Full Issue

Vol. 8, No.
IMS
March-April 2008
ISO Management Systems
When Results Count. ISO Standards.
ISSN 1680-8096
Oil
&
Gas
BP
ISO/TS 29001
Asian
Development Bank
and ISO 14001
Korean
standards
for
services
ISO 9001 and corporate

governance
China and ISO 14001
Eco-efficiency
ISO Management Systems, www.iso.org/ims
EDITORIAL
by Roger Frost
This is strictly off the record
ts a paradox that, considering the amount of paper journalists

generate, most journalists, me included, dislike paperwork,
which is equated with bureaucracy. It probably has something to
do with the ethos of the press where there is a strong professional
conscience to do all that it takes, no matter what the problems, to
get the newspaper out on the streets in time, but anything considered
extraneous to this objective would get thrown out through the window.
Well, dont tell any of my confreres, but Ive changed my mind.
To explain why, I need to start with the Special Report in this
issue on the new version of ISO/TS 29001, the quality
management specification for the oil and gas sector. It reminded
me of a particularly interesting point made by the same authors
in their article which we published in 2004 on the first version of
the document.
TS 29001 adds sector-specific requirements to

the generic requirements of ISO 9001:2000. The
authors pointed out that these included additional requirements for documentation. This
was rather surprising since ISO 9001:2000 had
actually reduced the number of documented
procedures required. One of the criticisms made
of ISO 9001 in the past had been the amount of
paperwork it generated and some accused it of
being no more than a generator of paperwork.
The changing average age and loss of experienced workers in

the oil and gas industry has prompted many organizations in the
sector to actively pursue knowledge management (KM) technologies and ensure that valuable experience is documented and
retained for future employees. Documented control features help
ensure that KM is preserved for those organizations that utilize
ISO/TS 29001 as the basis for their quality management system.
The link between an appropriately documented quality management system and knowledge management was brought home to
me last year. Through a combination of retirement, illness, pregnancy and someone leaving for a new job, I suddenly found
myself in charge of a team short-handed by 40%. What was left
of the team went into survival mode
We concentrated our efforts and resources on getting out the
products and services our internal and external customers need.
Paperwork quality records, filing and QM maintenance
got thrown out of the window. While understandable, this can
My path from
paperwork hater
to
a fan of
documentation
The year 2000 edition addressed this criticism by emphasizing

that the paperwork should reflect the needs of the organization,
no more and no less, with an ISO 9001 quality management
system being a documented system, and not a system of
documentation. So why did TS 29001 seem to be going in the
opposite direction of more paperwork?
The explanation given by the authors, Ken Peurifoy and
Lanny Gookin, was an interesting one: Documenting the best
way to perform a process, as well as documenting the required
acceptance criteria for the process, will be key to many
industries, particularly with the upcoming changes to the age
demographics of the work force in the industry. Within the next
few years, many workers in the oil and gas industry will be
reaching retirement age and younger workers will need to rely
on documented methods to perform processes and convey
lessons learned.
only go on for so long. There comes a point

where the inability to quickly locate, for example,
an order to a supplier, makes you lose more time
than properly filing it would have done, or a
cardinal sin for a standardization organization
in reinventing the wheel.
A second difficulty was that when we were integrating new team members, we realized that our practice
had evolved, but some of our documented processes
had not kept pace which made induction of the
newcomers more time-consuming than it should have been.
However, this was partly a blessing in disguise because it forced
us to re-appraise our procedures and to identify both gaps to fill
and opportunities to simplify what existed. In other words, we
had the newcomers help to create what documentation they
would have liked to exist when they arrived.
At the same time, we got everyone to input and comment on the
forms we used. While it took longer than the manager imposing
what he might have thought was the best way, in fact it produced
seemingly small improvements that added up to a big overall
improvement and that all important buy in.
If at this point youre scratching your head and wondering why
Im preaching to the converted on the advantages of a documented
quality system, then its well known that the recently converted are
the most enthusiastic. So there you are my path from paperwork
hater to a fan of (an appropriate amount of the right) documentation. But like I said, this confession is strictly off the record.
ISO Management Systems March-April 2008 1
CONTENTS
VIEWPOINT
The confluence of small business, succession and sustainability
IMS 2-2008 E.indd 1
22.02.2008 10:28:35
Lynn Johannson, a Canadian expert representing the interests of SMEs in

ISO/TC 207, Environmental management, points out that globally, the
ownership of small business is about to experience incredible shifts as the
current generation of owners retire and predicts that this is going to be a test of a countrys
ability to evolve towards sustainability.
SPECIAL REPORT
ISO MANAGEMENT
SYSTEMS is published
six times a year
by the Central
Secretariat of ISO (International
Organization for Standardization)
and is available in English,
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Publisher: ISO Central Secretariat,
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Switzerland.
Tel.
+ 41 22 749 01 11.
Fax
+ 41 22 733 34 30.
E-mail central@iso.org
Web www.iso.org
Editor in Chief: Roger Frost.
Contributing Editor: Garry Lambert.
Artwork: Pascal Krieger and
Pierre Granier.
A one-year subscription
(six issues) to ISO MANAGEMENT
SYSTEMS costs 128 Swiss francs.
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ISO, March-April 2008
ISSN 1680-8096
The views expressed in
ISO MANAGEMENT SYSTEMS are
those of the authors. The advertising
of products, services, events or
training courses in this publication
does not imply their approval by ISO.
Cover photo: BP
Quality for the oil and gas sector

New, improved edition of ISO/TS 29001
As well as describing whats new about the 2007 version of ISO/
TS 29001, the quality system requirement for the oil and gas sector,
this feature looks at the roll-out of ISO/TS 29001 in the industry
since it was launched in 2003. The article also covers the system now
in place for providing third-party certification to ISO/TS 29001,
along with an estimate of the number of certificates issued to date.
ISO INSIDER
14
Integrated use of management system standards All ISO

standards for food safety management systems included on
one CD Towards a new framework for eco-efficiency
ISO publishes international benchmark for incident preparedness and operational continuity management ISO standards
highlighted at Bali conference as essential to voluntary and regulatory
efforts to fight climate change Consumers, manufacturers, regulators
and many others may benefit from free new brochure on ISO/IEC
guides New ISO standards to improve quality of water services
to consumers
INTERNATIONAL
25
China powerhouse embraces ISO 14001 certification

China pioneered ISO 14001 implementation as a pilot project in
1996, before the actual publication of the international standard.
From this head start, the country was ranked 2nd in the world ISO
14001 league table by end 2006, and has well over 30000 certified organizations to date.
ISO 9001:2000 an instrument for corporate governance

Asian Development Bank HQ reduces environmental
footprint through ISO 14001
STANDARDS FOR SERVICES
39
KATS develops standards for 30 Korean service sectors

With the service sector accounting for approximately 57% of Koreas
gross domestic product, the Korean Agency for Technology and Standards
(KATS) has put a major effort into developing consumer-oriented service standards.
NEXT ISSUE
41
VIEWPOINT
it. Between now and the half

century mark, population
experts project a significant
increase in the global population, from its current 66 43
1937 34 people to a projected
94 015 508 54 by mid 2050.
Even with varying levels of

contribution to a countrys
gross domestic product (GDP),
the health and wealth of most
countries is based on the collective success of their small
businesses.
Globally, the ownership of
small business is about to experience incredible shifts as baby
boomers want to retire. This
is truly going to be a test of
a countrys ability to evolve
towards sustainability. For ISO,
the confluence of these three
factors is significant.
Call them what you will; baby
boomers, grey-hair entrepreneurs, however you brand
them, they are a growing market. As boomers age, they are
going to change the shape of
things to come, particularly
over the next two decades.
Boomers were born between
1945 and 1961; the oldest in
this group is now 63 years old,
and the youngest is now 47.
Boomers are about to cause
some ripples in the social fabric, in the flow of commerce
and in how environmental
issues are managed in our
respective countries. This has
implications on every aspect
of life, from politics, economics, education and culture to
the kinds of products, services, and processes that generates our wealth and our ability
to evolve to being sustainable nations.
While demographics do not
necessarily dictate destiny,
they can dramatically affect
by Lynn Johansson
The
confluence
of small
business,
succession
and
sustainability
Lynn Johannson is a Canadian

expert representing the interests
of SMEs in ISO/TC 207,
Environmental management,
since 1997.
E-mail etwom@e2management.com
Web www.e2management.com
Note that as this issue is unfolding so is our concern about

another important issue sustainability. The planet, as host
to humans or as the marketplace in which we operate, is
not going to expand its girth or
suddenly increase its resource
base to accommodate another
2758357120 people.
Challenges
Whether the challenges to
sustainability are framed
as climate change, chemical
management or waste, action
must be taken to address the
current situation, and now.
Many believe the planet cannot endure additional pressure, that humankind is living on the edge now. Popping
off to Mars with the overflow
is not really an option at the
present time, and arguably
may never be.
These population numbers
are global. How demographics
play out in each country will
not be the same; each pattern
carries its own opportunities
and challenges. One of the
realities of this demographic
transition relates to succession, a phenomenon that will
impact all walks of life.
However, it is important to
understand the challenges
that succession will pose specific to small business and to

their respective economy; the
impact that small business in
this position will have on the
sustainability of their respective nations; and the confluence of these three factors.
S m a l l bu s i n ess is
the foundation of
most national economies
There is an opportunity for

ISO to position itself as an
enabler in this transition period. Change is required. As
ISO is a servant of its members, the challenge is whether
its respective national member bodies are ready to learn
about the needs of small business as customer and take
action to meet this market
opportunity.
Canada case study

Canada offers good statistics
and has a h eads up story
as a case study. As a nation,
Canadians enjoy a truly beautiful terrain that contains a
vast and diverse geography
with a relatively small population, about 33 million,
which is concentrated in a
relatively narrow ribbon at
the southern border.
Small business, as defined
as entities with less than 100
employees, represents the
greatest number of compa-
VIEWPOINT
70000
60000
1-4 employees
50000
nies, as shown in Figure 1,
scattered across the country.
Collectively they account for
at least 45% of gross domestic product (GDP).
For the purposes of this article,
small business is also defined
as being independent, not as
a subsidiary or division. Many
small business owners are
boomers, and as others in this
age range, are having thoughts
about retiring.
ness, generational succession,

management/employee buyout, realisation (liquidation)
of assets and public listing.
Succession will impact such
factors as:
40000
business innovation;
10000
employment;
So what? Leaders, whether

from the corporate or political world, have completely missed the importance of
demographics and how it will
shape the future of their own
organizations, customers and
constituencies. Society by and
large in most countries is illprepared for this transition,
policy makers and shapers
have not planned for the reality that is to be part of the
future. Equally of concern is
that fact that most small business owners have not planned
for this either. In Canada, only
10% have a formal succession
plan, 38% have an informal
one while the majority, 52% ,
have no plans at all.
Small business s uccession
involves transition of business
ownership, through means
such as the sale of the busi-
6 ISO Management Systems March-April 2008
5-9
20000
10-19
20-49
50-99 100-199
200-499
job creation;
economic development;
Figure 1 Profile of employer business by numbers of employees
banks and insurers (client

base);
means 48000 small businesses

are uncertain about what to
do. Uncertainty often results
in inaction or lower productivity. This has an impact on
jobs by itself, to say nothing
of the other economic issues
that Canada is facing. Compared to the total number
of businesses in Canada and
the GDP they represent, this
could devastate a community and rock the national economic boat.
government (tax base);
Succession planning,
just like environmental management,
is a long-term process
30000
overall economic growth;

sustainability of the community (including their
eco-prosperity).
Sixty-six percent of Canadas
small business owners intend
to retire over the next 10 years.
This translates into approximately 7000 00 companies.
Given the sheer number of
companies involved in this transition, this represents a huge
socio-economic upheaval.
Approximately 37% of these
SMEs want to sell their businesses on the open market
and another 26% want to sell
or transfer their businesses
within the family. A further
26% have not figured out
any kind of exit vision. Four
per cent intend to wind down
their business and the remainder is a mystery they will do
o ther . This may mean that
they are buying another business or they just dont know
whats next.
Dont ignore the last 7%.
Over the next 10 years, that
Is this just a transitional issue

or is there more to it? Obviously numbers dont explain
the whole story and the devil
is in the details. The intent of
this article is to spur readers
into looking into their own
countries.
Long-term
Succession planning, just like
environmental management
is a long-term process; it is
not a one-time event.
Formal planning as articulated in large organizations be
they for profit or not is not a
common activity in small business. The Canadian Federation
of Independent Business and
other small business experts

have noted in companies with
fewer than 50 employees the
reality is informal planning.
The challenge this presents is
that the majority of Canadian
business, as in most countries,
are in companies with fewer
than 50 people (look at Figure 1 again).
When succession is seen as a
future event (Figure 2), not
as a process, it is not hard to
see why small business owners defer action on it and concentrate on the short term
matters at hand.
The next 10 to 18 years represents a buyers market. In a
buyers market, when all traditional valuation criteria are
considered and offer multiple
options, the perspective purchaser can ask for more.
With the awakening of the
investment community and
consumers to the concerns
of global warming, spurred
by the reaction to Al Gores
film and book An Inconvenient Truth, only a fool would
ignore the environmental
issue in such a decision. Integration of the environment
500+
VIEWPOINT
in core business decisions is

making considerable inroads
as more and more large companies face the reality that
ignoring the environment is
not just a bad idea.
The costs may include the
loss of a business, lost revenue, being shut out of markets, loss of reputation and
brand trust, and in some
countries burgeoning lawsuits; all impacting the ongoing revenue stream.
As investors include additional criteria into their financial analysis, the environment is transitioning inward
from its position as an externality. The reason for this is
clear. Regardless of how the
environment card is played,
how these issues tally into
the business valuation are
reflective of management
quality.
Ev id e n ce o f w e l l
managed company
will include environmental management
This is a key determinant of

performance in the stock market and this will filter down
into small business transactions within the next few
years, if not sooner. Big or
small, evidence of a well managed company will include
and quite possibly performance measures on a buyers
checklist.
ISO has a product in the form

of ISO 14001, the most widely
implemented environmental
management system (EMS)
standard. There is opportunity
for ISO 14001 to be marketed
in a coordinated manner with
succession planning. However, the reader is duly warned
that it is highly unlikely that
traditional approaches that
have established ISO 14001 as
the EMS of choice with bigger companies will work with
small companies.
centres on certification. While

certification can be a valueadded option for companies,
it has not proven to have resonance with small business. This
is not Canada-centric.
Unaware
ISO has shown some initial

effort to address this customer base. They are early stage
and not without some critical
hurdles to overcome. Some
radical thinking within ISO
is still needed.
Why? While hard for those

immersed in standards to
accept, by and large, small
business is still unaware of
ISO 14001. This is still true in
many countries, not just Canada. In a Canadian survey of
small business undertaken in
2005, 70% of respondents had
not heard of ISO 14001.
While more had heard of ISO
9001, the standard for quality management, there were
mixed views on its value. It
comes as no surprise that one
of the consistent challenges
The point is to not continue

the debate about certification;
it is to challenge the reader to
think about the opportunity
and value of addressing the
needs of small business. There
are 143 million reasons the
number of small businesses
globally.
Three things the ISO community can do to improve

their odds.
1. Seek small business representatives and experts.
There is a dearth in ISO
activities at this time. It
is unlikely that small business owners will participate, they are too busy.
Figure 2 Why SMEs do not have succession plans

60
Too early to plan for succession
28
No time to deal with the issue
17
Cant find adequate advice/tools to start
Too complex
12
Other
11
3. Ensure that any future

product that is supposed
to provide specific help for
small business is designed
for success. If a document
says it is for small business and it isnt it leaves
ISO open to criticism and
potential loss of brand.
It also widens the gap
between ISO and small
business, which may open
the door to competition.
If the competition is cooperative in nature, fine. If
it draws small business
entirely in another direction, the author sees this as
a travesty and a tragedy in
the making, but it is something that ISO had best factor into its thoughts.
Dont want to think about leaving

Conflict with family/employees
2. Change how meetings for

standards are held. In Canada, the majority of meeti n g s f o r I S O 14 0 0 1 a r e
focused teleconferences.
Also, Canada has joined
others in small task groups
in the promotion of free or
cheap Internet telephony,
such as SKYPE. This has
occasional connection challenges, and for those members where this service is
not yet common, there are
higher callin charges. Its
two key advantages are
substantial reductions in
greenhouse gas emissions
of these international task
groups; it also forces better preparation amongst
the membership.
3
0 10 20 30 40 50 60 70
SPECIAL REPORT
Quality for oil and gas sector

New, improved edition of ISO/TS 29001
A second edition has just been published of ISO/TS 29001, the quality
management requirements documents developed to meet the specific needs
of the oil and gas sector. As well as describing whats new about the document, this feature looks at the roll-out of ISO/TS 29001 in the industry and
the state of certification to the document, as well as related accreditation.
BP
by Ken Peurifoy and

Lanny Gookin
Ken Peurifoy served as Project

Leader of the ISO/TC 67 Project
Task Group that developed ISO/TS
29001:2003 and was Chairman of
the American Petroleum Institutes
C4/SC18 Task Group that developed
the API version of ISO/TS 29001,
API Specification Q1 7th Edition.
A former Chair of APIs Committee
on Quality for eight years, he is
also a member of the US Technical
Advisory Group to ISO/TC 176.
A registered Lead Quality
Management System Auditor,
Mr. Peurifoy has been a quality
professional for over 30 years. He is
Vice President and Senior Consultant of Quality Support International,
Inc. in Spring, Texas, that provides
quality consulting and support
primarily to the oil and natural
gas industry.
E-mail ckpeurif@flash.net
Lanny Gookin is the ranking

consultant member of API
Subcommittee 18, the Subcommittee
on Quality that controls API
Spec Q1. A registered Lead Quality
Management System Auditor and
ASQ Certified Quality Engineer,
he has authored numerous articles
and given presentations on quality
in the oil and gas industry over
the past 25 years.
Mr. Gookin is President and Senior
Consultant of QMR Consulting, Inc.
in Houston, Texas, a quality
consulting, training, and auditing
organization that has established
QMS for oilfield users, engineering
companies, manufacturers, and
suppliers throughout the world.
E-mail lanny@qmrc.com
Web www.qmrc.com
L I T Y
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F O R
&
SPECIAL REPORT
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S E C T
The second edition of the ISO
technical specification ISO/TS
29001:2007, the sector-specific quality management system (QMS) specification for
the petroleum, petrochemical
and natural gas industries, was
published on 1 December 2007,
incorporating improvements
developed by ISO technical
committee ISO/TC 67, Materials, equipment and offshore
structures for petroleum and
natural gas industries.
This article provides an overview of the need for sectorspecific requirements for the
industry, a history of ISO/
TS 29001, its sector-specific
requirements including the
new, second edition requirements, and its utilization within the international petroleum,
petrochemical and natural gas
industries.
Sector specific
Certain industries or sectors
must have a more specific
and rigorous QMS than the
requirements established in
the generic ISO 9001:2000
QMS standard and have
therefore developed industry-specific QMS specifications and standards. Their reasons include reduction of risk,
inclusion of industry specific
needs, compliance with statu-
tory and regulatory requirements, and increased confidence in supplier products and
processes.
To assist in the development
of the sector-specific documents, ISO technical committee ISO/TC 176, which is
responsible for the ISO 9000
family of quality management
standards, developed guidance
for industry sectors in ISO/TC
176 N858, Guidance And Criteria For The Development Of
Documents To Meet the Needs
Of Specific Product And Industry/Economic Sectors.
Each sector-specific QMS
document adds requirements
to the ISO 9001:2000 base

requirements by one of two
methods (no requirements
of ISO 9001 may be diminished). The additional requirements may be integrated within ISO 9001:2000 with the
sector-specific text in italics,
(e.g., ISO 13485:2003 for the
medical device sector), or the
ISO 9001:2000 text is placed
in boxes and the sector-specific requirements are added
below the applicable section
in regular font, (e.g., ISO/TS
29001 and ISO/TS 16949 for
the automotive sector).
Certain industries
or sectors must have
a more specific and
rigorous QMS than
the generic
ISO 9001:2000
ISO/TS 29001 is one of some
14 sector-specific QMS technical specifications and standards based on ISO 9001:2000
with added requirements.
A technical specification, ISO/
TS 29001:2007 utilizes the
method that incorporates the
verbatim text of ISO 9001:2000
in boxes and adds detailed,
sector-specific requirements
below the applicable 9001 section box.
Although some of the supplementary requirements may
be viewed as not specific to
the oil and gas industry, they
are needed in ISO/TS 29001
in order to ensure that the
requirement(s) are explicit
and can be more readily verified/audited.
SPECIAL REPORT
Cooperation between
ISO/TC 67 and API
The first edition of ISO/TS
29001 was the result of collaboration between the American Petroleum Institute (API)
and ISO technical committee
ISO/TC 67.
In addition to providing the
Secretariat of ISO/TC 67, API
has a long history of cooperation and support for ISO/TC
67. The relationship goes back
to the reactivation of ISO/TC
67 in 1989. Shortly thereafter, ISO/TC 67 fast tracked
a number of API standards
that were then adopted as ISO
International Standards.
Petrochemical and Natural

Gas Industry, developing a
joint API-ISO version of the
longstanding QMS standard
was a major priority.
The API Quality Subcommittee
concluded that the best way to
increase international acceptance would be to draft the
next version of API Spec Q1
(7th Edition) with a joint API/
ISO committee with the final
result being a joint publication
of API Spec Q1 and ISO/TS
29001. The ultimate goal was
to obtain worldwide acceptance
and use of the document.
When it came time for the API

(Quality) Subcommittee 18
to revise API Specification
Q1, Specification for Quality
Programs for the Petroleum,
ISO/TS 29001 is the result

of collaboration between
the American Petroleum
Institute and ISO/TC 67
Work Item (NWI) to ISO TC

67 in April, which was accepted on 16 June 2002.
Initial development
of ISO/TS 29001
After publication of ISO
9001:2000, the API Quality
Committee determined that
many of the requirements that
were deleted from the ISO
9001:1994 version were still
desirable for the oil and gas
industry. Particularly desirable were the requirements
for some documented procedures for quality elements
that were relinquished by ISO
9001:2000.
The initiative to develop ISO/
TS 29001 began within API during the API Subcommittee 18
and Committee 4 on Qualitys
January 2002 Winter Meetings
in Tampa, Florida. The final
intent of was to publish the
joint or adopted-back API/ISO
standard. API submitted a New
Liaison with ISO TC 176

Early on, ISO/TC 67 requested
and received liaison with ISO/
TC 176. Mr. Jim Pyle (of the
London Quality Centre) was
appointed as the ISO/TC 176
liaison member to the ISO/TC
67 Work Group 2 ISO/TS 29001
Project Team. He attended
several meetings both in the
US and Europe.
Having been a key participant
within ISO/TC 176 and the
development of ISO 9001:2000,
Mr. Pyle was extremely helpful
in providing valuable insight
and suggestions on how the
Work Group should approach
various issues and supplementary requirements that are the
trademark of the document.
Identical documents
BP
The first edition of ISO/TS

29001 was published on 15
September 2003 and the API
version, API Specification Q1,
Seventh Edition was published
on 15 June 2003. The documents are identical except for
an annex in Q1 relating to API
administration.
ISO/TS 29001:2007, second

edition, was published on 1
December 2007 and re-adopted
by the API as the eighth edition
of API Spec Q1 in December
2007. Again, both documents
are identical with the exception of the annex in API Spec
Q1 relating to administration
of the API Monogram programme for the qualification
of products and services used
in the petroleum industry.
L I T Y
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SPECIAL REPORT
O R
S E C T
These documents add to the
continuing list of ISO/API
standards that are developed
by joint working groups and
committees and are published
by both ISO and API to serve
the oil and gas industry.
Supplementary
Requirements
Control features
After ISO 9001:2000 reduced
the number of documented
procedures required to six
(compared to the requirements
in ISO 9001:1994), the requirements to document the lost
documented procedures were
included in ISO/TS 29001 as
control features.
ISO/TS 29001 defines a control feature as an organizations documented method to
perform an activity under controlled conditions to achieve
conformity to specified requirements. This definition is central to a number of supplementary requirements of ISO/TS
29001.
Project leader sums up importance

of TS 29001
Independent reviews/
acceptance
Design reviews
Ed Durante,
project leader of
the ISO/TC 67
working group
WG 2 that developed ISO/TS
29001:2007, summed up its importance as follows:
ISO/TS
29001:2007 is the
next step in the evolution of
this important sector-specific
document. Over the past two
years, numerous suggestions
were received from various sectors of the petroleum, petrochemical and natural gas sectors.
These suggestions were evaluated by a dedicated group of
experts representing all stakeholders, including end users,
manufacturers and service
providers. The result of this
The ISO/TS 29001:2007 clause

Design and development review
Supplemental requires A
final design review shall be
conducted and documented.
Individual(s) other than the
person or persons who developed the design shall approve
the final design.
effort has resulted in a document that addresses the unique

needs of the
industry and is
poised to gain
international
acceptance as the
quality management system for
Acceptance inspection
the industry.
Initially published as Final

acceptance of product in the 2003
version, ISO/TS 29001:2007,
Acceptance inspection supplemental (ISO 9001:2000 clause
8.2.4.2 under 8.2.4 Monitoring
and measurement of product),
requires Personnel other
than those who performed or
directly supervised the production of the product shall perform
final acceptance inspection at
planned stages of the product
realization process.
Mr. Durantes experience includes

includes 25 years on the API
Sub-Committee on Quality
(SC-18), and Chairman of API
work Group on Q1 8th edition.
He is President of TIEC, INc. a
technical and quality consulting
firm.
E-mail EDurante@tiec.com
Web www.tiec.com
Internal audits
verification of purchased
product;
For many industries, the reduction in the number of procedures required to specify
process requirements was a
welcome relief. However, in
the oil and gas industry, the
need for procedures or documented methods to perform
processes under controlled
conditions is considered necessary.
Supplementary requirements
within ISO/TS 29001:2007
that require control features
include
A documented method to perform processes assists personnel in performing process

tasks consistently to ensure
the activities are performed
in conformity with specified
requirements.
review of requirements
related to product;
control of monitoring and

measuring devices;
design and development

planning;
monitoring and measurement of the product;
purchasing process and supplier selection;
analysis of data.
competence, awareness and

training;
planning of product realization product requirements provided from external sources;
control of production and

service provision;
identification and
traceability;
customer property;
preservation of the
product;
ISO/TS 29001:2 007 Internal

Audit Supplemental, to further enhance the objectivity
and impartiality of the internal audit process, requires
Internal audits shall be
scheduled and conducted at
least annually by personnel
independent of those who performed or directly supervised
the activity being audited.
In the oil and gas industry,

the need for procedures
or documented methods
is considered necessary
SPECIAL REPORT
Field nonconformity
analysis
Field nonconformity analysis
ISO/TS 29001:2007 addresses
nonconforming product detected after delivery or use has
started as field nonconformities and requires the organizations procedure for managing nonconforming product to
include and ensure the analysis
of field nonconformities.
A vital aspect of quality management systems for the oil
and gas industry is the requirement for organizations to track
and analyze field failures/field
nonconformities. Although in
some cases field failures cannot be retrieved for analysis,
field failures can often provide invaluable information
which an organization can
use to develop and implement
effective corrective and preventive actions.
Defined frequencies
Management reviews
ISO 9001:2000 requires management review of the QMS at
planned intervals. However,
it does not specify a required
frequency. To ensure that
management reviews are performed at planned intervals
that are not too infrequent,
ISO/TS 29001 requires, The
management review shall be
conducted at least annually.
Internal audits
ISO 9001:2000 requires organizations to conduct internal audits at planned intervals. To ensure organizations
do not perform internal
audits too infrequently, ISO/

TS 29001:2007 requires that
internal audits shall be scheduled and conducted at least
annually. In addition, ISO/
TS 29001:2007 requires, The
organization shall identify
response times for addressing
detected nonconformities.
ISO/TS 29001:2007
whats new?
As required by ISO Directives, ISO technical specifications must be reviewed and
reaffirmed every three years.
ISO/TC 67 Work Group 2 and
API Subcommittee 18 (Quality) began the review and reaffirmation process in January 2006. The determination
was made by ISO/TC 67 that
ISO/TS 29001 would be reaffirmed and remain a technical specification with minor
revisions.
Some of the minor changes to
ISO/TS 29001:2007 include:
adding the word s upplemental to supplemental
section headings that did not
initially include this description;
adding two new definitions
acceptance inspection to
clarify the 8.2.4.2 change of
Final acceptance of product
to Acceptance inspection
Supplemental, and a definition of field nonconformity to support clause 8.3.2,
Field nonconformity analysis Supplemental;
a new clause 4.1.1 Outsourced processes and/or
services Supplemental was
added which requires The
organization shall maintain
responsibility for product
conformance to specified
requirements when processes are outsourced;
a new clause 7.3.3.1 Design
and development outputs
Supplemental was added
which requires Design and
development outputs shall
be documented;
a revision to clause 7.5.2.1
Validation of processes for
production and service provision Supplemental, which
specifies which processes
must be validated when not
addressed by an ISO/TC
67/API Product Specification;
a new clause 8.3.4 Customer
Notification Supplemental, has been added which
requires organizations to
n otify customers in the
event that product which
does not conform to design
acceptance criteria has been
delivered. The clause also
requires the organization to
m aintain records of such
notifications.;
Industry acceptance
Little by little, the oil and gas
industry is utilizing the document by requiring suppliers/
contractors to meet its requirements and in some cases, to
maintain a QMS certified to
ISO/TS 29001/API Specification Q1. ExxonMobil and British Petroleum have included
requirements in many of their
procurement specifications for
suppliers/contractors and service contractors to demonstrate
compliance to ISO 9001:2000
and also meet the additional
requirements of ISO/TS 29001.
Other oil companies have also
required many of their suppliers to meet the requirements

of ISO/TS 29001/API Specification Q1.
In addition, the demand for
training on ISO/TS 29001 and
the revised version of the specification appears to be growing
as both suppliers and registrars
are requesting that training
classes be conducted.
Certification
The primary registrar providing ISO/TS 29001 QMS certification appears to be APIQR.
According to Gerardo Uria,
API - Manager of Certification
Programs, APIQR has certified 269 organizations to ISO/
TS 29001 as of December 2007
and another 146 organizations
have currently applied for ISO/
TS 29001 certification and are
in the application process.
There are a number of other registrars whose Web sites
indicate that they offer ISO/
TS 29001 assessments and certification.
Although accreditation of competence to perform ISO/TS
29001 certification has not
been offered by accreditation bodies to date, that may
change. Many accreditation
bodies have not offered ISO/
TS 29001 accreditation to date
primarily because of the relatively small number of organizations requesting ISO/TS
29001 certification.
However, as more purchasers specify the ISO/TS 29001
QMS requirements and certification, more suppliers can be
expected to ask for an accredited certification.
L I T Y
Q U A
F O R
&
SPECIAL REPORT
BP
O R
S E C T
Conclusions
cure safe and reliable products

and services.
The petroleum, petrochemical and natural gas industries

are by their very natures risky
and dangerous with a potential for damage to the environment and risk to human health
and safety.
The need for a more rigorous

sector-specific QMS that will
provide additional assurance
in the processes of product
and service suppliers is selfevident.
With todays technical challenges of deeper wells, higher

pressures, deeper subsea completions, greater transportation
challenges, and larger refining capacities worldwide, the
industry will face increasing
challenges in its efforts to pro-
Purchasers must continue to

require suppliers/contractors to develop and implement effective quality management systems that ensure
that processes are in place to
reduce the risks to the operators and the general pub-
The enhancements to the

basic ISO 9001:2000 are
necessary and beneficial to
all members of the industry
lic of inadequate products or

services.
The industry must also continue to seek third party assistance in assessing supplier quality management systems to
international QMS requirement documents, especially
ISO/TS 29001.
The enhancements to the basic

ISO 9001:2000 as indicated
above to the supplementary
requirements are necessary
and beneficial to all members
of the industry. The requirements to perform independent design reviews and to have
final acceptance inspection, in
particular, should be reason
alone to specify ISO/TS 20001
rather than ISO 9001:2000 for
petroleum, petrochemical and
natural gas industries.
ISO INSIDER
ISO to publish book on integrated use

of management system standards
by Annemarie de Jong and Dick Hortensius
In the first quarter of 2008,

ISO is to publish a book giving organizations advice on
how to make integrated use
of management system standards. This article explains the
background to the project and
previews the book, Integrated use of management system
standards.
ISO management system
standards (MSS), such as ISO
9001:2000 for quality management and ISO 14001:2004 for
environmental management,
are among the most widely used international standards.
Contrary to many other types
of standard, management system standards cover multiple
aspects, levels and functions
of an organization and therefore their implementation usually has quite an impact on
how an organization operates
and manages its business processes.
In addition, a rapidly increasing number of organizations
is applying not only one, but
a range of management system standards to satisfy their
own needs as well as those of
external stakeholders. Given
these three trends, the compatibility of these standards
has been a major concern both
for the user community and for
Background
The cover of ISOs forthcoming

book Integrated use of management
system standards.
the ISO technical committees

developing MSS. Compatibility is usually defined as suitability of standards for use
together under specific conditions to fulfil relevant requirements without causing unacceptable interactions (ISO/
IEC Guide 2).
The development of compatible ISO management systems
standards has been supported
by active liaison and coordination between the technical
committees involved, as well
as by the development and
application of ISO Guide 72,
Guidelines for the justification
and development of management system standards.
Despite all these efforts

by ISO and its working
groups to provide userfriendly and compatible
standards, organizations
frequently struggle with the
combined or integrated use
of, for example, ISO 9001
and ISO 14001. This has led
in the past to calls for a single,
integrated or generic standard for a management system
that can be applied to manage all significant aspects or
risks of an organization.
However, there are a number
of serious disadvantages to
such an approach and up to
now there has not been a sufficient level of support within
ISO for the development of a
generic management system
standard.
An increasing number
of organizations is applying
a range of management
system standards
But as a response to those
organizations that encounter difficulties when applying
multiple management system
standards, the ISO members
for the Netherlands (NEN)
and France (AFNOR) proposed the development of an
ISO book to help these organizations. This initiative was

approved and supported by
the ISO Technical Management Board.
A task force was established
under the leadership of Petra
Eckl of MLPC International,
France, and comprised 16 members representing a wide range
of countries and business sectors, as well as standards bodies and academia. Work on the
project was launched in September 2004 and the book is
to be published by ISO in the
first quarter of 2008 with the
title of Integrated use of management system standards.
Basic assumptions
It is important to understand
some basic assumptions underlying the development of the
book.
Firstly, it is acknowledged that
there is a market need for
separate management system
standards addressing different aspects, issues or risks that
organizations need to manage.
Therefore, the book does not
attempt to describe what a
generic management system or
standard could look like. It provides guidance on how organizations can apply the different
standards in a combined way,
integrated with their business
processes.
Secondly, it is noted that all
organizations already have a
management system. Although
this is not necessarily formalized or documented, all organizations somehow manage their
way of doing business, providing products or services to their
customers and achieving objec-
ISO INSIDER
tives. If not, the organization

would not survive very long.
This leads to the third assumption: an ISO management system standard is not intended to
result in the establishment of a
new or separate management
system in an organization. This
assumption is based on the following observations:
It is not efficient because the
organization has already
some form of a management system.
More importantly, it is also
not effective because the
management of a critical
issue such as safety will
then be dealt with separately from the normal way of
operating.
Finally, it is hardly possible
nowadays given the increasing number of management
system standards that are
applied within the same
organization.
Buy stocks
Bake
In our view, ISO management

system standards are intended to provide a benchmark
against which an organization
can examine its current management practices related to,
quality, the environment or
other aspects.
An analysis is needed whether and where an organization
needs to adapt or add some-
thing to its management system

to be able to claim conformity
with the standards. It is essential that the organizations current management processes are
the point of departure when
applying a standard. Any separate issue-specific management system will in the long
run be neither effective, nor
maintainable, and therefore a
waste of effort.
The final assumption is that
applying a management system standard actually is integration in a systematic way
of management attention for
a certain aspect in the current management system of
an organization.
The definition of environmental management system in ISO
14001:2004 part of an organizations management system
used to develop and implement its environmental policy
and manage its environmental
aspects is clear about the
intention of that standard.
Sell
tain aspect relevant for the

organizations stakeholders is
included in the overall management system. Only then is the
management of such an aspect
sustained and effective.
The frequently used term
i ntegration of management
systems is based on a false
assumption. The issue is not
the combination of, for example, a quality and an environmental management system.
The issue is that all the activities which are relevant for
managing quality and environment (as specified in ISO 9001
and ISO 14001) are integrated
with the organizations overall
management system.
We call that t he integrated
use of management system
standards and that is precisely what the new ISO book
covers.
system standard, why these are

important and how an organization should apply them.
The third and longest chapter
of the book provides guidance
on how requirements from
multiple management system
standards can be integrated
in a combined way within the
existing management system
of an organization.
The book is intended to be of
interest and helpful to a variety of readers. A quality, safety,
health and environment manager should be well served by
the book, whether working
in a small or large organization, in public or private sector, especially those who just
start working towards integrated management.
But also an organization
already experienced in implementing management systems
should find the guidance given in the book helpful, especially if it needs to meet new
requirements and wants to
improve the efficiency of its
management.
Billing
Book-keeping
Deliver
What and for whom?

Maintain
equipment
ISO 14001 does not require

the establishment of a separate environmental management system, nor do other ISO
management system standards.
These standards simply require
that the management of a cer-
From these assumptions, it is

logical that the book begins
with a description of the main
characteristics, parts and functions of the management system of an organization.
For all these different users,

the ISO book provides guidance for utilizing an integrated
approach in the application of
requirements of multiple management system standards.
The second chapter explains

what sort of requirements are
contained in a management
Based on the practical experience of organizations that

have successfully done so,
ISO INSIDER
The authors
the book identifies a variety

of methodologies, tools and
practices.
Integrated use of
multiple MSS
These case studies are based

on a range of real-life examples to identify how organizations of different size and
maturity, from a variety of
industries in very different
economic environments, have
achieved integrated application of management system
standard requirements.
The book provides methods

and examples for the integration of multiple management
system requirements into an
organizations management
system.
In doing so, the book does not

give any preference to an individual organizations approach
or practice. In addition, there
is no suggestion in the book
that there is one best way to
accomplish integration.
Integration of the requirements of a management system standard in an organizations own management system
always requires a situation-specific approach.
Annemarie de Jong is Secretary

of ISO technical committee
ISO/TC 176, Quality management and quality assurance,
Subcommittee SC 3, Supporting
technologies.
Dick Hortensius is Secretary of

ISO technical committe ISO/TC
207, Environmental management,
Subcommittee SC 2, Environmental
auditing and related environmental investigations.
She is a standardization consultant with the Netherlands

Standardization Institute,
NEN.
He is aheadofthe department
on management systemswith
the Netherlands Standardization
Institute, NEN.
E-mail Annemarie.dejong@nen.nl
E-mail Dick.Hortensius@nen.nl
Web www.nen.nl
Web www.nen.nl
What is a management
system?
All organizations, profit or
not-for-profit, large or small,
complex or simple, have a
management system. The management system, through which
an organization conducts its
activities, may be formal or
informal.
The management system is
often divided into a number
of parts or sub-systems that
may be managed separately
and with relative independence. Such parts or sub-systems
of the organizations management system reflect the different needs and expectations of
stakeholders, such as customers, suppliers, shareholders,
employees, and society.
the requirements in the standards.
The case studies demonstrate

that often a project approach
is used for integrated implementation. The steps of such
an approach are outlined in
Figure 1.
Multiple options
The reader of the book can
decide for himself or herself how to learn best from
the guidance provided guidelines. Each chapter of the book
includes the following distinct
sections:
Guiding questions that help
to focus the reader
Many organizations utilize

standards to manage specific aspects of their performance, such as those related to
quality or the environment. In
addition, organizations may
use these management system
standards in response to stakeholder demands.
The first chapter of the book
discusses the basics of organizational management systems.
It is meant to improve knowledge of management systems
and to improve recognition of
the elements of a management
system in less structured or less
formalized organizations.
What are
MSS requirements?
Overview summarizing the

theory of the topic concerned
The main features of management system standards

are illustrated in the book by
demonstrating the usefulness
of their requirements for running a business. The message is
to make an inventory of what
the existing management system of the organization already
covers and to evaluate what is
missing to fulfil the requirements of the management system standards.
Cases in point with actual practices and examples

from the case studies carried out
On the basis of this information, the organization can

make a decision on how and
to what extent to conform to
Practice assists readers in

applying the principles and
methods provided to their
own situation.
Approach featuring the

methodologies and tools
applied
Jim the Baker an imaginary character whose company is used to illustrate
the implementation of the
methodologies and tools
ISO INSIDER
These six different perspectives

can also be used by the reader
as a specific roadmap through
the whole book. For example,
someone who is mainly interested in the theory focuses
on the overview sections and
someone who is interested
in practical examples reads
through the cases in point.
Case studies
Real-life examples are extracted from 15 case studies made
in a wide variety of situations.
Examples are included from
case studies of companies in
Asia, South America and the
Middle East, as well as European and North American companies. Multinational compa-
Figure 1 Project steps for integrated implementation of MSS.
Benefits
During its expansion, Jims

company is faced with new
requirements to comply with.
Jim meets all the challenges by
implementing the steps that are
introduced in the book. This
hypothetical business supplements the real-life examples
in order to assist the readers
understanding of the integrated approaches presented.
The benefits of integrated

implementation of management system standards:
eliminating redundancy
establishing consistency
optimizing processes and
resources
consolidating assessments
Surveys showed a strong

correlation between people
involvement and business
performance
reducing maintenance
Determine the scope of the integration
improving decision
making.
A bridge
Plan the integration
Connect MSS requirements and the organizations MS

Structure MS
Structure MSS requirements
Map MSS requirements against the MS
Incorporate MSS requirements into the organizations MS

Analyze gaps
Close gaps
Verify gap closure
Maintain and improve the integration
Apply lessons learned in the organization
nies are included as well as

smaller ones, in different sectors of activity, for profit and
not-for-profit, applying different sets of management system
standards.
These case studies, which contribute substantially to the
practical applicability
of the book, are included on a CD inside the
books cover.
Jim the Baker

The book introduces the hypothetical
business organization of Jim the
Baker. The operations of Jim the
Baker start with a
very small one-man
village bakery and
expand first to servicing a large region,
then a national business with
many bakeries, and finally to a
multi-national corporation.
With the publication of Integrated use of management system standards, ISO will provide
guidance for the many organizations all over the world
which apply more than one
management system standard. The book provides a good
mixture of theory
and practice and
will be useful for
beginners as well
as for the experienced. It
will form a bridge between
the increasing number of
ISO management system
standards that meet specific concerns of organizations and their stakeholders, and the organizations
own and unique management approach.
ISO INSIDER
All ISO standards for food safety

management systems included on
one CD
ISO Packs
within ISO
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ISO,
ISO has launched a new CD

that contains the ISO 22000
series of standards developed to help operators in the
food chain to implement food
safety management systems.
The CD also includes related standards for conformity assessment professionals
involved in the certification
of food safety management
systems and in the accreditation of bodies carrying out
such certification.
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in Switzerla
Printed
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2007
ISO,
The CD is designated the

ISO Pack on Food Safety
Management Systems and it
includes the following standards and related documents:
ISO 22000:2005, Food safety management systems
Requirements for any organization in the food chain,
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ISO 22000:2005, which gives

the requirements for a food
safety management system,
is implemented by more
than 700 organizations in
some 50 countries. It and
the supporting standards in
the series can be used by
any type of organization in
the food chain, ranging from
feed producers, primary producers through food manufacturers, transport and storage operators, including also
subcontractors to retail and
food service outlets.
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ISO Packs
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Franois Falconnet, Chair of ISO/

TC 34, Food products: Adequate
control throughout the food chain
is essential.
ISO Packs
and its corrigendum ISO

22000:2005/Cor1:2006 give
the basic requirements for
a food safety management
system to ensure food safety along the food chain, up
to the point of final consumption.
ISO/TS 22004:2005, Food
safety management systems
Guidance on the application of ISO 22000:2005,
gives guidance on the use
of ISO 22000, which is based
on the principles of the Hazard Analysis and Critical
Control Point (HACCP)
system developed by the
Codex Alimentarius Commission and is designed to
be applied together with relevant standards published
by that organization.
ISO 22005:2007, Traceability in the feed and food chain
General principles and
basic requirements for system
design and implementation,
gives the principles and specifies the basic requirements
for the design and implementation of a feed and food
traceability system.
ISO/TS 22003:2007, Food

safety management systems
- Requirements for bodies
providing audit and certification of food safety management systems, and ISO/
IEC 17021:2006, Conformity assessment - Requirements
for bodies providing audit
and certification of management systems, have been
developed for certification
bodies and the accreditation
bodies that approve them as
competent. Certification of
a food safety management
system to ISO 22000 is not a
requirement of the standard,
but is one means of providing assurance that an organization has implemented a
system for the management
of food safety in line with
its policy.
Any stage
Franois Falconnet, Chair
of ISO technical committee
ISO/TC 34, Food products,
which is responsible for the
ISO 22000 series, comments:
A s the introduction of food
safety hazards can occur at
any stage of the food chain,
adequate control through-
That is why, this ISO CD

is very useful for harmonizing good food safety practice worldwide, giving advice
on how to implement a food
safety management systems,
facilitating traceability and
building confidence in certification throughout supply
chain.
The ISO 22000 series

was developed in
collaboration with Codex
Alimentarius
The ISO 22000 series was

developed in collaboration
with other interested organizations, for example, Codex
Alimentarius and the ISO
Committee on conformity
assessment (ISO/CASCO),
which is also responsible for
ISO/IEC 17021, and for ISO
22003.
The ISO Pack on Food Safety Management Systems on
CD (bilingual, English and
French) formats and costs
379 Swiss francs and is available from from ISO national member institutes (listed
with contact details on the
ISO Web site www.iso.org)
and from ISO Central Secretariat (sales@iso.org).
ISO INSIDER
Towards a new framework

for eco-efficiency
The author
by Bengt Steen
Eco-efficiency is becoming
an increasingly important element of sustainable development. Economic growth, a
major driving force for many
organizations, has an obvious
effect on the environment in
the sense that all economic activity causes an environmental
impact.
Working with the key principles of eco-efficiency, reducing
the consumption of renewable
resources and the impact on nature while increasing service or
product value is undoubtedly a
good approach to becoming a
more sustainable organization.
However, the question is: how
and when to measure eco-efficiency? This is still an issue
requiring further thought
in organizations around the
world. The application of ecoefficiency is not restricted to
business, but also includes re-
search and development, public policy, consumer information, and so on.

An example is eco-efficiency
based on the cost of environmental improvements, or
the environmental impact of
value created. There may be
more than one type of cost/
value to consider.
The need for a framework

One issue in particular hinders
the use of eco-efficiency, and
that is the lack of a consistent, well accepted, framework
and definitions. Measures and
achievements in eco-efficiency
can be difficult to communicate. For example, when two
product concepts are compared, the selection criteria
can have a great impact on
the calculations, and can be
difficult to describe without a
harmonized language.
Numerous eco-efficiency initiatives are already being undertaken around the world by organisations like Organization
for Economic Co-operation
and Development (OECD),
World Business Council for
Sustainable Development
(WBCSD), Industry Canada,
and the BASF Group, and in
countries such as China, Germany, Japan, The Netherlands,
Sweden and the US.
The need
for harmonization
Author Bengt Steen is
Chairman of ISO/TC 207/
SC 5/TG, Eco-efficiency, and
Adjunct Professor, Environmental Systems Analysis, at
the Chalmers University of
Technology, Gothenburg,
Sweden.
E-mail bengt.steen@chalmers.se
Developing a framework and

a common language is a process of consensus among experts. An ISO working group
would be well suited to such a
project.
The need for harmonization

of eco-efficiency has been a
subject of many international
forums. The 2nd International
Conference on Quantified EcoEfficiency Analysis for Sustainability, held in Egmond aan
Zee, The Netherlands, on 28-30
June, 2006, included a special
working group session on
standardization.
It indicated that the market
for an ISO eco-efficiency standard could be relatively large
since eco-efficiency indicators
Developing a framework
and a common language is
a process of consensus
among experts
Bengt Steen, centre, with
representatives from Finland,
Germany, Japan, The Netherlands,
Portugal, Sweden, and SETAC, at
the special SC 5 task group
meeting on eco-efficiency in
Gothenburg, December 2007.
Project Manager, Lars Jonsson
SIS, Swedish Standards Institute
E-mail lars.jonsson@sis.se
IMS March-April 2008 19
ISO INSIDER
can be used directly by many

stakeholders in companies
and other organizations. Such
an initiative could also stimulate the use of standards in the
ISO 14000 family.
Co-efficiency task group

In 2007, interested parties in
Sweden asked ISO experts if
there was interest in harmonization of eco-efficiency on
the basis of a tentative NWIP
(New Work Item Proposal).
Subsequently, at the June 2007
meeting of ISO technical committee ISO/TC 207, Environmental management in Beijing,
subcommittee SC 5, Environmental life cycle assessment, organized a workshop to discuss
eco-efficiency and a possible
future work item. SC 5 decided
to form a task group under
the leadership of SIS, Swedish
Standards Institute, to discuss
the NWIP further.
The task group met in Gothenburg, Sweden, in December
2007, with representatives from
Finland, Germany, Japan, The
Netherlands, Portugal, Sweden,
and the liaison organization
SETAC (The Society of Environmental Toxicology and
Chemistry).
The tentative NWIP was revised with the addition of a
list of basic principles, such as
applying a life cycle perspective, transparency and priority of scientific approach. The
revised NWIP was sent out for
comments and the plan is to
submit a final proposal to ISO/
TC 207 in early 2008, so that
it can be on the agenda at the
committees plenary meeting
in Colombia in June 2008.
ISO publishes international

benchmark for incident preparedness
and operational continuity
management
by Roger Frost
ISO has published the first

internationally ratified benchmark document addressing
incident preparedness and
continuity management for organizations in both public and
private sectors.
The Publicly Available Specification ISO/PAS 22399:2007,
Societal security Guideline
for incident preparedness and
operational continuity management, is based on best practice
from five national standards
from Australia, Israel, Japan,
the United Kingdom and the
United States.
Unanimous
Stefan Tangen, Secretary of
ISO/TC 223, states: ISO/
PAS 22399 represents a major
breakthrough in addressing
emergency and disaster preparedness, response and continuity. It was unanimously
passed by the 50 countries that
participate in the committee
and provides an international
agreed upon benchmark for
emergency and disaster management for individual organizations.
Natural disasters, acts of terror,

technology-related accidents
and environmental incidents
have clearly demonstrated that
neither public nor private sectors are immune from crises,
either intentionally or unintentionally provoked.
This has lead to a global awareness that organizations in the
public and private sectors must
know how to prepare for and
respond to unexpected and potentially devastating incidents.
ISO/PAS 22399 is the first deliverable from ISO technical
committee ISO/TC 223, Societal security, which is charged
with developing standards in
the area of crisis and continuity management.
Photo: BSI
Ivar Jachwitz, the Convener of the

Task Group that drafted ISO/PAS
22399 says the guideline is a tool
suitable for both public and
private sector organizations.
ISO/PAS 22399 establishes the

process, principles and terminology of incident preparedness and operational (business) continuity management
(IPOCM) within the context
of societal security. Ivar Jachwitz, the Convener of the Task
Group that was responsible
for drafting ISO/PAS 22399
explains: The purpose of the
guideline is to provide a basis
for understanding, developing and implementing incident
preparedness and operational
continuity management within
an organization and to provide
confidence in organization-tocommunity, business-to-business and organization-tocustomer/client dealings.
ISO/PAS 22399
represents a major
breakthrough in addressing
emergency and disaster
preparedness
The guideline is a tool to
allow public or private organizations to consider the factors
and steps necessary to prepare
for an unintentionally, intentionally, or naturally caused
incident (disruption, emergency, crisis or disaster) so that it
can manage and survive the
incident and take the appropriate actions to help ensure
the organizations continued
viability.
Organizational resilience requires proactive preparation
for potential incidents and disruptions, in order to avoid suspension of critical operations
and services, or if operations
and services are disrupted,
that they resume operations
ISO INSIDER
and services as rapidly as required by those who depend

on them.
ISO/PAS 22399 describes a holistic management process that
identifies potential impacts
that threaten an organization
and provides a framework for
minimizing their effect.
SIS (Swedish Standard Institute), is responsible for the
secretariat of ISO/TC 223 and
the committee is comprised of
representatives from business,
industry, the first responder
community, emergency and
disaster managers, security
professionals, government and
non-governmental organizations from over 50 countries.
International
cooperation
within ISO/TC 223 will become increasingly important in
the coming years to help organizations and communities
jointly deal with and recover
from emergencies.
It will allow them to develop
standards, procedures and systems, thus making them feel
more prepared and confident
to handle crisis situations
when they arise. Processes for
preparedness and continuity
that ensures interoperability
with the surrounding world
are keys to saving lives and
helping affected communities
rebound when disaster strikes,
thus giving them more resilience than those who are not
prepared.
ISO standards highlighted at Bali conference as essential to

voluntary and regulatory efforts to fight climate change
Laying a pathway for 2012

beyond Kyoto was central to
this years meeting of the United Nations Framework Convention on Climate Change
(UNFCCC). Over a two-week
period from 3-14 December
2007 in Bali, Indonesia, more
than 12000 participants from
government, intergovernmental
organizations, and international NGOs associated with business, academic, environmental
and civil society interests converged in Bali to address a most
pressing issue of our time climate change.
changes in the global climate

system during the 21st century
that would very likely be larger than those observed during
the 20th century.
Mandate
With a mandate to address these
challenges, the Bali meetings
convened the 13th session of the
Conference of the Parties to the
UNFCCC, its subsidiary bodies
as well as the Meeting of the
Parties of the Kyoto Protocol. In
ISO Deputy Secretary-General,

Kevin McKinley highlighed ISOs
foundational contribution to
voluntary approaches.
A central theme was

the renewed importance for
industry and governments
to work towards common
solutions
The need to act for the sake of

future generations has never
been clearer, or more urgent.
The Intergovernmental Panel
on Climate Change (IPCC), cowinner of the 2007 Nobel Peace
Prize, has highlighted the unequivocal impact that mankinds
activities are having on the
worlds climate in its Summary for Policymakers, a summary from its Fourth Assessment
Report (see www.ipcc.ch).
ISO/PAS 22399:2007 costs 120

Swiss francs and is available
from ISO national member institutes (listed with contact deThe findings indicate that the
tails on the ISO Web site www.
global atmospheric conceniso.org) and from ISO Central
Jerez, Spain, fish market
P. Krieger).
tration(Photo:
of carbon
dioxide has
Secretariat (sales@iso.org).
increased from pre-industrial

values of about 280 ppm, to 379
ppm in 2005. The atmospheric
concentration of carbon dioxide
in 2005 exceeds by far the natural range over the last 650000
years (180 to 300 ppm).
The report predicts that continued greenhouse gas (GHG)
emissions at or above current rates would cause further warming and induce many
addition, the meetings included

an extensive array of side events
and exhibits that probed topical
issues of importance to global
climate change.
A central theme was the renewed
importance for industry and governments to work towards common solutions and to ensure that
voluntary initiatives align with
the imperatives of government
and society at large.
ISO INSIDER
ISOs foundational contribution to such voluntary approaches was highlighted late in the
first week by the ISO Deputy Secretary-General, Kevin
McKinley, in a special side event
session hosted by the World
Business Council on Sustainable Development (WBCSD)
and the World Resources Institute (WRI).
The ISO process was promoted
as an effective mechanism for
developing international consensus amongst countries and
stakeholders from civil society, business and other interests
ISOs reach being achieved
through its network of national standards institutes from 157
countries, as well as links with
more than 600 international and regional organizations
collaborating in its programme
of more than 3000 committees
and working groups.
to the environment through

widespread implementation of
ISO 14001, which provides the
requirements for environmental management systems.
4. Opening markets for energy efficient technologies and
renewable sources, including
established programmes for
hydrogen, nuclear and wind
technologies, as well as new
standardization work on solid
and liquid biofuels, and proposals for standards on improving
energy management in organizations.
In particular, ISO, WBCSD and
WRI highlighted the recently
signed Memorandum of Understanding (MoU) under which
the organizations have agreed
to jointly cooperate on and promote the ISO 14064 standards
and the WRI/WBCSD-developed GHG Protocol
ISO standards offer practical

tools for addressing climate
change at four levels:
1. Monitoring climate change
through technical, basic equipment and measurement standards (e.g., ISO/TC 211 on geomatics, ISO/TC 146/SC5 on
meteorology).
2. Quantifying GHG emissions
and communicating on environmental impacts, including
the leading ISO standards ISO
14064 (Parts 1, 2 and 3) and
ISO 14065 on GHG accounting, verification, validation and
accreditation of bodies carrying out these activities.
3. Promoting good practice
in environmental management and design, for example
achieving broad deployment
of organizational commitment
Joint cooperation
In the second week, ISO contributed to discussions concerning a proposed new initiative
to fund and encourage small
business action on the sustainability agenda. Currently entitled the Sustainability of the
Planet foundation, its founders will be seeking to establish the initiative at a global
level and to strengthen more
formal cooperation with key
actors such as ISO, the United Nations Environment Programme (UNEP), the United
Nations Global Compact, the
International Institute for Sustainable Development (IISD)
and WBCSD.
In the final days of the Bali
meetings, ISO presented at a
special side event organized
by the International Emissions
Trading Association (IETA)
concerning voluntary carbon

markets and the impact of the
new Voluntary Carbon Standard (VCS). The VCS is a recently launched, global carbon offset standard that effectively
incorporates exacting principles from the ISO 14064 series
and ISO 14065.
Co-developed by the IETA, the
Climate Group and WBCSD,
the VCS will provide a new and
much-needed level of assurance
for the certification of voluntary offsets, especially targeted
to organizations keen to tackle
climate change by going carbon-neutral.
Developers of the VCS estimate that annual transactions
in the voluntary carbon market could reach USD 4 billion
in the next five years and that
the VCS will be instrumental
to this future growth.
Kevin McKinley stated: The
success of all emissions trading
programmes will be assisted by
extensive use and reference
to the globally accepted ISO
14064 series and ISO 14065. In
fact, truly additional and material reductions in global GHG
emissions can only be achieved
through the continued convergence of ISO standards and
both the voluntary and regulatory GHG emission verification, validation, accreditation
and trading regimes.
This Bali meeting has been
especially useful to promote,
particularly with key industry
and non-governmental partners,
the foundational role that ISO
standards are playing in contributing to mitigating climate
change and to achieving a truly sustainable world.

ISO INSIDER
New ISO standards to improve quality

of water services to consumers
and with guidance for managing water utilities, consistent

with the overarching goals set
by the relevant authorities.
These standards are intended to
facilitate dialogue between the
stakeholders, enabling them to
develop a mutual understanding of the functions and tasks
that fall within the scope of
water utilities.
by Sandrine Tranchard
A suite of new ISO standards

offers the international community practical tools to address
the global challenge of effectively managing limited water
resources in order to provide
access to safe drinking water
and sanitation for the worlds
population.
These standards will play a

primary role in promoting
access to safe drinking
water and basic sanitation
ISO has just published three
standards providing guidelines
for service activities relating to
drinking water supply systems
and wastewater sewerage systems. These international standards are designed to help water
authorities and their operators
to achieve a level of quality that
best meets the expectations of
users and the principles of sustainable development.
ISO Secretary-General Alan
Bryden comments: These ISO
standards will play a primary
role in promoting access to safe
drinking water and basic sanitation through improved governance at all levels. Their publication is a first step towards
responding to the United
Nations concern in recognizing that access to water is
an essential human right. The
UN has set ambitious goals
to increase access to drinking

water and wastewater services, particularly in developing
countries.
ISO 24510, Activities relating
to drinking water and wastewater services Guidelines
for the assessment and for the
improvement of the service
to users, is a service oriented
standard that addresses the
following topics:
a brief description of the
components of the service
relating to the users;
core objectives for the service, with respect to users
needs and expectations;
guidelines for satisfying
users needs and expectations;
assessment criteria for service to users in accordance
with the provided guidelines;
examples of performance
indicators linked to the
assessment criteria that can
be used for assessing the performance of the service.
to drinking water and wastewater services Guidelines for
the management of wastewater
utilities and for the assessment
of wastewater services, and
to drinking water and wastewater services Guidelines
for the management of drink-
They can also provide methods and tools to define, at local

level, objectives and specifications, and assess and monitor performance for possible
benchmarking among water
utilities.
Jean-Luc Redaud, Chair of ISO/

TC 224: These standards will be
useful in setting up collective
systems of assessment allowing
continual improvement of the
service to users.
ing water utilities and for the
assessment of drinking water
services, both managementoriented, address the following topics:
a brief description of the
physical/infrastructural and
managerial/institutional components of water utilities;
core objectives for water utilities, considered to be globally relevant at the broadest level;
guidelines for the management of the water utilities;
guidelines for the assessment of the water services
with service assessment criteria related to the objectives,
and performance indicators
linked to these criteria.
Facilitate dialogue
The objective of these international standards is to provide
the relevant stakeholders with
guidelines for assessing and
improving the service to users,
Pierre Granier
Jean-Luc Redaud, Chair of

the ISO technical committee
ISO/TC 224 that developed the
standards, comments: Many
stakeholders are involved
in water services and these
standards will be useful in setting up collective systems of
assessment allowing continual improvement of the service to users.
ISO INSIDER
This implies clarifying the

responsibilities of all involved.
One of the main objectives of
the committee was to set up
guidelines in order to develop
a better mutual understanding
of responsibilities and tasks of
all stakeholders.
Consumers, manufacturers, regulators and many others

may benefit from free new brochure on ISO/IEC guides
by Roger Frost
ISO and IEC have just published a free brochure which

gives an overview of joint
guides that provide a rich
source of helpful advice not
only for standards writers
and consumer representatives active in standardization,
but also for designers, product
manufacturers, service providers, retail chains, testing
laboratories, regulators and
associations representing the
interests of consumers, the
disabled, children and senior
citizens, in addition to environmentalists, academics and
their students.
These standards will have

now to be adapted to national
or regional contexts. A strong
orientation towards developing countries was taken by
the TC with the creation of an
ad hoc group, lead by Morocco, in order to support developing countries in the application of these standards. A
first trial of the standards has
been launched in some African
countries.
The implementation of the
standards will be monitored
to provide feedback for further improvement.
The new standards were developed by ISO/TC 224, Service
activities relating to drinking
water supply systems and wastewater systems Quality criteria
of the service and performance
indicators.
ISO 24510:2007 costs 164 Swiss
francs and ISO 24511:2007
and ISO 24512:2007, 154 Swiss
francs each, and are available
from from ISO national member institutes (listed with contact details on the ISO Web
site www.iso.org) and from ISO
Central Secretariat (sales@iso.
org).
The guides contain

useful information for
people not involved in
standards work
How ISO/IEC Guides add value to international standards

covers those publications that
are of wide general interest.
Although primarily developed
to help standards writers take
into account the needs of stakeholders such as consumers, the
guides contain useful information for people not involved
in standards work, such as the
groups identified above (it does
not include information on
guides addressing more specialized subjects).
meeting the needs of older

persons and persons with
disabilities in standards;
justifying the need for management system standards;
risk management vocabulary;
graphical symbols that meet
consumer needs;
Guides
How ISO/IEC ue to
add val
al
internation
standards
December/dce
Les Guides
ISO/CEI, une
e
valeur ajout s
me
pour les nor s
ale
internation
mbre 2007
19.02.2008
Guides add
value EF.indd
The new brochure, which is

bilingual (English and French),
lists with concise descriptions
the ISO/IEC Guides on the following topics:
the vocabulary of standardization;
drafting standards for conformity assessment;
purchase information on
goods and services intended for consumers;
instructions for use of products by consumers;
packaging that meets consumer needs;
comparative testing of consumer products and related
services;
child safety;
safety aspects in standards;
environmental aspects in
standards;
11:12:58
taking consumer issues into

account in service standards;
the expression of uncertainty in measurement (upcoming publication);
the vocabulary of metrology
(upcoming publication.
How ISO/IEC Guides add value
to international standards (ISBN
978-92-67-01165-3) is available free of charge (except for
postage and packaging) from
ISO national member institutes
(listed with contact details on
the ISO Web site www.iso.org)
and from ISO Central Secretariat (sales@iso.org). An electronic version is available for
downloading from the ISO Web
site.
INTERNATIONAL
China powerhouse embraces

ISO 14001 certification
China pioneered ISO 14001 implementation as a pilot project in 1996,
before the actual publication of the international standard. From this
head start, the country was ranked 2 nd in the world ISO 14001 league
table by end 2006, and has well over 30000 certified organizations to
date. The author reviews Chinas EMS journey, its current status, and
by Li Yan
looks at future developments.
INTERNATIONAL
China began ISO 14001 implementation in 1996, and by the

end of 2006 nearly 19 000
organizations had achieved
certification to the environmental management system
standard (EMS), placing the
country second in world rankings with 12% of the global
certification total. With broad
uptake across most economic
sectors and geographical areas, ISO 14001:2004 is playing an
important role in environmental protection in China.
This article takes a retrospective view of ISO 14001 certification in the country, analyses current status, and looks at
future objectives of the China
National Accreditation Service for Conformity Assessment
(CNAS) to raise the effectiveness and compatibility of EMS
implementation.
Historical development
ISO 14001 certification in China has developed in two stages to date:
1996-1997
The former National Environmental Protection Agency
(NEPA) started a pilot ISO
14001 certification project in
1996, before publication of the
international standard, mobilizing local environmental protection bureaus, experimental
26 IMS March-April 2008
enterprises and pioneer consultation/certification bodies

to carry out EMS promotion
and education.
This initiative laid a solid foundation from which to launch
ISO 14001 implementation and
development.
1998 to date
The China Accreditation Committee for Environmental Management System Certification
Bodies (CNCEB) was established in 1998 and, since then,
ISO 14001 certification in China has been carried out under
the regulation and supervision
of its national accreditation body.
Now, the function of CNCEB
has been merged within the jurisdiction of CNAS (see below).
bodies in various fields have

been integrated into one national accreditation body, the China National Accreditation Service for Conformity Assessment
(CNAS), responsible for accreditation for all relevant certification activities, including EMS.
CNAS has developed regulations to direct and supervise the
ISO 14001 certification process.
The result of joint efforts by
all relevant parties is a mature
implementation and certification system, in accordance
with international best practice, that meets Chinas social
situation and provides effective regulatory EMS support
and promotion.
Development 1996 to 2007

The number of ISO 14001-certified organizations grew steadily from 1996 to 2006, passing
through the 100 milestone in
1999, to 1000 in 2001 and 10000
in 2005 (see Figure 1). By the
end of 2006, the number of certifications had reached 18979,
with geographical data indicating that the EMS standard
had become widely recognized
throughout the country.
However, by November 2007
there were 68 CNAS-accredited EMS certification bodies
in China, and the total number
of ISO 14001 certificates they
had issued by that date had
jumped to 30489!
Statistics indicate that ISO
14001 certification has developed steadily across more and
more service and manufacturing sectors and geographical
areas, proving the broad applicability of the EMS standard.
In 2002, the State Council established the Certification and

Accreditation Administration
(CNCA), responsible for supervising and coordinating nationwide accreditation and certification activities. Accreditation
ISO 14001 certification

has become part
of the industrial landscape
of China.
Sector coverage
Before 2001, more than 50%
of ISO 14001 certified companies were manufacturers
of electronic equipment, but
this dropped to 38 % in 2001
although the sector still maintained first place.
However, the picture has
changed considerably since.
By the end of 2006, the top five
industrial sectors were con-
INTERNATIONAL
The author
struction, services1), electrical/

electronic/optical equipment,
chemicals/chemical products
and rubber/plastic products.
Li Yan is Assistant Chief

Executive of the China National Accreditation Service
for Conformity Assessment
(CNAS), and has worked in
for 20 years.
From 1996, she became
involved in ISO 14001 EMS
certification, and research
into related conformity assessment systems, and helping establish Chinas national
accreditation system for EMS
certification.
Li Yan participated in drafting
the National Training Textbook
of Standardization Administration of the Peoples Republic
of China, Understanding and
Implementation of National
EMS Standards; the National
Training Textbook for Chinas
Registered EMS Auditors, ISO
19011 Understanding and
Implementation, and ISO
14011 Understanding and
Implementation. She was also
involved in the adoption of
ISO 14001:2004, ISO 14004:
2004, ISO 14031:2001, ISO
14042:2002, ISO 14043:2002
and ISO 14015:2002 as
Chinese national standards.
China National Accreditation
Service for Conformity Assessment
(CNAS), No. A10, Chaowai Dajie,
Beijing, China (100020).
E-mail liy@cnas.org.cn
Figures 2 and 3 respectively

show the number of certified
organizations in the top five
sectors by 31 December 2006,
and 31 December 2001. By
comparing the data, we can see
a significant change in sector
coverage over the period.
The construction and service
sectors increased dramatically
from 4th and 5th places in 2001
to 1 st and 2 nd places in 2006.
These changes were very much
market driven. For example, in
most cases ISO 14001 and ISO
9001 certification is a precondition in bidding for a construction project, a fact of business
life that has greatly promoted
EMS and QMS certification in
the sector.
35000
30489
30000
25000
20000
18979
15000
12683
8862
10000
5000
0 4
22
142 510 1085
71
2803
5064
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Figure 1 ISO 14001 certified organizations in China 1996-2007.
0
1000
2000
3000
4000
5000
6000
5007
Construction
3306
Service
Electrical & optical
equipment
2600
Chemicals,
chemical products
1584
Rubber and
plastic products
1117
Geographical data
Figure 4 shows a much higher number of ISO 14001-certified organizations in more
developed or coastal areas,
such as Beijing, Guangdong,
Zhejiang, Jiangsu, Shandong,
than in under-developed areas. This is because environmental requirements are more
stringent in developed areas,
and those organizations enjoy
better economic and technical
conditions.
1) Services includes the following categories: publishing and printing companies; electricity, gas and water supply; wholesale and retail trade; repair
of motor vehicles, motorcycles, personal
and household goods; hotels and restaurants; transport, storage and communication; financial, real estate and rental;
information technology; engineering
services; public administration; education; health and social work; other
social services.
Total number: 18 979
Figure 2 Top five ISO 14001-certified sectors by 31 December 2006.

0
1000
Electrical & optical

equipment
Chemicals,
chemical products
2000
3000
4000
5000
6000
408
123
Machinery and
equipment
80
Construction
55
Social services
52
Total number: 1 085
Figure 3 Top five ISO 14001-certified sectors by 31 December 2001.
Web www. cnas.org.cn

INTERNATIONAL
Total certificates: 23 179

3500
3000
Number of certificates
2500
2000
1500
1000
500
0
g in ei xi ia g in g ai u g ui n xi g n ei n g xi n g n u n et xi u ai ia g n g o
ijin nj eb an ol nin Jil gjian ang angs ejian Anh Fujia iang ndon ena Hub una gdon ang aina gqin chua izho unna Tib aan Gans ingh ngx njian aiwa Kon aca
H
H n Gu H on Si Gu Y
J a
Be Tia H Sh ong Liao
n h Ji Zh
Q N Xi T ong M
Sh
h
Sh
ilo S
ua
C
rM
H
e
G
e
H
Inn
Figure 4 ISO 14001 certification by region up to 30 June 2007.

ISO 14001 adoption is much
slower in the least developed
northwestern provinces. However, recent central government
policy calls for greater development in those areas. So, in
response, we will make greater
efforts to promote ISO 14001
implementation in those provinces, while providing economic and policy support for local
environmental protection.
The role of ISO 14001

certification
With ISO 14001 now widely recognized in China, and certification often a condition of doing
business, the market is driving
more and more organizations
to establish an EMS and seek
certification.
Th o s e o r g a n i z a t i o n s t h u s
become environmentally conscientious and voluntarily carry out sustainable strategies by
curbing pollutants and minimizing consumption of resources
and energy. As a result, cleaner production is promoted
and environmental conditions
improved.
Future efforts
In order to implement ISO
14001 effectively, and ensure
that certified organizations continuously meet legal requirements and improve their environmental performance, CNAS
will regulate certification as
follows:
1. To ensure suitability
of ISO 14001 certification
with national environmental
laws and policies
EMS certification must serve
the countrys environmental
protection needs. Therefore,
it should be fully suitable to
national environmental policies
and strategies, and be adjusted to suit changes in emphasis when appropriate. This is
the basic principle of CNAS
in directing ISO 14001 certification.
2. To ensure greater
emphasis on environmental
performance in EMS
audits
Recognizing that successful
EMS implementation by an
organization must result in
effective control of its environmental aspects, and continual improvement of environmental performance, CNAS
requires certification bodies to pay attention to actual
EMS results and environmental performance in EMS audits,
in addition to EMS structure,
documentation and records, so
as to convince themselves of
the suitability and effectiveness of the certified EMS.
INTERNATIONAL
3. To encourage use of
environmental engineering
and management tools
in audits
To effectively assess an organizations environmental performance, applicable environment
engineering/sciences and management tools should be used.
The environmental performance
evaluation technique provided
by ISO 14031:1999 Environmental management Environmental performance evaluation
Guidelines is also useful.
CNAS encourages certification bodies to consider scientifically sound environment

assessment tools and methods
in their EMS audits, so as to
obtain credible results during
the limited audit time.
4. To ensure professional
auditing knowledge and
skills
The competency of an environmental auditor is a guarantee of a credible EMS audit.
CNAS will ensure that audi-
tors demonstrate knowledge

of applicable national laws
and policies, environmental
engineering, management and
assessment, as well as the skills
of EMS audit.
In addition, CNAS is also
aware that such knowledge
must be regularly updated in
line with the progress of relevant sciences and technologies.
Conclusion
In the years since 1996, ISO
14001 implementation in China
has promoted social environmental awareness, and has
helped many organizations
improve their environmental
performance and meet applicable legal requirements. We
believe ISO 14001:2004 will play
an even greater role in protecting the countrys environment
in future, particularly in view of
Chinas rapidly developing market economy.
INTERNATIONAL
ISO 9001:2000 an instrument

for corporate governance
All too often, says the author, ISO 9001:2000 is used as a tactical initiative and is therefore greatly under-utilized. He argues that its
greatest strength is as a strategic tool providing the framework for
corporate governance, asset utilization, operations management and a
balanced scorecard.
by William A. Stimson
William (Bill) Stimson is a consultant
to industry and government in
quality management systems and
Sarbanes-Oxley requirements. His
clients include the United States
Department of Justice, in cases
relating to business practices.
A senior member of the American
Society for Quality and of the Information System Audit and Control
Association, he is the author of
ISO 9001 and Sarbanes-Oxley:
A System of Governance
(ISBN 1-932828-08-7, Paton Press,
2006, www.patonpress.com).
E-mail wstimson@ceva.net
Web www.sciassociates.com
The quality field has long

focused on systems management to achieve efficiency
in processes used to produce
goods and services. While this
focus on process control is at
a higher level than traditional quality control by product
inspection, it nevertheless
remains a tactical initiative
concerned with procedure
how to do something.
Over the past two generations,
the pursuit of process control
has been vigorous, resulting in
the development of a number
of different, often competing,
methods. Some of them have
fallen by the wayside, but a few
remain in great demand today,
among them the Malcolm Baldrige Award programme, Six Sigma, Lean (Toyota Production
System), Total Quality Management, and ISO 9001:2000.
Although effective at what they
do, all suffer the same shortcoming their strategic effect is
unclear and so they fail to gain
the allegiance of top manage-
ment. Efforts to tie quality to

the corporate bottom line have
not reached their potential,
largely because of the way the
cost of quality is defined.
In the United States at least,
the effect of product quality on
the price of a companys stock
is debatable. Quality is not a
major consideration to shareholders, nor is it mentioned as
a factor in the Sarbanes-Oxley
Act of 2002, and therefore it
is not a major factor for top
management either.
The strength
of ISO 9001:2000
The tactical approach to quality is essential how else can
things get done? Problem solving algorithms are tactical and
project management is tactical. But a tactical approach is
deductive and does not provide direction.
For example, project management as a governing principle can lead to diminishing
returns, conflicts in resource

allocation that are inherent in
matrix management, and balkanization of business units. It
is possible to build a strategic
structure around tactical methods, but then you have something that looks more like ISO
9001:2000 than the original.
Which brings me to the point
of this article although ISO
9001:2000 is designed as a
standard for quality management systems, it was written
for top management and can
be implemented as a strategic
initiative. What has often been
regarded as its weakness a
failure to be specific is actually its strength.
You need specificity in procedures you need generality
in strategy. In the following,
I approach corporate strategy in four areas and show
how ISO 9001:2000 will support them all: governance,
asset utilization, operations
management, and a balanced
scorecard.
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The first issue

of governance
Consider the first issue of governance: how the corporation
is managed. Clauses 4 and 5
of ISO 9001:2000 address this
issue comprehensively, if one
interprets the q uality management system in a broad,
but appropriate, context
competent management of the
enterprise. In this sense:
Corporate governance
Corporate governance is the
responsibility of the board of
directors. It is concerned with
how the corporation is managed, the rights and treatment
of shareholders, and operational
and financial transparency and
disclosure. At some point, however, this responsibility must
penetrate through the boardroom into the corporation.
Consider how the Organization
for Economic Cooperation and
Development (OECD) (www.
oecd.org) defines governance:
The system by which business
corporations are directed and
controlled. This system specifies the rights and responsibilities of participants and spells
out rules and procedures for
decision making. It provides
the structure for setting objectives and the means of attaining them and of monitoring
performance.
The participants here are not
only the corporate sharehold-
ers, but also management and

employees. Thus, governance
flows from the boardroom
to the organization via the
CEO.
Clause 4.1 General requirements requires that processes be identified that

affect operations, shareholder rights and treatment, and financial disclosure. Controls are defined
and implemented to achieve
these objectives.
Clause 5.1 Management

commitment is where policies, strategic objectives
and decisions are assigned
to appropriate officers.
Clause 5.2 Customer focus
is where the organization
defines its obligations to
customers, employees, and
shareholders. As this clause
applies to top management,
it is here that shareholder
procedures must be spelt
out.
Clause 5.3 Quality policy
aims at the specific policies to ensure the will of the
Board relative to strategic
and legal requirements.
How, exactly, is governance

implemented? Initially, each
corporation must define those
issues to be governed that follow the law and then implement them in a way that makes
sense for that particular organization or industry.
ISO 9001:2000 can be

implemented as a strategic
initiative
A framework is needed that

can be filled out according to
the unique needs of the business. ISO 9001:2000 provides
an excellent framework to
ensure corporate accountability in governance.
Clause 4.2 Documentation requirements identifies

information systems relevant to transparency and
disclosure, the contractual
requirements of interested parties, acceptance of
national and international standards, and relevant
statutory and regulatory
requirements.
Clause 5.4 Planning provides for the definition of

corporate strategic objectives, regulatory requirem e n t s, a n d c o n s i d e r s
changes in the law, competition, and other factors
in the operational environment.
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Clause 5.6 Management

review refers to the process
by which the Board ensures
that governance as implemented accords with governance as planned.
One by one, the Board goes
through the leadership requirements of ISO 9001:2000, using
each clause to stimulate the
conversation and define its
rules and procedures of governance. Nothing is overlooked
because the international
standard is comprehensive in
its scope. When the task is complete, the company has its own
unique, reliable and auditable
standard of governance.
Does this mean that the organization will then have two
standards, one for governance
and one for quality? Possibly.
It depends on its size and inclination. But it will have others
too environment, security,
and information, for example. To facilitate the Boards
review, it is important that all
standards have similar format.
ations: What is our mission?

Where are we going? What do
we need to get there?
Material requirements planning, forecasting, information
management, resource acquisition, and fiscal and inventory policies are issues of vital
concern to the Board because
they address the capacity to
fulfill the corporate mission,
as well as define the regulatory boundaries of business
activity.
The Board will not want to
know the details, but they will
want to be assured that implementations are in place, with
appropriate controls, to satisfy
compliance auditors. Clauses
6 and 7 of ISO 9001:2000 can
completely address corporate
asset utilization to whatever
degree the company desires:
Clause 6.1 Provision of

resource refers to the
resources necessary to meet
customer requirements and
the programmes needed to
support them. For example,
a material requirements
planning system, a bill of
materials file, and inventory policy are described
here. As this picture will
be dynamic, the status of
this clause will be part of
the management review of
Clause 5.6 and a metric indicating this status will be part
of a report to the Board.
Clause 6.3 Infrastructure
requires description of the
corporate facilities, hardware, software, services,
transport the entire physical structure required for
business enterprise. The
Board will be vitally inter-
Asset utilization
Asset utilization refers to
determining and implementing the appropriate capabilities to meet business needs.
This includes material, knowledge, skills, and infrastructure.
It concerns strategic sourcing, placement of processes,
and supporting equipment
and software. Asset utilization considers in-house capability, outsourcing, modernization technologies, and the
assignment of personnel and
development of skills. It begins
with a few strategic consider-
32 IMS March-April 2008
ISO 9001:2000 will support

them all: governance,
asset utilization,
operations management,
and a balanced
scorecard
ested in corporate infrastructure for reasons of

growth, real and unreal.
As an example, information
technology (IT) is an absolute requirement in the global economy, but has a sensitive cost-to-benefit ratio. It can
grow enormously unless closely watched. On the unreal side,
the Enron debacle revealed
false growth that attracted
government intervention and
penalties and destroyed the
companys stock.
Clause 7.4 Purchasing refers
to the dynamics of requisition, perhaps not of interest to the Board, but it also
requires verification of purchased product, an issue
that can cause great customer dissatisfaction when
the purchased parts are outsourced. It is difficult to
maintain quality control in
outsourcing, and if the customer is a large one, such as
the government, the Board
will hear about delivery of
unverified product when it
is faced with civil damages.
ISO 9004:2000 extends the
concerns of resource management with Clauses 6.5 Information and Clause 6.6 Suppliers
and partnerships. The governance structure can accommodate these issues under
ISO 9001:2000, Clause 6.1
and Clause 7.4, respectively,
or simply add them to Clauses 6.5 and 6.6.
The information factor is
vital to the Board because it
includes financial databases
that must comply with Sarbanes-Oxley requirements.
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The supplier factor should

be subject to Board approval because supplier arrangements can take many forms,
some of them quite intimate,
such as sole source, trusted
source, and partnership.
Operations management
Many corporations are structured to distinguish between
production and operations,
having a department for each.
Yet, they can be considered
the same thing and many graduate business schools treat
them as such because the
concept of operations management applies to productive systems systems of both
production and service.
ISO 9001:2000 provides

an excellent framework
to ensure corporate
accountability in governance
Clause 7 of ISO 9001:2000 is

entitled Product realization,
an unfortunate description in
my view, because the clause is
worded to apply to any productive system. In this article, we assume that the management of operations of any
corporation can be completely
described in Clause 7.
Clause 7.1 Planning of
product realization refers
to the transfer of planning from the strategic
(Clause 5.4) to the tactical,
for the necessary purpose
of achieving the corporate
mission. This includes the
development of processes
and the steps of verification

and validation that ensure
customer satisfaction. It
is in operations management that the expectations
of the customer and shareholder can be most closely
aligned.
Clause 7.2 Customer-related processes is called Processes related to interested parties in ISO 9004, and
describes the tactical-tostrategic interface from
operations to the Board.
This is, in effect, the implementation of policies and
general procedures concerning shareholders that
are defined in Clause 5.2.
Clause 7.5 Production and
service provision refers to
the implementation of the
plans described in Clause
7.1. As with other necessarily detailed requirements, a

concise picture of the state
of operations must be developed for presentation to the
Board.
The Board cannot and should
not be involved with the
organization at this level, but
it also cannot ignore the fundamentals of what the company does. Sarbanes-Oxley
makes this clear in Section
302, Corporate responsibility for financial reports, in
which executive officers are
required to fairly present
in all material respects the
financial condition and results
of operations of the issuer
(company).
A balanced scorecard
A balanced scorecard refers
to measuring the effectiveness of a company in translating strategy to achievement.
It b alances the effectiveness of corporate performance
in four critical areas: financial, customer, operations, and
improvement.
Clause 8 Measurement, analysis and improvement, is ideally suited for defining a
balanced scorecard for any
industry because of its depth
and breadth of application. It
is responsive to any measuring requirement, which suggests care in its use. An old
adage is appropriate here
Dont measure something just
because it is easy to measure. Keep the metrics few and
INTERNATIONAL
informative. George E. P. Box,

the renowned statistician, tells
us that parsimony is always
a good principle in measurement.
Clause 8.5.1 Continual

improvement is the repository of plans and implementations for, and the status
of, improving the corporation. The original concept
of the balanced scorecard
referred to improving by
learning, which remains an
important factor in business
success, but at the Board
level, there may be other
factors of interest as well.
For example, cost cutting,
efficiency, new technology,
value-adding, and regulatory compliance, are just
a few of the factors that at
one time or another may
be deemed by the Board to
require improvement.
In line with this idea, there

is a single index that can be
applied to each of the four
critical areas capability.
Suppose we have a process
that provides goods or services. There is a natural variation to its output because no
process is perfect. This variation is called the voice of the
process.
ISO 9001:2000 can be

an instrument by which
executive management
can build a governing
architecture
Similarly, and because no process is perfect, design engineers
will specify a limited variation
in process output that will still
be acceptable to the customer. This variation is called the
voice of the customer.
Capability is defined as the
ratio of the voice of the customer to the voice of the process. Expressed in standard
deviations of the process, this
index should always be greater
than unity. The index number
will vary from process to process depending upon characteristics; for example, an index
of 1.5 may be very good for
finance, yet difficult to achieve
in operations.
What is important is the progression of capability measurements over time in a given
area. This progression should
A governing architecture
be monotonically increasing if
the process is improving. If it
goes negative, the Board will
know there is a fundamental
problem in that area.
Clause 8.2.1 Customer satisfaction responds directly
to one of the critical areas of the balanced scorecard. Much thought should
be given to determine an
effective metric in customer satisfaction, and selection
depends upon the industry. For example, product
delivery time, or customer allegiance and growth,
or customer complaints
are just a few. Whichever
is selected (there may be
more than one), they should
be expressed in the form of
capability so as to present
a meaningful and concise
report to the Board.
Financial measurement can

be placed equally well in
Clause 8.2.3 Monitoring and
measurement of processes or
in Clause 8.2.4 Monitoring
and measurement of product. Financial reporting may
be more detailed and complex than a simple capability index because the Board
will understand it better and
will want more detail. Nevertheless, measures of capability in financial reporting
respond well to the requirements of Sarbanes-Oxley.
Clause 8.2.4 is well suited
to describe operations if the
critical characteristics of the
output of productive processes is monitored. Capability measurement has long
been a part of operations
and appropriate metrics
should be well known to
process owners.
In summary, ISO 9001:2000

can provide a comprehensive
framework for corporate strategy in which plans and policies
are established and maintained
indeed, it can be an instrument by which executive management can build a governing
architecture. However, to be
effective, any such framework
must include continual support of each factor during its
life cycle and continual executive oversight. As writer G. K.
Chesterton once said, If you
leave a thing alone, you leave
it to a torrent of change.
INTERNATIONAL
Asian Development BankHQ

reduces environmental
footprint through ISO 14001
The Asian Development Bank implemented an ISO 14001-certified
environmental management system to demonstrate corporate social
responsibility and good governance to its 67 member countries, and
reduce the environmental footprint of its headquarters building. In
just three years, it has fulfilled such objectives and saved over USD
250 000 in electricity, water, paper, and solid waste reduction.
The Asian Development Bank

(ADB), headquartered in
Manila, Philippines, is a multilateral development finance
institution owned by 67 members, 48 from the region and
19 from other parts of the
globe.
by Chatiya Nantham
Chatiya Nantham is Head of the
Facilities Planning and Management
Unit at the Asian Development Bank
headquartered in Metro Manila,
Philippines. The views expressed in
this article are those of the author
and do not necessarily reflect the
views and policies of the Asian
Development Bank, or its Board
of Governors, or the governments
they represent.
E-mail cnantham@adb.org
Web www.adb.org
Its mission is to help developing member countries reduce

poverty and improve their
quality of life. ADB provides
this support mainly through
loans, equity investments,
guarantees, grants, and technical assistance valued at
about USD 6 billion annually. The organization has
26 offices around the world
The ISO 14001-certified headquarters building complex of the Asian

Development Bank in Manila, Philippines, is an example of good
governance and corporate social
responsibility in action.
The Asian Development Bank

Headquarters Building
An Environment-Friendly and Safe Workplace
INTERNATIONAL
sumption of materials, water

and energy, resulting from
enhanced staff awareness.
It would also complement
our push for environmentally responsible procurement, and place the organization in a stronger position
to encourage its borrowers
to do likewise.
Implementation challenges
Implementation preparation of all procedures, systems, and documentation prior to the initial audit took
us six months, followed by
one month to get ready for
the final certification audit.
All used paper with print on both sides is shredded and sold to paper recyclers as part of ADBs ISO 14001-inspired reduction, reuse, and recycling schemes.
and employs some 2500 people from more than 50 countries at its headquarters (HQ)
building alone. The building
also accommodates about
2000 others who work full
time either as consultants or
service providers.
ADB is already
experiencing numerous
concrete benefits from
operating an EMS
When ADBs HQ was designed

in the early 1980s, it was considered a model of energy efficiency and g reen building
technology. Since its inauguration in 1991, ADB has continually strived to minimize the
environmental footprint of
the extensive 130000 square

metre facility.
In March 2003, ADB management decided to implement
ISO 14001:1996 and OHSAS
18001 as part of an integrated environmental, health, and
safety management system.
By November of that year,
ADB was successfully certified in conformity with both
standards. Procedures and
guidelines put in place aimed
at ensuring that activities in
the HQ building would have
minimum negative impact on
the environment, and maximum positive impact on staff
well-being.
Following is a brief account
of our ISO 14001 environmental management system
(EMS) implementation experiences resulting in savings
of some USD 250000, and significant improvements in our

environmental performance
in just three years from 2003
to 2006.
Why implement
an ISO 14001-certified
EMS?
We decided that ADB should
demonstrate its commitment
to corporate social responsibility, act as a role model in
good governance, and w alk
its talk by embarking on the
ISO 14001 implementation
and certification process.
ADB management recognized that EMS implementation, including technology
and process improvements,
would help generate substantial savings from reduced con-
Tr a n s l a t i n g t h e g e n e r i c
requirements of ISO 14001
to the ADB culture did not
present much of a challenge, since pollution prevention and resource conservation measures were already
foreseen when the HQ was
designed and constructed.
The major challenges were to
document procedures, develop guidelines, train staff and
service providers, and encourage them to embrace the ISO
14001 system of environmental management.
The Three Rs
To encourage employees to
minimize waste, we adapted
the famous T hree Rs of
reading, writing, and arithmetic to mean reduce, reuse,
and recycle.
To help reduce energy consumption, we intensified engineering measures such as
replacing incandescent bulbs
INTERNATIONAL
Areas for improvement
2003
2004
2005
2006
Electricity
Annual consumption
(MW hrs)
% Reduction/(increase)
16385.16 17823.93 17580.05 17097.83

(1.58)
(8.78)
Savings in USD
1.36
2.75
32678
64617
Water
Annual consumption
(m3)
185888
178560
157520
140648
(1.98)
3.94
11.78
10.71
4103
11782
9447
Savings in USD
Paper
Annual consumption
(kgs)
222556
187406
157083
15.79
16.18
Savings in USD
33329
28781
3251
8503
Volume of paper reused

(kgs)
Waste
Cumulative solid waste
generation (kgs)
607260
565930
493580
6.80
12.78
Savings in USD
17518
17668
16322
14365
Total for year in USD
17518
21771
94111
117210
Total 2003-2006
in USD
250610
Table 1 Reductions in electricity, water and paper consumption,

and solid waste generation at ADB HQ, 2003-2006, as a result of
ISO 14001-based EMS measures.
with compact fluorescent

lamps, optimizing air-conditioning operation through a
Six Sigma programme, and
improved building automation system best practices,
coupled with energy con servation campaigns to all
ADB staff.
We a l s o i m p l e m e n t e d a
number of initiatives to
reduce air pollution and
greenhouse gas emissions
due to electricity use. These
included creating a modest
carbon sink for greenhouse
gases and enhancing ambient
air quality, by installing welllandscaped grounds, roof gardens, and a large number of
indoor plants. In addition,
we operate a plant nursery
to propagate seedlings cultivated in compost derived
from collected garden waste
(i.e. re-use/recycling of garden trimmings as compost
material).
During World Environment
Day in June 2006, ADB donated 500 tree seedlings to reforest the watershed area of the
local La Mesa Dam, which
provides drinking water to
Metro Manila.
Integrating and
maintaining ISO 14001
ISO 14001 was integrated
successfully with our other management systems and
processes as part of continual improvement, and in line
with our mission of quality
service excellence. Additional
best practices are developed
through Six Sigma projects
and statistical process con-
trol. Improvement and control measures are documented for audit and captured
under ADBs ISO 14001-based
EMS.
We maintain the effectiveness of the EMS in several
ways. ISO 14001 management,
working group and division
representative committees
were formed and these meet
monthly or quarterly as necessary to fulfil requirements
arising from our annual work
programmes and internal
audits.
Benefits of ISO 14001

certification
ADB is already experiencing
numerous concrete benefits
from implementing an EMS.
Fundamental to its success
was the general acceptability
of the ISO 14001 programme
throughout the HQ organization, to the extent that it
has become institutionalized
within the business process
and work place safety. We saw
a clear change in the mind-set
of ADB staff and service contractors in supporting ADB
HQ operations, in the light of
its improved environmental
footprint.
H o w e v e r, t h e m o s t o b v i o u s e f f e c t o f A D B s I S O
14001-based resource conservation programme has been
its contribution to sustainability. Notably, ADB saved
over USD 2500 00 through
electricity, water, paper, and
solid waste reduction at its
HQ from 2003 to 2006 (see
Table 1).
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Key savings
Electricity consumption
was reduced by over 4% ,
despite an increase in the
number of people using the
facilities.
Water consumption dropped
by 26.4%, with savings
e x c e e d i n g U S D 2 5 0 0 0
since 2004, despite sharp
increases in water prices.
Water quality is maintained
As a model of energy efficiency

and green building, ADB
maintains well-landscaped
grounds, roof gardens, and a
large number of indoor plants.
field office has also recently

recertified under ISO 14001
and OHSAS 18001, and other
resident offices are targeted
for EMS implementation initially through resource conservation programmes.
papers, wood pallets, plastic wrappers, and bottles

are sold to accredited recyclers.
through carbon filtration

and chlorination, and regular analysis.
Paper use decreased by
about 15% in 2005 and
2006, saving over USD
620 00.
Paper consumption per
employee fell from 40 reams
per head in 2001 to 27 reams
in 2006, a 33% improvement in paper use reduction.
Solid waste generation has
been reduced by about 12%
since 2004; scrap material
such as used boxes, news-
Hazardous waste generation oil, paint cans, etc.

was reduced by 60% from
2004 to 2005.
Future plans and

objectives
Following ADB HQs threeyear recertification in October 2006, we are rolling out
EMS guidelines for implementation in field offices.
Our India Resident Mission
ISO 14001 was integrated

successfully with our other
management systems
We a l s o p l a n t o i n c o r p o rate greenhouse gas (GHG)

inventory, monitoring, and
audit in the ISO 14001 system, formulate GHG reduction targets, increase the use
of renewable energy such as
solar panels, and tie up with
power generating companies
that generate electricity from
hydropower and geothermal
sources.
An excellent platform
Undoubtedly, ISO 14001:2004
and OHSAS 18001 implementation has significantly enhanced environmental
awareness and occupational
safety at ADB. At the same
time, it has demonstrated
ADBs good governance and
corporate social responsibility in action and not just
words.
ISO 14001 provides

an excellent platform from
which to engage in climate
change initiatives
ADB has reduced its environmental footprint, and plays
the leadership role among
developing member countries through its environmental and safety programmes.
ISO 14001 provides an excellent platform from which to
e n g a g e i n c l i mate change
initiatives such as renewable energy and reduction of
greenhouse gas emissions.

KATS develops standards for

30 Korean service sectors
With the service sector accounting for approximately 57%
of Koreas gross domestic product, the Korean Agency for
Technology and Standards (KATS) has put a major effort
into developing consumer-oriented service standards.
by Keun-Sung Yook
and Eun-Hee Kim
Dr. Keun-Sung Yook is Deputy

Director, Culture and Service Standards
Division, of the Korean Agency for
Technology and Standards (KATS)
E-mail yooksung@kats.go.kr
Ms. Eun Hee Kim is International

Coordinator, Standard Promotion &
Innovation Division, KATS.
E-mail mimpisy@kats.go.kr
With service industries accounting for 57 % of the Republic of Koreas national gross
domestic product and 66 % of
its work force, their economic
importance is increasing rapidly. Innovative standards are
therefore necessary to protect
consumers and make servicerelated businesses more competitive.
improve their quality or safety, that is to say, something one

could see or touch items such
as refrigerators, televisions and
washing machines. The concept
of applying standards to something intangible such as services
was new and innovative. For this
reason, KATS decided to focus
on industries that impacted on
the daily lives of Koreans.
In response to the lack of

national standards for service,
the Korean Agency for Technology and Standards (KATS
www.kats.go.kr), the national
standards body and ISO member for Korea, established a
Service Standards Division in
September 2000 and revised the
Industrial Standardization Act
in 2001. In addition, a national
technical committee was established to review and develop
new standards.
The first three industries to

be marked for standardization
were used motor vehicle sales,
funeral services and commercial
motorcycle carriages, as they
were the areas which were the
subject of numerous customer complaints lodged with the
Korea Consumer Agency.
Such efforts became the platform for launching standardization in the service sector.
However, much work remained.
The most important priority
was how to raise public awareness of the need for service
standards.
Up to then, the public regarded standards as something that
applied only to products to
Used motor vehicle sales

service
In Korea, about two million used
motor vehicles are sold each
year for an annual revenue of
USD 16 billion, and the market
continues to grow. In response
to numerous complaints and the
ever-increasing need to protect
consumers, a committee was created in 2003 with participation
from academia, industry associations, the Fair Trade Commission and the Korea Consumer
Agency.
This comm i t t e e
established
standards
KS A 0955 and KS A 0956 in
April 2004 to ensure credibility, reliability and transparency
between service providers and
customers.
KS A 0955 stipulates procedures that businesses must carry out when selling used motor
vehicles, and procedures for
complaints handling. It also
specifies what kind of information sellers must provide
and requires both parties to
conclude a contract providing
detailed terms of each transaction.
In addition, the service provider
must disclose details related to
a vehicles performance (such
as the distance it can cover in a
given time), its record of accidents and repairs, and whether the seller can guarantee the
quality of its parts.
KS A 0956 deals with quality management, the qualifications of employees, and facilities required. The latter includes
product exhibition hall, performance check area, information
database, and a designated room
for business transactions.
About KATS
The Korean Agency for Technology and Standards (KATS www.kats.go.kr) is the
representative institute in charge of national standards in the Republic of Korea.
KATSs missions are developing standards, managing the legal metrology system
and product safety, establishing the national accreditation system, and promoting
technical development.
Funeral services
The (legal) metrology system, under the Measures Act, ensures credibility and
reliability of measurement for consumer protection and public benefits.
Traditionally, Korean funerals

were held in the deceased persons home. For the last decade,
however, the funeral service
industry has grown by 10-20%
annually followed by urbanization and the shift to a nuclear
family structure.
Placing emphasis on protecting consumers from hazard and dangers, KATS is

strengthening the product safety management system and is encouraging manufacturers (of consumer products and electrical appliances) to voluntarily comply with
the safety standards.
With a view to fulfilling the goal of product tested once and accepted everywhere, KATS runs KOLAS (Korea Laboratory Accreditation Scheme) independently of
testing, calibration laboratories and inspection bodies.
KATS actively participates in international standardization activities, which helps
Korean enterprises build competitiveness in the global market by way of involving.
As the population is aging rapidly and the proportion of people aged 65 and over is expected to reach 15% by 2020, there
is a much greater need for
standards in the funeral service
industry than ever before.
It is difficult to prepare for the

death of a family member in
advance, and the rest of a family often have trouble in making thoughtful decisions once
a death has occurred. Until
the Korean Industrial Standards (KS), KS A0962 and KS
A0961, were introduced, this
left them vulnerable to the risk
of being exploited when most
vulnerable.
KS A0962 ensures that the
bereaved families are provided
proper guidance on funeral procedures and facilities, and that
the remains of the deceased
are cared for in a sanitary and
respectful manner. This standard requires that service providers and clients agree on all
the details ahead of time in the
form of a contract, thus reducing the possibility of disputes
and complaints.
KS A0961 ensures clear and
accurate communication
between funeral service providers and clients. It defines
Under the WTO Agreement on Technical Barriers to Trade, KATS operates the Enquiry
Point for industrial products in Korea.
Developing state-of-the-art technology and standards, KATS is doing its utmost to
assure safety and quality of life, and also to increase trade and industry competitiveness.
approximately 60 terms on
funeral service procedures,
items and facilities. These standardized terms have been widely adopted in the industry, as
well as in the relevant legislation in 2007.
Commercial motorcycle
carriage service
Commercial motorcycle carr i a g e s e r v i c e, a l s o c a l l e d
express delivery service,
emerged in the 1990s. It provided the convenience of doorto-door service and made delivery swifter even in heavy traffic.
It was not long before express
delivery became one of the
most frequently used services that affects the daily lives
of Koreans.
However, in the early stage,
there were considerable problems including
loss and breakage of parcels,
delayed delivery and delivery to the
wrong address.
There was also
a high risk
of accidents
occuring, which threatened

the safety of drivers. Eventually,
the industry identified needs for
clear legal and systematic criteria that would ensure a high
level of service.
In response to the above concerns, KS A0925 was introduced in 2002. It requires adequate training for employees
as well as the use of authorized safety equipment, specifies suitable packaging materials and prescribes appropriate
methods of locking storage
compartments and handling
parcels.
Call centers
KATS has been the driving
force in standardization for
the service sector, not only to
protect consumers but
also to make
industry more
c o m p e t i t i v e.
K AT S h a s
remarkably
succeeded in
its aims and
the development of KS
A0976 for the
fast-growing call centre industry is an excellent example.

The domestic call center market surpassed the USD 10
billion mark in 2007 and call
centers provide service to an
increasing number of businesses, government agencies and
other organizations. Accordi n g l y, t h e Ko r e a C o n t a c t
Center Association (KCCA)
encouraged standardization
on call center service and
developed two standards in
collaboration with KATS.
KS A 0976-1 addresses the level of service call centers must
provide, while KS A 0976-2
specifies the kind of training required for staff and the
qualifications required for
trainers.
Other service sectors

In addition to the four service sectors mentioned above,
KATS has established 85 Korean Standards for 30 other service sectors since 2001. These
include domestic travel, facility management, management
consulting, exhibitions, and
child care.
KATS is continually working
to improve the level of service in Korea. In order to help
the public distinguish between
good and not-so-good service
providers, and to determine
how effectively the Korean
Industrial Standards have been
implemented, KATS plans to
introduce a certification system for the service sector in
the second half of 2008.
Initially, it will focus on call
centers and facility management, but the certification
system may be applied more
broadly to include other areas
depending on the market forces and consumer demand.
NEXT ISSUE
SPECIAL REPORT
Survey of ISO 22000
certifications
worldwide
Food safety
management systems
Overview of
the ISO 22000 series
The publication on 1 September 2005 of ISO 22000
launched ISOs series of
standards for food safety
management systems. This
article provides an overview of the standards in the
series and how they can be
put to use.
Users experience of
ISO 22000:2005
ISO 22000:2005, which gives
the requirements for a food
safety management system,
has been implemented by
many different actors in
food supply chains and is
on its way to becoming the
first globally recognized
standard for food safety.
Th i s a r t i c l e r e p o r t s o n
users experience, both positive and negative.
An informal survey of ISO

22000 certifications permits
an analysis of the breadth of
food businesses using the
standard, the number of countries where certificates have
been issued and the level of
activity of certification bodies.
ISO 22000 case

studies
Kraft
Kraft Foods, one of the worlds
largest food and beverage
companies, with over 40
brands that are more than 100
years old, is turning to ISO
22000.Krafts comprehensive
internal quality and food safety management systems are
organized in conformity with
ISO 9001:2000, and Kraft
manufacturing sites are certified to the standard, but ISO
22000 is considered more
appropriate for communications with external stakeholders up and down the total food
production chain. The article
explains Krafts views, experiences with ISO 22000 so far,
and the companys plans for
moving forward.
Danone
The Danone Group is one of
the world leaders in the food
sector. The groups Corporate
Food Safety Director is interviewed on its ISO 22000 programme.
Arla
With a head office in Denmark, Arla Foods exports to
some 100 countries. This article presents the role played by
ISO 22000 in its farm to fork
approach to food safety, the
challenges encountered in
implementing the standards,
the benefits and future plans.
VanDrie
This article reports on the ISO
22000 experiences of the
Dutch-owned VanDrie Group
which is the world market
leader in veal, with more than

95 % of its output exported.
Magro
The leading food manufacturer in Malta, Magro Brothers (Foods) Ltd., reports on
its reasons for deciding to
implement ISO 22000, the
main stages in the implementation programme, and the
challenges and benefits experienced.

Norway
Standards Norway
and the Norwegian
Directorate for
Health and Social
Affairs are developing a standardized labelling system for accessible
tourist destinations
in order to benefit
the physically challented, visually and hearing impaired
and people with asthma or
allerges.
The old Bryggen Hanseatic wharf in

Bergen, Norway, is included on UNESCOs
list of world heritage of history and
culture, and is one of the most famous
Norwegian tourist destinations.

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Vol. 8, No.

ISO Management Systems

When Results Count. ISO Standards.

ISO 9001 and corporate

ISO Management Systems, www.iso.org/ims

This is strictly off the record

ts a paradox that, considering the amount of paper journalists

TS 29001 adds sector-specific requirements to

The changing average age and loss of experienced workers in

The year 2000 edition addressed this criticism by emphasizing

only go on for so long. There comes a point

ISO Management Systems March-April 2008 1

ISO Management Systems, www.iso.org/ims

The confluence of small business, succession and sustainability

IMS 2-2008 E.indd 1

Lynn Johannson, a Canadian expert representing the interests of SMEs in

ISO, March-April 2008

Quality for the oil and gas sector

Integrated use of management system standards All ISO

China powerhouse embraces ISO 14001 certification

ISO 9001:2000 an instrument for corporate governance

STANDARDS FOR SERVICES

KATS develops standards for 30 Korean service sectors

ISO Management Systems March-April 2008 3

ISO Management Systems, www.iso.org/ims

it. Between now and the half

Even with varying levels of

Lynn Johannson is a Canadian

Note that as this issue is unfolding so is our concern about

that succession will pose specific to small business and to

There is an opportunity for

Canada case study

ISO Management Systems March-April 2008 5

ISO Management Systems, www.iso.org/ims

ness, generational succession,

So what? Leaders, whether

6 ISO Management Systems March-April 2008

Figure 1 Profile of employer business by numbers of employees

banks and insurers (client

means 48000 small businesses

government (tax base);

overall economic growth;

Is this just a transitional issue

other small business experts

ISO Management Systems, www.iso.org/ims

in core business decisions is

This is a key determinant of

ISO has a product in the form

centres on certification. While

ISO has shown some initial

Why? While hard for those

The point is to not continue

Three things the ISO community can do to improve

Figure 2 Why SMEs do not have succession plans

Too early to plan for succession

No time to deal with the issue

Cant find adequate advice/tools to start

3. Ensure that any future

Dont want to think about leaving

2. Change how meetings for

ISO Management Systems March-April 2008 7

ISO Management Systems, www.iso.org/ims

Quality for oil and gas sector

by Ken Peurifoy and