Audit

ISO Start : 23 Feb 1947 at Jinewa 162 member, 20000 standard and non government org 3 language : English, French, Russian 1980 : technical committee 1987 : first edition 1994 : first minor revision 2000 : 1st Major revision 2008 : 2nd minor revision 2015 : 2nd Major revision 4M Material, Manpower, Machine, Methods Quality Management-Quality control-Quality assurance-Quality improvement-Quality planning ESI deduct on total gross amount ka 0.75%
UTILITIES  - POWER & WATER
·         Check the power bills raised by the State Electricity Board and locate if any amount has been paid towards LPF (low power factor), surcharge on delayed payment or any other payment in the nature of penalty.  Such expenses can be avoided.
·         Ensure whether the consumption of electricity (in units) is within the contracted demand because a penal amount is required to be paid if the contracted demand (in KVA) is exceeded and a fixed sum has to be paid even if the actual consumption is less than the minimum consumption guarantee.  Both the situations i.e. exceeding the contracted demand and consuming less than the minimum guarantee should be avoided.
·         Check the Water bills raised by the Water Department and ensure that the actual consumption is neither more than the contracted demand nor less than the minimum consumption guarantee.  Penal payments have to be made if the contracted demand is exceeded to or if the actual consumption is less than the minimum guarantee consumption. Penal payments of any nature should be avoided.
·         In case of Captive power plants (CPP) / DG sets it should be ensured that proper records are maintained in respect of consumption of Diesel/ other consumables and raw material. Power cost per unit should be worked out in case of CPP and compared with the per unit cost of power of the State Electricity Board. It should be the objective to balance the utilization of CPP and purchased power to get the maximum benefit.
·         The per unit cost of power of CPP should include the depreciation and interest element. The  per unit cost can be worked out by dividing the total cost of running and maintaining the CPP (variable + Fixed) by the No. of units produced by the CPP.
·        Check the agreement with the SEB for power consumption and ensure that the terms and conditions of the agreement are complied to by the parties as regard to security deposits required to be held / power tariff / power consumption / billing / refund of security deposits etc.
·         Check the following ratios (actual) against the Norms set
(a) Steam / Production           (b) Water/ production
(c) Air / Production                  (d) Coal / Production
(e) Coal / Steam                     (f) Steam / Power
(g) Coal / Production               (h) Coal  GCV (Gross Colorific value)-Heat
·         In respect of Cooling Towers / Chillers – check the actual results against the Norms in respect of Temperature.
·         Water treatment Plant
·         Check the actual results against the Norms set in respect of Pollution etc.
·         Check that the preventive maintenance schedules of plant & machinery and equipments have been made at regular intervals in respect of all the branches of engineering -> Mechanical /Electrical   Instrumental / Electronics etc.
·         Ensure that the preventive maintenance schedule is approved in writing by the Head of Engineering.
·         Ensure that preventive maintenance schedule is carried out as per the plan. Comment on the back  log, if any.
·         Ensure that the preventive maintenance schedule includes all the plant machinery and equipments.
·         The entries is respect of actual preventive maintenance should be made in the schedule drawn along with the date / name and designation of the employee who have actually carried out the preventive maintenance .
·         Check whether  there is any deviation from the planned preventive maintenance schedule . Enquire in to the reason for such a deviation and comment upon it.
·         Enquire in to the system / method / procedure of carrying out breakdown . maintenance. Check the format of Job Order / Complaint form / Break down form by the Engineering Department to attend the breakdown of machines / equipment.
·         Ensure that the necessary details are incorporated such as Department, detail of site of breakdown / date and time of breakdown / date and time of breakdown rectification / signature with name and designation of the person who has initiated the job order / signature with name and designation of the person who has actually  attended  the problem and rectified it.
·         Carry out a review of the job order forms to locate the time taken to attend to the break down . Ensure that the breakdown is attended to speedily and also make / obtain a list of pending job order / complaints.
·         Check that the job order form / complaint form format is proper and all the columns are filled in properly and completely.  Also ensure that one copy of the job order form is filled and kept by the Engineering Department for record, safely and securely.
·         Check  the log books of machines / equipment to ascertain the time lag between the break down of the machine and the time when machine started working .
·         Check the budget v/s actual position of the Engineering Department. Comment on the negative variances from  the budget.
·         Work Order for repairs / fabrication work etc.given to the out side parties : Ensure that the work order given to the out side parties for carrying out any kind of repair / fabrication work related to engineering are issued before the start of the work . This aspect has to be strictly adhered to. The bills submitted by the contractor should be compared with the Work order and then the bill may be passed accordingly.
·         No work should be started by the  contractors unless the work order containing estimate of quantity and value has been issued before the start of the work.
·         5% variation in quantity and value may be allowed only in those  cases where it is not possible to estimate in advance with 100% accuracy the quantity and value of work . Rates should be negotiated with the parties before the start of the work .
·         SCRAP  MATERIAL
·         Ensure that a separate space / scrap yard is earmarked for keeping the scrap material. The scrap yard should have an enclosure and a gate with a lock and key.
·         Ensure that a proper record is kept of receipts, issues, opening and the closing balances quantity of each item of scrap in the scrap yard
·         Check that proper slips are kept at the point of generation of scrap and at the receiving end ie the scrap yard.  At the generation point(s) the output / production / scrap generation slip should be made in 2 copies giving details of the item of scrap and the Qty of scrap.
·         The weighment / measurement / counting can take place either at the point(s) of generation or at the scrap yard. However, the scrap generation slip should contain the details of the quantity. The slips should have a serial control and should be authorised by a responsible person. The scrap yard should receive the material on the basis of slip and enter the receipt in the scrap register.  Weighment should be carried out at the scrap yard if not already made at the production floor.  The weighment should be carried out in the presence of a person each from the scrap yard and the production. Thus the scrap yard entries for receipt of scrap should be made on the basis of generation slips only.  The issues entries should be made on the basis of sales invoices raised on customers / issue slips for consumption within the plant.
·         It should be ensured that the entries in respect of receipts and issues in the Scrap Stock Register are made on the basis of generation slips / Sales invoices / issues slips.
·         The generation slips / Sales invoices / issue slips should be authorised by a responsible person.
·         Scrap Generation points should be identified and a booklet of generation slips with a serial control given at each generation point. The scrap yard person should sign on one copy of the slip as an acknowledgement of having received the scrap qty as given in the slip and return the slip back to the generation point. The second copy of the slip is to be retained at the scrap yard.
·         For sale of scrap ensure that a comparative chart of offers / quotations is prepared and the Sales order is made in the name of the best quoted party.  All the offers / quotations should be properly evaluated.
·         Scrap sale should be effected on spot payment terms - cash / DDs at the time of delivery. Ensure that full amount is collected from the customer before the material is allowed to be lifted.
·         Ensure that Sales Tax / excise duty is properly charged in the Sales Invoice.
·         Ensure that no debit balances appear in the Sundry Debtors ledger in respect of scrap customers.
·         Ensure proper counting / weighment / measurement of scrap at the Scrap generation point(s) / Scrap yard.
·         The Scrap Stock Register should be kept updated at all times.
·         A gate pass should be issued at the time of despatch of material from the Scrap Yard and the gate pass should then be checked at the exit gate by the security.
·         A periodical physical verification of scrap stock in scrap yard should be made and the physical Qty tallied with the book quantity. The discrepancies, if any should be reported.
·         The  total  scrap  generation  as  per the Scrap Stock Register should be tallied with the quantity of scrap generation of various types as shown by the costing data. Comment if any difference / discrepancy is observed.
ADMINISTRATION
·         Enquire into the activities that are covered under the Administration of the organization. Normally the following activities would come within the Administration Department of an organization.
o   Security Services
o   Canteen Services
o   housekeeping Services
o   Courier Services
o   Fax / Photo copy machines
o   Telephone lines
o   Renovation and routine repairs
o   dispatch of correspondence
o   Incoming correspondence
o   Visitors Register at the Reception
o   Travel – air / train / taxi
o   Hotel reservations
o   Fixed Assets for maintenance / repair
o   Vehicles
o   Guest Houses
o   Colony upkeep / maintenance.
·         Security
o   Check the contract with the security contractor.
o   Ensure that the terms and conditions and other general matters are being  complied with by the contractor.
o   The bill of the contractor should be accompanied by the attendance sheet of the security personnel deployed during a particular period / month.
o   The bill of the contractor should be accompanied by a certificate from the contractor  that the statutory obligations have been complied  with by the contractor.
o   The Bill  should be approved by the Head of the Administration.
o   Ensure that a specific clause has been put in the contract regarding the PF / ESI liability of the employer of security personnel.  It should be clearly mentioned in the contract as to who will bear the employer’s contribution towards PF / ESI. ( The company or the contractor.)
o   In case the contractor is to bear the PF liability then the company should ask for copies of monthly challans in respect of PF deposits from the contractor.
o   Study the various clauses of the contract and ensure their compliance.
o   Ensure that contract has been awarded to the contractor on the best possible terms. Quotations/offers of other contractors should be verified to ensure that financial terms a well as general profile/standing & reputation of the contractors have been considered for appointing the contractor.
o   Check that the security personnel are properly deployed over the area under their jurisdiction and responsibility. Ask for a deployment plan from the Head of security.
o   Check the Registers and records maintained at the security gates/ security points and ensure that the registers and records are kept uptodate / maintained properly / all columns are filled in completely.
o   In case Gun men have been deployed ensure that they hold valid licences and that the licences are renewed in time.
o   Ascertain the responsibility of the Security Department / contractor in the form of a check list. The check list should give point wise duties of the security.  The activities/work to be performed by Housekeeping should be documented in the form of a check  list.
·         Canteen Services
o   Check the contract with the canteen contractor and ensure that the terms and conditions of the contract are being complied with.
o   Check compliance with point No(s) 3 to 8 as stated in the case of security services.  The points are applicable to Canteen Services also.
o   Ensure that a duly approved Rate list of food items has been  prepared and is displayed at the canteen.
·         House keeping Services
o   Check the contract with the Housekeeping contractor and ensure that the terms and conditions of the contract are being complied with.
o   Check compliance with point No(s)3 to 8 as stated in the case of security services.  The points are applicable to Housekeeping services also.
o   Ascertain the responsibility of the Housekeeping Department / Contractor in the form of a check  list. The check  list should give point wise duties of the Housekeeping / contractor. The activities / work to be performed by Housekeeping should be documented in the form of a check  list.
·         Courier Services
o   Check the contract with the courier companies.
o   Ensure that the terms and conditions of the contract are complied with, by the contractor.
o   Check that the Bill of courier is checked in detail with the copies of consignment Notes and the Proof of delivery.  The Administration Department should not pass the bill unless all the consignment notes are matched with the Proof of Delivery (POD).
o   The  bill should be approved by the Head of Administration.
o   Ensure that the Contract(s) have been awarded to the contractor / courier company on the best possible terms.  Quotations / Offers of other contractors / Courier companies should be verified to ensure that the financial terms as well as the general profile / reputation of the courier agencies have been considered before appointing the contractor / courier company.
·         Fax Machines / Photocopy Machines
o   Check the total number of fax machines installed and their location.
o   Ensure that a budget has been fixed in respect of every single fax machine.
o   Compare the Budget V/s Actual position in respect of all the fax machines and comment upon the negative variances between the budget and actual.
o   Ensure that a proper control is kept over the paper issued for photocopy purpose.  A record should be kept by the photocopy operator of the number of sheets of paper received in a month and the number of photocopies made during that month.  A monthly control report should be prepared.
o   Ensure that system of requisition slips for fax / photocopy  is in place. Requisition slip system would ensure that there is no misuse of the fax/ photocopy machines.
o   Ensure that the fax / photocopy machines are maintained properly and that the operators of the machines do not allow any unauthorised entry of persons  to operate machines.
o   In case the work of photocopy has been given to an outside agency – check the contract entered into with the party and ensure that the terms and conditions of the contract have been complied with.
o   Ensure that the contract with the outside agency is renewed in time i.e. before the expiry of the validity of the contract.
o   A monthly record should be maintained by the company in respect of paper issued to the contractor and the number of photocopies made during the month. The variation / differences should be explained by the Department.
o   In case the photocopy / fax work is carried out after the office hours the requisition slips be kept and the employees instructed and encouraged to enter the details of number of photocopies made / fax  done, after the working hours in the register.
Telephones
o   Ensure that a budgeted amount has been fixed in respect of every telephone.  The budget amount should be approved in writing.
o   A monthly Budget v/s Actual statement – Telephone wise should be prepared and reviewed.
o   In case the actual expenses exceed the budgeted amount on a quarterly /six monthly / annual basis, ensure that the approval for the excess amount is obtained from the appropriate authority.
o   Ensure that the telephone bills are duly approved / certified for payment by the concerned users.
·         Guest House
o   Check that the record of fixed assets installed at the Guest  House is kept properly in a bound register / computer.  The record of fixed assets (FA Register) should contain all the details of FA like -Quantity / location/ Make & type / Identification Number / value etc.
o   A six monthly verification of the FA should be carried out and the physical balances compared with the book balances.  The discrepancies should be reported.
o   Similarly a record of electricity / water / and  telephone  bills  should  be kept in a register / computer.
o   A register should be kept for  recording  all  STD /  ISD calls. The visitors should be requested to enter the details of call made in the register.
o   A bound register should be maintained to record on a daily basis the Bill number - amount and the type of purchases made - Milk / Vegetables / Food items etc.   The register should be kept upto date.
o   Per meal cost should be worked out on a monthly basis  ( By dividing the total expenses on food / milk / vegetables etc by the No of meals provided during the month).  The per meal cost would indicate the expenses actually incurred on meals provided to the guests and assess whether the meal cost is high/ normal.
o   A guest / occupancy register should be maintained at the guest house and all the particulars of the guest like - Name / Time in / Time out / date of arrival / date of departure / address / Room No allotted etc should be entered.
o   A Meal register / slip should be made to record the details of meals provided to the guests.  The meal slip should be prepared by the caretaker and the signatures of the guest should be taken on the slip.
o   The register / slip should clearly indicate the No of Break fast / lunch / dinner /tea / milk / snacks etc provided to the guest.
o   A register / statement of consumables (other than Fixed Assets) should be maintained and all particulars of items like - buckets / room heaters / mattresses / cutlery / Bed sheets / covers / utensils should be entered. The Register / Statement should be prepared Room wise.
o   In case the guest house is in a rented / leased premises - verify the rental / lease agreement and see whether the terms and conditions are complied with.
Visitors Register at the Reception
o   Ensure that the system of issuing Visitors Card to the visitors is in existence. The cards should have a serial control.
o   The visitors Card Number should be entered in the Visitors register.
o   The visitors register should be complete in all aspects i.e. all the entries as prescribed in the format should be filled in properly and completely.  No column in the register should be kept as  blank.
o   The visitors register should be maintained clearly in a legible hand.
Travel - Air / Taxi / Train
o   The bookings in respect of Air / Taxi / Train should be made on the basis of Requisition slips.  The Requisition slips should be properly filled in by the employees with necessary details like – Approval of the HOD / authorized by / Date and time / details of travel / Name and Designation / purpose  / signature etc.
o   The Administration Department should not accept the Requisition Slips not filled in completely and properly.
Stationery
o   Ascertain whether there is any system / procedure to ascertain the book quantity of stock of stationery at any point of time.
o   Check whether there is a procedure wherein the opening balances, Receipts, Issues and the closing balances of each stationery item (costing say Rs.25/- or more per number) are recorded in the stationery stock Register (manual / computerised).
o   Carry out a physical verification of stationery items (costing say Rs.25/- or more) in stock and compare the physical balances with the book balances and locate the discrepancies, if any.
o   Ensure that there is a system of issuing stationery items to various Departments  against  duly approved Requisition slips.
o   Check whether a monthly statement of stationery issued to various Departments is made.  The statement should reflect the details of items of stationery issued Department wise.
Hotel Reservations / Guest House reservations
·         Ensure that there is a proper procedure for making Hotel / Guest House reservations.
·         The procedure should ensure that the details in respect of Hotel/Guest house reservations are recorded in a control book / register.  The details should include –
SlNo	Name of the person	Designation	Location	Hotel Name	Reservation period	Type of accommodation
					From               To
(i)	(ii)	(iii)	(iv)	(v)	(vi)	(vii)
Whether booking is confirmed/pending	Bill details	Bill paid by	Any other information like cancellation
	Bill No.   Date     Amount	(Name / Date/ Mode of payment)
(viii)	(ix)	(x)	(xi
·         Check whether all the columns of the Control Register are filled in properly and completely.  All the necessary details as given in the format should be entered in the Control Register.
·         Fixed Assets for maintenance - Repair
o   A record of fixed Assets for which the Administration Department is responsible for carrying out the repairs / maintenance or upkeep should be kept by way of a register ( Manual / computerized). The FA would include Air conditioners, Refrigerators, Water coolers, Fax / photocopy machines, Electrical Equipment etc.  The record should include details of FA like - Quantity / location / Identification Number / make or type.  Check whether such a  record of FA is maintained by the Administration Department.
o   A physical verification of such FA should be carried out on a six monthly / annual basis to find out the discrepancies, if any.
·         Renovation and Routine interior maintenance
o   Check whether quotations / comparative statements were invited / prepared before issuing a Purchase / Work Order to a contractor / party.
o   Ensure that the Purchase / Work Order were issued keeping in view the commercial considerations - lowest quotation / offer / profile / experience/  technical competence / recommendation of architects Engineers etc.
o   Check whether the Purchase / Work Order were issued before the start of the work by the parties. Confirmatory orders should not be issued except under special circumstances.
o   Check whether the Comparative statements are duly approved and dated by a competent authority.
o   Ensure that the variation between the actual Quantity / Value and the Quantity / Value as per the PO / WO does not exceed + 5%. The Qty / Value as given in the PO / WO should be as accurate and  as  possible and  all work should be estimated and planned in advance and provided for in the PO / WO. The amendments to the PO / WO should be issued in special cases only. The cases of amendment orders being issued for an increase in the scope of work should be minimum and the full scope of work / activities should be estimated / calculated in advance.
o   Ensure that the amendments to PO / WO are issued before the start of the extended work/scope of activities and not after the completion of work.
·         Colony upkeep / Maintenance
o   Check whether the Administration Department has prepared a list of Fixed Assets provided to the employees at their residential premises.
o   Check whether an acknowledgement has been taken in the list of FA provided to the employees from the employees. The signatures of concerned employees should be taken in the list of FA, as a token of their acceptance towards having received the FA.
o   The Administration Department should carry out a physical verification of FA at the residential premises of the employees and compare it with the  list. The discrepancies if any between the physical balances and the book balances should be enquired into.
o   The Administration Department should maintain a Register / book wherein all the complaints received from the colony residing employees should be entered into, serially.
·         The specific nature of the complaint should also be entered, whether Electrical / Mechanical / Civil / Electronics etc along with the date / time of lodging the complaint by the employee.  Similarly, the date and the time of attending / rectifying the problem should also be entered along with the signatures of the complainant.  The Register would enable the Administration Department to exercise a proper control over the complaints / maintenance work.
Vehicles
o   Ensure that the details of company owned Vehicles are available by way of a register.
o   Check whether insurance cover is renewed in time.
o   Check the Registration books / Insurance papers of all the vehicles to locate any discrepancies, if any.
o   Check whether log  books are properly maintained in respect of vehicles. Check the entries in the  log  books.
o   Ensure that a Vehicles register is maintained and details of running and maintenance expenses in respect of every vehicle are entered  vehicle-wise, giving Bill No / Date and the amount.
o   Check whether a monthly exercise is carried out to calculate the running and maintenance cost of every vehicle per km. This can be worked out by dividing the total of running and maintenance expenditure   by No of Kms run by the vehicle as per the log book. The Administration would know at a glance the per Km cost of running and maintaining a particular vehicle on a monthly basis.
·         Incoming / Outgoing Correspondence
o   Ensure that a separate manual register is maintained for the incoming and outgoing correspondence.
o   Check whether all the relevant information is recorded in the  incoming / outgoing registers.
o   The registers should be kept updated at all times and entries should be made on a day to day basis.
o   A stamp / seal should be put on the cover of every incoming correspondence indicating the date of receipt of the document / correspondence.
o   A separate record/ register should be kept for documents / correspondence sent through the Registered post.  ( copies of Registry receipts should be preserved).
o   A proper record should be kept of Postage stamps.
o   In case of Franking machine - check the use and the balance amount at the end of the day.
ISO 9001 is a Quality Management System (QMS) which gives organizations a systematic approach for meeting customer objectives.
ISO 14001 is an Environmental Management System (EMS) which provides a system for measuring and improving an organization's environmental impact.
OHSAS 18001 is an Occupational Health and Safety Management System (OHSMS) which provides a system for measuring and improving an organization's health and safety impact.
One important difference between OHSAS 18001, ISO 14001 and other international standards is that an organization can self-declare their compliance.
Because ISO 14001 and OHSAS 18001 are very similar, the management systems can be effectively combined, integrated and a self-declaration made (a cost savings option).
An integrated management system (IMS) combines all related components of a business into one system for easier management and operations. Quality (QMS), Environmental (EMS), and Safety (OHSMS) management systems are often combined and managed as an IMS. Examples of existing processes can include:
Quality Management Systems (QMS)
ISO 9001
ISO 13485 (Medical Devices)
TS 16949 (Automotive)
ISO 17025 (Laboratory)
ISO 22000 (Food Safety)
AS9100 (Aircraft, Space & Defense)
etc.
Environmental Management Systems (EMS)
ISO 14001
Occupational Health & Safety (OHSMS or SMS or HMS)
OHSAS 18001:20077
These are not separate systems joined together, rather they are an integrated management system with linkages so that similar processes are seamlessly managed and executed without duplication. IMS components common to all the systems include the resources (people, facilities & equipment, etc.) and processes (documented in the QMS/EMS/OHSMS and applied throughout the organization).
Auditor :-
An auditor is a person or a firm appointed by a company to execute an audit. To act as an auditor, a person should be certified by the regulatory authority of accounting and auditing or possess certain specified qualifications. Generally, to act as an external auditor of the company, a person should have a certificate of practice from the regulatory authority.
The ISO 9000 family of quality management systems standards is designed to help organizations ensure that they meet the needs of customers and other stakeholders while meeting statutory and regulatory requirements related to a product. ISO 9000 deals with the fundamentals of quality management systems, including the eight management principles upon which the family of standards is based. ISO 9001 deals with the requirements that organizations wishing to meet the standard must fulfill.
ISO 9000 series Quality management principles:
The eight quality management principles are defined in ISO 9000:2005, Quality management systems – Fundamentals and vocabulary, and in ISO 9004:2009, Managing for the sustained success of an organization – A quality management approach.
Principle 1 – Customer focus
Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.
Principle 2 – Leadership
Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives.
Principle 3 – Involvement of people
People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization’s benefit.
Principle 4 – Process approach
A desired result is achieved more efficiently when activities and related resources are managed as a process.
Principle 5 – System approach to management
Identifying, understanding and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives.
Principle 6 – Continual improvement
Continual improvement of the organization’s overall performance should be a permanent objective of the organization.
Principle 7 – Factual approach to decision making
Effective decisions are based on the analysis of data and information.
Principle 8 – Mutually beneficial supplier relationships
An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.
Evolution of ISO 9000 standards:-
The ISO 9000 standard is continually being revised by standing technical committees and advisory groups, who receive feedback from those professionals who are implementing the standard.
1987 version
ISO 9000:1987 had the same structure as the UK Standard BS 5750, with three "models" for quality management systems, the selection of which was based on the scope of activities of the organization:
ISO 9001:1987 Model for quality assurance in design, development, production, installation, and servicing was for companies and organizations whose activities included the creation of new products.
ISO 9002:1987 Model for quality assurance in production, installation, and servicing had basically the same material as ISO 9001 but without covering the creation of new products.
ISO 9003:1987 Model for quality assurance in final inspection and test covered only the final inspection of finished product, with no concern for how the product was produced.
ISO 9000:1987 was also influenced by existing U.S. and other Defense Standards ("MIL SPECS"), and so was well-suited to manufacturing. The emphasis tended to be placed on conformance with procedures rather than the overall process of management, which was likely the actual intent.
1994 version
ISO 9000:1994 emphasized quality assurance via preventive actions, instead of just checking final product, and continued to require evidence of compliance with documented procedures. As with the first edition, the down-side was that companies tended to implement its requirements by creating shelf-loads of procedure manuals, and becoming burdened with an ISO bureaucracy. In some companies, adapting and improving processes could actually be impeded by the quality system.
2000 version
ISO 9001:2000 replaced all three former standards of 1994 issue, ISO 9001, ISO 9002 and ISO 9003. Design and development procedures were required only if a company does in fact engage in the creation of new products. The 2000 version sought to make a radical change in thinking by actually placing the concept of process management front and center ("Process management" was the monitoring and optimisation of a company's tasks and activities, instead of just inspection of the final product). The 2000 version also demanded involvement by upper executives in order to integrate quality into the business system and avoid delegation of quality functions to junior administrators. Another goal was to improve effectiveness via process performance metrics: numerical measurement of the effectiveness of tasks and activities. Expectations of continual process improvement and tracking customer satisfaction were made explicit.
ISO 9000 Requirements include:
Approve documents before distribution;
Provide correct version of documents at points of use;
Use your records to prove that requirements have been met; and
Develop a procedure to control your records.
2008 version
ISO 9001:2008 in essence re-narrates ISO 9001:2000. The 2008 version only introduced clarifications to the existing requirements of ISO 9001:2000 and some changes intended to improve consistency with ISO 14001:2004. There were no new requirements. For example, in ISO 9001:2008, a quality management system being upgraded just needs to be checked to see if it is following the clarifications introduced in the amended version.
ISO 9001 is supplemented directly by two other standards of the family:
ISO 9000:2005 "Quality management systems. Fundamentals and vocabulary"
ISO 9004:2009 "Managing for the sustained success of an organization. A quality management approach"
Other standards, like ISO 19011 and the ISO 10000 series, may also be used for specific parts of the quality system.
2015 version
In 2012, ISO TC 176 - responsible for ISO 9001 development - celebrated 25 years of implementing ISO 9001, and concluded that it is necessary to create a new QMS model for the next 25 years. This is why commenced the official work on big revision of ISO 9001, starting with the new QM principles. This moment was considered by important specialists in the field as “beginning of a new era in the development of quality management systems. As a result of an intensive work of this technical committee, the revised standard ISO 9001:2015 was published by ISO on 23 September 2015. The scope of the standard has not changed. However the structure and core terms were modified to allow the standard to integrate more easily with other international management systems standards.
The 2015 version is also less prescriptive than its predecessors and focuses on performance. This was achieved by combining the process approach with risk-based thinking, and employing the Plan-Do-Check-Act cycle at all levels in the organization.
Some of the key changes include:
Greater emphasis on building a management system suited to each organization’s particular needs
A requirement that those at the top of an organization be involved and accountable, aligning quality with wider business strategy
Risk-based thinking throughout the standard makes the whole management system a preventive tool and encourages continuous improvement
Less prescriptive requirements for documentation: the organization can now decide what documented information it needs and what format it should be in
Alignment with other key management system standards through the use of a common structure and core text
Advantages:-
It is widely acknowledged that proper quality management improves business, often having a positive effect on investment, market share, sales growth, sales margins, competitive advantage, and avoidance of litigation. The quality principles in ISO 9000:2000 are also sound, according to Wade  and Barnes, who says that "ISO 9000 guidelines provide a comprehensive model for quality management systems that can make any company competitive". Sroufe and Curkovic, (2008) found benefits ranging from registration required to remain part of a supply base, better documentation, to cost benefits, and improved involvement and communication with management. Implementing ISO often gives the following advantages:
1. Creates a more efficient, effective operation
2. Increases customer satisfaction and retention
3. Reduces audits
4. Enhances marketing
5. Improves employee motivation, awareness, and morale
6. Promotes international trade
7. Increases profit
8. Reduces waste and increases productivity
9. Common tool for standardization
10. Enables to meet the requirements of an internationally uniform quality system.
11. Motivates the employees and develops pride in them for achieving excellence.