The Hindu Business Line : Relying on the stamp of quality

These are days of consumerism, the universal phenomenon that refers to people simply buying and buying with no rational justification. Wardrobes full of clothes, dressers piled with perfumes, pantries stocked with eatables and home bars overflowing with alcohol are manifestations of consumerism. It is only natural that governments do their best to ensure that consumers are protected in relation to the quality of goods purchased.

It is heartening to see advertisements from the Department of Consumer Affairs of the Ministry of Consumer Affairs, Food and Public Distribution, exhorting the public not to get cheated, be aware and be protected. The ad suggests that people:

Should be careful while making purchases;

Are not to pay more than the mentioned MRP;

Should check the expiry date on products;

Must insist on a cash memo;

Should check for adulteration;

Must not be fooled by misleading advertisements; and

Are to recognise that the ISI mark stands for quality and dependability.

Behind the ISI Mark

We have come to regard the ISI mark as a guarantee for quality and compliance with high standards set by experts. Behind the certification is the Bureau of Indian Standards, with a comprehensive set of regulations framed in 1988.

When a product manufacturer applies for a licence, for instance, it is mandatory for the applicant to submit “a statement furnishing in detail any scheme of inspection and testing, which the applicant maintains or has been in use or proposes to maintain or to put into use and which is designed to regulate, during the course of manufacture or production, the quality of the article or process for which the licence is applied for.”

In fact, the Bureau could call for evidence to show that the article or process conforms to the related Indian Standard, and that the applicant has in place a scheme of routine inspection and testing, which will adequately ensure that all marked products conform to the Standard.

Above all, the applicant is obliged to provide “all reasonable facilities to be provided to an Inspecting Officer of the Bureau to inspect the office, workshop, testing laboratories or go-downs … and to draw and test sample or samples for the purpose of verifying the evidence…”

In some cases, the Bureau might direct the applicant to “submit samples to such testing authority as the Bureau may consider appropriate.”

A licence granted by the Bureau could be cancelled if articles marked with the Standard Mark under a licence do not comply with the related Indian Standard(s); or the licencee had used the mark in respect of a process not in tune with the relevant Indian Standard(s), or when due inspection is not facilitated, etc. BIS is entrusted with and engaged in the formulation of Indian Standards for the following sectors: Basic and production engineering; chemicals; civil engineering; electronics and information technology; electro-technical; food and agriculture; mechanical engineering, management and systems; medical equipment and hospital planning; metallurgical engineering; petroleum coal and related products; transport engineering; textile and water resources. The Bureau of Indian Standards is also operating four different types of management systems certification schemes, of which the prominent one is the Quality Management Systems Certification Scheme. The scheme is operated as per IS/ISO 9001:2000 standard.

Certification of Management Systems

The scheme was launched in 1991, covering a wide range of industries and service sectors, including engineering, chemicals, pharmaceutical, cement, ceramics, food, textiles, automotives, mechanical, metallurgical, electrical, electronics, aeronautics, hospitals, financial, banking services, construction, hospitals, wholesale and retail trade, education and training, hotel, power, printing, telecommunications, testing laboratories and information technology.

In the guidance document developed by the ISO 9000 Advisory Group and available on the Internet, the key question on why an organisation should go for the ISO 9001:2000 certification was raised and answered as follows: “Without satisfied customers, an organisation is in peril! To keep customers satisfied, the organisation needs to meet their requirements.

“The ISO 9001:2000 standard provides a tried and tested framework for taking a systematic approach to managing the organisation’s processes so that they consistently turn out product that satisfies customers’ expectations.”

The guidance document further explains that “conformity to ISO 9001:2000 means that your supplier has established a systematic approach to quality management, and is managing its business to ensure that your needs are clearly understood, agreed and fulfilled. A statement of conformity to ISO 9001:2000:2000 should not, however, be considered as a substitute for a declaration or statement of product conformity.” In case a customer is not satisfied with the product or service offered by company holding the certification, there is a procedure to be followed to redress the grievance.

First, the consumer is to bring the grievance about quality of goods/services to the attention of the supplier. The supplier is expected to take action and satisfy the consumer. If not, in the second stage, the complaint can be escalated to making a formal complaint to the designated person in the company, authorised under the ISO 9001:2000 system to receive and address the complaints. If still dissatisfied, the consumer takes the next step and reports the matter to the certification body, the name of which can be found “by looking at… supplier’s certificate”.

The next two grievance stages involve making representations to the relevant accreditation body or, finally, to the International Accreditation Forum.

ISO Certification: Consumer Orientation Needed

There is a subtle difference between the ISI type standard marks and ISO type certifications of management processes. The former have direct quality connotation since it is the products that are judged against set standards.

In the case of management processes, their certification ensures desirable quality processes without necessarily guaranteeing the product or service quality. If B-school ranks are no guide to prospective students, parents and employers; if accreditation of higher educational institutions is no guarantee for teaching and research standards; and if certification of management systems are not related to product and service quality; the ranks, accreditations and certifications are an edifice with little significance.

In the specific instance of certifications of management processes, it is important to recognise that the processes are not in demand for their own sake, but are there to deliver quality products and services. What does it matter if most modern computer-based systems greet the customer, if the invoices sent are inaccurate?

What is the earthly use of a certificate holder possessing an excellent marketing team, if each one of its members is frustrated with the complaints from customers about the product quality? Of what use is the commitment of the management to market discipline if prices are raised indiscriminately simply because the customers are in the dark about the ruling market prices for comparable products?

Clearly, the satisfied customers are the desired end product of any management process and its certification. The imperative is that such certification must specifically provide for customer satisfaction surveys as an important additional parameter in the processes used for certification.

For instance, if a certain manufacturer, financial institution or builder were to seek a management process certification, the certifying authority should insist on a customer complaint-free record for a couple of years before the certification is applied for. Moreover, the existing customers should be notified about the application and given due time to object to certification on grounds of poor product quality within the framework of their experience.

(The author, formerly with the National University of Singapore and the World Bank, is Visiting Faculty, Sri Sathya Sai University, Prasanthi Nilayam. He can be reached at bhanoji@gmail.com)

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