
and two months addressing findings so that 1/3 of the total effort in a year is addressing
audit findings. If an organization has a robust internal audit system, there is no need for
annual surveillance audits.


Requirements for ISO Registration/ Application
Registration to ISO 9000 generally consists of the following six basic steps:
1. Application
2. Document review
3. Preassessment
4. Assessment
5. Registration
6. Surveillance

7


ISO Certified Companies in the Philippines

Bank of Philippine Islands
APO Cement Corp.
Megaworld Corp.
Dole Philippines, Inc.
Kraft Foods (Philippines), Inc.
Wyeth Philippines, Inc.
Cebu Mitsumi, Inc.
Splash Corp.
D.M. Consunji, Inc.
Cebu Air, Inc.
Sulpicio Lines, Inc.
Philam Plans, Inc.
Honda Cars Philippines, Inc.
Fujitsu Philippines
Holcim Phils.
Gardenia Bakeries Philippines, Inc.
Canon Marketing Philippines, Inc.
Jollibee Foods Corp.
Siemens Philippines.
SEAOIL Philippines, Inc.