13.. B: Sharon, how certain are you that this new design wi Bol uality pro eliminate some of these SHARON: m absolutely positive. The early prototypes did exactly as we expected The results of those tests are included in the proposal Right. Reducing the variable eost ss per unit and the fixed costs by $100,000 duces break even ble ll change the report to reflect a alone make the project via The above scenario illustrates positive recommendation behavior. Although only the importance of further classifying quality costs by possible and could unit-based behavior is assumed, activity-based classification is also the enhance the decision usefulness of quality costs. The new product was importance of identifying and reporting quality costs designed to reduce osts assigned could and quality costs, and only by knowing the quality sis Terry have in the break-even na being aware of the the effect management has red to avoid quality costs and their new product's design was struc many of the existing quality problems Certifying Quality Through ISO 9ooo Just as a company assesses the quality of its suppliers, that same company may supply other companies that require vendor certification of quality. ISO (pronounced ICE-oH) 9000 isa family of international quality standards developed by the International Organi zation for Standardization in Geneva, Switzerland, that address quality management. These standards center on the concept of documentation and control of nonconformance and change, ISO 9000 has been a success in Europe, and U.S. companies doing business were the first to board the ISO 9000 bandwagon, simply because it is a require- in Europe ment of doing business. A program called ISO 9001:2008 has evolved in response to the need for a standardized set of procedures for supplier quality verification that attain ISO 9000 certification have been audited by an independent Compa test company, which certifies that the company meets certain quality standards. The standards on which certification is currently based are ISO 9001:2008 standards. The deal with quality systems and specifically with quality assur- so 9001:2008 standards ance models relating to systems that are concerned with such design development, production installation, final inspection, and testing. Many companies are certified based on 9001:2000 standards, which are essentially the same as those of 008. The 2008 update is mostly concerned with clarification the 2000 production important understand that these standards do not apply to the of a particular product or they apply to the way a record service. Instead keeping res quality, for example, by testing products, training employees, and fixing defects. not certify either the quality of the product Thus, ISO 9001.2008 certification does As a result, com self or the commitment of the company to continuous improvement. not stop auditing Panies that require Iso 9001 certification (like Motorola or GE do suppliers. Requiring is just step. applying for Iso on the plus side, many companies have found that the many while (t or more larger important of rformance. example, knowledge and improved financial pe and pictures at workstations throughout omce placards esactly that all workers are following company po formance qual Similarly, Bradley's Twinsburg plant has improved quality and